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Question 1: As part of the risk management process, you have just created an overall risk

ranking of the project and a list of prioritized identified risks which need additional
analysis and determined trends in risk analysis results. What should you do next?

1. Analyze the effect of identified risks on overall project objectives

Justification
Tasks like creating an overall risk ranking of the project, which includes a list of prioritized
risks, identifying which risks need additional analysis and determining trends in risk
analysis results are done as part of Perform Qualitative Risk Analysis (PMBOK Guide - Sixth
Edition, pages 419-421). So, the next step is to Perform Quantitative Risk Analysis (i.e.
numerically analyze the effect of identified risks on overall project objectives) -
PMBOKGuide - Sixth Edition, page 428. Please note that options 2 and 3 are refer to outputs
from Identify Risks process which has already been completed and option 4 is done as part
of Plan Risk Responses process - PMBOK Guide - Sixth Edition, pages 409 and 437.

Reference: PMstudy.com comments


Question 2: You are considering whether to buy or make a software product. If you want
to buy, the cost is $80,000, and the cost of procuring and integrating the product in your
company is $1,000. If you want to build it yourself, the product will require seven
engineers working for three months. The salary of each software engineer is $4,000 per
month. The other related miscellaneous costs allocated to the project are $2,000. Which
option will you choose?

1. Buy

Justification

If you buy, the cost is: $80,000 + $1,000 = $81,000. If you build, the cost is: $4,000 x 7 x 3 +
$2,000 = $86,000. So, it is preferable to buy.

Reference: PMstudy Notes


Question 3: A contract obligates the seller to provide the specified product and obligates
the buyer to pay for it. In this context, which of the following is a mandatory feature of a
contract?

1. Mutually binding

Justification
A contract is a mutually binding agreement that obligates the seller to provide the specified
product, or service or product and obligates the buyer to pay for it.

Reference: PMBOK Guide - Sixth Edition, page 461


Question 4: A project manager has to manage conflict in an organization. Which of the
following could be the source of least conflict in an organization?

2. Low position in the organization hierarchy

Justification
A low position in the organization could be the source of least conflict. Please note that
option 1 (Weak matrix structure with multiple managers to report to), option 3 (Roles that
are not well defined) and option 4 (Work pressure and high stress) increase conflict in an
organization.

Reference: PMstudy.com commentsow position in the organization hierarchy


Question 5: Stakeholder analysis is used to systematically gather and analyze quantitative
and qualitative information on stakeholders' level of interest in the project. In this
technique:

1. Stakeholders are identified based on degree of interest

Justification
Stakeholder analysis is a technique of systematically gathering and analyzing quantitative
and qualitative information to determine whose interests should be taken into account
throughout the project. It identifies the interests, expectations, and influence of the
stakeholders and relates them to the purpose of the project.

Reference: PMBOK Guide Sixth Edition, page 512


Question 6: In your project, you are determining project roles, responsibilities, and
reporting relationships. Which of the following is not an input to this process?

4. Project organization charts

Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources. Inputs to this process are Project schedule,
requirements documentation, enterprise environmental factors, and organizational
process assets etc. However, project organization charts are an output.

Reference: PMBOK Guide - Sixth Edition, page 312


Question 7: In your organization, 3 sigma quality processes have been implemented. This
means that there is a _____% probability that any result will fall within the 3 sigmas range.

2. 99.7

Justification
A standard normal distribution, which shows standard deviation (or sigma) as distance of
the measurement from the mean (target) value:

Reference: PMstudy comments


Question 8: Due to a shift in company objectives, your project is expected to terminate
before completion. Team members are scared and disappointed as they learn they will be
out of a project. As the project manager, what should you do in this situation?

3. Delegate to HR for post project staff assignment.

Justification
The team is concerned with not having a project to work on due to their current project
terminating early. This is not a project-specific issue and should therefore not be handled
by the project manager. It is an organizational issue which is best handled by the Human
Resources department who may be able to better address each individual's situation and
reassign project team members to other projects.

Reference: PMstudy Comments


Question 9: Since the buyer could not meet the requirements of the contract, you (the
seller) want to terminate the contract early. This is done in the:

2. Control Procurements process

Justification

Control Procurements is the process of managing procurement relationships; monitoring


contract performance, and making changes and corrections as appropriate; and closing out
contracts. The key benefit of this process is that it ensures that both the seller’s and buyer’s
performance meet the project’s requirements according to the terms of the legal
agreement. This process is performed throughout the project as needed.

Reference: PMBOK® Guide - Sixth Edition, page 492


Question 10: Our company has developed a software product to analyse 'big data' From
Multiple Sources. While performing beta testing with a small sample of users, you notice
that the product has defects because of the following reasons:

- Non-compatibility with the operating system (20%)


- Bugs in the software (22%)
- Difficulty in understanding instruction manuals (20%)
- Non-availability of desired features (15%)
- Others (23%)

Which of the following techniques is best suited to illustrate the causes of these problems?

4. Histogram

Justification
Histograms show a graphical representation of numerical data. Histograms can show the
number of defects per deliverable, a ranking of the cause of defects, the number of times
each process is noncompliant, or other representations of project or product defects.

Reference: PMBOK Guide - Sixth Edition, page 293.

PMstudy.com comments:

Option 1: Flowchart is not used to rank order defects

Option 2: Quality Checklist is not a tool; it is an output of Plan Quality process.

Option 3: Scatter Diagram shows shows the relationship between two variables.

Option 4: If all causes are equally important, then histogram should be used.
Question 11: The studio you are working for has assigned you as the project manager for a
movie project where the producer left midway due to health issues. As a project manager,
you are responsible for meeting the project schedule deadlines. If there is a delay in the
project schedule, you should:

2. Fast track or crash the project, and let the management know the impact of this
action.

Justification

Schedule compression shortens the project schedule without changing the project scope to
meet schedule constraints, imposed dates, or other schedule objectives. Schedule
compression techniques include Crashing and Fast tracking.

Reference: PMBOK Guide - Sixth Edition, page 215.

PMstudy.com comments: If a project is getting delayed, it is appropriate to find out whether


the schedule can be decreased by fast tracking or crashing. The implications of these
techniques (e.g., increase in risk / costs) should be conveyed to the management for
approval.
Question 12: You are working as a portfolio manager. Which of the following are you
responsible for managing?

3. Projects, programs, and operations

Justification
A portfolio is a collection of projects, programs, subsidiary portfolios, and operations
managed as a group to achieve strategic objectives.

Reference: PMBOK Guide - Sixth Edition, table 1-2: Comparative Overview of Portfolios,
Programs, and Projects, page 13
Question 13: As a project manager, you realize the importance of team development for
resource management. Which of the following is NOT a tool for the Develop Team process?

2. Pre-assignment

Justification
Pre-assignment refers to the project team members selected in advance and is one of the
tools and techniques used for the Acquire Team process.

Reference: PMBOK Guide - Sixth Edition, page 336


Question 14: You are the project manager in a software company. In your project, you
want to ensure that all the operational departments in your organization (e.g. information
integrity, data architecture group, server group, etc.) clearly visualize their project
responsibilities. Which one of the following helps you achieve this objective?

1. Organizational breakdown structure

Justification

The organizational breakdown structure (OBS) is arranged according to an organization`s


existing departments, units, or teams with the project activities or work packages listed
under each department. An operational department such as information technology or
purchasing can see all of its project responsibilities by looking at its portion of the OBS.

Reference: PMBOK Guide - Sixth Edition, page 316


Question 15: Which of the following is a data representation tool used in the Plan Quality
Management process?

3. Mind-mapping

Justification

Refer figure 8-3 in the PMBOK ® Guide Sixth Edition.

Reference: PMBOK® Guide - Sixth Edition, page 277 (figure 8-3).


Question 16: Make or buy analysis does not consider which of the following techniques to
decide whether to include something as part of the project or purchase it externally.?

4. Reserve analysis

Justification
Make-or-buy analysis may use payback period, return on investment (ROI), internal rate of
return (IRR), discounted cash flow, net present value (NPV), benefit/cost analysis (BCA), or
other techniques in order to decide whether to include something as part of the project or
purchase it externally.

Reference: PMBOK Guide - Sixth Edition, page 473.


Question 17: You are a project manager and you wish to distribute important Source
selection criteria that have accumulated since the beginning of the project to all the
vendors. In this context, which of the following are possible criteria?

A. Capability and capacity

B. Delivery dates

C. Financial stability of the firm

D. Technical expertise and approach

2. All of the Above

Justification

Please refer PMBOK Guide - Sixth Edition, page 478

Reference: PMBOK Guide - Sixth Edition, page 478


Question 18: In your project, you create a document to record the code of account
identifier, description of work, responsible organization, and schedule milestones. This
document can be referred to as:

2. WBS dictionary

Justification
Information in the WBS dictionary may include, but is not limited to, code of account
identifier, description of work, assumptions and constraints, responsible organization,
schedule milestones, associated schedule activities, resources required, cost estimates,
quality requirements, acceptance criteria, technical references, and agreement information.

Reference: PMBOK Guide - 6th Edition, page 162


Question 19: The responsibility of stakeholder expectations management usually lies with
the:

2. Project manager

Justification
The project manager is responsible for engaging and managing the various stakeholders in
a project.

Reference: PMBOK Guide Sixth Edition, page 523-524


Question 20: During the Identify Stakeholders process, the project manager identifies all
people or organizations impacted by the project, and documents relevant information
regarding their interests, involvement, and impact on project success. Once identified, a
plan needs to be created to keep stakeholders engaged throughout the project. In this
context, which of the following statements is incorrect about stakeholder management?

3. All critical stakeholders should be engaged at the same time

Justification

It is critical for project success to identify the stakeholders early in the project, and to
analyze their levels of interest, expectations, importance and influence. A management
strategy can then be developed for engaging stakeholders and determining appropriate
levels and timing of involvement to maximize positive influences and mitigate potential
negative impacts. Stakeholders should therefore be engaged at the appropriate time, not
necessarily at the same time.

Reference: PMstudy.com comments


Question 21: As a project manager, you are aware that changes are bound to occur during
projects. While monitoring and controlling change on your projects, you use the term scope
creep. What does the term refer to?

1. Uncontrolled expansion to product or project scope without adjustments to time,


cost, and resources

Justification

Uncontrolled expansion to product or project scope without adjustments to time, cost, and
resources is referred to as scope creep.

Reference: PMBOK Guide Sixth Edition, glossary, page 722.


Question 22: You are the project manager in an aircraft manufacturing company
developing a new range of supersonic fighter planes. Since government approval and
involvement are essential, you hire a lobbying firm to get government support to prevent
unnecessary changes in your project. Which process is this an example of?

1. Perform Integrated Change Control

Justification

The Perform Integrated Change Control process includes influencing the factors that
circumvent integrated change control so that only approved changes are implemented.

Reference: PMstudy.com comments

Option 2 (Risk Management) and option 3(Cost Management Plan) are not processes.
Option 4 (Develop Project Management Plan) is not valid because here we do not deal with
factors that can cause changes.
Question 23: In your project, you recently observed conflict among team members. You
would like to see that all team members work towards one goal (i.e., successful completion
of the project). A conflict handling method that emphasizes similarities rather than
differences as means to solve a problem can also be referred to as:

1. Smoothing

Justification

There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:
• Withdraw/Avoid: Retreating from an actual or potential conflict situation; postponing the
issue to be better prepared or to be resolved by others.
• Smooth/Accommodate: Emphasizing areas of agreement rather than areas of difference;
conceding one's position to the needs of others to maintain harmony and relationships.

• Compromise/Reconcile: Searching for solutions that bring some degree of satisfaction to


all parties in order to temporarily or partially resolve the conflict.

• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.

• Collaborate/Problem Solve Incorporating multiple viewpoints and insights from differing


perspectives; requires a cooperative attitude and open dialogue that typically leads to
consensus and commitment.

Reference: PMBOK Guide - Sixth Edition, page 349


Question 24: The process of identifying the project needs that can be met by acquiring
products outside the project organization is done as part of:

4. Plan Procurement Management

Justification
The key benefit of the Plan Procurement Management process is that it determines
whether to acquire outside support, and if so, what to acquire, how to acquire it, how much
is needed, and when to acquire it.

Reference: PMBOK Guide - Sixth Edition, page 466


Question 25: You are in the process of of defining how to estimate, acquire, manage, and
use team and physical resources. You will be doing as part of:

4. Plan Resource Management

Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources.

Reference: PMBOK® Guide - Sixth Edition, Page 312


Question 26: You are the project manager of a construction company. You know that the
builders start painting the walls 30 days after they start installing the drywall. This waiting
time can also be referred to as:

4. Lag

Justification
A lag is the amount of time a successor activity will be delayed with respect to a
predecessor activity.

Reference: PMBOK Guide - Sixth Edition, page 193.

PMstudy.com comments: Waiting time is also referred to as lag


Question 27: You are taking over a project that is currently in the planning stage. The
previous project manager worked with the team to finalize the process of defining
activities, and you joined the team at the end of this process. The next process requires the
determination and documentation of the relationships among project activities. Of the
following, which is a tool and technique used in this process?

2. Dependency Determination and Integration

Justification

The process being described is Sequence Activities. Dependency Determination is a


tool/technique for the Sequence Activities process. None of the other options are tools or
techniques for this process.

Reference: PMBOK Guide - Sixth Edition, page 174 (figure 6-1).


Question 28: In the Plan Quality process, you are using benchmarking as a tool to facilitate
quality planning. In this context, which of the following statements about benchmarking is
inaccurate?

2. Uses only information from within the performing organization

Justification
Benchmarking involves comparing actual or planned project practices or the project’s
quality standards to those of comparable projects to identify best practices, generate ideas
for improvement, and provide a basis for measuring performance. Benchmarked projects
may exist within the performing organization or outside of it, or can be within the same
application area or other application area.

Reference: PMBOK Guide - Sixth Edition, page 281.


Question 29: In your previous project, the project manager gave a lot of autonomy to the
team members, which led to anarchy. The management style followed by the project
manager was:

2. Laissez faire

Justification

The project manager usually follows different leadership styles as listed below:

• Autocratic: Makes decisions himself/herself; allows team members little involvement


and discussion before a decision is made.
• Directing: Instruct people what tasks will be performed and when and how they should
be performed.

• Laissez Faire: Does not interfere; team is left unsupervised which may lead to anarchy.
• Democratic: Allows team to discuss issues and reach decisions, although still guides and
advises.

• Delegating: Delegates to team members, particularly if competent to handle tasks.

• Coaching: Issues instructions and then supports and monitors.

• Discussing: Two-way communication and discussion with team members.

• Facilitating: Coordinates inputs from several sources before making a decision.


• Supportive: Provides positive assistance and encouragement; maintains and presents a
positive outlook during times of uncertainty; listens and encourages.

• Participatory: Involve others; same as Democratic style.

• Task-Oriented: Enforces task completion by deadlines.

• Team-Based: Emphasizes teamwork and working well together.

• Assertive: Confronts issues and displays confidence; establishes authority with respect.

Reference: PMstudy.com study notes


Question 30: The value of work actually accomplished is also known as:

2. Earned Value

Justification

Refer table 7-1, PMBOK Guide.

Also, please refer to PMBOK Guide - Sixth Edition, page 267 (figure 7-1).
Question 31: In your company, payback period is primarily used as the decision criterion
for project selection. Payback period is the:

1. Number of years a company takes to get back the invested amount

Justification: Payback Period

• Number of years required for an organization to recapture an initial investment.

• Discount rate is not taken into account in calculations for payback period.

• Project Selection Criterion: Select a project with lower payback period.

Example: There are two projects. Project A has an investment of $500,000 and a payback
period of 3 years. Project B has an investment of $300,000 and a payback period of 5 years.
Using the payback period criterion, which project will you select?

Answer: Project A will be selected. The fact that project B has a smaller investment than
project A will not impact the selection.

Reference: PMstudy.com study notes


Question 32: Which of the following aspects of a project is NOT the responsibility of a
project manager?

4. Ensure integrity of project team members

Justification
A project manager is in charge of all aspects of the project including, but not limited to
developing the project management plan and all related component plans, keeping the
project on track in terms of schedule and budget, identifying, monitoring, and responding
to risk, and providing accurate and timely reporting of project metrics.
Although the project manager is responsible for the integrity of the overall project, she is
not responsible for the integrity of individual team members.

Reference: PMstudy.com comments


Question 33: The project team has successfully delivered the final component of a year
long project on-budget and ahead of schedule. You, as the project manager, have been
offered a promotion due to this great success. The final product has been transitioned into
production and post-implementation support requirements have been completed. As part
of project closure, what would be done NEXT?

1. Create project closure documents

Justification

Project closure documents would be completed next, before the project team is released,
and before other Organizational Process Assets are updated.

Option 2: Releasing project team members should be one of the last activities in the Close
Project or Phase process. You may need them to help with the closure activities.
Option 3: Project closure documents are part of Organizational Process Assets updates.
However, in the given scenario, the most appropriate answer is to create the closure
documents first and then update Organizational Process Assets.

Option 4: Validate Scope is conducted prior to Close Project or Phase process.

Reference: PMstudy.com comment


Question 34: Your current project has very limited information on activity durations. You
wish to use the actual duration of a previous, similar activity as a basis for estimating the
current activity duration. Once you have estimated the durations for the activities on the
project, what would be your next step?

2. Calculate early and late start and finish dates for the unfinished project activities.

Justification

If you are working on a project, which has very limited information, then when estimating
the durations you should use the actual duration of previous, similar projects as the basis
for estimating the duration of the current project. This is done as part of Estimate Activity
Durations. Once we estimate the duration of the project, we should calculate the early and
late start and finish dates.
Estimate Activity Durations process will be followed by Develop Schedule process, wherein
one of the tools and techniques used is schedule network analysis (which employs various
analytical techniques to calculate early and late start and finish dates for the uncompleted
portion of project activities). The correct answer is option 2.
Please note option 1 refers to Define Activities process which has been performed earlier.
Option 3 refers to Control Schedule process which is done during Monitoring and
Controlling process. Option 4 refers to Create WBS process which has been done earlier.

Reference: PMstudy.com comments


Question 35: In a fixed price contract, the buyer decides to increase the scope of work to
make the product better. In this case, which of the following can the buyer NOT do?

4. Cancel the existing contract and start a new contract

Justification
Cancellation of the contract has to be done by both the seller and the buyer (i.e., the buyer
cannot unilaterally cancel the contract).

Reference: PMstudy.com study notes


Question 36: You are reaching project completion, and want to understand whether your
project was successful. In this context, for a project to be successful, what is the primary
requirement?

1. Customer satisfaction

Justification
Project: Success is measured by product and project quality, timeliness, budget compliance,
and degree of customer satisfaction.

Reference: PMBOK Guide Sixth Edition, page 13, table 1-2.


PMstudy.com comments: Customer satisfaction is the primary criterion for measuring the
project success. Although meeting customer expectations is necessary, exceeding customer
expectations, cost, and schedule estimates are not primary requirements for a successful
project - at times, this may even be gold plating. Please note that while in a few cases the
customer and sponsor may be the same person, they are by definition two different groups.
Question 37: Five tasks have to be completed one after another in your project. The
Contract with your Sponsor contains very strict penalties for delays. The schedule reveals
that the project has a negative float of three months, which of the following task(s) should
be crashed to bring the project on schedule? Please refer to the table given below:

Original Duration Crash Savings


Task Original Cost Crash Cost
(months) (months)
M 5 1 $1,600 $1,700
N 6 2 $1,800 $1,900
O 7 1 $2,000 $2,050
P 8 1 $3,000 $3,200
Q 13 3 $2,500 $2,650

3. Either Task Q or Task N and Task O together

Justification
Please refer to the table given below showing additional expenses that will be incurred
when each task is crashed:
Original Duration Crash Savings Additional
Task Original Cost Crash Cost
(months) (months) Expenses
M 5 1 $1,600 $1,700 $100
N 6 2 $1,800 $1,900 $100
O 7 1 $2,000 $2,050 $50
P 8 1 $3,000 $3,200 $200
Q 13 3 $2,500 $2,650 $150

The maximum savings is available in:


Crashing Task N, Task O: $ 150
Crashing Task Q: $ 150
You have two options from which you can choose.

Reference: PMstudy.com comments


Question 38: During the Validate Scope process, you formalize acceptance of the project
deliverables and keep the project focused on the business need for which it was
undertaken. This should be done:

4. After getting verified deliverables from the Control Quality process

Justification
Verified deliverables are project deliverables that are completed and checked for
correctness through the Control Quality process.

Reference: PMBOK Guide - Sixth Edition, page 165.


PMstudy.com comments: Validate Scope is the process of formalizing acceptance of the
completed project deliverables. This should be done after getting individual deliverables
from the Control Quality process. Verified deliverables are an input to the Validate Scope
process.
Question 39: Based on past estimates, there is a 25% probability for a particular event to
occur every year. If a project lasts for three years, what is the probability of the event
happening in the third year?

3. 25%

Justification
The probability of the event happening every year is 25%. So, the probability of the event
happening in the third year is also 25%.

Reference: PMstudy.com comments


Question 40: In your project, you are estimating schedule activity costs. You decide to use
the bottom-up estimating technique. In this context, which of the following statements
about Bottom-up Estimates is incorrect?

1. Determines the cost of individual scope requirements in the scope statement

Justification
Bottom-up estimating is a method of estimating a component of work. The cost of
individual work packages or activities is estimated to the greatest level of specified detail.
The detailed cost is then summarized or "rolled up" to higher levels for subsequent
reporting and tracking purposes.

Reference: PMBOK Guide - Sixth Edition, page 244.

PMstudy.com comments: Scope requirements are not used for bottom-up estimating
Question 41: Almost all projects are planned and implemented in a social, economic, or
environmental context, and have intended and unintended positive or negative impacts. In
this context, which of the following statements about Enterprise Environmental Factors is
NOT true?

1. Neither promote nor hold back the project management processes

Justification: Enterprise environmental factors may enhance or constrain project


management options, and may have a positive or negative influence on the outcome.

Reference: PMBOK® Guide - Sixth Edition, page 38


Question 42: You are in the process of creating a risk management plan for your project.
This plan will describe how risk management will be structured and performed on the
project. Your risk management plan may include:

4. Risk strategy, Funding, and risk categories

Justification
The risk management plan may include some or all of the following: risk strategy,
methodology, roles and responsibilities, funding, timing, risk categories, stakeholder risk
appetite, definitions of risk probabiliyt and impacts, probability and impact matrix,
reporting formats, and tracking.

Reference: PMBOK Guide - Sixth Edition, pages 405 to 408

PMstudy.com comments:

Option 1: This is done during the Plan Risk Responses process

Option 2: This is done during the Monitor Risks process

Option 3: This is done during the Identify Risks process


Question 43: You are managing a project. Your company has set a pre-defined budget for
you to work with. In this context, a pre-defined budget is considered as a:

3. Constraint

Justification
Constraints: A limiting factor that affects the execution of a project or process. Constraints
identified with the project scope statement list and describe the specific internal or
external restrictions or limitations associated with the project scope that affects the
execution of the project, for example, a predefined budget or any imposed dates or
schedule milestones that are issued by the customer or performing organization.

Reference: PMstudy.com comments.


Question 44: You are managing the tools/spare parts section for an aircraft manufacturing
company. Your team members have discovered some defective tools/spare parts. The
probable cause for these could be materials used, defective measurement systems,
inaccurate tolerances in the machines, or other factors. To determine what caused the
defect, you will:

2. Draw an Ishikawa diagram

Justification

Ishikawa or fishbone diagrams (also called cause and effect diagrams) illustrate how
various factors might be linked to potential problems or effects (please refer to figure 8-9
on PMBOK Guide - Sixth Edition, page 294).

Reference: PMBOK Guide - Sixth Edition, page 294.


Question 45: __________________________ is a resource optimization technique in which free
and total float are used without affecting the critical path.

1. Resource smoothing

Justification
Resource smoothing is a resource optimization technique in which free and total float are
used without affecting the critical path.

Reference: PMBOK Guide - Sixth Edition, page 720.


Question 46: A flow chart is a diagram, which shows how various elements of a system
relate and includes tools like "cause and effect diagrams" and "flowcharting". As a project
manager, you find" cause and effect diagrams" a useful tool for:

4. Illustrating how various factors might be linked to potential problems or effects

Justification
Cause-and-effect diagrams are also known as fishbone diagrams, why-why diagrams, or
Ishikawa diagrams. This type of diagram breaks down the causes of the problem statement
identified into discrete branches, helping to identify the main or root cause of the problem.
Figure 8-9 is an example of a cause-and-effect diagram.

Reference: PMBOK Guide - Sixth Edition, page 293.

PMstudy.com comments:
Option 1: This refers to scatter diagrams, which shows the relationship between two
variables
Option 2: This refers to Design of Experiment (DOE), which identifies which factors may
influence specific variables of a product or process under development or in production.

Option 3: This refers to Control Charts, which are used to determine whether or not a
process is stable or has predictable performance.
Question 47: Which of the following data analysis techniques can be used in the Plan
Quality Management process?

1. Cost of quality

Refer figure 8-3 in the PMBOK® Guide Sixth Edition

Reference: PMBOK® Guide - Sixth Edition, page 277 (figure 8-3).


Question 48: You have contracted some work to a vendor, and would like to identify
successes and failures that warrant recognition in the preparation or administration of
other procurement contracts within the performing organization. This can be performed
through:

1. Audits

Justification

An audit is a structured review of the procurement process originating from the Plan
Procurement Management process through Control Procurements. The objective of a
procurement audit is to identify successes and failures that warrant recognition in the
preparation or administration of other procurement contracts on the project, or on other
projects within the performing organization.

Reference: PMBOK Guide - Sixth Edition, page 498


Question 49: You are responsible for the development and launch of a NASA satellite. Your
role is that of a:

3. Program Manager

Justification
A program is a group of related projects, subsidiary programs, and program activities that
are managed in a coordinated manner to obtain benefits not available from managing them
individually.

Reference: PMBOK Guide - Sixth Edition, Table 1-2, Comparative Overview of Portfolios,
Programs, and Projects, page 13

PMstudy.com comments: Developing and launching a NASA satellite will generally involve
multiple projects and hence, it is a program.
Question 50: You would like to obtain information, quotations, bids, offers, or proposals
from sellers as part of the Conduct Procurements process. In this process, which of the
following is the most critical?

2. Ensure that prospective sellers clearly understand the technical and contract
requirements.

Justification

Bidder conferences (sometimes called contractor conferences, vendor conferences, and


pre-bid conferences) are meetings between the buyer and all prospective sellers prior to
submittal of a bid or proposal. They are used to ensure that all prospective sellers have a
clear and common understanding of the procurement (both technical and contractual
requirements), and that no bidders receive preferential treatment.

Reference: PMBOK Guide - Sixth Edition, page 487

PMstudy.com comments:

Option 1: This refers to a make-or-buy analysis, which is performed during the Plan
Procurement management process

Option 2: This is the correct answer.


Option 3: This refers to procurement negotiations, which are performed during the
Conduct Procurements process. This succeeds the activity specified in option 2.

Option 4: This refers to independent estimates, a technique used in the Conduct


Procurements process.
Question 51: You are annoyed with your team members because of their constant
disagreements. You ask them to stop arguing and do the work the way in which you want it
to be done. The conflict handling approach you are following is:

2. Forcing

Justification

There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:

• Withdraw/Avoid: Retreating from an actual or potential conflict situation; postponing the


issue to be better prepared or to be resolved by others.
• Smooth/Accommodate: Emphasizing areas of agreement rather than areas of difference;
conceding one's position to the needs of others to maintain harmony and relationships.
• Compromise/Reconcile: Searching for solutions that bring some degree of satisfaction to
all parties in order to temporarily or partially resolve the conflict.

• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.

• Collaborate/Problem Solve Incorporating multiple viewpoints and insights from differing


perspectives; requires a cooperative attitude and open dialogue that typically leads to
consensus and commitment.

Reference: PMBOK Guide - Sixth Edition, page 349


Question 52: In your project, you are monitoring communications throughout the entire
project life cycle to ensure the information needs of the project stakeholders are met. The
information typically provides status and progress information on the project at the level of
detail required by the various stakeholders. This is done through:

2. Monitor Communications process

Monitor Communications is the process of ensuring the information needs of the project
and its stakeholders are met. Monitor Communications determines if the planned
communications artifacts and activities have had the desired effect of increasing or
maintaining stakeholders´ support for the project´s deliverables and expected outcomes.
The impact and consequences of project communications should be carefully evaluated and
monitored to ensure that the right message with the right content (the same meaning for
sender and receiver) is delivered to the right audience, through the right channel, and at
the right time.

Reference: PMBOK® Guide - Sixth Edition, pages 388 and 389.


Question 53: Which of the following is NOT a cost of non-conformance?

3. Equipment

Justification

Refer figure 8-5 in the PMBOK Guide.

Reference: PMBOK Guide - Sixth Edition, page 283.


Question 54: Which of the following is NOT a characteristic of a project life cycle?

2. Ability of the stakeholders to influence final characteristics of the project`s


product increases as the project progresses.

Justification
Stakeholders` ability to influence the final characteristics of the project`s product, without
significantly impacting cost, is highest at the start of the project and decreases as the
project progresses towards completion.

Reference: PMstudy.com comments


Question 55: As a project manager, you are using the configuration management system to
centrally manage approved changes and baselines within the project. Which of the
following is NOT a configuration management activity?

4. Produce product status account

Justification
Configuration management activities are identified configuration item, record and report
configuration item status, and perform configuration item verification and audit.

Reference: PMBOK Guide - 6th Edition, page 118


Question 56: You are preparing a document using business case, benefits management
plan, agreements, agreements, enterprise environmental factors, and organizational
process assets. These are valid inputs for:

3. Develop Project Charter

Justification
Project statement of work, business case, agreements, enterprise environmental factors,
and organizational process assets are inputs for the Develop Project Charter process.

Reference: PMBOK® Guide - Sixth Edition, page 75, figure 4-2


Question 57: The CEO of ABC bank is concerned about the increase in "call answering
time" in the bank`s call center (i.e., customers have to wait longer for their calls to be
answered by an operator). She wants to improve call center processes to decrease the "call
answering time." What should the CEO do to address the situation?

4. Continue with a functional organizational structure, and try to streamline


activities

Justification

This is an operation and not a project (projects are temporary and unique, but call center
activities are ongoing and repetitive).

In this context, the CEO should not try to handle this issue as a project and do none of the
activities mentioned in option 1, option 2, or option 3.
Since this is an operation, option 4 provides the best course of action for the CEO to address
this situation, i.e., continue with a functional organizational structure (which is
recommended for managing operations) and try to streamline activities.

Reference: PMstudy.com comments


Question 58: Graphical representations of situations showing causal influences, time
ordering of events, and other relationships among variables and outcomes are also referred
to as:

3. Influence diagrams

Justification
Influence diagrams are graphical representations of situations showing causal influences,
time ordering of events, and other relationships among variables and outcomes.

Reference: PMBOK® Guide - Sixth Edition, page 436


Question 59: You have recently assumed charge of a project from another project
manager. You want to know what kind of information you should provide to different
stakeholders and what methods to adopt for this purpose. You will find this information in
the:

1. Communications management plan

Justification

The communications management plan provides stakeholder communication


requirements, information that needs to be communicated, including language, format,
content, level of detail, methods or technologies used to convey the information, such as
memos, e-mail, and/or press releases, etc.

Reference: PMBOK Guide - Sixth Edition, page 377


Question 60: You are working in the Project Management Office (PMO) of your
organization. You provide a consultative role to projects by supplying templates, lessons
from previous projects etc. In this context, you are part of which type of PMO?

1. Supportive

There are several types of PMOs in organizations. Each type varies in the degree of control
and influence it has on projects within the organization, such as supportive, directive and
controlling.

Reference: PMBOK® Guide - Sixth Edition, page 48


Question 61: Which of the following is referred to as ''pure logic diagrams''?

1. Activity-on-node diagrams

Justification

Project schedule network diagrams are commonly presented in the activity-on-node


diagram format showing activities and relationships without a time scale, sometimes
referred to as a pure logic diagram, or presented in a time-scaled schedule network
diagram format that is sometimes called a logic bar chart.

Reference: PMBOK Guide - Sixth Edition, page 218.


Question 62: Which of the following is a purpose of the resource management plan?

4. It provides guidance to the project manager on categorizing and managing project


resources.

The resource management plan is the component of the project management plan that
provides guidance on how project resources should be categorized, allocated, managed,
and released. It may be divided between the team management plan and physical resource
management plan according to the specifics of the project.

Reference: PMBOK Guide - Sixth Edition, page 318.


Question 63: Which of the following statements about the project management team and
the project team is inaccurate?

3. The project management team is not directly involved in managing the project.

Justification
PMstudy Notes: Project Management Team - The members of the project team who are
directly involved in project management activities.
Question 64: You are the project manager of a project which involves off-shore oil
exploration. Since you cannot plan for all eventualities, you establish a contingency reserve,
including amounts of time, money, or resources to handle the risks. This is an example of:

3. Active risk acceptance

Justification
The most common active acceptance strategy is to establish a contingency reserve,
including amounts of time, money, or resources to handle the risks.

Reference: PMBOK Guide - Sixth Edition, page 443


Question 65: As the project manager for a large, complex project, you have been getting
complaints from your team, including some of the management team, about all the time
being spent on planning. You know that by spending time following the appropriate
planning processes, you can prevent many problems during execution. This will save time
in the later stages of the project. One of the primary complaints you are hearing is related
to the time it takes to create the Work Breakdown Structure (WBS). You are explaining the
importance of the WBS to your project team members. Which of the following statements
about the WBS is incorrect?

2. Planned work contained in the lowest level WBS components are called WBS
dictionaries.

Justification

The planned work is contained within the lowest level of WBS components, which are
called work packages. A work package can be used to group the activities where work is
scheduled and estimated, monitored, and controlled.

Reference: PMBOK Guide - Sixth Edition, page 157.


Question 66: In your project, you are performing several actions to execute the project
management plan and to complete the work defined in the project scope statement. You
will be involved in:

4. Collecting information about the completion status of the deliverables and other
relevant details about project performance.

Justification

Option 4: Examples of work performance data include work completed, key performance
indicators (KPIs), technical performance measures, actual start and finish dates of schedule
activities, story points completed, deliverables status, schedule progress, number of change
requests, number of defects, actual costs incurred, actual durations, etc.

Reference: PMBOK Guide 6th Edition, page 95

PMstudy.com comments:

Option 1: This is done as part of the Monitor and Control Project Work process, and not
during the project execution phase.
Option 2: This is done as part of Close Procurements process, which is part of the project
closure activities.
Option 3: The project charter formally authorizes the project. This document is created in
the initiating stage before project execution
Question 67: In which document will you find the code of account identifier, description of
work, responsible organization, and schedule milestones?

2. WBS Dictionary

Justification
Information in the WBS dictionary may include, but is not limited to: code of account
identifier, description of work, assumptions and constraints, responsible organization,
schedule milestones, associated schedule activities, resources required, cost estimates,
quality requirements, acceptance criteria, technical references, and agreement information.

Reference: PMBOK® Guide - Sixth Edition, page 162


Question 68: You are managing a Wind Energy Project. You have created the Network
Schedule Diagram given below (all units are in days):

What is the project float if management wants to complete this project within 13 days?

2. - 3 days

Justification

The possible paths are as follows:

Start→ Task 1→ Task 2→ Task 4→ End: 10 Days

Start→ Task 3→ Task 5→ Task 7→ End: 15 Days

Start→ Task 6→ Task 7→ End: 15 Days

Start→ Task 1→ Task 2→ Task 3→ Task 5→ Task 7→ End: 16 Days

The Duration on the critical path is 16 days.

If the project has to be completed within 13 days, the project float is - 3 days (i.e., 13 - 16)
A project may have a negative project float. To deal with such conditions, and if the project
has to be completed on time, the project manager will have to either fast-track or crash the
project schedule.

Reference: PMstudy.com comments


Question 69: In your project, you are estimating schedule activity costs by determining the
unit cost rates, e.g., staff costs per hour. In this context, which of the following cannot be
used to determine resource cost rates?

1. Statistical relationship between historical data and other variables

Justification
Parametric estimating uses a statistical relationship between historical data and other
variables. Parametric estimating uses unit cost rates in calculations, but doesn´t determine
those rates.

Reference: PMBOK® Guide - Sixth Edition, page 244.

PMstudy.com comments: All the other options are valid ways to determine unit cost rates.
Question 70: In your project, while decomposing the project work into more manageable
components, you are aware of the problem of excessive decomposition. Which of the
following is NOT the consequence of excessive decomposition?

4. Better knowledge of activity sequences

Justification
Excessive decomposition can lead to non-productive management effort, inefficient use of
resources, decreased efficiency in performing the work, and difficulty aggregating data
over different levels of the WBS.

Reference: PMBOK Guide - Sixth Edition, page 160.

PMstudy.com comments: WBS decomposition does not provide any knowledge of activity
sequencing.
Question 71: The project manager has created the project schedule. In this context, which
of the following activities would the project manager NOT use schedule control for?

3. Determining planned start and finish dates for project activities

Justification
Option 3 is an activity performed as part of the Develop Schedule process. The remaining
options are activities that are performed as part of the Control Schedule process.

Reference: PMBOK Guide - Sixth Edition, page 174 (figure 6-1)


Question 72: In the project, the sponsor has provided a budget of $20 million. This is an
example of a/an:

1. Constraint

Justification
Constraint is a limiting factor that affects the execution of a project or process. Constraints
identified with the project scope statement list and describe the specific internal or
external restrictions or limitations associated with the project scope that affect the
execution of the project, for example, a predefined budget or any imposed dates or
schedule milestones that are issued by the customer or performing organization.

Reference: PMstudy.com comments


Question 73: You are taking over a project during the planning stage. You have managed to
identify five tasks to be completed during the project. Please refer to the table given below:

What is the length of the critical path in months?

1. 12

Justification

The tasks are shown as a network diagram below.

The lengths of different paths are:

Start→ 1→ 2→ End: 10 Months

Start→ 3→ 5→ End: 11 Months

Start→ 4→ 5→ End: 12 Months

Since the longest path is Start→ 4→ 5→ End; this is the critical path. Length of the critical
path is 12 months.

Reference: PMstudy.com comments


Question 74: Which of the following exhibits greatest resistance to change?

3. People

Justification

People exhibit greatest resistance to change.

Reference: PMstudy.com comments


Question 75: As a project manager, you are concerned with determining which risks may
affect the project. What is the process by which such risks are determined?

2. Identify Risks

Justification
Identify Risks is the process of determining which risks may affect the project and
documenting their characteristics.

Reference: PMBOK Guide - Sixth Edition, page 409


Question 76: Project Risk Management includes all the processes concerned with
conducting risk management planning, identification, analysis, response planning, and
monitoring risk on a project. In this context, which of the following statements about risk is
not accurate?

4. Risk have a negative impact on the project objective.

Justification

The objectives of Project Risk Management are to increase the likelihood and impact of
positive events, and decrease the likelihood and impact of negative events in the project.

Reference: PMBOK Guide - Sixth Edition, page 395


Question 77: Which cost estimating technique costs the least and saves the most time?

3. Analogous estimating

Justification

Analogous cost estimating is generally less costly and time consuming than other
techniques, but it is also generally less accurate.

Reference: PMBOK Guide - Sixth Edition, page 200.


Question 78: Which of the following processes establishes the approach and level of
management effort needed for managing project resources?

3. Plan Resource Management

Justification
Plan Resource Management is the process of defining how to estimate, acquire, manage,
and use team and physical resources. The key benefit of this process is that it establishes
the approach and level of management effort needed for managing project resources based
on the type and complexity of the project. This process is performed once or at predefined
points in the project.

Reference: PMBOK Guide - Sixth Edition, page 312


Question 79: As a project manager during the Develop Schedule process, you are now
deliberating on the type of schedule presentations you are going to use. The difference
between a milestone chart and a bar chart is that unlike bar charts, milestone charts:

3. Identify the scheduled start or completion of major deliverables only and not all
the tasks

Justification

Milestone charts are similar to bar charts, but they only identify the scheduled start or
completion of major deliverables and key external interfaces.

Reference: PMBOK Guide - Sixth Edition, page 218.

PMstudy.com comments: Usually, milestone charts are used for presentations to senior
management but bar charts are used for presentations to middle and junior management.
Question 80: You are developing Project Management Plan for your project, which of the
following should you NOT include as a component of the Project Management Plan?

4. Quality register

Justification
Project management plan elements that may be updated include, but are not limited to:
scope management plan, requirements management plan, schedule management plan, cost
management plan, quality management plan, scope baseline, schedule baseline, cost
baseline, etc. Additional components: Configuration management plan, development
approach, etc.

Reference: PMBOK®Guide Sixth Edition, pages 87 and 88.


Question 81: You are managing the release of a new drug in the market. You have been
assigned to lead the team to achieve the objectives of the project. In this context, your role
is that of a:

2. Project Manager, because you are creating a unique product within specific time
schedules

The role of a project manager is distinct from that of a functional manager or operations
manager. Typically, the functional manager focuses on providing management oversight
for a functional or business unit. Operations managers are responsible for ensuring that
business operations are efficient. The project manager is the person assigned by the
performing organization to lead the team that is responsible for achieving the project
objectives.

Reference: PMBOK® Guide - Sixth Edition, page 52


Question 82: The Scope Management Plan is an important component of the Project
Management Plan since it provides direction on how the project scope will be managed
throughout the project life cycle. The Scope Management Plan documents:

2. How project scope will be defined, developed, controlled, and verified

Justification
The Scope Management Plan describes how the scope will be defined, developed,
monitored, controlled, and verified.

Reference: PMBOK Guide - Sixth Edition, page 87.


Question 83: Which of the following is NOT a characteristic of a project?

4. Ongoing and repetitive

Justification

A project is a temporary endeavor undertaken to create a unique product, service, or result.


The temporary nature of projects indicates that a project has a definite beginning and end.

Reference: PMBOK® Guide - Sixth Edition, pages 4 and 5


Question 84: While identifying stakeholders, you plan to group project stakeholders based
on their level of authority and their active involvement in the project. You can do this by
using:

2. Power/Influence grid

Justification

There are multiple classification models used for stakeholders’ analysis, such as:

• Power/interest grid, grouping the stakeholders based on their level of authority (power)
and their level of concern (interest) regarding the project outcomes;
• Power/influence grid, grouping the stakeholders based on their level of authority
(power) and their active involvement (influence) in the project;

• Influence/impact grid, grouping the stakeholders based on their active involvement


(influence) in the project and their ability to effect changes to the project´s planning or
execution (impact);

• Salience model, describing classes of stakeholders based on their power (ability to


impose their will), urgency (need for immediate attention), and legitimacy (their
involvement is appropriate).

Reference: PMBOK® Guide Sixth Edition, page 512


Question 85: While managing a project, you decide to create a prototype of your product
first to ensure that it is acceptable to stakeholders before creating your product. This is an
example of:

1. Risk mitigation

Justification
Mitigation may require prototype development to reduce the risk of scaling up from a
bench-scale model of a process or product.

Reference: PMBOK Guide - Sixth Edition, page 443


Question 86: You are the project manager for a project where your team must travel to the
work site by foot. The walk is 100 miles, and is the first task on the project schedule. The
total amount budgeted for this task is $4,000. If the team is scheduled to walk 20 miles per
day, they should reach the work site at the end of day 5. At the end of the second day, you
realize the team has only traveled 30 miles, and you have spent $2,000. Based on this, what
is the SPI for your project, and the projected TCPI.

2. 0.75, 1.4

Justification

Given:

BAC = $4,000

AC = $2,000

PV = $1,600 ($4,000 / 5 days = $800 / day x 2 days = $1,600)

EV = $1,200 ($4,000 / 100 = $40 / mile; 30 miles x $40 / mile)

SPI = EV/PV = $1,200 / $1,600 = 0.75 (or 30 miles / 40 miles = 0.75)

TCPI = (BAC - EV) / (BAC - AC) = ($4,000-$1,200) / ($4,000-2,000) = $2,800 / $2,000 = 1.4

Reference: PMstudy.com comments


Question 87: As a project manager, you want to have an appropriate recognition and
rewards system to encourage better performance and reinforce desired behavior. Which of
the following statements on recognition and rewards system is incorrect?

3. Recognition for team members who work extra hours on the weekends.

Justification
Part of the team development process involves recognizing and rewarding desirable
behavior. A good strategy for project managers is to give the team recognition throughout
the life cycle of the project rather than waiting until the project is completed.

Reference: PMBOK Guide - Sixth Edition, page 341 and 342


Question 88: As a project manager, you are responsible for managing changes to the
project scope. If, at the end of the project, a customer wants a major change in the scope of
work, you should:

4. Let the customer know about the impact of the change

Justification
If there is a major change to the project, the project manager should try to influence the
change to minimize the impact on the project. Usually the project manager is advised to do
the following:

1. Evaluate the impact of the change within the team.

2. Help the customer (or person requesting the change) understand the impact of the
change.

3. If changes are in fact required, then open a change control and get the request approved.
Obviously, you will have to inform the management and the change control board about the
impact of the changes.

4. If the change control board approves changes, then make appropriate changes in the
project plan.

Reference: PMstudy.com study notes


Question 89: In your project, while doing scope verification of the product, the customer
points out that a particular work component performed by a team member is not as per
specification. You review the project WBS and confirm that the customer is correct. What
would be your NEXT step?

4. Review the requirement and talk with the team member who implemented the
requirement

Justification

The best option is to first review the requirement, contained in the project WBS, with the
particular team member who has implemented the requirement. Either the team member
has not done the work properly or there might have been lack of clarity in defining the
requirement in the WBS.
Option 1: This should be done only after the requirement has been evaluated with the team
member.

Option 2: There is no need to call a meeting of all team members. Discuss the matter with
the team member who has actually implemented the requirement.

Option 3: It is premature to escalate the issue to the project sponsor. First, you should
evaluate why it went wrong.

Reference: PMstudy.com comments


Question 90: As a project manager, you estimate that, in your project, there is:

50% probability of earning $40,000 profit

50% probability of incurring $25,000 loss

What is the expected value for the project considering profit and loss possibilities?

3. $7,500

Justification

Expected Profit = Sum of (Probability X Profit) (for each alternative)


= (0.50 x $40,000) + (0.50 x - $25,000)

= $20,000 - $12,500

= $7,500

Reference: PMstudy.com comments


Question 91: You have reached the end of the design phase of your project. You decide to
call a "phase end review" for obtaining authorization to close the design phase and initiate
the next phase (i.e., execution phase) of your project. In this context, you should review
which of the following documents:

4. All of the above

Justification

A phase gate, is held at the end of a phase. The project's performance and progress are
compared to project and business documents including but not limited to: Project business
case, Project charter, Project management plan, and Benefits management plan

Reference: PMBOK® Guide - Sixth Edition, page 21


Question 92: Which of the following is the most widely used contract type?

4. Firm fixed price contracts

Justification

The most commonly used contract type is the Firm Fixed Price Contract (FFP).

Reference: PMBOK Guide - Sixth Edition, page 471


Question 93: You are managing a critical project with virtual teams located in eight
countries. At times, team members find it difficult to understand and interpret what others
are communicating via tele-conferencing. From a communication management point of
view, this difficulty in transmitting and understanding messages can also be referred to as:

2. Noise

Justification

The transmission of message may be compromised by various factors (e.g., distance,


unfamiliar technology, inadequate infrastructure, cultural difference, and lack of
background information). These factors are collectively termed as noise.

Reference: PMBOK Guide - Sixth Edition, pages 371-373


Question 94: In which of the following cases is a contract NOT legally binding?

4. The contract violates the law of the land.

Justification

A contract is a legal relationship subject to remedy in the courts. A contract containing


provisions that violate the law of the land is not enforceable in the courts of law.
Reference: PMstudy.com comments
Question 95: Your company CEO wants to set up a Project Management Office (PMO) in
the company. You have been assigned the responsibility to define the scope of work for the
PMO. In this context, which of the following is NOT the function of a PMO?

4. Define specific strategic objectives

Justification
The primary function of a PMO is to support project managers in a variety of ways, which
may include, but are not limited to: managing shared resources across all projects
administered by the PMO and coordinating communication across projects.
Portfolio Management refers to the centralized management of one or more portfolios to
achieve strategic objectives.

Reference: PMBOK Guide - Sixth Edition, page 49


PMstudy.com comments: Option 4 refers to an activity that would be a part of Portfolio
Management.
Question 96: In your project, you actively manage stakeholders’ engagement in order to
meet their needs and expectations. Doing this is very beneficial, however, it may not help
to:

3. Ensure stakeholders` awareness of all project details

Justification
Manage Stakeholder Engagement involves communicating and working with project
stakeholders to meet their needs and expectations. Actively managing the expectations and
engagement of stakeholders should increase the likelihood of project acceptance and
support, and should also minimize stakeholder resistance. This process also involves
negotiating and influencing stakeholders in favor of achieving the project goals. Addressing
concerns that have not yet become issues and anticipating future problems is useful for
managing project risks. Doing all this however, does not ensure that stakeholders are fully
aware when they should be, and in fact, it is not always desirable for stakeholders to be
aware of ALL project details.

Option 3 (i.e., Ensure stakeholders` awareness of all project details) is not recommended.
The project manager should try to manage information, so that only appropriate and
relevant information reaches the appropriate stakeholders.

Reference: PMstudy.com comments


Question 97: Identify Stakeholders is the process of identifying all people or organizations
impacted by the project and to document:

1. Stakeholder interests, involvement, and impact on project success

Justification
Option 1: This is the correct answer. Project stakeholders are persons or organizations
such as customers, sponsors, the performing organization, and the public who are actively
involved in the project, or impacted by it.
Option 2: Manage Stakeholder Engagement is the process to communicate and work with
stakeholders to meet their needs and address issues as they occur.

Option 3: Collect Requirements is the process where project requirements are gathered
and documented.

Option 4: Plan Communications Management is the process which is used to determine the
project stakeholder information needs and to define a communication approach.

Reference: PMstudy.com comments


Question 98: As a project manager, in approximating costs, you consider the possible
causes of variation of the cost estimates, including risks. For your project, which is in the
initiation phase, your team has suggested a rough order of magnitude estimate. This could
be in the range of:

2. -25% to +75%

Justification

A project in the initiation phase may have a rough order of magnitude (ROM) estimate in
the range of -25% to +75%

Reference: PMBOK Guide - Sixth Edition, page 241.


Question 99: In your project, your subcontracting requirements of the machining of high-
value equipment are very demanding. Hence, you have determined the technical criteria to
evaluate the sellers. This is an example of:

2. Source selection criteria

Justification
Selection criteria are developed and used to rate or score seller proposals, and can be
objective or subjective.

Reference: PMBOK Guide - Sixth Edition, page 478


Question 100: Which of the following statements on quality and grade is incorrect?

2. A high grade but low quality product is always a problem to customers.

Justification

Quality and grade are not the same concepts. Quality as a delivered performance or result
is the degree to which a set of inherent characteristics fulfill requirements (ISO 9000 [18].).
Grade as a design intent is a category assigned to deliverables having the same functional
use but different technical characteristics. The project manager and the project
management team are responsible for managing the trade-offs associated with delivering
the required levels of both quality and grade. While a quality level that fails to meet quality-
requirements is always a problem, a low-grade product may not be a problem.

Reference: PMBOK® Guide - Sixth Edition, page 273.


Question 101: You have completed the process of developing options and actions to
enhance opportunities and to reduce threats to project objectives. What is your NEXT step?

2. Implement risk response plans.

Justification
Plan Risk Responses is the process of developing options and actions to enhance
opportunities and to reduce threats to project objectives.

Implement Risk Responses is the process of implementing agreed-upon risk response


plans.

The other options take place prior to the Plan Risk Responses process:

Option 1: This refers to the Identify Risks process.

Option 3: This refers to the Plan Risk Management process.

Option 4: This refers to the Perform Qualitative Risk Analysis process.

Reference: PMBOK Guide - Sixth Edition, page 449


PMstudy.com comments: Please note that the Implement Risk Responses process should
follow the Plan Risk Responses process. So, option 2 is the correct answer.
Question 102: You are the project manager in a pharmaceutical company and you are
involved in managing stakeholders' engagement to satisfy their needs and addressing any
issues as they are identified. In this context, which of the following is NOT a relevant
output?

4. Stakeholder Management Plan

Justification

The Stakeholder Management Plan is created as part of the Plan Stakeholder Management
process. The other options are all outputs of the Manage Stakeholder Engagement process,
which is the process being described.

Reference: PMstudy.com comments


Question 103: In your project, you are in the process of defining how to estimate, acquire,
manage, and use team and physical resources. Which of the following would you NOT
define/create at the end of this process?

1. Project staff assignments

Justification
Project team assignments are an output from the "Acquire Team" process and not the Plan
Resource Management process.

Reference: PMBOK Guide - Sixth Edition, pages 257 (figure 9-1), 308 and 312
Question 104: You are given the following four projects. Which project will you select?

4. Project D with NPV of $100,000

Justification

If Project B and project C are selected the company would suffer losses. Project A is not
selected, because opportunity cost is not a project selection criterion. Project D is the only
suitable option, because this project has a positive NPV and hence could be selected.

Net Present Value (NPV) = (Present value of all cash inflows) - (Present value of all cash
outflows)
Project Selection Criterion: Select the project with the maximum Net Present Value. The
time value of money is already taken into account while calculating NPV.

Example: There are two projects. Project A has NPV of $1,000 and will be completed in 5
years. Project B has NPV of $800 and will be completed in 1 year. Which project will you
select?

Answer: Project A will be selected. The fact that project B has a smaller duration than
project A does not matter because time is already taken into account in NPV calculations.
Present Value (PV) is the Future Value (FV) of a payment discounted at a discount rate (r)
for the delay in payment.

Reference: PMstudy.com comments


Question 105: In your project, you are in the process of creating an activity list. This
should contain which of the following:

A. Activities not to be performed as part of the project

B. Activities that are to be performed as part of the project

C. Activity identifier and scope of work description for each schedule activity in sufficient
detail

D. Activities that are required for the project

1. B, C and D

Justification

The activity list is a comprehensive list that includes all schedule activities required on the
project. The activity list also includes the activity identifier and a scope of work description
for each activity in sufficient detail to ensure that project team members understand what
work is required to be completed.

Reference: PMBOK Guide - Sixth Edition, page 185.

PMstudy.com comments: Activity list will not include activities that are not to be
performed as part of the project.
Question 106: What contains a predetermined list of risk categories that might give rise to
individual project risks and that could also act as sources of overall project risk?

2. Risk prompt list

Justification
The risk Prompt List is a predetermined list of risk categories that might give rise to
individual project risks and that could also act as sources of overall project risk.

Reference: PMBOK Guide - Sixth Edition, page 416


Question 107: In your project, you wish to manage procurement relationships, monitor
contract performance, and make changes and corrections as needed. Which of the following
would you not use?

4. Project schedule

Justification
Project schedule is an input to the Plan Procurement Management process; all the other
options are inputs to Control Procurements process.

Reference: PMBOK Guide - Sixth Edition, pages 466 and 492 (figures 12-2 and 12-6,
respectively)
Question 108: The activity list should include descriptions of activities. This is required to:

2. Ensure that the team members understand what work is to be completed

Justification

The activity list includes the activity identifier and a scope of work description for each
schedule activity in sufficient detail to ensure that project team members understand what
work is required to be completed.

Reference: PMBOK® Guide - Sixth Edition, page 185.

PMstudy.com comments: The project scope statement provides a common understanding


of the project scope among the project stakeholders. (PMBOK® Guide - Sixth Edition, page
154)
Question 109: You are determining whether the project activities comply with
organizational and project policies. This will be done as part of:

2. Audits

Justification
A audit is a structured, independent process to determine whether project activities
comply with organizational and project policies, processes, and procedures.

Reference: PMBOK® Guide - Sixth Edition, page 294-295.


Question 110: You are the project manager of a manufacturing firm that produces
machine parts required in automobiles. During a review, you discover some design
requirements are not taken into account. You should:

1. Instruct your team to incorporate the requirements and do an analysis to figure


out the potential impact.

Justification

Option 1: This is the only option that provides the solution to the problem. Since some
requirements are left out, you ask your team to incorporate the requirements and figure
out the potential impact.

Option 2: This is a premature step; you should first do an analysis to figure out the impact
of the change before informing the project sponsor.
Option 3: This is not at all recommended, because it will result in a product, which does not
satisfy the requirements and hence will not be accepted by the customer.
Option 4: This is a premature step; you should first do an analysis to figure out the impact
of the change before informing senior management. Escalating an issue should be the last
option.

Reference: PMstudy.com comments


Question 111: There are two projects:

Investment in project A is $1,000,000 and its NPV is $100,000


Investment in project B is $1,200,000, its net cash inflows are $2,000,000, and net cash
outflows are $1,900,000

Which project should be selected if net present value (NPV) criterion is used for selection?

4. Either project A or project B

Justification

NPV of project A = $100,000

NPV of project B = $2,000,000 - $1,900,000 = $100,000.

Both projects have the same NPV; therefore, either project may be selected, if NPV criterion
is used.

Net Present Value (NPV) = (Present value of all cash inflows) - (Present value of all cash
outflows)

Example: There are 2 projects. Project A has NPV of $1,000 and will be completed in 5
years. Project B has NPV of $800 and will be completed in 1 year. Which project will you
select?

Answer: Project A will be selected. The fact that project B has a smaller duration than
project A does not matter because time is already taken into account in NPV calculations.
Present Value (PV) is the Future Value (FV) of a payment discounted at a discount rate (r)
for the delay in payment.

Reference: PMstudy.com comments


Question 112: In a kick-off meeting for your project, you provided information to your
team members about the different process groups to be followed in the project. According
to PMI, which are the project management process groups?

2. Initiating, Planning, Executing, Monitoring and Controlling, and Closing

Justification
The five Process Groups are Initiating, Planning, Executing, Monitoring and Controlling,
Closing.

Reference: PMBOK® Guide - Sixth Edition, page 18


PMstudy.com comments: Conceptualizing, Verifying, and Administrative Closure are not
process groups.
Question 113: Stakeholders, including consultants, customers, sponsors, and professional
and technical associations, are some of the sources of:

3. Expert judgment

Justification: Expert judgment: Additional expertise is available from many sources,


including: other units within the organization; consultants and other subject matter experts
(internal and external); stakeholders, including customers, suppliers, or sponsors; and
professional and technical associations.

Reference: PMStudy.com comments.


Question 114: The project scope statement consists of the product scope description and
project deliverables. It also includes the:

3. Acceptance criteria

The detailed project scope statement, either directly, or by reference to other documents,
includes the following: product scope description, acceptance criteria, deliverables, and
project exclusions.

Reference: PMBOK Guide Sixth Edition, page 154


Question 115: In your project, a team member suggested the addition of a functionality,
which she thinks, will improve customer satisfaction. Your approach would be to:

2. Disallow the new requirement, because it changes the project scope, and the
customer did not explicitly state this requirement.

Justification
Project Scope Management includes the processes required to ensure that the project
includes all the work required, and only the work required, to complete the project
successfully. Managing the project scope is primarily concerned with defining and
controlling what is and is not included in the project.

Reference: PMBOK Guide - Sixth Edition, page 129.

PMstudy.com comments: In case a stakeholder requests an additional feature, the


recommended course of action is to discuss within your group and with the customer
before taking a final decision. Since these options are not available, the next best option is
to ensure that you prevent gold plating, i.e., providing a requirement that was not explicitly
stated in the project scope.
A project manager should ensure prevention of "gold plating", i.e., addition of any new
requirement that has not been originally requested for by the customer.
Question 116: As a project manager, you are estimating the costs required to complete the
project activities. In this context, which of the following tools or techniques cannot be used?

3. Historical relationships

Justification
Estimate Costs is the process of developing an approximation of the cost of resources
needed to complete project activities. Analogous estimating, three-point estimating, cost of
quality is some of the tools used in this process.

Reference: PMBOK Guide - Sixth Edition, page 240 (figure 7-4).


Question 117: Since the buyer could not meet the requirements of the contract, you (the
seller) want to terminate the contract early. This is done in which of the following
processes?

2. Control Procurements

Justification
Early termination of a contract is a special case of procurement closure. Requirements for
formal procurement closure are usually defined in the terms and conditions of the contract
and are included in the procurement management plan. Procurement closure takes place in
the Control Procurements process.

Reference: PMBOK Guide - Sixth Edition, page 499


Question 118: Which of the following processes can be used to determine the monetary
resources required for the project?

1. Estimate Costs

Justification
Estimate Costs is the process of developing an approximation of the cost of resources
needed to complete project work. The key benefit of this process is that it determines the
monetary resources required for the project.

Reference: PMBOK Guide - Sixth Edition, page 240.


Question 119: The director of information systems at your company is in the process of
creating a project charter to formally authorize a new project. In this context, what should
be done FIRST?

2. Identify a project manager for the project

Justification
A project manager is identified and assigned as early in the project as is feasible. This
understanding will better allow for efficient resources allocation to project activities.

Reference: PMBOK Guide - Sixth Edition, page 34


Question 120: You are a project manager overseeing a canal development project. The
table given below shows the time estimates for the different tasks involved. Please refer to
it and answer the question that follows.

What is the impact on the project if task 1→ 2 takes 2 months more than what was earlier
planned?

2. The project risk will increase

Justification

Please refer to the diagram below:

The lengths of different paths are:

Start→ 1→ 2→ End: 10 months


Start→ 3→ 5→ End: 11 months

Start→ 4→ 5→ End: 12 months


Since the longest path is Start→ 4→ 5→ End, this is the critical path. Length of the critical
path is 12 months.

If task 1→ 2 takes 2 more months,

length of Start→ 1→ 2→ End: 12

Now we have 2 critical paths, i.e.,

Start→ 1→ 2→ End: 12 months

Start→ 4→ 5→ End: 12 months

Hence, the risk in the project increases, because delay in either of the critical paths will
cause a delay in the project.

Reference: PMstudy.com comments


Question 121: You are the project manager of a pharmaceutical company responsible for
releasing a new drug in the market. During one of the phase closures, you have updated
project management plan; risk registers and other registers; project calendars; change
management documentation; etc. These documents are referred to as:

2. Project documents

Justification

Option 2: Project documents - Project documents that may be updated as part of the phase
closure include but are not limited to assumption log, basis of estimates, change log, issue
log, lessons learned register, milestone list, project communications, quality control
measurements, quality reports, and requirements documentation.

Option 1: These are documents required for an organization to maintain, operate, and
support the product or service delivered by the project. These may be new documents or
updates to existing documents.

Option 3: Project or phase closure documents, consisting of formal documentation that


indicates completion of the project or phase and the transfer of the completed project or
phase deliverables to others, such as an operations group or to the next phase.

Option 4: Lessons learned and knowledge gained throughout the project are transferred to
the lessons learned repository for use by future projects.

Reference: A Guide to the Project Management Body of Knowledge PMBOK® Guide - Sixth
Edition, pages 124 and 127
Question 122: You are the project manager for XYZ company. The Quality Control team
recently identified a large number of defects in the project deliverables which the team had
to repair. You have been working for a few weeks with the Quality Assurance team to
adjust some quality procedures and address some training issues for your project which
the team believes is the reason for the defects. The project is now behind schedule due to
the problems encountered. The CPI is currently 1.12 and the SPI 0.82. While discussing the
quality issues in a status meeting, a key stakeholder comments that she is alarmed at the
potential cost impact of one particular risk and is wondering why it is of little concern to
the project team. You are confident that her concern for that particular cost risk is
unwarranted at the moment; in fact, you believe there is another risk that is of bigger
concern. The following table displays the current risks for your project. Considering that
schedule is a concern right now, which risk are you going to tell the stakeholder and other
meeting participants is the greatest and is therefore the biggest concern of the team right
now?

Risk Probability Cost Impact Schedule Impact


A 0.4 2 8
B 0.4 6 3
C 0.3 2 3
D 0.2 4 9

1. A

Justification
For each risk identified, multiply the probability by the cost and schedule impact. Once you
have each P & I score, you can prioritize the risks. Risk A currently is the biggest threat to
your schedule and overall objectives.

Risk Probability Cost Impact Schedule Impact PI (Cost) PI (Schedule) Total

A 0.4 2 8 0.8 3.2 4

B 0.4 6 3 2.4 1.2 3.6

C 0.3 2 3 0.6 0.9 1.5

D 0.2 4 9 0.8 1.8 2.6

Reference: PMstudy.com comments


Question 123: Which of the following estimates is not used when implementing three-
point estimating?

4. Mean

Justification
The accuracy of single-point cost estimates may be improved by considering estimation
uncertainty and risk and using three estimates to define an approximate range for an
activity’s cost: Most likely, Optimistic, and Pessimistic.

Reference: PMBOK Guide - Sixth Edition, page 244.


Question 124: You are in the build phase of a Build-Operate-Transfer (BOT) project, which
has run into several unanticipated problems. Several risks have surfaced which you had not
anticipated earlier. The project is over-budget and significantly behind schedule. What
should you do?

4. Justification

Results from earned value analysis may indicate potential deviation of the project at
completion from cost and schedule targets. When a project deviates significantly from the
baseline, updated risk identification and analysis should be performed.

Reference: PMstudy.com commentsPerform updated risk identification and analysis


Question 125: As a project manager, you are in the process of creating a list of all the
project team members, their roles, and communication information. This information
should reside in:

2. Project team directory

Justification
Project team directory is a documented list of project team members, their project roles,
and communication information.

Reference: PMBOK Guide - Sixth Edition, page 717


Question 126: What are Tuckman’s stages of group development in their respective order?

3. Forming, Storming, Norming, Performing, Adjourning

Justification
Tuckman described five stages of team development. Teams usually go through the stages
in order, but it is possible for teams to skip a stage or get stuck in, or revert to a previous
stage.
1. Forming: Team meets, learns their roles and responsibilities and agree on goals;
individuality is at its highest during this phase
2. Storming: Team starts working on the project; competition may result from different
individual ideas; "I am right" mentality

3. Norming: Team members adjust their behavior to work as a team; learn to trust each
other; "We can work together" mentality

4. Performing: Teams are able to function as an organized and interdependent unit as they
find ways to get the job done smoothly and effectively

5. Adjourning: Completing the task and moving on from the project as staff are released
during project or phase closure

Reference: PMBOK®Guide - Sixth Edition, Page 338


Question 127: After completing the Define Scope process, management has asked you to
coordinate the activities related to work breakdown structures (WBS) in your project.
When using decomposition as a tool, what should you do FIRST?

1. Identify the deliverables and related work.

Justification
Create WBS process follows the Define Scope process. In Create WBS, decomposition of the
total project work into work packages generally involves identifying and analyzing the
deliverables and related work.

Reference: PMBOK® Guide - Sixth Edition, pages 130 (figure 5-1) and 158.
Question 128: Which of the following tools and techniques would you NOT use in your
project during the Plan Risk Responses process?

4. Simulation

Justification

Simulation is not a tool or technique for the Plan Risk Responses process.

Reference: PMBOK Guide - Sixth Edition, page 437 (figure 11-16)


Question 129: In your company, the project manager shares responsibility with the
functional manager to assign priorities and directs the team members of the project. In this
case, it is NOT the responsibility of the project manager to:

3. Carry out performance appraisal of project team

Justification
In a matrix organization, the project manager shares responsibility with the functional
managers for assigning priorities and for directing the work of persons assigned to the
project.

Reference: PMBOK Guide - Sixth Edition, glossary, page 710


Question 130: Two project team members disagree often on the best way to handle an
issue. You ask them to look at the positives and negatives of their approaches and submit
their recommendations, which could be a "middle path". Which of the following conflict
resolution techniques have you used?

2. Compromising

Justification

There are five general techniques for resolving conflict. As each one has its place and use,
these are not given in any particular order:
• Withdraw/Avoid: Retreating from an actual or potential conflict situation; postponing the
issue to be better prepared or to be resolved by others.
• Smooth/Accommodate: Emphasizing areas of agreement rather than areas of difference;
conceding one's position to the needs of others to maintain harmony and relationships.

• Compromise/Reconcile: Searching for solutions that bring some degree of satisfaction to


all parties in order to temporarily or partially resolve the conflict.

• Force/Direct: Pushing one's viewpoint at the expense of others; offering only win-lose
solutions, usually enforced through a power position to resolve an emergency.

• Collaborate/Problem Solve Incorporating multiple viewpoints and insights from differing


perspectives; requires a cooperative attitude and open dialogue that typically leads to
consensus and commitment.

Reference: PMBOK Guide - Sixth Edition, page 349


Question 131: The following are all tools and techniques for the Plan Schedule
Management process:

1. Expert judgment, Alternatives Analysis, Meetings

Justification
The tools and techniques used in the Plan Schedule Management process are expert
judgment, data analysis techniques such as alternatives analysis, and meetings.

Reference: PMBOK Guide - Sixth Edition, page 181.


Question 132: In your project, probabilities are estimated and the alternatives are
expected to be as follows:

25% probability for $ 25,000 profit

50% probability for $ 40,000 profit

25% probability for $ 100,000 profit

What is the expected profit in your project?

3. $ 51,250

Justification
Expected Profit = Sum of the products of Probability and Profit for all alternatives i.e. [Sum
of (Probability X Profit)] for all the three alternatives

= (0.25 x $ 25,000) + (0.50 x $ 40,000) + (0.25 x $ 100,000)

= $ 6250 + $ 20,000 + $ 25,000

= $ 51,250

Reference: PMstudy.com comments


Question 133: You are a project manager for a $50 million project that is highly complex
and involves more than 100 people. To successfully execute the project, you decide to
break it down into smaller manageable units. Which of the following processes will you
use?

4. Create WBS

Justification

Create WBS is the process of subdividing project deliverables and project work into
smaller, more manageable components.

Reference: PMBOK Guide - Sixth Edition, page 156


Question 134: Your company is constructing a dam, and your project (being performed
under an agreement) mandates that you pay compensation to persons displaced because of
the project. What kind of constraint is this?

2. Legal

Justification
When a project is performed under an agreement, contractual provisions will generally be
constraints.

Reference: PMstudy.com comments.


Question 135: You are the project manager of a software company. You need ideas for
project and product requirements. Which of the following techniques will you use?

4. Brainstorming

Brainstorming: A general data gathering and creativity technique that can be used to
identify risks, ideas, or solutions to issues by using a group of team members or subject
matter experts.

Reference: PMBOK Guide - Sixth Edition, page 511.


Question 136: The processes used in Project Stakeholder Management are:

3. Identify Stakeholders, Plan Stakeholder Engagement, Manage Stakeholder


Engagement, and Monitor Stakeholder Engagement

Justification
Project Stakeholder Management includes the following processes - Identify Stakeholders,
Plan Stakeholder Engagement, Manage Stakeholder Engagement, and Monitor Stakeholder
Engagement.

Reference: PMBOK Guide Sixth Edition, page 504, figure 13-1


PMstudy.com comments: Manage Stakeholder Expectations, Monitor Stakeholder
Expectations, Plan Stakeholder Communications, and Stakeholder Management Plan are
not process. The Stakeholder Management Plan is an output of Plan Stakeholder
Management.
Question 137: You have managed to identify the five main tasks in your project. You
represent the dependency and duration in the table given below:

What is the total float available for task 5?

1. 0

Justification

The network diagram for the project tasks can be represented as shown below.

The lengths of different paths are:

Start→ 1→ 2→ End: 10 months

Start→ 3→ 5→ End: 11 months

Start→ 4→ 5→ End: 12 months


Since the longest path is Start→ 4→ 5→
End; this is the critical path.
Task 5 lies on the critical path; hence the
total float for task 5 is "0".

Reference: PMstudy.com comments


Question 138: Which document provides high-level cost information that is useful when
planning for project cost management?

2. Project charter

Justification
The project charter provides the preapproved financial resources from which the detailed
project costs are developed. The project charter also defines the project approval
requirements that will influence the management of the project costs.

Reference: PMBOK Guide - Sixth Edition, page 236.

PMstudy.com comments:

Option 1: The Cost Management Plan is an output of the Plan Cost Management process.

Option 3: The Cost baseline is not created until later during the Determine Budget process.

Option 4: The Requirements documentation is an output of the Collect Requirements


process in Project Scope Management.
Question 139: You are the project manager of a project, which has the objective of
producing bearings with a margin of error of .002 mm according to Six Sigma specifications
used in your company. You have been asked to create documents that can help you apply
technical and administrative direction to audit the bearings and ensure that they conform
to requirements. You should use:

2. Project management information system

Justification

Option 1: Product scope description: This documents the characteristics of the product,
service, or results that the project will be undertaken to create.

Option 2: The PMIS provides access to information technology (IT) software tools, such as
scheduling software tools, work authorization systems, configuration management
systems, information collection and distribution systems, as well as interfaces to other
online automated systems such as corporate knowledge base repositories. Automated
gathering and reporting on key performance indicators (KPI) can be part of this system.
Option 3: The statement of work (SOW) is a narrative description of products or services,
or results to be delivered by a project.

Option 4: Project management plan defines how the project is executed, monitored and
controlled, and closed.

Reference: PMBOK® Guide - Sixth Edition, page 95.


Question 140: You are the project manager in an automobile manufacturing company.
Machine parts required in your manufacturing process supplied by a vendor did not reach
in time because of heavy rains. You had anticipated this risk and planned for it in your risk
response plan. So, as per your risk response plan, you started using unutilized machine
parts supplied one year ago. However, this has subjected your project to a new risk - the
machine parts which were not used for one year suffer from higher level of defects.

This new risk can also be called:

3. Secondary risks

Justification

Secondary risk. A risk that arises as a direct result of implementing a risk response.

Reference: PMBOK Guide - Sixth Edition, page 439


Question 141: You are considering whether to buy or lease a machine for your heavy
engineering plant. Your finance department has provided you the following data:

The cost of buying the machine (“If you buy”) is $29,000 and the one-time cost of
procurement and integration is $1000.

The cost of leasing the machine (“If you lease”) involves $10,000 as down payment and
$5,000 per month as license fee.
What is the breakeven duration after which the buying of the machine is preferable to
leasing it?

2. 4 months

Justification

If you buy, the cost is $29,000 + $1,000 = $30,000 Assuming that the lease is for M months,
the cost is $10,000 + ($5,000 x M)
The breakeven point is reached when the cost of buying becomes equal to the cost of
leasing, i.e., $ 30,000 = $10,000 + ($5,000 x M)

M = 20,000/5,000 = 4 months

Reference: PMstudy.com study notes


Question 142: You are the project manager of a complicated construction project, which
involves building highways in the state of North Carolina. You have several groups working
with you in the project. To plan resources for this project and determine connection
between activities you should preferably use:

3. Responsibility assignment matrix

Justification

RAM is used to illustrate the connections between activities or work packages and project
team members. On larger projects, RAMs can be developed at various levels. For example, a
high-level RAM can define what a project team group or unit is responsible for within each
component of the WBS, while lower level RAMs are used within the group to designate
roles, responsibilities, and levels of authority for specific activities.

Reference: PMBOK® Guide - Sixth Edition, page 718


Question 143: Maximum intensity of conflicts occur over:

2. Schedules

Justification

Reference: Project Management - A Systems Approach to Planning, Scheduling and


Controlling, page 302
Question 144: You recently took over the management of a construction project. The
project is in the executing phase and the previous project manager has left the
organization. You realize the project is seriously behind schedule and over budget. After
talking with the project team, and discussions with the project management team
regarding the issues, you still have not been able to discern the reason for the schedule
variances.

The team is working well, and from what you can see, should be on schedule and within
budget. As you begin to review the progress that has been made so far, and compare that to
the schedule, you see that certain tasks have taken significantly longer and incurred more
costs than originally estimated. The site preparation work was estimated to take one
month, but actually took two months and cost 30% more than anticipated. Pouring the
foundation was scheduled to take two weeks, but actually took three weeks and again cost
more than planned. Paving the parking area also took longer than expected. Your analysis
also indicates that the period during which these activities were being carried out had
much more rain than normal.
Based on this information, what would be the MOST LIKELY reason for the variances in the
project schedule and budget?

3. Assumptions used in the planning processes were not valid

Justification
Based on the scenario described, the variances appear to be related to weather issues,
which weren`t anticipated. Many time and cost estimates are based on assumptions, and if
these assumptions are not valid, actual project performance can and often will differ from
what was estimated.

Assumptions are taken into account when estimating both time and cost. PMI mentions
documenting the assumptions on which estimates are based, in both the Cost Management
and Schedule Management chapters. Assumptions are also a key part of the project scope
statement.

Reference: PMstudy.com comments


Question 145: The Plan Risk Responses process helps the project manager to develop
options and actions to enhance opportunities and to reduce threats to project objectives.
The output from the Plan Risk Responses process is to update the risk register. Which of
the following is not one of the updates you will make?

2. Risk probability and impact matrix

Justification

The Risk probability and impact matrix should be part of the risk management plan. The
Risk register has information about the specifics of each identified risk.

Reference: PMBOK Guide - Sixth Edition, page 448


Question 146: When does the project manager review prior phase documentation and
customer acceptance documentation from the Validate Scope process?

1. Close Project or Phase

Justification

Option 1 is the correct answer.

Option 1: During project closure, the project manager reviews prior phase documentation,
customer acceptance documentation from the Validate Scope process and the contract (if
applicable), to ensure that all project requirements are completed prior to finalizing the
closure of the project.

Option 2: Control Scope is the process of monitoring the status of the project and project
scope and managing changes to the scope baseline.

Option 3: Control Quality is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend necessary changes.

Option 4: Manage Quality is the process of translating the quality management plan into
executable quality activities that incorporate the organization?s quality policies into the
project.

Reference: PMBOK Guide 6th Edition, pages 128, 167, 288, and 298
Question 147: A project manager has constructed the foundation for a building before
completing all of the architectural drawings. This can be an example of ________________.

1. Fast tracking

Justification
Fast tracking is a schedule compression technique in which activities or phases normally
done in sequence are performed in parallel for at least a portion of their duration. An
example is constructing the foundation for a building before completing all of the
architectural drawings.

Reference: PMBOK Guide - Sixth Edition, page 215.


Question 148: Which of the following statements related to Life Cycle Costs is incorrect?

4. Life cycle costs are the responsibility of a project

Justification

Life cycle costs include the cost of operations, which is beyond the scope of the project.
Life Cycle Cost: The overall estimated cost for a particular program alternative over the
time period corresponding to the life of the program. It includes:

• Direct and Indirect Costs

• Periodic or continuing costs of operation and maintenance

Reference: PMstudy.com comments


Question 149: You are doing a quality audit for your project to identify all the
gaps/shortcomings in your project. This is a part of:

2. Manage Quality

Justification

Refer figure 8-1, in the PMBOK Guide.

Reference: PMBOK Guide - Sixth Edition, page 272 (figure 8-1).


Question 150: You are in the process of performing Develop Schedule process to
determine planned start and finish dates for project activities. Which of the following
inputs will be helpful in this process?

1. Activity attributes, project scope statement, and activity list

Justification
In Develop Schedule process, planned start and finish dates for project activities are
determined by using activity attributes, project scope statement, and activity list as part of
inputs.

Reference: PMBOK Guide - Sixth Edition, page 205 (figure 6-14)

PMstudy.com comments: Schedule data and schedule baseline are outputs of Develop
Schedule process; and work performance information is an output of Control Schedule
process.
Question 151: A company is considering three projects:

Project A has an NPV of $500,000

Project B has an NPV of $300,000

Project C has an NPV of $200,000

What is the opportunity cost if project A is selected?

3. $300,000

Justification
Opportunity cost is the cost of passing up the next best option. The opportunity cost of
choosing project A (over project B, which is the next best option) is equal to NPV of the next
best available option. Net present value of project B is chosen = $300,000

Reference: PMstudy.com comments


Question 152: As a project manager, you have developed the Schedule Management Plan.
You are now in the process of identifying and documenting the relationships among the
project activities. You want to ensure that every activity and milestone except the first and
last are connected to at least one predecessor and one successor. Which of the following
tools can you use for this purpose?

3. Precedence diagramming method

Justification

Sequence Activities is the process of identifying and documenting relationships among the
project activities. Precedence diagramming method (PDM) is one of the tools used in this
process.

Reference: PMBOK Guide - Sixth Edition, page 187 (figure 6-7).


Question 153: Which document provides high-level schedule information that is useful
when planning for project schedule management?

3. Project charter

Justification
The project charter is an important input to the Plan Schedule Management process since it
provides the summary milestone schedule that will influence project schedule
management.
Option 1: The Schedule Management Plan is an output of the Plan Schedule Management
process.

Option 2: The Activity list is not created until the Define Activities process.

Option 4: The Schedule baseline is not created until later in the Develop Schedule process.
Question 154: According to the 80/20 rule, 80 percent of the problems are because of 20
percent of the causes. To identify the most probable defects and to evaluate
nonconformities, you do a rank ordering of the defects using:

3. Pareto diagrams

Justification
A Pareto chart (also referred to as a Pareto diagram) is a specific type of histogram,
ordered by frequency of occurrence. It shows how many defects are generated by type or
category of identified cause. Rank ordering is used to focus on corrective action.

Reference: PMstudy.com comments


Question 155: You had conducted an independent estimate to find out the cost of sub-
contracting the manufacturing of 1,000,000 ball-bearings for your automobile company.
You estimated the cost to be $500 per bearing. However, when you asked for bids and
proposals from prospective sellers, the minimum price quoted was $750 per bearing.
Which of the following can be a reason for the variance in the estimate?

A. The procurement statement of work was not clear.

B. The prospective sellers misunderstood the procurement statement of work.

C. The procurement statement of work was not sufficient.

D. There have not been major changes in the cost of material and labor since last year.

4. A, B and C

Justification
Significant differences in cost estimates can be an indication that the procurement
statement of work was deficient, ambiguous, and/or that the prospective sellers either
misunderstood or failed to respond fully to the procurement statement of work.

Reference: PMBOK Guide - Sixth Edition, page 479


PMstudy.com comments: (Option 4) Since there have not been major changes in the cost of
material and labor since last year, the independent estimates should be close to the amount
quoted by prospective sellers.
Question 156: You are the project manager in a company where you have maximum
authority. To which organizational structure does your company belong?

4. Project-oriented

Justification
Project managers have maximum authority in a company with a projectized organizational
structure.

Reference: PMBOK Guide Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.
Question 157: When you encounter constraints as a project manager, in which document
will you record the information about these constraints?

1. Project scope statement

Justification
Information on constraints may be listed in the project scope statement or in a separate
log.

Reference: PMstudy.com comments.


Question 158: Which of the following types of costs is not incurred toward ensuring
compliance to requirements?

4. Warranty costs

Justification

Refer figure 8-5 in the PMBOK® Guide Sixth Edition.

Reference: PMBOK® Guide - Sixth Edition, page 283 (Figure 8-5).


Question 159: You are a project manager overseeing the construction of a Baseball
Stadium. The activity of laying the Grass Sod has an optimistic estimate of 10 days,
pessimistic estimate of 16 days, and most likely estimate of 13 days. What is the expected
duration for task completion?

2. 13 days

Justification

Depending on the assumed distribution of values within the range of the three estimates,
the expected duration, tE, can be calculated. One commonly used formula is triangular
distribution:

tE = (tO + tM + tP) / 3.

Reference: PMBOK Guide - Sixth Edition, page 201.


Question 160: You, as the project manager, are planning to document relevant information
on interests, involvement, influence, and impact of project stakeholders. Which of the
following processes should you follow?

4. Identify Stakeholders

Justification
Option 1: Stakeholder Analysis is a technique used to identify and classify stakeholders and
their interests. It is used when identifying stakeholders; however, it is not the name of the
process itself.
Option 2: Plan Communications Management is the process of determining the information
needs of the project stakeholders and defining a communication approach to satisfy those
needs.
Option 3: Manage Stakeholder Engagement is an executing process which involves working
with stakeholders to meet their expectations. The current project is in the initiating phase
as stakeholder-related details are just being gathered.
Option 4: Identify Stakeholders is the process used to identify all those people or
organizations impacted by the project and document relevant information on their
interests, involvement, and impact on the success of the project.

Reference: PMstudy.com comments


Question 161: You have been given a high priority task that needs to be completed within
a short time frame. Since you know what has to be done, you assign tasks to different team
members and tell them when and how the tasks should be completed. The management
style that you are following is:

1. Directing

The project manager usually follows different leadership styles as listed below:

• Autocratic: Makes decisions himself/herself; allows team members little involvement


and discussion before a decision is made.
• Directing: Instruct people what tasks will be performed and when and how they should
be performed.

• Laissez Faire: Does not interfere; team is left unsupervised which may lead to anarchy.

• Democratic: Allows team to discuss issues and reach decisions, although still guides and
advises.

• Delegating: Delegates to team members, particularly if competent to handle tasks.

• Coaching: Issues instructions and then supports and monitors.

• Discussing: Two-way communication and discussion with team members.

• Facilitating: Coordinates inputs from several sources before making a decision.

• Supportive: Provides positive assistance and encouragement; maintains and presents a


positive outlook during times of uncertainty; listens and encourages.

• Participatory: Involve others; same as Democratic style.


• Task-Oriented: Enforces task completion by deadlines.

• Team-Based: Emphasizes teamwork and working well together.

• Assertive: Confronts issues and displays confidence; establishes authority with respect.

Reference: PMstudy.com study notes


Question 162: Your company has decided to outsource one of its IT product developments
to ABC IT Services through a contract. You clarify the structure and requirements of the
contract so that mutual agreement can be reached prior to signing the contract. Which of
the following statements on procurement negotiations are correct?
A. You have to discuss technical and business management approaches, proprietary rights,
overall schedule, payments, and price.
B. At the end of the procurement negotiations, you will have a contract document executed
by both buyer and seller.

C. The project manager is the lead negotiator on the procurements.

D. Final contract language will reflect all agreements reached.

3. A, B and D

Justification

The project manager may not be the lead negotiator on procurements.

Reference: PMBOK Guide - Sixth Edition, page 468


Question 163: You are a project manager. You have received a request from the
stakeholders to provide more features to the product. Which tools and techniques do you
use to process the request through "Perform Integrated Change Control" process?

3. Expert judgment, meetings, and change control tools

Justification
Option 1: Risk identification is a separate process, which is not done as part of Perform
Integrated Change Control process.
Option 2: `Change control tools` is a tool and technique of Perform Integrated Change
Control process, but project document updates is not a tool and technique for any process.

Option 3: Expert judgment, meetings, and change control tools are the tools and techniques
for Perform Integrated Change Control process.

Option 4: Expert judgment, meetings, and stakeholder analysis are tools and techniques of
Identify Stakeholders process.

Reference: PMBOK® Guide - Sixth Edition, page 113, figure 4-12.


Question 164: Which of the following identifies working days and shifts that are available
for scheduled activities?

2. Project calendars

Justification
A project calendar identifies working days and shifts that are available for scheduled
activities. It distinguishes time periods in days or parts of days that are available to
complete scheduled activities from time periods that are not available for work.

Reference: PMBOK Guide - Sixth Edition, page 220.


Question 165: You have been managing a project to construct an overpass on Interstate
10. You have divided the project into phases to provide better management control. Which
of the following is a characteristic of a project phase?

2. The closure of a phase is required to be approved in some form before it can be


considered closed.

Justification

In many cases, the closure of a phase is required to be approved in some form before it can
be considered closed.

Reference: PMstudy.com comments


Question 166: As a project manager, you realize that managing project stakeholder
expectations is an important priority. Which statement on project stakeholders is NOT
correct?

1. Negative stakeholders must be ignored if the project has to be successfully


completed.

Justification

In the case of stakeholders with positive expectations for the project, their interests are
best served by making the project successful.... In contrast, the interests of negatively
affected stakeholders are served by impeding the project`s progress. Overlooking negative
stakeholders’ interest can result in an increased likelihood of failures, delays, or other
negative consequences to the project.

Reference: PMBOK® Guide - Sixth Edition, pages 504-505


Question 167: You are half way through a 12-month contract on a high-priority project for
your company. The team has been progressing well during execution of the project work.
Some of the deliverables have already been approved by the buyer and they seem to be
happy with the progress so far. Cumulative CPI and SPI are 1.09 and .98, respectively. Your
sponsor comes by your office and you are shocked to hear from her that the buyer has
decided to terminate the contract per the terminations clause and move the work to
another seller. The buyer asks you to work for the new seller. Your next step is to:

2. Execute contract closing procedures

Justification
The buyer has a right to terminate the contract if a termination clause is specified in the
contract. Requirements for procurement closure are defined in the terms and conditions of
the contract.
Options 1 & 4: These options would be considered unethical and may violate confidentiality
agreements you have with your current employer.
Option 3: You should provide all deliverables and documents to the buyer, not the new
seller.

Reference: PMstudy.com comments


Question 168: In a project life cycle, the least number of conflicts occur over:

4. Costs

Justification

Reference: Project Management - A Systems Approach to Planning, Scheduling and


Controlling, page 302
Question 169: Your sponsor has asked you to use payback period as a selection criterion
to select amongst 5 competing projects. In this context, which of the following statements
related to payback period is incorrect?

2. Payback period takes the discount rate into account to determine the best possible
option.

Justification

Payback Period

• Number of years required for an organization to recapture an initial investment.

• Discount rate is not taken into account in calculations for payback period.

• Project Selection Criterion: Select a project with lower payback period.

Example: There are 2 projects. Project A has an investment of $500,000 and a payback
period of 3 years. Project B has an investment of $300,000 and a payback period of 5 years.
Using the payback period criterion, which project will you select?

Answer: Project A will be selected. The fact that project B has a smaller investment than
project A will not impact the selection.

Reference: PMstudy.com comments


Question 170: In the Develop Schedule process, you create a distribution of probable
durations for each activity and use it to calculate the distribution of probable results for the
total project. The technique that you are using is:

3. Simulation

Justification
Simulation involves calculating multiple project durations with different sets of activity
assumptions, usually using probability distributions constructed from the three-point
estimates to account for uncertainty.

Reference: PMBOK Guide - Sixth Edition, page 213.


Question 171: You have fifteen members in your project team. You have called for a
project status meeting without prior notice. There have been too many sidebar
conversations and arguments. As a result, you have achieved nothing substantial from the
meeting. To achieve orderliness in the meeting next time, you should:

2. Publish a meeting agenda

Justification

Techniques and considerations for effective communications management include, but are
not limited to the following: Meeting management techniques. Preparing an agenda and
dealing with conflicts.

Reference: PMBOK Guide - Sixth Edition, page 381

PMstudy.com comments: In order to conduct the meeting in an organized way, you will
have to follow the meeting management techniques of preparing and publishing an agenda
and dealing with conflicts.

Option 1: Decreasing the number of people may mean that we will not have the required
stakeholders.

Option 2: Preparing and publishing a meeting agenda is the best way to ensure that
meetings are conducted in an orderly fashion.
Option 3: Controlling the channels of communication is not possible as the number of
channels is not fixed and can be determined by the formula N * (N-1) / 2.

Option 4: Giving incentives is not recommended.


Question 172: A contract where the buyer reimburses the seller the costs incurred by her
and also provides a fixed amount of profit is called a:

2. Cost plus fixed fee contract

Justification
In Cost plus fixed fee contracts (CPFF), the seller is reimbursed for all allowable costs for
performing the contract work, and receives a fixed fee payment calculated as a percentage
of the initial estimated project costs. Fee amounts do not change unless the project scope
changes.

Reference: PMBOK Guide - Sixth Edition, page 472


Question 173: As the project manager, you are currently involved in monitoring
stakeholder relationships and adjusting plans for their engagement. Which process are you
currently working in?

2. Monitor Stakeholder Engagement

Justification
Monitor Stakeholder Engagement is the process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.

Reference: PMBOK Guide Sixth Edition, page 530


Question 174: You are one of the ten full-time project managers in your organization. All
of you share two administrative resources. Normally, around 30 - 40 projects are executed
per year involving about 30% of the employees of the organization. However, all of them do
not report to you, although you are their project manager. Your organization can best be
classified as:

2. Balanced Matrix

Justification

Refer to PMBOK Guide - Sixth Edition, page 47 (table 2-1, Influences of Organizational
Structures on Projects).

Reference: PMBOK Guide - Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.

PMstudy.com comments: While the balanced matrix organization recognizes the need for a
project manager, it does not provide her with the full authority over the project, human
resources, and funds.

Option 1 (Projectized Organization) is incorrect because resources in a projectized


organization are not shared with the functional manager. Option 3 (Strong Matrix) is
incorrect because only 30% of the employees work on projects and the remaining work in
functional activities. Option 4 (Weak Matrix) is incorrect because full-time project
managers do not exist in Weak Matrix, which have project coordinators and/or expeditors.
Question 175: In your project, you have created a list of identified risks and responses for
each risk. You should document this information in the:

4. Risk register

Justification
The risk register is a document in which the results of risk analysis and risk response
planning are recorded.

Reference: PMBOK® Guide - Sixth Edition, page 417


Question 176: Your company is planning to launch a set of new products in a new market.
You are responsible for all the projects related to this initiative. In this context, your role is
that of a:

1. Program manager

Justification

A program manager is responsible for one or more organization-wide projects.

Reference: PMBOK® Guide - Sixth Edition, page 55

PMstudy comments: A program is defined as a group of related projects, subprograms, and


program activities managed in a coordinated way to obtain benefits not available from
managing them individually. Programs may include elements of related work outside the
scope of the discrete projects in the program.
Question 177: You are a project manager in a large software development organization. It
is a primary objective in your company to deliver quality products, with a low rate of errors
and a high product acceptance rate by your customers. The company has made significant
investments in a robust system to support these corporate objectives and goals. When
developing contracts for software development projects, it is standard that the customer is
required to follow rigorously defined processes for user acceptance testing which must be
conducted each time a module is completed. The customer is also required to notify the
project manager, in writing, that the software module was tested and whether it was
acceptable or not. This user acceptance testing, and the resulting notification is part of
which process?

3. Validate Scope

Justification

Validate Scope is the process of formalizing acceptance of the completed project


deliverables. The key benefit of this process is that it brings objectivity to the acceptance
process and increases the chance of final product, service, or result acceptance by
validating each deliverable. The verified deliverables obtained from the Control Quality
process are reviewed with the customer or sponsor to ensure that they are completed
satisfactorily and have received formal acceptance of the deliverables by the customer or
sponsor.

Reference: PMBOK Guide - Sixth Edition, page 163


PMstudy.com comments: This question describes an inspection of the deliverable by the
customer (i.e., testing). The process of accepting deliverables (Validate Scope) should
include written notification that the deliverable has been either accepted or rejected.
Question 178: In your project, you have identified important risks and planned
appropriate responses to the risks. Some risks, such as the possibility of natural disasters
impacting the project, have been documented and accepted in the risk register. What are
the remaining risks called?

2. Residual Risks

Justification: Residual risks are those risks that remain after risk responses have been
implemented. Residual risks are expected to remain after planned responses have been
taken, as well as those that have been deliberately accepted.

Reference: PMBOK Guide - Sixth Edition, page 448


Question 179: In your new project, you have to provide a critical deliverable within five
months and do not have time to go through the Conduct Procurements process. You decide
to sign a contract with a supplier with whom your company has done some work in the
past. The risk you are accepting in this situation is:

1. The ability of the supplier to deliver the goods

Justification

The risk here is that even though the supplier has worked with the company in the past,
they may not have the required skills for the current project.

Reference: PMstudy.com comments


Question 180: You are preparing the communications management plan for your project
by using communication requirements analysis. Which of the following statements about
communication requirements analysis is inaccurate?

1. Requirements are defined by combining the type and format of information


needed with an analysis of the cost of that information.

Justification

The analysis of the communication requirements determines the information needs of the
project stakeholders. These requirements are defined by combining the type and format of
information needed with an analysis of the value of that information.

Reference: PMBOK Guide - Sixth Edition, page 370


Question 181: Early termination of a contract is a special case of contract closure. This can
happen because of:

4. Any of the above reason

Justification
Early termination of a contract is a special case of procurement closure that can result from
a mutual agreement of both parties, from the default of one party, or for convenience of the
buyer if provided for in the contract.

Reference: PMBOK Guide - Sixth Edition, page 489


Question 182: Which of the following statements on quality planning is inaccurate?

4. During quality planning, you can use change requests to take corrective or
preventive action or to perform defect repair

Justification
Plan Quality Management is the process of identifying quality requirements and/or
standards for the project and product, and documenting how the project will demonstrate
compliance. Quality planning should be performed in parallel with the other project
planning processes.
- Option 1: Quality planning should be performed in parallel with other project planning
processes.
- Option 2: These refer to enterprise environmental factors, which are inputs to the Plan
Quality process.

- Option 3: Design of Experiments is a tool and technique used for Plan Quality process.

- Option 4: This is part of managing and controlling quality processes.

Reference: PMBOK Guide - Sixth Edition, pages 277 and 278.


Question 183: Matrix organizations exhibit features of both projectized and functional
organizations. In a weak matrix organization, the role of a project manager may be that of
a:

1. Coordinator

Justification
Weak matrix organizations maintain many of the characteristics of a functional
organization, and the role of the project manager is more of a coordinator or expediter.

Reference: PMBOK Guide Sixth Edition, table 2-1, Influences of Organizational Structures
on Projects, page 47.
Question 184: You are the project manager responsible for developing a software
application based on customer requirements. Which technique do you use in order to
consider the customer`s change request?

3. Expert judgment

Justification
Expert judgment is one of the tools and techniques used in the Perform Integrated Change
Control process. The other tools and techniques used in the Perform Integrated Change
Control process are meetings and change control tools.

Reference: PMBOK Guide 6th Edition, page 71, figure 4-1.


Question 185: You are managing a project to develop an emergency brake to an upcoming
new model of RV. In your project, you have to complete building a prototype before testing
can begin. This is an example of:

1. Mandatory dependency
Mandatory dependencies are those that are legally or contractually required or inherent in
the nature of the work. Mandatory dependencies often involve physical limitations, such as
on a construction project where it is impossible to erect the superstructure until after the
foundation has been built, or on an electronics project, where a prototype must be built
before it can be tested.

Reference: PMBOK® Guide - Sixth Edition, page 191.


Question 186: You are working for a semi-conductor company. There have been several
instances in the past week when a few circuits have not been giving accurate results. You
have been assigned the task of determining the probable cause for the variations. Which of
the following tools or techniques is best suited for this purpose?

2. Ishikawa Diagrams

Justification

Ishikawa diagrams is also known as Cause-and-effect diagrams or fishbone diagrams. The


problem statement placed at the head of the fishbone is used as a starting point to trace the
problem`s source back to its actionable root cause. The problem statement typically
describes the problem as a gap to be closed or as an objective to be achieved.

Reference: PMBOK Guide - Sixth Edition, page 293.


Question 187: In your project, you have reasons to believe that the current variances
occurred because of extraneous factors, and you do not expect similar variances to occur in
future. What should be the estimate at completion (EAC) for your project? BAC = $300,000;
AC = $100,000; EV = $150,000; CPI = 1.5

1. $250,000

Justification

Since current variances are atypical, Estimate at Completion, EAC = AC + BAC - EV =


$100,000 + $300,000 - $150,000 = $250,000

Also refer to PMBOK Guide - Sixth Edition, page 267 (table 7-1).
Question 188: You are in the execution stage of your project. Due to the strategic
importance of your project for the organization, the CEO of the company wants to be kept
in the loop and wants all project communications to be copied to her too. Where will you
add this information?

3. Communication management plan

Justification

The communication management plan contains among other information, the stakeholder
communication requirements and persons or groups who will receive the information,
including information about their needs, requirements, and expectations;

Reference: PMBOK Guide - Sixth Edition, page 377


Question 189: In your project, you use product analysis to translate high-level product
descriptions into tangible deliverables and requirements. Which of the following
techniques is not used in product analysis?

4. Alternatives identification

Justification
Product analysis includes techniques such as product breakdown, systems analysis,
requirements analysis, systems engineering, value engineering, and value analysis.

Reference: PMBOK Guide Sixth Edition, page 153


Question 190: Quality management complements project management, as both recognize
the importance of:

2. Providing customer satisfaction

Justification
Project Quality Management addresses the management of the project and the deliverables
of the project. It applies to all projects, regardless of the nature of their deliverables. Quality
measures and techniques are specific to the type of deliverables being produced by the
project. For example, the project quality management of software deliverables may use
different approaches and measures from those used when building a nuclear power plant.
In either case, failure to meet the quality requirements can have serious negative
consequences for any or all of the project`s stakeholder.

Reference: PMBOK Guide - Sixth Edition, pages 273.


PMstudy.com comments: Option 1 refers to "exceeding customer expectations by providing
additional features" - this constitutes gold plating and is not recommended by PMI.
Question 191: In your project, you have established tools to ensure that appropriate
information is available to project stakeholders in a timely manner. In this context, if there
is a conversation taking place using a sender-receiver model, which of the following
statements is NOT correct?

4. The receiver should agree with the sender about the message being communicated

Justification

The sender is responsible for making the information clear, unambiguous, and complete.
This is done so that the receiver can receive it correctly, and confirm that it is properly
understood. The receiver is responsible for making sure that the information is received in
its entirety and understood correctly.

Please note that the receiver need not "agree" with the sender about the message being
communicated.

Reference: PMstudy.com comments


Question 192: You are completing a NASA project for the launch of a weather forecasting
satellite. The satellite is being tested for a specific quality metric: Performance under
Strong Winds. Quality metrics is an output of which of the following processes?

1. Plan Quality Management

Justification

Refer figure 8-3 in the PMBOK Guide® Guide Sixth Edition.

Reference: PMBOK® Guide - Sixth Edition, page 277, figure 8-3.


Question 193: You are in the process of identifying the relevant stakeholders in the
project. In this context, which of the following is/are relevant output(s) of this process?

4. Stakeholder register

Justification

The output of the Identify Stakeholders process is the Stakeholder register.

Reference: PMBOK Guide Sixth Edition, page 504, figure 13-1


Question 194: You are performing a make-or-buy analysis. In which of the following cases
would you not prefer making the product/service in-house?

4. The item under consideration is not part of your core business, but your company
has the skills for developing the product in-house, if required.

Justification
If it is a non-core item, it may make sense to consider outsourcing as an option, as it may be
cheaper than making the item in-house.

Reference: PMstudy.com comments


Question 195: You have eight people in your project, and one more person will be joining
next week. Once the new person joins, the number of communication channels will
increase by:

2. 8

Justification
For calculating the number of communication channels, the formula used is n (n-1)/2,
where n is the number of stakeholders. So, in this instance, number of communication
channels with 8 people = 8 x (8 -1)/2 =(8x7)/2= 28.
Number of communication channels with 9 people = 9 x (9-1)/2 = (9x8)/2= 36. So, the
communication channels will increase by: 36 - 28 = 8.

Reference: PMstudy comments


Question 196: In your project, you are aggregating the estimated costs of individual
activities to establish an authorized cost baseline. For this purpose, which of the following
will NOT be used as an input?

3. Cost baseline

Justification
Determine Budget is the process of aggregating the estimated costs of individual activities
or work packages to establish an authorized cost baseline. Cost baseline is an output, not an
input, of the Determine Budget process.

Reference: PMBOK Guide - Sixth Edition, page 248 (figure 7-6)


Question 197: In your project, you are in the process of leading and performing the work
defined in the project management plan and implementing approved changes to achieve
the project`s objectives. This is done during:

1. Direct and Manage Project Work

Justification
Direct and Manage Project Work is the process of leading and performing the work defined
in the project management plan and implementing approved changes to achieve the
project`s objectives.

Reference: PMBOK Guide - 6th Edition, page 90

PMstudy.com comments: Please note that option 4 (Create Deliverables) is not a process.
Question 198: Your quality process did not meet the four sigma requirements desired by
your customer. So, some of your products were rejected and there is a possibility that you
would not receive repeat business from the customer. From a quality perspective, the costs
associated with the rejected products can also be categorized as:

3. Failure costs

Justification

Failure costs (cost of nonconformance) include costs to rework products, components, or


processes that are non-compliant, costs of warranty work and waste, and loss of
reputation.

Reference: PMBOK Guide - Sixth Edition, page 283 (figure 8-5).


Question 199: In your project, you are creating a diagram that describes the decision
under consideration and implications of choosing one or another of the available
alternatives. This will help to:

4. Determine which decision yields the greatest expected value

Justification
Decision Tree Analysis is a diagramming and calculation technique for evaluating the
implications of a chain of multiple options in the presence of uncertainty.

Reference: PMBOK Guide - Sixth Edition, page 435


PMstudy.com comments: Solving the decision tree indicates which decision yields the
greatest expected value to the decision-maker when all the uncertain implications, costs,
rewards, and subsequent decisions are quantified.
Question 200: The project team has added some functionalities to the product that are not
required as part of the project. However, the customer is satisfied with the product. From a
quality perspective, the action of the team is:

2. Not acceptable, because it constitutes gold plating, which is not a good practice.

Justification
Customer satisfaction requires a combination of conformance to requirements (to ensure
the project produces what it was created to produce) and fitness for use (the product or
service must satisfy real needs).

Reference: PMstudy.com comments

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