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Explanations

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Questions Correct Answers % Correct Answers

1. A typical title for a Project Manager in a weak matrix structure is:

Project Coordinator

Project Manager

Project Leader

Program Manager

Explanations:

In a weak matrix organization, a Project Manager typically performs the coordination role.

2. Which of the following statements is NOT true about a product lifecycle?

It starts with conception of a new product and ends with its withdrawal

A product can spawn a single project in its life

The five stages of each product lifecycle are product development, introduction, growth, maturity,
and decline

It focuses on managing the properties of a product from a company's business point of view

Explanations:

A product can spawn a single project in its life. Product lifecycle management (PLM) is the process of
managing the entire lifecycle of a product from its conception, through design and manufacture, to
service and disposal. PLM integrates people, data, processes, and business systems to provide a
product information backbone for companies. The five stages of each product lifecycle are product
development introduction growth maturity and decline A product can spawn or require many projects
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development, introduction, growth, maturity, and decline. A product can spawn or require many projects
over its life.

3. A Project Sponsor appointed a Project Manager to a new project and asked him to get
started immediately, even before the charter got approved. What should the Project
Manager do?

Push to create and approve the charter

Start with the team ramp-up and planning

Ask some other Project Manager to take over the project

Start the critical activities

Explanations:

The charter is important because it formally authorizes a project. The Project Manager must do
whatever possible to get the charter issued.

4. Which of the following is the MOST appropriate statement to describe a Project

Management Office?

It is the center of excellence for project management in an organization

It is a group of people working on project management activities for a project

PMO provides administrative support to Project Managers in an organization

It is a council that includes all the Project Managers in an organization

Explanations:

A PMO is supposed to be the center of excellence for project management in an organization.

5. A manager who manages a collection of projects grouped together to facilitate effective

management to meet strategic business objectives is called a:

Program Manager

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Portfolio Manager

Project Manager

Stakeholder

Explanations:

Portfolio refers to a collection of projects or programs grouped together to facilitate effective

management to meet strategic business objectives, and the person managing it is called a Portfolio
Manager. Portfolio management describes methods for analyzing and collectively managing a group of
current or proposed projects based on numerous key characteristics like business objectives, technical
strategy, goals, etc.

6. A project sponsor is studying the project contract and going through the narrative
description of products and services to be supplied under contract. The project sponsor is
also meeting key stakeholders and subject matter experts to evaluate whether the project
is worth the required investment. Which of the following documents would be created as
an output in the process?

Project Statement of Work

Project Charter

Project Management Plan

Organizational Process Assets

Explanations:

The Project sponsor is in the develop project charter process in the project integration management and
is using the statement of work to understand the product requirements and descriptions. The output of
this process is a project charter, which initiates the project once approved formally. A project charter
documents high-level project descriptions and business needs of the project, along with a current
understanding of the customer's needs, risks, name of the sponsor, and so on.

7. As a Project Manager for a pharmaceutical project, you are in the process of stakeholder
analysis. You have identified both internal and external stakeholders. Which of the
following will be least useful for determining how to engage them?

Using the Influence/Impact matrix

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Correctly identifying the internal and external stakeholders

Determining and agreeing on the responsibilities of the internal and external stakeholders

Giving the stakeholders extra incentives to win them over to your side

Explanations:

Giving extra incentives to stakeholders to win them over amounts to gold plating or (even worse)
unethical practices, so it is not recommended.

8. Which of the following is NOT true about the initiating process group?

Large projects may divide the projects into phases

The project team members are committed

Initial scope and financial resources are committed

Internal and external stakeholders are identified

Explanations:

The entire project team is usually not available during initiation.

9. A project team is working on initiating a project. Which of the following options is NOT
true about this situation?

The Sponsor is developing the project charter

The Project Manager is developing the project charter

The Project manager is participating in the development of the project charter

The Sponsor and the Project Manager together are developing the project charter

Explanations:

As per the new examination content outline, the Project Manager will not develop the project charter
and will only participate in developing the project charter.

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10. Harry has been assigned the flyover construction project, and he is in the process of
initiating the project. In order to meet the customer's project expectations based on the
business and compliance requirements, which of the following should Harry define FIRST?

Key deliverables

Project schedule

Project Statement of Work

Product Statement of Work

Explanations:

According to PMI's classification, the Project Manager should define the key deliverables of the project
based on the business and compliance requirements to meet the customer's project expectations.

11. Jenny is the Project Manager and is currently in the initiating process group. She
understands that it is critical for project success to identify stakeholders early in the
project. Therefore, she is in the process “identify stakeholders.“ Of the
following, which INPUT may not be required?

Procurement documents

Project Charter

Expert Judgment

Enterprise environmental factors

Explanations:

Expert judgment is a tool and technique for the "identify stakeholders" process and is not an input.

12. One phase is planned at any given time, and the planning for the next is carried out as
work progresses on the current phase and deliverables. Which of the following correctly
defines the above text?

Overlapping relationship
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Sequential relationship

Multi-phase relationship

Iterative relationship

Explanations:

An iterative relationship is where one phase is planned at any given time and the planning for the next is
carried out as work progresses on the current phase or deliverable.

13. Which of the following statements is TRUE regarding the initiating process group?

Risk is lowest during the Initiating process group

The project has the highest probability of project success during the Initiating process group

The Project Manager and team are always identified as part of the Initiating process group

Initiating process group includes the develop project charter and identify stakeholders process

Explanations:

Initiating process group includes the develop project charter and identify stakeholders process. Option
(a) specifies the risk involvement, and option (b) specifies probability of success.

14. Which of the following is NOT true about the project charter?

It provides the Project Manager the authority to assign organization resources

It formally authorizes the project

It details the business justification of the project

It states what the project is, what the project will deliver, and how all the processes will be managed

Explanations:

Project Charter provides the high-level project description and product characteristics. It authorizes the
project and provides the Project Manager the authority to assign organization resources.

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15. You work as a Project Manager at the mobile phone chipset manufacturer. As predicted
by Moore's law, each year your company introduces new models of mobile phone chipsets
which are faster and more powerful than their predecessors. Mobile phone chipsets that
are obsolete or do not sell are quickly retired from production. The chipsets' lifecycle
begins in R and D, extends to manufacturing, and finally ends with phase out. This cycle is
often referred to as:

Product lifecycle

Project lifecycle

Feedback loop

Product development

Explanations:

A product lifecycle consists of generally sequential, non-overlapping product phases determined by the
manufacturing and control need of the organization. For more details on product lifecycle, refer to
PMBOK® Guide - Fifth Edition PN 38.

16. Project management is the application of knowledge, skills, tools, and techniques to
manage activities to meet the project requirements. Which of the following is NOT true
about managing a project?

It involves identifying requirements

It involves addressing the various needs, concerns, and expectations of the stakeholders as the
project is planned and carried out

It involves balancing the competing project constraints such as scope, quality, schedule, budget,
resources, and risk

The specific project will not influence the constraints on which the Project Manager needs to focus

Explanations:

The question has a negative connotation. Refer PN 5 of PMBOK® Guide - Fifth Edition.

17. A Project Manager has defined the key deliverables of the project based on the
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business and compliance requirements and is now identifying and documenting high-level
risks, assumptions, and constraints based on current environment, historical data, and/or
expert judgment to identify project limitations and propose an implementation approach.
Which process group is the Project Manager in?

Initiating

Planning

Executing

Closing

Explanations:

It is during the initiating process group that you identify and document high-level risks, assumptions,
and constraints to identify project limitations and thereafter propose an implementation approach.

18. All of the following are functions of the project management office EXCEPT:

Monitoring compliance with project management standards policies, procedures, and templates
via project audits

Coaching, mentoring, training, and oversight

Managing shared resources across all projects administered by PMO

Identifying and developing the organization's methodology, administrative practices, and rules

Explanations:

The PMO's role is to identify and develop the project management methodology, best practices, and
standards.

19. Which of the following statements is true?

Cost and staffing levels are high at the start

The ability to influence the final characteristics of the product without impacting the cost is highest
at the start

Uncertainty is the least at the start of the project

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Stakeholder influences increase over the life of the project

Explanations:

The ability to influence the final characteristics of the product without impacting the cost is highest at
the start. Cost and staffing levels are low at the start. Uncertainty is greatest at the start of the project.
Stakeholder influences are greatest at the start of the project and decrease over the life of the project.

20. Your development team is waiting for the design team to finish its work. As a Project
Manager, you have decided to use this approach to reduce uncertainty in the project. Which
of the following relationship does this describe?

Iterative relationship

Sequential relationship

Overlapping relationship

Common relationship

Explanations:

A sequential relationship is the stage where a phase can only start once the previous phase is complete.
The step-by-step nature of the approach reduces uncertainty but may eliminate options for reducing the
schedule.

21. Which of the following is NOT TRUE for stakeholders?

Stakeholders can be customers, sponsors, and the performing organization

Stakeholders cannot exert influence over the project, its deliverables, or team members

Stakeholder identification is a continuous process

A project can be perceived as having both positive and negative results by the stakeholders

Explanations:

This statement is wrong as stakeholders can exert influence over the project, its deliverables, and team
members.

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22. You are developing the project charter for the new project assigned to you. Which of
the following is NOT a part of the enterprise environmental factors?

Lessons learned from previous projects

Work authorization system

Government and industry standards that affect your project

Knowledge of which departments in your company typically work on projects

Explanations:

Lessons learned are part of the organizational process assets.

23. You are being hired to manage a highway construction project for a contractor working
for XYZ. The sponsor is a project officer who works for the XYZ municipal government. You
have three separate teams working all three shifts with a separate manager for each team.
Each team has members from two different unions, and each union has its own
representative. Who is the BEST person to approve the project charter?

Project Manager

Union representatives

Project Officer who works for XYZ

Team Managers

Explanations:

Since the Project Officer who works for XYZ is the sponsor, he is responsible for approving and signing
the charter.

24. Two members of a team are disagreeing about the right electric parameters for testing
a newly designed chipset. Who is in the best position to help resolve this issue?

Project Manager

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Project Sponsor

Functional Manager

Customer

Explanations:

The issue requires functional expertise and hence the Functional Managers are best able to assist in
this matter.

25. A Project Manager is identifying relevant enterprise and environmental factors in a

project. Which of the following is NOT a valid example?

Organizational culture and processes

Stakeholder risk tolerances

Employee performance review records

Historical lessons learned knowledge base

Explanations:

These are parts of the corporate knowledge base in organizational process assets. The others are
examples of enterprise and environmental factors and refer to both internal and external environmental
factors that surround or influence project success either positively or negatively. To go through a list of
examples for enterprise and environmental factors, refer to PMBOK® Guide - Fifth Edition Introduction
PN 28.

26. A hospital is installing a new management system to computerize the hospital

functions. For this purpose, representatives from several departments are selected to
create a task force assigned to implement the project. This organization structure is called:

Functional Organization

Projectized Organization

Composite Organization

Balanced Matrix Organization

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Explanations:

Many times, even a fundamentally functional organization may create a special project team to handle a
critical project. This may have many characteristics of a project team in a projectized organization. The
team may include full-time staff from different functional departments, may develop its own set of
operating procedures, and may operate outside the standard, formalized reporting structure.

27. As a Project Manager, you are in the process of establishing the total scope of the
effort in the project to define project objectives. For this purpose, you include relevant
stakeholders and explore all the aspects of scope, cost, time, risk quality, etc. Which
process group of the project are you currently in?

Initiation

Planning

Execution

Monitor and Control

Explanations:

The planning process group consists of processes performed to establish the total scope of the effort,
define the objectives, and develop the course of action required to attain those objectives. For this
purpose, a Project Manager should include relevant stakeholders and explore all the aspects of scope,
cost, time, risk, quality, etc. The result of this planning process group is the project management plan.

28. Project Manager John and his team have finished creating the Work Breakdown
Structure (WBS) and Work Breakdown Structure dictionary. Then, he prepares a detailed
and itemized documentation of all of the schedule activities that are part of the project.
What should he do NEXT?

Create Network Diagram for the project

Determine quality standards, processes, and metrics

Determine high-level project assumptions and constraints

Conduct project progress meeting

Explanations:
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p

The Project Manager has created a WBS, a WBS dictionary, and an activity list in the planning stage. The
next step would be to create a network diagram for the project. Quality standards and metrics can be
identified once project schedule and budget are determined. Option C is done as part of project initiation
and is completed much earlier. Option D is done in the executing stage of the project.

29. A Project Manager is working on planning a project that requires review and oversight
for a number of technically complex tasks. Who should identify the specific resources for
performing the reviews?

The Project Manager

The Project Sponsor

Functional Managers

Customer

Explanations:

Since nothing is given about the organization structure, we have to assume that it is a matrix or
functional organization where the resources are owned by the functional managers and they would
provide and identify these resources.

30. A key responsibility of the Project Manager is to ensure the proper assimilation of the
project management processes and coordinate the process phases through the project
management cycle. The Project Manager also has to ensure that all areas of the project
come together to successfully deliver the project. This involves balancing the basic
aspects of scope, cost, and schedule in addition to managing quality, communication,
customer satisfaction, etc. The role of the Project Manager can be best described as:

Integrator

Leader

Communicator

Differentiator

Explanations:

The role of a Project Manager is the combination of all the options but the one that is most critical to
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The role of a Project Manager is the combination of all the options, but the one that is most critical to
the project's success is that of an Integrator. As described in the question, a Project Manager is
expected to integrate the project management processes and coordinate the process phases through
the project management cycle to ensure that all areas of the project come together to successfully
deliver the project. Integration involves pulling together all aspects of project management including
scope, cost, schedule, quality, and communication in addition to working with other departments such
as Legal, Human Resources, Training, Contract Administration, and Information Technology.

31. A key stakeholder from the quality department wants to know more on how the
process tailoring was done by the project team. Additionally, the stakeholder would like to
know the rationale for selecting processes, their implementation level details, and how they
will be used to manage the interdependencies. Which document should the Project
Manager refer the stakeholder to?

Project Statement of Work

Project Scope Statement

Project Management Plan

Work performance Information

Explanations:

The results of the process tailoring by the project team are captured in the project management plan,
along with all the other information required by the stakeholder.

32. A Project Manager has invited key stakeholders and team members for the first
meeting of the project. The agenda of the meeting is to announce the start of the project,
outline the project goals and objectives, as well as communicate the project success
criteria. The Project Manager also plans to discuss the individual roles and responsibilities,
along with the commitment of the stakeholders. What is this activity called?

Project sign- off meeting

Charter closure meeting

Project launch meeting

Project kick-off meeting

Explanations:
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Explanations:

The kick-off meeting which is done in the beginning of the project and then before starting each new
project phase has four main objectives: a) publicly state the beginning of the project, b) outline the
project goals as well as the individual roles and responsibilities of team members, c) clarify the
expectations of all parties, and d) create a commitment by all those who influence the project's
outcome.

33. You are a Project Manager of a highly visible and critical project in your company. This
project was initiated with much fanfare, and you have some of the best technical experts
as a part of the project team. You are in the process planning and detailing the scope of
the project when you hear the project is being terminated. What could be the MOST likely
cause?

The senior management didn't approve the project charter

The project team didn't have required technical expertise

The project sponsor failed to support the project

The project contract was not signed off by the customer

Explanations:

The answer to this question can be reached by the process of elimination. Since the project is already
initiated and is in the planning stage options A, and D can't be true. There is no evidence to believe
option B, and the most probable explanation could be the failure to support the project by the sponsor.
The term sponsor, by definition, suggests a financial responsibility. This sponsor is thought to "own" the
project and is considered responsible for ensuring its success. The sponsor is also typically the one
who proposes the project in the first place, whose business unit reaps its benefits.

34. You are working on a project to build a hybrid car which would run on both diesel and
electricity. This car would have a 1000 cc engine and work on a regenerative braking
system. It should be able to seat four passengers including a driver and comply with Euro 4
emission norms. In which of the following documents should this information be captured?

Product Scope

Project Scope

Scope baseline

Requirements Management Plan

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Explanations:

If you got confused with project scope, remember that the above statements describe the features,
functions, and requirements which are part of defining product scope. To differentiate project scope
from product scope read through the definition of each. Product scope: the features and functions that
characterize a product, service, or result. Project scope: the work that needs to be accomplished to
deliver a product, service, or result with the specified features and functions. The product scope
describes the function or service that will exist as a result of your project. The project scope, on the
other hand, describes all the work to create the product scope. It includes only the required work to
complete the project deliverable. Note: The completion of project scope is measured against the project
management plan, the project scope statement and its associated Work Breakdown Structure (WBS),
WBS dictionary, and scope baseline. Completion of product scope is measured against product features
or requirements.

35. A Project Manager is in the process of documenting and defining a stakeholder's needs
to meet project objectives. What is the output of this process?

Stakeholder Register

Stakeholder Management Strategy

Requirements Documentation

Issue Log

Explanations:

The Project Manager is in the process of "collect requirements" which has the output requirements
documentation. This document describes how individual requirements meet the business need for the
project. It is important that the requirements documented are unambiguous (measurable and testable),
traceable, and acceptable to key stakeholders. Option A, stakeholder register is only a list of
stakeholders in the project, whereas option B stakeholder management strategy describes the strategy
to manage stakeholder expectations. Option D issue log is a document to capture project issues.

36. You have taken over as a Project Manager of a complex and technically challenging
project. To add to the problems, your team is from diverse cultures and lacks bonding. You
want the team to participate and take ownership of the project activities, as well as
understand the “big picture of the project.” Which of the following activities
would be most helpful?

Use colocation to help team bond better which in turn would maximize productivity

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Create Work Breakdown Structure (WBS)

Develop Responsibility Assignment Matrix to describe roles and responsibilities of every team
member

Conduct knowledge sessions where each member appraise the team about his culture

Explanations:

The Project Manager wants the team to take ownership as well as understand how its individual project
activities affect the overall project deliverable (the big picture). The Project Manager also wants the
team to develop bonding. All these objectives are met when the team gets involved in creating the Work
Breakdown Structure (WBS) and WBS dictionary. Option A may not be always possible due to physical
constraints in the project. Option D has limited utility, but Option B is the best choice as it fulfills multiple
project objectives.

37. You are a Project Manager working on a critical project. You track the project schedule
closely. While going through the critical path, you realize that the project is showing
negative float. What is your BEST response to the situation?

Use a schedule compression technique

Reduce the number of resources from the project

Reduce the number of noncritical activities in the project

Revisit the risks and do a risk analysis of the project

Explanations:

The best option is to compress the project schedule because the critical path activities can be delayed
thus resulting in a negative float. In this case, the Project Manager should use a schedule compression
technique such as fast tracking or crashing.

38. A Project Manager is in the process of analyzing activity sequences, durations,

resources requirements, and schedule constraints to create an approved project schedule.
What should the Project Manager do NEXT?

Determine Resource Requirement for each activity in the project

Use techniques like Critical Path method and What-if Analysis to calculate optimum duration of the
project
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Use this approved schedule duration as a baseline and start tracking the project

Create a Network diagram of the project using one of the diagramming methods

Explanations:

The Project Manager is in the process develop schedule. Since the project schedule has already been
approved, it implies Option A, B, and D are already completed as part of the processes estimate activity
resources, develop schedule, and sequence activities. The next step would be to treat this estimate as a
schedule baseline and start tracking the project as part of the process control schedule.

39. As a Project Manager you are estimating the duration of your project activities using
PERT technique (Program Evaluation and Review technique). For a particular project
activity, your optimistic estimate is 41 days, pessimistic estimate is 89 days, and most
Likely estimate is 60 days. What would be the expected duration and range of the estimate
for this activity?

61.67 +/- 8.00

31.27 +/-8.00

61.67 +/-3.00

31.27 +/-3.00

Explanations:

PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely, given by
the equation Expected Duration = [P + 4(ML) + O]/6. Range is +/- standard deviation = (P-O)/6, where P
is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this
method, the correct answers comes out to be 61.67 days and range (+/-Standard Deviation) is 8.00.

40. A project activity has the following values for the earliest and latest it can start and the
earliest and latest it can be completed. An activity's Late Start (LS) is 5/day and Late Finish
is (LF) 10/day. Similarly Early Start (ES) is 3/day and Early finish (EF) is 8/day. What is the
float of this activity?

0 days

4 days

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2 days

-3 days

Explanations:

Float for an activity can be calculated using any of the two formula (i.e. Float = LS-ES or LF-EF). In this
case, float = 5-3 or 10- 8 or 2 days. Remember, float or slack is the amount of time a task in a project
network can be delayed without causing a delay to subsequent tasks (free float) or the project
completion date (total float).

41. An activity cannot be started until the predecessor also starts. This is an example of:

Finish-to-Start

Finish-to-Finish

Start-to-Start

Start-to-Finish

Explanations:

This is an example of a start-to-start dependency. It means that B can't start before A starts, or in other
words Activity B can start after Activity A has started.

42. A Project Manager understands the information needs of important stakeholders and
documents how they would be met. Which document is being prepared?

Stakeholder register

Stakeholder management plan

Human resources management plan

Communications management plan

Explanations:

Communications management plan contains details of how the communication needs of the project's
stakeholders will be met.

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43. You are managing a project which would provide e-learning solutions to your customer.
The requirements of this project are not clearly defined in the beginning, and there would
be modifications based on customer feedback as the project evolves. You decide to plan
as much as you can and begin to create work while continuing the planning. Which of the
following techniques would be the most helpful while defining activities for the project?

Rolling Wave Planning

Templates

Extreme Programming

Just in Time

Explanations:

Rolling wave planning is a form of progressive elaboration where work to be accomplished in the near
term is planned in detail and future work is planned at a higher level of the Work Breakdown Structure.
Therefore, work can exist at various levels of detail depending on where it is in the project lifecycle. As
more information is known about upcoming events, the higher-level work packages can be decomposed
further. Option B templates, which are usually standardized, would not be a very helpful tool for evolving
requirements. Option (c) and (d) are not recognized tools and techniques of project time management.

44. The optimistic time estimate for an activity is 11 days, pessimistic is 25 days, and most
likely is 15 days. What is the expected time for this activity?

16 days

15 days

21 days

18 days

Explanations:

Expected time = (O + 4M + P)/6 = 16

45. A Project Manager wants to determine the variance for an activity estimate using a
three-point estimate with the following data Pessimistic=14 Optimistic=2 and Realistic=5
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three point estimate with the following data. Pessimistic 14, Optimistic 2, and Realistic 5.
What is the variance?

Not enough information

Explanations:

The formula for variance = [( Pessimistic-Optimistic)/6]squared. The answer is 4.

46. Which of the following statements about critical path is TRUE?

It is the shortest path from start to finish

All the activities on the critical path do not have any float

A project will have only one critical path

A critical path takes into consideration logical as well as resource dependencies

Explanations:

Critical path activities do not have any float. If any activity on the critical path is delayed, the completion
of the project will be delayed by an equal amount. To determine the critical path, you have to add the
amount of time estimated for the duration of each activity to the previous activity.

47. You are a Project Manager in the early phase of estimating the cost of the project. You
use the analogous method of estimating and have come up with the rough order of
magnitude. While presenting it to your sponsor and stakeholders, one of the stakeholders
asks if you have also done lifecycle costing for the project. What is your BEST response?

Project Cost estimating is primarily concerned with cost of the resources needed to complete the
project and needn't consider any other costs

Since it is the initial stage of the project, cost details required for lifecycle costing of the project are
not available and hence it is not relevant

Lifecycle costing provides the lowest long term cost of ownership and should be used as a
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Lifecycle costing provides the lowest long-term cost of ownership and should be used as a
management decision tool, in case of alternatives

Lifecycle costing should be done by the Project Sponsor as it impacts long-term business
decisions

Explanations:

Lifecycle costing provides the lowest long-term cost of ownership and should be used as a
management decision tool. Although project cost management is primarily concerned with the cost of
the resources needed to complete the project (Option A, partly true), it should also consider the effect of
project decisions on the subsequent recurring cost of using, maintaining, and supporting the project.
Hence, lifecycle cost analysis can be used to assist management in the decision-making process.
Lifecycle costing looks at the entire cost of the product, not just the cost of project.

48. As a Project Manager, you are working with your team to explore alternatives to
decrease project cost without compromising on performance or scope of the project.
Which of the following techniques are you most probably using?

Benchmarking

Reverse Engineering

Process Analysis

Value Analysis

Explanations:

Value analysis is also referred to as value management or value methodology (VM). It requires the
systematic approach to identify project functions and assign values to those functions to get the
functions at lowest overall cost without loss of performance.

49. Which of the following is a tool and technique for the Determine budget process?

Monte Carlo analysis

Delphi technique

Funding Limit Reconciliation

Parametric estimation

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Explanations:

Funding limit reconciliation is one of the techniques used in the Determine budget process. See Page
208 of the PMBOK® Guide - Fifth Edition.

50. Which of the following are the MOST important to derive the total funding requirements
and periodic funding requirements of the project?

Management Reserve and Contingency Reserve

Cost Baseline and Management Reserve

Funding Limit Reconciliation

Project Budget and Contingency Reserve

Explanations:

The total funds required in the project are those included in cost baseline, plus management reserve if
any. Remember, the cost baseline includes contingency reserves because the cost baseline will include
projected expenditures plus anticipated liabilities. Please refer to PMBOK® Guide - Fifth Edition Project
Cost Management PN 206 for more details.

51. As a Project Manager for the project in the planning stage, you have derived the cost
estimate by estimating the cost of individual work packages. It is summarized to higher
levels for reporting and tracking. What would be the range of estimate from the actual?

-50 percent to +100 percent

-50 percent to +50 percent

-10 percent to +25 percent

-5 percent to +10 percent

Explanations:

This is the definitive range derived during the latter part of the project when project information is
available in sufficient detail. The estimate could become more refined to a range of -5 percent to +10
percent from the actual. This estimate is usually derived using the bottoms up estimation technique.

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52. You are a Project Manager planning to launch a new product in the market. For this
purpose, you are analyzing the existing products in the market to understand their best
practices. You also compare industry standards for performance metrics including cost,
cycle time, productivity, and quality to come up with your own product metrics. Which of
the following activities are you doing?

Cost Benefit Analysis

Value Engineering

Benchmarking

Process Analysis

Explanations:

Benchmarking is a management tool through which a plan for evaluation, measurement, and
improvement is implemented. It is the process of comparing the business processes and performance
metrics including cost, cycle time, productivity, and/or quality to another that is widely considered to be
an industry standard benchmark or best practice. The objective of Benchmarking is to determine (1)
what and where improvements are called for, (2) how other firms achieve their high performance levels,
and (3) how to use this information to improve the firm's performance. Option D process analysis is a
tool and technique of the quality assurance process which involves following steps in the quality
improvement plan to identify needed improvements. Please refer PMBOK® Guide - Fifth Edition Project
Quality Management PN 239 for more details.

53. A Project Manager has derived quality metrics along with tolerance limits for his
project. Which part of the quality management knowledge area is the Project Manager in?

Plan Quality Management

Perform Quality Assurance

Perform Quality Control

Define Scope

Explanations:

Quality metrics are determined as an output to the process plan quality, along with tolerance limits for
each of them. A metric would give the actual value or the measurement of a project or product attribute,
whereas a tolerance defines the allowable variations on the metrics. The selection of these metrics in a
project would heavily depend on the type of the project and the objective of collecting the metrics.

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54. Project Manager John wants to capture the details of activities he would be doing to
enhance the value of the process, including their inputs, outputs, and interfaces with other
processes. Which of the following documents would be MOST helpful?

Project Management Plan

Quality Management Plan

Process Improvement Plan

Product Management Plan

Explanations:

While Option B describes how the project management team will implement the quality policy of their
organization, the process improvement plan is more focused on enhancing the value of the process in a
project. It includes determining process boundaries, process metrics, targets for improved
performances, etc. Please refer PMBOK® Guide - Fifth Edition, Project Quality Management, PN 241 for
more details.

55. In order to determine the target fuel efficiency for a hybrid car being designed, a Project
Manager is looking at published statistics for similar models in the industry. The technique
being used is called:

Brainstorming

Benchmarking

Statistical sampling

Design of Experiments

Explanations:

What the Project Manager is trying to do is essentially look at the industry benchmark and make sure
that the product is in line with it. This is the benchmarking technique.

56. Which of the following would NOT be part of cost of conformance?

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Prevention cost

Appraisal cost

Internal failure cost

Cost of training

Explanations:

Internal failure cost (including failure found by the project internally like rework and scrap) is not part of
the cost of conformance. All the failure costs (including external failure costs) are referred to as the
cost of poor quality. The cost of conformance denotes the money spent during the project to avoid
failures. Please refer to PMBOK® Guide - Fifth Edition, Project Quality Management, PN 235 for more
details.

57. A Project Manager is planning a project, and he is creating a plan to describe how
human resource requirements in the project would be met. He is using a bar chart tool
called a Resource Histogram for charting this requirement. However, he notices that some
of the individual bars in the Resource Histogram extend beyond the maximum allowed
hours. What should the Project Manager do to correct it?

Reduce Scope

Extend Working Hours

Resource Leveling

Schedule Compression

Explanations:

Resource leveling is required whenever individual bars in the Resource Histogram extend beyond the
maximum allowed hours. Resource leveling can be done by either adding more resources or modifying
the schedule. Option (a) reducing scope or (b) extending working hours would be detrimental to the
project's success and is not recommended here. Option D schedule compression which can be done
through either crashing or fast tracking wouldn't necessarily be helpful. Since specific bars are showing
an overflow, it can be best tackled using resource leveling.

58. According to Maslow's Hierarchy of needs, what comes HIGHEST on the pyramid?

Social
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Safety

Physiological

Hygiene Factors

Explanations:

According to Maslow, there are five levels of human needs from bottom to top. They are: physiological,
safety, social, esteem, and self-actualization. Option D Hygiene factors are part of Herzberg's theory.

59. A pharmaceutical company wants to launch a new over-the-counter medication for flu
in the U.S. The Project Manager is identifying project communication constraints. Which of
the following is NOT a valid constraint?

The company should get an FDA approval before producing or selling the medicine

The key person responsible for communicating the information on the project may not be available
through the entire project

The milestone meeting should be attended by all the major key stakeholders

The project has teams working in different geographical locations and time shifts

Explanations:

The key person responsible for communicating information on the project may not be available through
the entire project. A communication constraint is usually derived from specific legislation or regulation
(Option A), organizational policies (Option C), or a project constraint (Option D) which limits the project's
options during communication management. However, (Option B) is an uncertain event or risk in the
project which needs to be addressed through risk management.

60. You are a Project Manager in a financial firm with multinational dealings. You feel the
financial meltdown in one of the client's countries could affect your project adversely, and
you want to hedge your risks. Although the probability of occurrence of the event is low,
you are advised to play it safe. In terms of risk attitude, your organization could BEST be
described as:

Risk Seeker

Risk Averse
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Risk Neutral

Risk Mitigator

Explanations:

Someone who doesn't want to take risks is called risk averse and the Project Manager seems to be part
of such an organization. Option C risk neutral describes a person/or an organization which is indifferent
to the risk, and Option A risk seeker suggests an aptitude to take risks with an opportunity for higher
returns. Option D risk mitigation is a risk response strategy and is an invalid choice.

61. Which of the following is NOT a tool used in the perform qualitative risk analysis
process?

Probability and Impact Matrix

Risk Prioritization

Monte Carlo Simulation

Root cause identification

Explanations:

Monte Carlo Simulations are typically associated with the quantitative risk analysis process. It
generates the output as a range instead of a fixed value and shows how likely the output value is to
occur in the range.

62. Which of the following is an example of Lead?

Pillars for a structure can be started 7 days after the foundation to allow for curing

Test lab preparation can start 5 days before a product is made available for test

Both test planning and product development can start simultaneously after the design is finalized

Crash tests cannot be carried out until a working final model is made available

Explanations:

Lead means that the successor activity can start in advance of the predecessor activity.

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63. The estimating technique that uses the statistical relationship between the historical
data and other variables to calculate an estimate for an activity is called:

Analogous Estimating

Parametric Estimating

Three Point Estimating

Monte Carlo technique

Explanations:

Parametric estimating is an estimation technique which utilizes the statistical relationship between a
series of historical data and a particular delineated list of other variables. Some examples of these
variables include square footage in a construction project and the number of lines or codes that exist in
a software application. This information is then implemented for the purpose of calculating and
demonstrating an estimate for the activity parameters.

64. In which form of contract will the cost risk lie with the seller?

CPIF

T and M

CPAF

FP

Explanations:

Cost risk lies with the seller in a Fixed price contract.

65. While responding to a procurement request, the seller outlined the detailed technical
solution, provided a handful of past customer references, and also made a detailed
commercial offer. Which procurement document would the seller most likely respond to?

Request for Quotation

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Request for Proposal

Invitation for Bid

Bidder conference invitation

Explanations:

An RFP requests for a detailed proposal.

66. You are in the process of implementing approved changes, corrective actions,
preventive action, and defect repairs in the project. In which of the following process
groups are you in?

Initiation

Planning

Execution

Monitor and Control

Explanations:

The executing process group involves coordinating people and resources, as well as integrating and
performing the activities of the project in accordance with the project management plan.

67. You are a finance specialist who has been assigned to an organization-wide project in a
strong matrix structure. The Project Manager requests you to work on a report, which you
feel is unnecessary. You have tried to reason with the Project Manager about this, but the
Project Manager insists it is required. What should you do?

Escalate to your functional Manager

Provide the report

Set up a meeting with the Project Manager to discuss the issue

Ignore the request and work on other important tasks

Explanations:
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Explanations:

As a team member, you need to respond to the request even if you do not personally agree with it. Since
you have already tried to reason with the Project Manager, option C is not appropriate.

68. A Project Manager realizes that a lot of time and effort are spent by his team in
capturing the data during product testing. Which is the best option to address the issue?

Stop capturing the data as it doesn't add any value to the project activity

Allocate a time at the end of the day to update all the data together

Ask for an additional resource to capture project data

Automate the data capturing process

Explanations:

The best alternative is the one which eliminates the root cause of the problem and prevents subsequent
changes. Here the main problem is the inefficient use of time and effort of team members in capturing
the data. The best way to address this is to automate the process thus reducing both time and effort.
Option B could result in incorrect and incomplete data because it's not recorded at the time of capturing.
Whereas Options A and Option C suggest the Project Manager evades the responsibility of producing
valid project data.

69. A Project Manager is facing many serious issues in his project to create an application
for a hospital management system. The project's final deliverable is scheduled for two
weeks from now. It needs to fulfill compliance with mandatory government health
standards. In addition to that there are some changes required to improve performance
which the Project Manager feels will make the customer happy. Amidst all of this, a senior
test engineer asks the Project Manager for a long leave. Which is the most critical issue
the Project Manager needs to address FIRST?

Ensure the product is compliant to government health standards

Find a replacement for the senior tester and ensure he completes knowledge transfer before
leaving

Complete change control process to incorporate changes to enhance performance

Notify the customer about probable delay in the final deliverable to avoid surprise later

Explanations:
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Explanations:

Ensure the product is compliant with government health standards. This question exemplifies a typical
scenario when a Project Manager needs to integrate information and prioritize the most critical issue. In
this scenario, Option C is part of gold plating and is not actually required in the project. Option B can
pose some trouble to the Project Manager. The question doesn't clearly establish whether the resource
is leaving before or after the final delivery. There is no indication that his absence would adversely affect
the project delivery. In this situation, the most important thing to focus on should be the compliance
testing because it is a mandatory requirement on the project.

70. You are a Project Manager taking over a project midway. It is in the execution phase.
You would like to know more about project deliverables, work required to complete those
deliverables, project constraints, assumptions, etc. Which of the following documents
would be MOST useful?

Work Breakdown Structure (WBS)

Requirements Documentation

Activity List

Project Scope Statement

Explanations:

The Project Manager should refer to the project scope statement as it captures all the details related to
the project scope including product acceptance criteria, scope description, project deliverables,
constraints, assumptions, etc. Options A and Option C define project scope at the smaller work package
and activity level respectively. Option B Requirements Documentation captures requirements of the
project related to quality, functional and non-functional requirements, support requirements, etc. and is
an incorrect.

71. Which of the following is an output of the Direct and Manage project work process?

Project Charter updates

Work performance information

Approved change requests

Change requests

Explanations:
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Change request is one of the outputs of this process.

72. A project is relying on a contractor to deliver a component. The contractor informs the
Project Manager about the likelihood of a 3-week delay in the delivery date. What should
the Project Manager do?

Meet with the team to discuss the issue

Escalate the matter to the senior management of the contractor as per the escalation matrix

Issue a formal show-cause notice asking why the contract should not be submitted

Inform the senior management and the customer about the possibility of delay to the overall
project due to the delayed component

Explanations:

The first thing to do is to understand the impact and find out how the impact can be contained. Only
after this is done, can other steps be considered.

73. You are managing an e-banking solution project when the Vice-President of the
company calls you to discuss an opportunity to manage a critical company project which
can boost your career and professional experience. Your e-banking solution project is due
to complete in 3 weeks. What is your best response to the Vice-President?

You would surely like to manage both the projects together as the latter is a critical project for the
company

You would use a compression technique to finish your current project faster and then take up this
new project

Since the new project is more critical to the organization, you could take this project immediately
and your earlier project can be managed by someone else. It is coming to a close anyway.

The project should first develop an approved project charter which would formally initiate the
project

Explanations:

The project should develop an approved project charter which would formally initiate the project. An
approved project charter formally initiates a project and authorizes a Project Manager to apply
resources to the project. A project without a project charter is not a project. With this in mind, a Project
Sponsor should first develop a project charter. All the other Options A, B, and C are not suitable until the
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Sponsor should first develop a project charter. All the other Options A, B, and C are not suitable until the
new project is formally initiated.

74. You are managing a large project team that has some new members joining. You would
like to take the entire team through the project schedule and update them on where the
project stands with respect to the original plan. Which of the following charts would be
most helpful for this purpose?

Gantt Chart

Milestone Chart

Work Breakdown structure

Schedule Baseline

Explanations:

A Gantt chart is a bar chart that shows the activities of a project, when each must take place, and how
long each will take. As the project progresses, bars are shaded to show which activities have been
completed. People assigned to each task also can be represented. This is the most effective tool to
show the people assigned to the project where they are with respect to the original plan.

75. An infrastructure company had an option of bidding for a toll highway project, with an
NPV of $5 million, but they opted for bidding for a power plant project with an NPV of $6
million. $5 million represents the _________ for the company.

Opportunity cost

Depreciation

Sunk Costs

Internal Rate of Return

Explanations:

Opportunity cost is the cost of the opportunity that was foregone in choosing a different option.

76. You are a Project Manager for an IT company in the final phases of project execution.
Your project status is well within the budget and you are almost a week ahead of your
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Your project status is well within the budget and you are almost a week ahead of your
schedule. During the final testing phase of the project, you realize that the performance of
the product can be increased by almost 20% of the expected value by doing minor code
changes in two modules. This change would require an additional 2 days of work. What
should you do NEXT?

Analyze the various alternatives and do a detailed impact analysis before proceeding with the
change

Update the change management form and send it to change control board for consideration

Discuss the change and impact with the customer and seek his approval

Ignore the change as it is gold plating and should be avoided

Explanations:

Ignore the change as it is gold plating and should be avoided. This is an example of gold plating
because this requirement is not actually part of the contract. Such additions are usually based on a
perceived notion of what the customer would like rather than a specific requirement from the customer.
Gold plating is defined in simple words as adding more to the system than is specified in the
requirements. Gold plating can increase operation and maintenance costs and reduce quality as well.

77. A Project Manager is going through the defect report reviewing the bugs reported
during the testing cycle of a software project. The report has information on the severity of
the bugs, origin of the bugs, and possible resolutions, along with the owner and reporter of
the bugs. The Project Manager wants to prioritize the bug fixing activities by evaluating the
three most frequent reasons for the defects. Which of the following tools should the
Project Manager use?

Control chart

Fishbone diagram

Scatter diagram

Pareto chart

Explanations:

Pareto charts works on the Pareto principal which states 80% of the problems usually stem from 20% of
the causes. Pareto charts can be used for defect analysis by arranging defects data so that the few vital
factors that are causing most of the problems reveal themselves. Concentrating improvement efforts on
these few will have a greater impact and be more cost-effective than undirected efforts
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these few will have a greater impact and be more cost effective than undirected efforts.

78. A team is complaining that every quality audit invariably audits its module, but other
modules are not audited at the same frequency. What is the best explanation that can be
provided?

A module gets audited more frequently because it has maximum issues

A module may get audited more because it is the most critical

Modules to be audited are picked up based on the quality management plan

Next time, make sure that all modules get audited at the same frequency

Explanations:

The logic for selecting modules for audit should be outlined in the quality management plan and should
be followed.

79. You are managing a critical project with frequent changes in requirements. You are in
the testing phase of the project, and the customer has requested an additional new feature.
You have assessed the impact of the change on the triple constraints with your team. What
should be your NEXT step?

Raise a change request form and send it for approval to the change control board

Look for alternative options including schedule compression techniques like crashing and fast
tracking

Analyze the impact of the change on project quality objectives and quality planning

Update the project management plans and other project documents including project baselines

Explanations:

Analyze the impact of the change on project quality objectives and quality planning. It is important to
analyze the impact of the change not only on the triple constraints but also on quality. The Project
Manager needs to determine whether the quality objectives and quality planning need to be modified to
address the changes. Option B is already addressed as part of assessing the impact on the triple
constraints.

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80. The method of examining work or a product to determine whether it conforms to

documented standards is called

Inspection

Statistical Sampling

Audit

Verification

Explanations:

Inspection is the examination of work or a product to determine whether it conforms to documented

standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can be done at any
level in the project and can also be used to validate defect repairs.

81. What is the best time to engage in team building activities?

In the beginning of the project

At the end of the project

Throughout the project

In the beginning for some projects and in the end for others

Explanations:

Team building is an ongoing activity and must be planned throughout the project.

82. You are managing one of the most technically challenging and complex projects for
your company. In the beginning of the project, there used to be heated arguments on the
team regarding the best approach to solving a problem. However, the project is well into
the execution stage and the team has finished designing the architecture of the product.
They seem to have developed a good understanding of the system. What is the most
appropriate way to handle project conflicts at this stage?

You should continue to determine the best solution and ask the team to implement it

You should let the team explore the best alternatives amongst themselves while you facilitate and
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You should let the team explore the best alternatives amongst themselves while you facilitate and
support them.

You should invite ideas from everyone in the team to arrive at the best solution

You should make a decision based on consensus from majority of the team

Explanations:

You should let the team explore the best alternatives amongst themselves while you facilitate and
support them. A Project Manager needs to provide more direction in the beginning of the project
because he knows the best way to plan the project. However, as the project team matures and develops
an understanding during project execution phase, the Project Manager needs to transition to a support
role. Your leadership style could be coaching, facilitating, or supporting.

83. Your software project is in the critical system testing stage when two of the senior
members of the team come to you with a conflict on usage of the simulation software
during testing. One senior member claims that the other person keeps the software
engaged for almost all the working hours of the project. You decide to change their
working schedules so that they no longer overlap. Which of the following techniques for
conflict resolution are you using?

Compromising

Collaborating

Forcing

Smoothing

Explanations:

The collaborating or problem solving approach is the best option as the PM is solving the project
problem by taking out the overlapping of activities.

84. As a Project Manager you decide to create an issue log which captures issue
description, owner, and the target date for issue closure. All of the following are common
examples of issues in the project EXCEPT:

Differences in Opinion

Probable delay in the next delivery

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Pending Root cause Analysis

Delay in receiving feedback from the customer

Explanations:

Probable delay in the next delivery represents a project risk and is not an issue as the event is uncertain.
This may or may not happen in future.

85. A Project Manager is working on shortlisting, interviewing, and selecting candidates for
the open positions within a project as per the job descriptions. Which process group is
being worked on here?

Planning

Initiating

Controlling

Executing

Explanations:

The process being worked on is Acquire project team, which is part of the executing process group.

86. A Project Manager likes to involve the project team in the decision-making process.
Whenever there are issues which require urgent decisions, the Project Manager calls the
team to work out a solution together. This approach is:

Correct because it helps to get team buy- in and its commitment to the change

Correct as brainstorming technique helps to bring out creative ideas to solve the problem

Incorrect as lot of time and effort of the project team are spent on decisions which could be
singularly made by the Project Manager

Incorrect as not all the solutions coming of a brainstorming session can be implemented, resulting
in disappointment in the team

Explanations:

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The key words here are "involve the project team in all the decision-making process." It is important for
the Project Manager to involve the project team to work out solutions to critical project issues. However,
this approach should be used judiciously as the amount of time spent in the meetings could lead to an
inefficient use of the team's time. Furthermore, in many situations, meetings delay the decision making
process due to internal conflicts.

87. A Project Manager working in a matrix project environment feels there is some
discontent in the team members related to their dual reporting and the role of Project
Manager on the project. The Project Manager wants to communicate with the team to
clarify their doubts. What is the BEST form of communication for addressing this problem ?

Formal Written mail

Informal chat with the team

Face-to-face-meeting

Informal written mail

Explanations:

A face-to-face meeting is ideal for project communication. It gives the Project Manager an avenue to
understand the reasons for discontent and clarify doubts. Face-to- face meetings have an added
advantage of being accompanied with non-verbal (body movements and physical mannerisms) and
paralingual (pitch and tone of voice) communication methods.

88. A Project Manager in an information technology project is discussing a complex

algorithm with a new team member. After a long and thorough verbal discussion, the
Project Manager asks if the team member understood the algorithm and can put it in the
document. The team member implies that he has understood. However, when the Project
Manager goes through the document, he realizes that the member didn't understand what
was said thus resulting in an inefficient use of time and effort. Who is responsible for this
loss of time, and how could it have been avoided?

Project Manager; he shouldn't have given the complex assignment to a new team member

Team Member; since he implied he understood the discussion and didn't ask his doubts
immediately

Project Manager; he should have also helped the team member in preparing and reviewing the
document

Project Manager; since it is his responsibility to ensure his message is clear and concise and
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Project Manager; since it is his responsibility to ensure his message is clear and concise and
confirm that the team member truly understands the message

Explanations:

In the communication model, it is the sender's responsibility to make the message clear, complete, and
concise so that the recipient can receive it. The sender must also confirm that the recipient truly
understands the message. In this scenario, the Project Manager is at fault. For more information refer to
PMBOK® Guide - Fifth Edition, Project Communications Management, PN 293.

89. You are managing a project with project teams in different geographical locations.
There are approximately 25 team members in 3 different locations each being led by a
team lead. Additionally, there are 3 members from a supporting group that are working
part-time on the project. How many communication channels are possible in your project?

496

992

424

32

Explanations:

This is directly based on the formula n*( n-1 )/2. If n is the number of stakeholders in the project, the
total possible communication channels = n*( n-1 )/2. The project has 25 team members, 3 team leads, 3
support team members, and the Project Manager. That makes it 32 people and 496 possible
communication channels. Please Refer PMBOK® Guide - Fifth Edition, Project Communications
Management, PN 292.

90. A Project Manager is documenting the normal process for escalating the issues on a
project. Which document usually contains this information?

Risk management plan

Stakeholder management plan

Project Communication management plan

Quality management plan

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Explanations:

A project communication management plan would capture the details of the escalation paths on a
project.

91. A key stakeholder of the project is contacted for a requirements document approval but
shows no interest. The Project Manager decides to have a friendly, informal discussion
with the stakeholder to understand the reason for his lack of interest. During the
conversation, the stakeholder expresses his displeasure that two of his key suggestions
were not addressed on the project and feels as though his approval or feedback doesn't
really matter since the main requirements are not being captured. What is the best option
for the Project Manager in this case?

Agree with stakeholder and doesn't take his approval on requirements. Remove his name from the
list of stakeholders and avoid communicating with him further on project status

Incorporate the requirements of the stakeholder and then take his approval

Talk to your Project Sponsor about the issue and take his approval before taking any further action

Explain to the stakeholder that although his suggestions were appreciated, it is not possible to
address all of them in this release due to project constraints. You will revisit them at the next
phase.

Explanations:

This should be addressed as part of "manage stakeholder expectations." A Project Manager should
proactively work with stakeholders to manage their expectations, address concerns, and resolve issues.
For more information, refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN
287.

92. A key stakeholder expresses his concern over lack of project visibility and progress and
says that project status reports received lack information relevant to the stakeholder's
department. How should the Project Manager respond?

Review the Project Communication Management Plan to determine the stakeholder's needs

Relook at the Manage Communications process to identify the gaps

Raise a change request to address the stakeholder's feedback

Relook at the Control Communications process to understand the problem

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Explanations:

The communication management plan determines the project stakeholder information needs and
defines the communication approach. It is the document that needs to be referred to resolve the
stakeholder's issues. Since the stakeholder is receiving timely performance reports, options (b) and (c)
are not correct.

93. A Project Manager in an e-learning project is using free downloadable tutorials via the
Internet to reach out to large audiences. This communication method is called:

Interactive Communication

Pull Communication

Push Communication

Personal communication

Explanations:

This is an example of a pull communication method which is used for large volumes of information or
for large audiences that require the recipients to access the communication content at their own
discretion. It is easier to recall pull communication as "pulling of information" as desired by the receiver
at his discretion. For more information, refer to PMBOK® Guide - Fifth Edition, Project Communication
Management, PN 295.

94. In one of the project status meetings, two senior team members get into an argument
regarding the introduction of a new tool to automate time sheet filling. Which of the
following would provide you maximum insight on the conversation?

The content and timing of the conversation

The content and timing of the conversation and the communication technology used

Body Language and the words in the conversation

Body language and voice modulation including pitch and tone

Explanations:

Option D includes non-verbal and paralingual forms which are critical for effective communication and
form more than 55% of all communication.
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form more than 55% of all communication.

95. A CEO from his Paris office wishes to communicate with the technical officer in China.
What is the correct procedure to communicate?

The CEO will decode the message from French to Chinese; the technical staff will encode it from
Chinese to French

The CEO will encode the message from Chinese to French; the technical staff will decode it from
French to Chinese

The CEO will decode the message from French to Chinese; the technical staff will encode it from
Chinese to French

The CEO will encode the message from French to Chinese; the technical staff will decode it from
Chinese to French

Explanations:

Each message is encoded by the sender and decoded by the receiver based on the receiver's education,
language, experience, and culture. For more information please refer to PMBOK® Guide - Fifth Edition,
Project Communication Management, PN 293.

96. As a Project Manager you are worried about the continuous bad performance of one of
your team members. You have spoken to him over coffee, but there seems to be no
improvement. What is the MOST suitable way to communicate your dissatisfaction to the
concerned team member?

Informal Verbal

Formal Verbal

Formal Written

Informal Written

Explanations:

As this is the second notice to the team member for poor performance, it should be communicated in a
formal written manner.

97. Which of the following is NOT an input to the process Manage stakeholder
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engagements?

Stakeholder Management Plan

Communication Management Plan

Change Log

Issue Log

Explanations:

An issue log is the output of the process Manage stakeholder engagements. All the other options are
inputs to the process.

98. Which of the following is the output of the process manage stakeholder engagements?

Issue Log

Stakeholder Management Plan

Communication Management Plan

Stakeholder Register

Explanations:

An Issue log is an output of the process manage stakeholder expectations.

99. A Project Manager shares project performance through status reports via email to all
the stakeholders of the project. Which of the following techniques is he using?

Kick-off meeting

Pull Communication

Push Communication

Communication model

Explanations:
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Explanations:

Push communication is sending information to specific recipients who need information. This ensures
that the information is distributed but doesn't certify that it reached or was understood by the intended
audience. Examples of push communication include letters and press releases. For more information
refer to PMBOK® Guide - Fifth Edition, Project Communication Management, PN 295.

100. As a Project Manager, you need to estimate the regression testing for your product.
You would like to do 5 full testing cycles. Each cycle is estimated to take 4 days. What is
your estimated duration for the testing activity?

25 days

18 to 22 days

18 days

22 to 24 days

Explanations:

The estimated duration for 5 testing cycles of 4 days each is 20 days. The correct estimation range is 18
to 22 days.

101. Which of the following needs is at the lowest level of Maslow's hierarchy?

Self actualization

Esteem

Social

Safety

Explanations:

Physiological needs is at the lowest level of the hierarchy. Among the given choices, safety is at the
lowest tier.

102. A project team is working on constantly reviewing and making sure that the right
processes are being followed. Which process will the team use?
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Perform Quality Assurance

Control Quality

Plan Quality Management

Quality Metrics

Explanations:

Quality assurance focuses on the process and is done throughout the project execution.

103. A Project Manager working on a construction project identifies the risk of a heavy
storm in the coming months that might affect the construction activity. However, there is
no reliable information on the weather forecast or the severity of the storm. In this case,
what is the BEST that the Project Manager can do?

Capture the risk in the Risk Register

Ignore the risk as nothing can be done to avoid it

Actively accept the risk and allocate time and cost reserve in contingency fund

Proceed with Risk Response Strategy to counter the risk

Explanations:

In this situation, the Project Manager has no information on the timing, anticipated frequency, or impact
of the expected rough weather. Option D may not be possible as there is not enough information. The
best option is to accept the risk but plan a contingency reserve in terms of cost and time in case the risk
occurs. Option A and B are passive approaches and are not recommended for a good Project Manager
who should always be proactive in his approach toward risk management.

104. Which of the following is NOT a likely outcome of trying to fast track a project?

Reduce the level of risk

Reduce the time taken

Increase the level of risk

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Cause more rework

Explanations:

Fast tracking (getting more tasks to go on in parallel) may reduce the time taken but will likely increase
risk and rework.

105. You are a Project Manager of a software development project. You have outsourced a
component of your product to a third-party vendor, and it is due to be delivered next week.
You find out that the delivery of the component may be delayed due to political unrest in
the vendor's location. What is the BEST you can do in this situation?

Report to your senior Manager about probable delay, along with details on the current political
situation at vendor's place

Communicate to the vendor that any possible delay would attract a fine and affect future payments

Revisit your project schedule and look at alternatives to reduce the impact of the delay

Since there is no official communication from the vendor, you need to use the "wait and watch"
policy

Explanations:

This question can be tricky as it doesn't clearly state whether or not the Project Manager received a
formal communication of the delay from the vendor. Since a Project Manager should proactively look for
any event that may delay the project schedule, Option C is the best alternative. Option B is harsh,
especially in a situation that is beyond the vendor's control (e.g. political unrest in the country).

106. A Project Manager is conducting a bidder conference to select the most suitable
sellers. Which of the following tools will NOT be helpful?

Independent Estimates

Analytical Techniques

Procurement Negotiations

Make-or-Buy analysis

Explanations:

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The Project Manager is in the process of conducting procurements. and all of the above are tools and
techniques that can be used in the process except Make-or-buy analysis, which is part of the plan
procurement process. For more information refer PMBOK® Guide - Fifth Edition Project Procurement
Management PN 354.

107. In execution phase, implementation of approved actions happens by following risk

management plan and risk register. For this action, which option is correct?

Minimize the negative risk and take the opportunities

Minimize the opportunities and increase the negative risk

Minimize only negative risk

Minimize only opportunities

Explanations:

As per the new examination content outline, take advantage of opportunities.

108. While working on a contract, a supplier's factory was severely damaged due to an
earthquake, and the supplier could not deliver the contracted items on time. The liability of
the supplier to pay penalty for delays is probably restricted due to:

Doctrine of Waiver

Privity

Dispute Resolution

Force Majeure

Explanations:

The Force Majeure clause protects both parties from liabilities due to unforeseen events on which
nobody has control.

109. You have recently joined a new construction company, and you find that your
employer is violating the construction permit issued by the local city government. What
should you do?
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should you do?

Inform the city authority of the violation

Talk to your employer to find out if they are aware that they are breaking the law

Complain to the legal department of the company

Do nothing as you are new to the organization

Explanations:

The best option is to first talk to your employer to discuss your findings and know their perspective. It
would also help you verify your observation.

110. As a Project Manager, you understand the importance of effective communication

with stakeholders. You want to present a project progress report to the stakeholders in the
next project meeting. What should be your approach?

Make the report concise and restricted to specific technical details of the project

Prepare a verbose report but filter the information to remove details

Focus on specific stakeholders with whom you have good personal relationships

Research and understand the experience level and expectations of stakeholders

Explanations:

Since a project's success is heavily dependent on the stakeholders' favorable acceptance of the project,
it is important to have effective communication with the stakeholders, especially during project
meetings. For this purpose, the Project Manager should research and understand the stakeholders'
expectations before presenting project progress reports.

111. You are managing a multinational project with team members from different countries
with varying time zones. In this scenario, you wish to choose a communication medium
that is most efficient for the project requirements. What is the most appropriate way to
address this?

Explore communication tools available in the market and ask for quotations exclusively for your
project instead of using the existing tool in the organization

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Use the most cost effective technique and explain its usage to everyone

Use a combination of communication technologies

Discuss these communication requirements and available options with stakeholders to seek their
input

Explanations:

It is important to have an effective communication medium in this project, especially since the team is
in different geographical locations and communication requirements are complex. It is best to take
input from the stakeholders of the project and understand their communication requirements before
finalizing a technique.

112. You are interviewing candidates for a position in the project. When you receive the
resume of a distant relative who is desperately in need of a job, what should you do?

Give the candidate the job, but insist on good performance

Ask the candidate to apply somewhere else

Declare your position and excuse yourself from the selection process

Do nothing and go with the panel decision

Explanations:

The right thing to do is to declare your personal interest and excuse yourself from the selection process.

113. As a Project Manager, you have a large team reporting to you, with two members
working on a new technology for the first time. At the beginning of the project, you were
concerned that the members wouldn't be able to contribute much due to the technical
complexity of the project. However, you spent time and gave them the required training in
order to help them perform. During your assessment, you find some areas that still require
improvement. What should you do next ?

Discuss this with the Functional Manager and ask him to assign these resources to some other
project as you have already spent enough effort on them

Give them more challenging assignments so that they fail and you have a reason to expel them
from the team

Assess their current weak areas and provide more focused training with regular feedback
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Assess their current weak areas and provide more focused training with regular feedback

Talk to them and and give them a warning that this is their last chance to perform in the project

Explanations:

The role of a Project Manager is also that of a leader. The question seems to suggest that improvement
in the team's performance would give much better results. Option A would have been good if the Project
Manager would have suggested that members move to a project that matches their skill set. Since this
is not the case, the best option is C.

114. After working as a Project Manager for more than 25 years, you want to share your
learning and best practices with your industry. You do this by writing articles in
international journals and giving interviews to share your experience. This act can be BEST
described as?

Enhancement of professional skills by learning project management and technical skills

Contribution to project management knowledge base by virtue of vast personal experience

Capturing professional stint in autobiography purely as a retrospection exercise

Informing others about project management principles and helping the profession grow

Explanations:

The Project Manager is adding his lessons learned and best practices to the project management
knowledge base.

115. During project execution, the customer interprets a clause in the contract differently
and demands an elaborate design document as part of the next deliverable. According to
you, this is not included in the deliverable list. What best can you do to resolve the
situation?

Change the contract and continue with your project work

Accept the customer's demand as he is responsible for the project's success

Talk to your Project Sponsor about the issue and the implications of accepting such a request on
the schedule and cost of the project

Document the dispute and refer to the claims administration

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Explanations:

In case of conflicting claims, it is best to refer them to claims administration. Claims administration
resolves claims according to the contract's dispute resolution procedures when the buyer and seller
cannot resolve a claim on their own. Claims administration documents, processes, monitors, and
manages claims during the life of the contract, usually according to the contract terms.

116. You are working at a customer location in a foreign country where it is customary to
exchange gifts during New Year celebrations. Your company forbids you to accept any
form of gift from your customer, but you have a strong feeling that if you refuse to accept
and reciprocate the gesture, it can severely affect your relationship with the customer. In
this case, it is BEST to:

Explain your company policy and politely refuse to accept any gifts

Discuss this situation with your Project Sponsor or legal department

Accept the gift and keep it confidential so that there is no loss of face for your organization

Take a break from project work to go on a small vacation during the New Year

Explanations:

Since the company policy forbids the Project Manager from accepting any gifts, the Project Manager
should consult the Project Sponsor and legal department.

117. Your project has faced some unforeseen issues that have delayed it. The project is
very critical for the company, and it has to meet the scheduled deadline. In order to meet
the deadline, your team would have to work over the weekends for the next two weeks.
However, you know that many of the team members will have personal commitments, and
it will be very difficult for them to work for seven consecutive days. What is the BEST
option?

Hire additional resources and brief them about the project

Inform the customer that this deadline can't be met

Discuss the situation with the team and give them the choice to willingly work overtime

Send an official mail, making it compulsory for the team to work over the weekends
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Explanations:

The Project Manager should explore all the options to avoid delay in the project. In this case, there might
be some team members willing to work over the weekends, and the Manager can re-plan the schedule
once their availability is confirmed.

118. You are a Project Manager in the process of performing the work defined in the
project management plan to achieve the project objectives. Which process are you in?

Develop Project Management Plan

Monitor and Control Project work

Direct and Manage project work

Execution process group

Explanations:

The Project Manager is currently in the "direct and manage project work" process that is a part of the
execution process group.

119. A Project Manager, Joe, is discussing the observed variations between planned and
actual values of defects with his quality engineer. He realizes that he has forgotten to
identify one of the important metrics to analyze defects. Which process group is the
Project Manager in if he evaluates the current result for the metric to see if it requires
corrective action?

Planning

Executing

Monitor and Control

Quality Audit

Explanations:

The activity of identifying applicable quality standards, processes, and metrics is completed as part of
project planning. In this case, the Project Manager is evaluating the variation in the current results for
the new metric and whether it requires corrective action Hence he is in the 'monitor and control'
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the new metric and whether it requires corrective action. Hence, he is in the monitor and control
process group.

120. A Project Manager wants to monitor the performance of a process. She sets up
thresholds for this purpose, and any observation beyond the threshold would trigger a root
cause analysis and corrective/preventive actions. This is an example of:

Specification limits

Control limits

Pareto charts

Tolerances

Explanations:

Tolerances or specification limits are customer-specified limitations. These limits are meant for the
purpose of controlling the process. Hence, they are control limits.

121. The Project Manager is reviewing the issue log as part of his execution activity. Which
of the following would be the LEAST appropriate activity for the Project Manager to
perform as part of the monitoring and controlling process group activity?

Assess the corrective actions on the issue register

Determine the next steps for unresolved issues

Use appropriate tools and techniques in order to minimize the impact on project schedule, cost,
and resources

Review the issue and determine if the issue should be avoided, mitigated, transferred, or accepted

Explanations:

Avoid, Mitigate, Transfer, and Accept are risk response strategies where there is an element of
uncertainty involved. It is not appropriate for issue management because issues are present in here and
now.

122. You are assigned as a Project Manager to a project in the execution stage. Current
schedule and performance indices for the project SPI and CPI are 1 12 and 1 15 and
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schedule and performance indices for the project, SPI and CPI are 1.12 and 1.15, and
project performance are well within the baseline. The defects found during internal testing
for the last deliverable were well below the organization limits. However, the customer
doesn't seem to be happy with the project progress. What should be the FIRST thing the
Project Manager should do?

Start managing project as you gain more insight into day to day responsibilities

Meet with the project team to understand open issues in the project

Conduct a meeting with the customer to understand his concern over project progress

Improve project schedule and cost control measure so that SPI and CPI reaches above 1.5

Explanations:

The most important thing for the Project Manager who is taking over the project midway is to
understand why the customer is unhappy in spite of the project performance being well within the
baseline. Option A, wouldn't address the main problem and Option D, has no valid justification. Option B,
could be a good option after talking to the customer to address his concerns and other issues on the
project.

123. A Project Manager working in an iterative model of the product development lifecycle
expects many changes during the course of the project. He wants to establish a robust
configuration management system and also make his team aware of the process. Which of
the following statements is NOT true about configuration management?

The purpose of configuration management is to maintain integrity of work product

Configuration management includes configuration audits, configuration control, configuration

status accounting, and configuration identification

Configuration management focuses on establishing and maintaining consistency of a product's

requirements

Configuration management involves measuring project performance with baselines and taking
corrective action when necessary

Explanations:

This is done as a part of the process 'monitor and control project work'. All the other statements
describe the configuration management process.

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124. A Project Manager has delivered a major deliverable of the project. The customer
comes back a week after the release saying that he is not entirely satisfied with the
deliverable. What should the Project Manager do NEXT?

Continue with the next deliverable as the project has to be finished on time

Talk to the Senior Manager to discuss the customer concern and resolution

Ensure that the next deliverables have the features that the customer specified and exceed his
expectations

Do a scope verification of this deliverable to check if it satisfies project objectives

Explanations:

Verifying the project scope includes reviewing deliverables to ensure that each is completed
satisfactorily. If this is successful, it should provide customer satisfaction. Option C is gold plating, i.e.,
providing the customers something they didn't ask for and that wouldn't solve the problem. Options A
and B avoid addressing the main problem directly and are not recommended.

125. The decision to close a project is taken during which process group?

Planning

Executing

Controlling

Closing

Explanations:

The decision to close a project (normal or abnormal termination) is taken during the controlling
processes.

126. Your project is in the final stages of testing, and the team is interacting with the
customer on a daily basis to update the customer with the project status and incorporate
his feedback. Which of the following would be the most critical process to be followed in
this scenario?

Control Quality
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Control Scope

Manage Communications

Control Risks

Explanations:

In this case, frequent changes are expected to be done by the team based on customer feedback. When
a change is presented, a part of considering the change involves additional planning. The Project
Manager and the team must examine how the change affects the project work and knowledge areas.
Thus, Control scope ensures that the project scope is protected from unnecessary changes and all
eligible changes are done using the scope change control system. Option A, Control Quality, is more
focused on ensuring conformance to documented standards and is not the correct choice.

127. A Project Manager is proactively managing the change through the scope control
process. Which of the following should he be MOST worried about?

Value Added Changes

Errors and Omissions

Risk Response

Verbal communication from key stakeholders

Explanations:

Undocumented changes should never be allowed by the Project Manager. He should ensure that
whenever a change is requested, the impact on features and functions of the product (including that on
the triple constraints) is documented with a change request. Only then should the change continue
through integrated change control. Option A, value-added changes, describe changes in the scope that
would provide benefits such as cost reduction. Option B, errors and omissions, could be both in project
scope, which is the work required to complete the project, and the product scope, which refers to the
features and functions of the deliverables. Option C, risk response, involves changes in the scope
required to mitigate an identified risk. Option D, verbal undocumented changes, poses maximum
potential threat to a project.

128. The ES of an activity is 2 days, and the duration of the activity is 5 days. The LF for the
activity is 8 days. What is the total float for this activity?

6 days
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3 days

1 day

5 days

Explanations:

We can calculate float using the formula EF=ES+D=2+5=7 and LS=LF-D=8-5=3. The formula for Total
float is LS-ES or LF-EF. The answer is 1 day.

129. As a Project Manager and member of the PMO (Project Management Office), you
want to present a snapshot of the status of various projects that the organization is
working on to the senior management. Which of the following charts would be most
suitable for the purpose?

Milestone chart

Gantt Chart

Precedence diagram

Control chart

Explanations:

A milestone chart depicts key events along a timescale. It is used for top level reporting so that
management does not become bogged down in the minutia of the projects. A milestone chart can
contain various colors or markings that indicate status. It can also contain other information related to
the project(s), like customers, responsibility, duration, phase of the milestone, etc.

130. You are trying to figure out if there is a correlation between the slack time available in
a shift and the number of rejected components produced during the shift. Which is the tool
that you will use to analyze this?

Pareto charts

Ishikawa diagrams

Histograms

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Scatter diagrams

Explanations:

Scatter diagrams are used to plot data between two variables to figure out if there is a pattern or
correlation between them.

131. You are managing an infrastructure project that is nearing completion when a major
stakeholder points out a flaw in the design that could make the entire structure weak. He
suggests that you construct two support pillars that would provide the necessary support.
You are worried that this change could impact the schedule and cost of the project
significantly. What is your BEST response to the stakeholder?

Refuse his suggestion as the project is already nearing completion and it's not possible to make
any changes at this stage

Do a root cause analysis with the team to determine how this design flaw could have been missed,
and if there could be more potential problems with the design

Proceed with the change and communicate the impact on project schedule and cost to the
customer

Use a schedule compression technique as part of integrated change control to investigate and
minimize the adverse impact of the change

Explanations:

Schedule compression technique is useful not only during project planning to see if the desired
completion date can be met, but also during integrated change control to look at the schedule impacts
of changes to time, cost, scope, or risk. Option B seems to be in good faith but doesn't address the
immediate problem. Option C should be done once all the alternatives are explored to minimize the
adverse effect of the change on the project schedule and other constraints.

132. Project performance reviews using earned value management would NOT typically
incorporate information from:

Variance Analysis

Cost Benefit Analysis

Trend Analysis

Earned Value Technique

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Explanations:

Cost benefit analysis is a technique that compares positive factors or benefits with negative ones to
determine the net result of performing the action. It is a popular technique for the project selection
method, but will not be useful during the project performance review. Please refer to PMBOK® Guide -
Fifth Edition Project Cost Management PN 193 for more details.

133. As a Project Manager, you realize that the initial budget cost, Budget at Completion
(BAC), for your project is no longer viable. You need to develop a new Estimate At
Completion (EAC) forecast assuming that current variances would continue in the future.
Which of the following formulae should you use to calculate EAC? Here, AC is the Actual
Cost, EV is the Earned Value, and PV is the Planned Value.

EAC = AC + ETC

EAC= AC+ (BAC - EV)

EAC = EV/PV

EAC = BAC/Cumulative CPI

Explanations:

This method assumes current variances to be typical of the future. The remaining work is assumed to
be performed at the same cumulative cost performance index (CPI) as what has been incurred by the
project to date.

134. Earned value management is the tool and technique of which process?

Perform Integrated Change Control

Control Costs

Direct and Manage project work

Control Schedule

Explanations:

Earned value management is a tool and technique of the Control Costs process. See page 215 of
PMBOK® Guide - Fifth Edition
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PMBOK® Guide Fifth Edition

135. A project team with a CPI of 0.78 is looking for options to reduce cost. Which of the
following would be the BEST option to do so?

Reduce a test cycle in the system testing phase

Reduce scope by cutting down non-essential features

Add more resources to expedite the schedule

Revisit estimates and eliminate risks and then re-estimate

Explanations:

Option C wouldn't reduce cost. Option A and B would have a negative effect as they compromise on
quality or scope. Of all the available options, D is the one with minimum negative effect.

136. You are a Project Manager. You need to decide whether to buy insurance for a
temporary manufacturing facility. The likelihood of a mishap is assessed at 10% and the
likely impact is evaluated at $500,000. The cost of insuring is $20,000 and has a $10,000
deductible. Would you buy insurance?

Yes, because 50,000 > 21,000

Yes, because 50,000 > 30,000

No, because 30,000 < 500,000

No, because 21,000 < 50,000

Explanations:

EMV when there is no insurance is -500,000 * 0.1 = $50,000. EMV when there is insurance is -(20,000+
0.1*10,000) = -21,000. Therefore, it makes sense to buy insurance.

137. A project has a CV of -$500 and SPI of 1.2. What can be said about the project?

Your project is over budget and behind schedule

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Your project is under budget and behind schedule

Your project is over budget and ahead of schedule

Your project is under budget and ahead of schedule

Explanations:

CV < 0 indicates that the project over budget; SPI > 1 indicates that project is ahead of schedule

138. As a manager, you would like to get the status on the remaining work with respect to
the remaining funds. Which of the following measures will give you the information?

To-Complete Performance Index

Earned Value Technique Performance

Variance Analysis

Trend Analysis

Explanations:

To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be
achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is
Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is the Actual Cost, EV is
the Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion.

139. Which of the following is the best use of Pareto charts?

To visualize a workflow

To prioritize issues

To perform deeper causal analysis

To examine trends

Explanations:

Pareto charts based on the 80-20 rule are useful for prioritizing from among a number of possible
causes because it helps to focus on the 20% causes that result in 80% of the issues.
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140. In a normal distribution, what is the probability of finding the actual value between 1
standard deviation distance from the mean?

0.95

0.9973

0.5

0.68

Explanations:

The answer is based on the property of the normal distribution.

141. A team is inspecting specific project deliverables to ensure that they are in
accordance with the specifications. Which process is being worked on?

Perform Quality Assurance

Validate Scope

Plan Quality Management

Control Quality

Explanations:

Quality control is the process of examining specific project deliverables to ensure they are in
accordance with the requirements/specifications.

142. Your project is going through an audit cycle. One of the senior auditors points out that
the target value for Schedule Performance Index (SPI) is set to a low value and should be
increased by at least 5 percent. You try to tell the auditor that this target value is in
accordance with the organization baseline and cannot be changed. Which of the following
is the CORRECT statement in this case?

The auditor is right; as the project must meet a critical deadline target SPI should be increased
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The auditor is right; as the project must meet a critical deadline, target SPI should be increased

The auditor is right; the target value of SPI is a benchmark for the project, and it should be kept high

The Project Manager is right; as the project schedule is not critical, target SPI value needn't be kept
too high

The Project Manager is right; target SPI is based on organization baseline derived from its process
maturity level and should be followed by the project

Explanations:

Most organizations set up an organization-level baseline called process capability baseline. PCB or
Process Capability Baseline specifies what results to expect when a process is followed. Using PCB, a
project manager can predict, at the gross level, effort required at various stages, defect densities, overall
quality, and productivity. In this case, the Project Manager is right to set the target values of his project
metrics based on the organization baseline value.

143. The customers are performing User Acceptance Tests on the product that was
delivered by the project team. Which process is likely being performed?

Control Quality

Control Schedule

Perform Integrated Change Control

Validate Scope

Explanations:

Scope validation is the process of accepting or rejecting the project's deliverables.

144. A Project Manager is working toward improving the competencies, team interaction,
and overall team environment to enhance project performance. Which of the following
tools and techniques would NOT be helpful here?

Training

Recognition and Rewards

Conflict Management

Co-location
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Co location

Explanations:

The Project Manager is in the process of developing project teams. Apart from conflict management, all
the other options are tools and techniques used in the process. Conflict management is part of
"manage project team." For more information, please refer to PMBOK® Guide - Fifth Edition Project
Human Resource Management PN 282.

145. Which of the following is the top source of conflict in a project?

Schedule

Project priorities

Administrative procedures

Personality

Explanations:

The top-ranking source of conflict is schedule. Scheduling is probably one of the toughest obligations of
most Project Managers. Next in the list is project priorities. Managers need to attend to all the projects
of the organization, and conflicts arise when all projects are not given attention and importance. Third
on the list is resources. When a project team is understaffed, people start to feel the intensity of
pressure. They may burn out and become less motivated. Technical conflict and administrative
procedures come next on the list. Finally, cost objectives and personality conflicts complete the list of
seven sources of conflict.

146. Which of the following is NOT an input to the Control Communications process?

Issue Log

Work performance information

Work performance data

Project management plan

Explanations:

Work performance information is an output (not input) to the Control communications process. See
page 303 of PMBOK® Guide - Fifth Edition
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147. A Project Manager wants to present a project performance report to the management.
The report needs to captures project results over the last 3 years to see if the performance
is improving or deteriorating. Which of the following reports should the Project Manager
use?

Earned Value

Status Report

Forecasting Report

Trend Report

Explanations:

A trend report would capture this information. Option A, earned value, integrates scope, cost, and
schedule measures to assess current project performance. Option B, status reports, describes the
position of the project based on the performance measurement baseline. Option C, forecasting report, is
used to predict future project status and performance.

148. As part of project stage review, you are presenting project performance reports to the
stakeholders. The reports show that both cost and schedule variances are positive for the
project. What does this indicate about the current project status?

Project is under budget and behind schedule

Project is over budget and behind schedule

Project is under budget and ahead of schedule

Project is over budget and ahead of schedule

Explanations:

Answer (c) Cost Variance = Earned Value (EV) - Actual Cost (AC). Positive cost variance indicates that
the project is under budget. Similarly, Schedule Variance = Earned Value (EV) - Planned Value (PV).
Positive schedule variance indicates that the project is ahead of schedule.

149. A Project Manager wants to perform some tests on the product that might end up
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destroying the product. What technique can be used to get around this problem?

Statistical sampling

Regression testing

Automated testing

Stability testing

Explanations:

In case the test is likely to prove destructive, it s typically performed on a sample.

150. A project team is in the process of risk tracking and control. The risk control action
defined by the mitigation and contingency plans is being implemented in accordance with
the details of those plans. Who is responsible for implementing these actions?

Project Manager

Project Team

Risk Owner

Risk Manager

Explanations:

The risk owner for that particular risk is responsible for implementing the actions defined by the
mitigation and contingency plans. A risk owner is identified during the planning stage of risk
management and helps to assess the risk and produce probability and impact information. The risk
owner develops risk mitigation and contingency plans, provides status data for respective risk issues,
and assists in evaluating effectiveness of the risk control action. The risk owner also documents
threshold criteria of high and medium risks and supports the identification of new risks.

151. In the PDCA cycle, C stands for?

Control

Check

Card
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Ca d

Carryover

Explanations:

PDCA stands for Plan-Do-Check-Act.

152. You are managing a project with a total budget of $36,000 to be finished in one year.
You are at the end of the 6th month and the project is currently on schedule; however, the
actual cost of the project is $20,000. What is the cost variance on the project?

2000

-2000

16000

-6000

Explanations:

Cost variance = Earned Value (EV) - Actual Cost (AC). Here, Earned Value is uniformly spread over the
entire project duration. So earned value at the 6th month = [(Total Cost)/ (Total Project months)] *
Months completed, i.e., ($36,000/12)*6 = $ 18,000. Cost Variance = $18,000-$20,000 = -$2,000

153. Which of the following statements is true about control charts ?

Special causes are easier to predict and handle than common causes

Common causes are easier to predict and handle than special causes

A process is stable if it has only special causes

None of the above

Explanations:

Two types of variation can be distinguished using control charts: the variations inherent in a process,
such as product design or choice of materials, and special causes of variation, i.e., variations from
unexpected sources, such as human error or a power failure. When the process is in control, it is solely
governed by common causes and is indicated through data points lying within control limits. In this
case, the only way to improve a process is to make a fundamental change, for example, upgrade
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case, the only way to improve a process is to make a fundamental change, for example, upgrade
equipment, change procedures, or provide more training. However, the presence of a special cause
would result in data points falling outside the control limit or show trend. Special causes of variation
must be removed before the control chart can be used to monitor the performance of a process to
make it stable and predictable.

154. After awarding contract to one of the sellers, you realize that you have missed a
clause for delay in the contract and want to modify it. How should you proceed?

The contract is legally binding and cannot be changed once signed

The Project Manager should inform the seller about the change in the next meeting

The Project Manager should inform the seller about the change through a formal written
communication

The Project Manager should proceed with Contract Change Control System at his end

Explanations:

The Project Manager should proceed with Contract Change control System at his end.

155. Your firm awarded a cost reimbursable contract to a pharmaceutical company for a
research-related activity. Over time, a large number of changes have taken place on the
project, and it has become difficult to keep track of the status of these change requests.
What is the BEST alternative for a Project Manager in this case?

Terminate the existing contract and negotiate a new one with the seller

Capture all the change requests, along with their current status, and follow the contract change
control system

Terminate the existing contract and sign a similar one based on the same terms and conditions as
the earlier one

Seek advice from the senior management of your organization

Explanations:

There are strong reasons for the Project Manager to terminate the existing contract and re-negotiate the
terms and conditions. As the earlier contract was cost reimbursable, the Project Manager had limited
information on the contract scope of work. It may not be true now since some work has been done, and
the Project Manager is in a better position to negotiate. Also, since there are too many change requests
with no clarity on how many of them would be approved, it is difficult for the Project Manager to
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y y pp j g
continue work. The best option for the Project Manager in this case is Option A,.

156. As a Project Manager, you are conducting a structured review of the seller's progress
to deliver the project within the contract specifications. Your objective is to determine
progress with respect to the procurement statement of work. You would be doing this
review in which stage of the project?

Before contract closure

Before awarding the contract

As part of project status review

In case of nonconformance by seller

Explanations:

The Project Manager is doing a procurement performance review as part of the 'administer
procurements' process. It is a structured review of the seller's progress to deliver project scope and
quality within cost and on schedule, as specified in the contract. For more information, refer PMBOK®
Guide - Fifth Edition Project Procurement Management PN 379.

157. You are managing a complex, critical project and have put in a lot of effort to make
the team technically proficient during the process. The project is in the final acceptance
testing stage when a senior resource, Janice, comes to discuss her plans of continuing her
education and leaving this current assignment. She would require a positive
recommendation for work from you to fulfill admission requirements. What should you do?

Tell her that you wouldn't recommend her as she has broken your trust by leaving the project before
closure

Immediately ask the Functional Manager to remove her from the project and give her a bad
recommendation

Discuss and plan her exit so that it would have the least impact on the project schedule

Compliment Janice on her decision and suggest that she can leave the project whenever she likes
as you would handle her additional responsibilities

Explanations:

The Project Manager should take steps to minimize the impact of any change that can affect the 'triple
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constraints' in the project. Option D is wrong and it sets a wrong example.

158. You are managing a software project that is due for design document release next
week. An influential stakeholder asks you to add a feature to the existing design. This
stakeholder has earlier made unreasonable demands during the last days of release. What
is the best you can do in this situation?

Report his behavior to the senior Manager and suggest that he no longer be associated with your
project as a stakeholder

As this person is influential, you have no option but to listen to him and add the functionality

Determine the impact of this change on your schedule and their constraints before taking a
decision

Ask him to raise a written change request and then follow integrated change control

Explanations:

It is important that a Project Manager considers written and well-documented change requests for the
project.

159. Which of the following conflict resolution techniques is believed to generate the
FEWEST enduring positive results?

Problem Solving

Avoidance

Compromising

Forcing

Explanations:

Forcing is the technique that can generate the FEWEST positive enduring results.

160. While monitoring the project, you find that an accepted risk is going to occur. Which of
the following will you use to develop the response:

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Risk Response Plan

Fallback Plan

Mitigation Plan

Risk Register

Explanations:

The fallback plan includes an alternative set of actions and tasks in the event that the primary plan
needs to be abandoned because of issues, risks, or other causes.

161. Tom has been recently promoted as a Project Manager for a short-term IT project.
Jim, an experienced Project Manager, has suggested to Tom that the most important task
for a Project Manager to be successful is communication with the stakeholders. Jim
explains to Tom that he should communicate the project status to the stakeholders to get
feedback. How will this help Tom on his project?

All the stakeholders will be happy with Tom

This will ensure that the project aligns with the business needs

The Project Sponsor will be happy

Tom has to do this as it is defined in the organizational policies

Explanations:

A Project Manager needs to communicate detailed project information and project status to concerned
stakeholders to get their feedback. This will ensure that his project aligns with the business needs, and
there will be fewer unsatisfied stakeholders.

162. A Project Manager has made the final delivery to the customer, and the team is in the
process of completing administrative and contract closure. The team has also saved the
final version of the &#8220;lessons learned&#8221; in the corporate database. Which of
the following is a critical activity that the Project Manager should complete before formally
closing the project?

Confirm that all the requirements in the project are met

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Ensure that all project management processes are complete

Obtain formal sign-off of the project from the customer

Index and archive the project records

Explanations:

The most important part of project closure is to get formal sign-off from the customer. The customer
considers the project completed and accepts the completed project. Formal sign-off in a contracting
situation constitutes legal acceptance.

163. Which of the following is typically NOT part of project closure?

Get formal sign off from the customer to confirm customer acceptance of final deliverable

Measure customer satisfaction as it is a key performance indicator of the project's success

Hand off completed project deliverables to operations and management

Use the findings of the project to plan future projects

Explanations:

Answer (d) Documenting lessons learned is part of closure, but applying those findings happens during
the project planning (not closure) process.

164. A few weeks before the close of a project, the customer submits a request for a new
feature, which will have a major impact. The customer further expects this to be completed
within the original cost and schedule baseline. What should the Project Manager do?

Meet with the team to understand the impact

Refuse the customer request

Ask the team to voluntarily work extra hours to get the feature completed

Inform senior management about the request

Explanations:

The impact is already known to be significant and there doesn't seem to be enough time to rally around
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The impact is already known to be significant and there doesn t seem to be enough time to rally around
the situation. As the customer is expecting a change that is not easily achievable, the best course of
action is to ask senior management to take a call on this situation.

165. During final payment for a contract, you were surprised to see two line items in the
invoice pertaining to features that were requested by some members of your team. These
items were not really necessary for your project. What should you do about the invoice?

Ask the team members why they requested the unnecessary items

Pay only for the essential items

Pay as per the original contract and start arbitration proceedings for the rest

Pay for the additional items as well

Explanations:

Irrespective of whether they were necessary or not, it is a fact that they were requested by your team
members. Therefore you cannot escape the liability to pay for them.

166. You need to determine when to release resources from your project. Which part of the
staffing management plan will be most useful for this?

Resource Histogram

Safety procedures

Recognition and rewards

Training needs

Explanations:

A Resource Histogram is a bar chart that shows the amount of time that a resource is scheduled to
work over a series of time periods.

167. Which of the following is the correct order of actions that you must take during the
closing process?

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Get formal acceptance, release the team, write lessons learned, close the contract

Write lessons learned, release the team, get formal acceptance, close the contract

Get formal acceptance, write lessons learned, hand over deliverable to stakeholder(s), close the
contract

Get formal acceptance, close the contract, write lessons learned, release the team

Explanations:

One important fact is that you need your team's help when you're writing the lessons learned. That's why
you can't release the team until the lessons learned are documented and added to the organizational
process assets. Also, the last thing you do on the project is close the contract. Remember, releasing the
project team is no longer part of closing, according the new RDS study conducted by PMI. This was
amended in 2011.

168. Your project has just been completed, and one of your subcontractors has sent you
the tickets for a cricket match to thank you for your business. What is the BEST way to
respond?

Thank the subcontractor, but do not give him preference in the next RFP

Thank the subcontractor, but politely refuse the gift

Ask for tickets for the entire team so that it is fair to everyone

Report the subcontractor to PMI&#174;

Explanations:

The PMP® Code of Professional Conduct says that you're not allowed to accept any kind of gift, not
even after the project has been finished. This would be considered the same as taking a bribe.

169. A Project Manager is reporting the final status of the closed contract to the
stakeholders. Which form of communication is appropriate?

Informal Written

Informal Verbal

Formal Written

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Formal Verbal

Explanations:

All project reports must be communicated as formal written documents.

170. Which of the following is an input of the close project or phase process?

Transitioning of the final product, service, or result

Updates to the Organizational process assets

Accepted Deliverables

Enterprise environmental factors

Explanations:

Accepted deliverables is an input to the Close project or phase process.

171. Which of the following is NOT a possible use of historical records?

Establish organizational performance benchmarks

Document best practices that were discovered during the project

Use in closure reports of subsequent projects

Document potential pitfalls that future projects can avoid

Explanations:

Historical records from one project cannot become part of the closure reports of other (future) projects.

172. During the closing, the final project report needs to be based on:

Stakeholder management plan

Communications management plan

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Project charter

Contract

Explanations:

According to the new examination content outline, the final project report needs to be based on
communications management plan.

173. Which one of the following is the last step of project closing?

Archive Project Documents

Measure customer satisfaction at the end of the project

Client appreciates your product

Lessons learned are documented

Explanations:

All of the stated options are activities conducted during project closing. Measuring customer
satisfaction at the end of the project is the last step in the closing process group. This is according to
the new changes suggested by the PMI RDS Study.

174. What are the two closing procedures in a project lifecycle known as?

Contract close out and verify Scope

Contract closeout and administrative closure

Project closure and product verification

Project closure and lessons learned

Explanations:

The two closing procedures in project lifecycle are known as contract closeout and administrative
closure. Contract closeout is the administrative procedure associated with the end of the business
agreement with the supplier and the archiving of documents in the contract file. Administrative closure
is a procedural mechanism to temporarily stop removal proceedings by removing the case from the
immigration judge's or BIA's calendar
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immigration judge s or BIAs calendar.

175. Which of the following statements is FALSE?

Project closure documents and project files are outputs of the Close Project Process

Project files consist of documentation resulting from project activities, such as the project
management plan, scope, cost, risk registers, and quality baselines

The formal acceptance documentation formally indicates that the customer or sponsor has
officially accepted the project deliverables

After the Close Project or Phase process is complete, the Project Manager should identify and
document the lessons learned

Explanations:

D is incorrect. The creation of lessons learned documentation is part of the Close project or phase
process.

176. As a Project Manager, if you had to choose among projects A, B, C, and D, which one
would be the BEST option? Here, NPV is Net Present Value.

Project A: NPV $ 50,000, to be completed in 3 years

Project B: NPV $ 40,000, to be completed in 2 years

Project C: NPV $ 70,000, to be completed in 9 years

Project A: NPV $ 60,000, to be completed in 1 year

Explanations:

The project with highest value of NPV should be selected. The information on number of years to
complete the project is irrelevant as it is already considered while calculating the value of NPV. NPV is
defined as the difference between the present value of cash inflows and the present value of cash
outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.

177. The popular iterative four step approach of Plan-Do-Check-Act was advocated by:

Joseph Juran
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W. Edwards Deming

Philips Crosby

Genichi Taguchi

Explanations:

PDCA (plan-do-check-act) is an iterative four-step problem solving process typically used in business
process improvement. It is also known as the Deming cycle, Shewhart cycle, Deming wheel, or plan-do-
study-act. It was proposed by W. Edwards Deming in the 1950's and suggests that business processes
should be analyzed and measured to identify sources of variation that cause products to deviate from
customer requirements. He recommended that business processes be placed in a continuous feedback
loop so that managers can identify and change parts of the process that need improvements. Plan:
Design or revise business process components to improve results. Do: Implement the plan and measure
its performance. Check: Assess the measurements and report the results to decision makers. Act:
Decide on changes needed to improve the process.

178. Which of the statements about the Arrow Diagramming Method (ADM) or Activity-on-
Arrow (AOA) is NOT true?

The nodes are used to represent activity and arrows show activity dependency

It uses only Finish-to-Start relationship between activities

It may use dummy activities

It's a popular method of drawing a network diagram

Explanations:

In the arrow diagramming method (ADM), the arrows are used to represent activities. The nodes
represent activity dependency.

179. A project team working on a water purification plant is determining the right
combination of flow rate, dosage of chlorine, and residence time in the oxidation chamber
to achieve the best results. What is the technique being applied?

Benchmarking

Statistical Sampling

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Design of Experiments

Qualitative risk analysis

Explanations:

Design of experiments is the technique of finding the optimum combination of factors that help achieve
a certain target objective.

180. The technique for performing root cause analysis is called:

Ishikawa diagram

Kaizen

Deming cycle

Total Quality Management

Explanations:

Answer (a) Ishikawa diagrams or fish-bone diagrams are used to perform root cause analysis.

181. As a buyer, the best possible outcome of a negotiation process is:

For the buyer to get the best possible price

For both parties to get the best possible deal

To get a watertight guarantee on timely delivery

To get a guarantee for best quality

Explanations:

The outcome of negotiations is to work out a fair deal.

182. Which of the following is NOT true of decision trees?

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Clearly lay out the problem so that all options can be challenged

Provide a framework to quantify the values of outcomes and the probabilities of achieving them

Allow users to analyze the possible consequences of a decision fully

Enable the finance deprtment to obtain financial approval from the CFO

Explanations:

The financial approval required by the finance department may be dependent on multiple parameters,
not only the result evaluated from the decision trees.

183. Pareto Analysis is a simple technique for prioritizing problem-solving work so that the
first piece of work you do resolves the greatest number of problems. It is based on:

Tom Pareto Principle

80/20 Rule

Root Cause Analysis

Why's Principle

Explanations:

Although Option A appears correct, Tom Pareto is an ambiguous name. If it had only been the Pareto
Principle, then that would've been the correct answer.

184. Once the risks of the project have been identified, the next step is to manage the risks.
Which of the following is NOT a suitable way of managing the risks?

Using existing assets

Contingency planning

Investing in new resources

Brainstorming

Explanations:

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Brainstorming is a technique for risk identification. All of the other options are ways of managing the
risks. Existing assets may involve improvements to existing methods and systems, changes in
responsibility, etc. Contingency planning may help you minimize the effect, if it happens. Investing in
new resources may help in reducing or insuring you against risk.

185. Which of the following is NOT part of McKinsey's 7S approach?

Shared Values

Strategy

Share

Styles

Explanations:

McKinsey's 7S are Strategy, Structure, Systems, Shared Values, Skills, Styles, and Staff.

186. A method used for making decisions includes the following steps: (a) List your
options as rows on a table and the factors you need to consider as columns. (b) Score
each option/factor combination and weigh this score by the relative importance of the
factor. (c) Add these scores to give an overall score for each option.Which tool does NOT
use this method?

Decision Matrix Analysis

Pugh Matrix Analysis

Multi-Attribute Utility Theory (MAUT)

Paired Comparison Analysis

Explanations:

This tool is referred to as Grid Analysis, Decision Matrix Analysis, Pugh Matrix Analysis, or Multi-
Attribute Utility Theory. Paired Comparison Analysis is an estimation tool.

187. An influence map is a visual model showing the people who influence and make
decisions about your project. The map helps you understand how stakeholders relate to
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one another so that you can quickly see the way in which influence flows. While
constructing the influence map, which of the following should NOT be considered?

Importance or weight of a stakeholder's overall influence

Relationships between stakeholders

Amount of influence stakeholders have over others

Types of stakeholders

Explanations:

For influence maps, you need to consider the importance of stakeholders, relationships among
stakeholders, and the amount of influence stakeholders have over others.

188. Which of the following is the power that is based on the ability to reward?

Coercive Power

Reward Power

Legitimate Power

Prize Power

Explanations:

The power that a Project Manager may possess to reward is referred to as reward power.

189. Which of the following is NOT the personal style defined by Merrill and Reid in their
employee motivation theory?

Driver

Amiable

Expressive

Affiliation

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Explanations:

In their employee motivation theory, Merill and Reid define the following personal styles: Driver, Amiable,
Expressive, and Analytical.

190. Which statement is correct about human resource management plan?

HR plan specified how resources will be utilized

HR plan specifies how resource will be assigned

HR plan specifies how communication flows

HR plan specifies how Stakeholder management happens

Explanations:

According to the new examination content outline, "assigned" replaces "utilized." Option (c) and (d) are
part of the communication and stakeholder management plans respectively.

191. According to F.C. Moore, &#8220;Delegation means assigning work to others and
giving them authority to do so.&#8221; Which of the following suggests the right order for
Delegation?

Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation

of Responsibility

Transfer of Authority, Assignment of Duties to Subordinates, Acceptance of Assignment, Creation

of Responsibility

Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of Responsibility,

Transfer of Authority

Acceptance of Assignment, Creation of Responsibility, Assignment of Duties to Subordinates,

Transfer of Authority

Explanations:

Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment, Creation of

Responsibility.

192 Which of the following is NOT an obstacle to effective delegation of authority?

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192. Which of the following is NOT an obstacle to effective delegation of authority?

Unwillingness of the manager to delegate authority

Fear of competition

Lack of confidence in subordinates

Unwillingness of the subordinate to delegate authority

Explanations:

Unwillingness of the subordinate to delegate authority is not an obstacle to effective delegation of

authority.

193. What does the DMAIC process in Six Sigma stand for?

Define the Problem, Measure, Analyze, Improve, and Control

Define the Problem, Measure, Analyze, Indicate, and Control

Define the Problem, Monitor, Analyze, Improve, and Control

Discuss the Problem, Measure, Analyze, Improve, and Control

Explanations:

DMAIC stands for Define the Problem, Measure, Analyze, Improve, and Control.

194. During executing, change requests are raised in the project. The project manager is
implementing these changes by following the change management plan. Which
parameter/s should be implemented? Choose the best answer.

Corrective actions

Preventive actions

Approved changes

Approved changes and corrective actions

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Explanations:

According to new examination content outline, implement approved changes and corrective actions.
Earlier, you only had to implement corrective actions.

195. Which of the following activities is part of initiating?

Conduct procurement

Acquire project team

Inform stakeholders of the approved project charter in order to ensure common understanding of
the key deliverables, milestones, and their roles and responsibilities.

Create WBS

Explanations:

Options (a) and (b) are part of executing. Option (d) is part of planning. Informing stakeholders of the
approved project charter in order to ensure common understanding of the key deliverables, milestones,
and their roles and responsibilities is the new task during initiating phase that has been defined in the
examination content outline.

196. Out of the following, who is not a QUALITY guru, i.e., one who has stated a theory on
quality?

Joseph M. Juran

Merby U. Crosmy

Edwards Deming

Kaoru Ishikawa

Explanations:

The correct name is Merby U. Crosmy.

197. Procurement management plan is developed based on:

Only Budget
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Only Budget

Scope and Schedule

Scope, budget, and schedule

Only scope

Explanations:

According to the new examination content outline, budget is also included. Earlier it was based on
scope and schedule.

198. Baselines are an important input to a number of project processes. Outputs of many
processes raise change requests to these baselines. Which of the following is not a valid
project baseline?

Scope baseline

Risk baseline

Cost baseline

Schedule baseline

Explanations:

Risk baseline is not a valid project baseline. It is an accepted and approved project plan.

199. Why is verification and validation of the deliverables required?

To satisfy the customer requirements

To satisfy the sponsor requirements

To satisfy the senior management requirements

To meet the business needs and project requirements

Explanations:

According to the new examination content outline, verification and validation of the deliverables is
i d tt ti f t i t b tt
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required not to satisfy customer requirements but to meet business needs and project requirements.

200. Control risk process needs to be carried out by considering:

Impact of risk

Impact of risk and opportunities in the project

Only opportunities

Customer need

Explanations:

According to the new examination content outline, even the opportunities should be considered.

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course page fpt faqs

Will this practice test helps in clearing the actual certification exam?

Yes, this software estimation simulation test gives you a clear understanding of what you will face in the
real certification exam. While we do not assure your success, it will help reinforce your learning and it is
likely that you can retrieve the same information during the certification exam.

What is included in this software estimation practice test?

What is a Software Estimation practice test?

Can I retake this Practice Test?

Who can take up this Software Estimation mock exam?

Are these the same questions I'll see on the real exam?

View More

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