PMP Exam Set G – Q1

The project charter defines the overall scope and objectives of a project. Considering different inputs to the project charter, which of the following is
NOT a correct statement?

A. Government or industry standards cannot be used as an input to develop a project charter

B. The project’s business case is an input to the Develop Project Charter process
C. Organizational process assets are input to the Develop Project Charter process
D. When projects are executed for external customers, a contract or an agreement is used as an input to the charter

Show Answer
A. Government or industry standards cannot be used as an input to develop a project charter

Jane is managing a complex industrial process reengineering project. She has identified all of her key project stakeholders and has conducted
individual interviews with them to identify other project stakeholders as well. However, Jane is still not comfortable with her project’s stakeholders list
as she believes there would be more key external stakeholders still missing from the list. What can help Jane in this situation?
A. Use stakeholder register templates from the organizational process assets.
B. Conduct more meetings with the key stakeholders.
C. Julia needs to get over her fear and finalize the project stakeholder register.
D. Seek expert judgment from subject matter experts.
Show Answer
D. Seek expert judgment from subject matter experts.

A group of people were discussing multiple alternatives during the Collect Requirements process. One of the individuals in the group made the
decision for the group. This method of reaching a group decision would be termed as:
A. One Thinking Hat
B. Dictatorship
C. Plurality
D. Autonomy
Show Answer
B. Dictatorship
Matt is the project manager of a project that involves a buyer-seller relationship. The source selection criteria is an input to which of the following
processes?
A. Control Procurements
B. Conduct Procurements
C. Close Procurements
D. Plan Procurement Management
Show Answer
B. Conduct Procurements
You are managing a heavy equipment manufacturing project that involves many mechanical, electrical as well as IT staff. Your team prepared a
schedule network diagram using duration estimates with dependencies and constraints. Your team also calculated the critical path for the project
using late and early values. Today, your project office has indicated about the non-availability of some of the resources you planned for the project.
Now, you explore the possibility of modifying the schedule to account for limited resources. What is your best possible step in such a situation?
A. Recalculate critical path using the critical chain method
B. Perform resource leveling to account for limited resources
C. Use crashing or fast tracking to level resources across the project
D. Apply leads and lags to develop a viable schedule
Show Answer
A. Recalculate critical path using the critical chain method
Which process group corresponds to the “do” part of the plan-do-check-act cycle?
A. Closing
B. Monitoring and Controlling
C. Planning
D. Executing
Show Answer
D. Executing
You have your project team members record the time they spend on different activities during the day such as: programming, electrical, HVAC, etc.
This is an example of a tool and technique in what process?
A. Manage Communications
B. Direct and Manage Project Work
C. Monitor and Control Project Work
D. Manage Project Team
Show Answer
C. Monitor and Control Project Work
Which of the following may help in ensuring that certain bidders in the procurement process do not receive preferential treatment that all prospective
sellers have a clear and common understanding of the procurement?
A. Use of weighted criteria
B. Use of bidder conferences
C. Use of screening techniques
D. Use of expert judgment
Show Answer
B. Use of bidder conferences
While analyzing the risks in a project, a project manager came up with a Risk Urgency Assessment document. In which process would this be done?
A. Close Risks
B. Control Risks
C. Perform Qualitative Risk Analysis
D. Plan Risk Management
Show Answer
C. Perform Qualitative Risk Analysis
You are in the midst of a major code roll out for a new software module. However, it has come to your attention that the resources promised for the roll
out are not going to be available. As the Project Manager, what is the BEST thing to do?
A. Explain the impact of the lost resources to the stakeholders
B. Replan the project without the resources
C. Have the current staff work extra hours
D. Fast Track the schedule
Show Answer
A. Explain the impact of the lost resources to the stakeholders

You are an expatriate working in a foreign country and have been asked to offer a cash payment gift to the procurement manager at a company you are
bidding on work for. How BEST should you interpret this request?

A. Agree to provide the cash payment because the procurement manager controls whether your bid is accepted.
B. Inform the procurement manager that offering such a payment would violate your professional standards.
C. Base your interpretation of the request on an understanding of the norms of the country you are in.
D. Express your anger at the request and inform the procurement manager that this would never happen in your home country.

Show Answer

C. Base your interpretation of the request on an understanding of the norms of the country you are in.

John, a project manager, for Code Crashers Inc. has been assigned a project where he must lead a group of inexperienced programmers in developing
a software package that creates Material Safety Data Sheets (MSDS) for a chemical company. This is very similar to a project that his colleague, Peter,
worked on in 2006, with some junior programmers. If John needs to come up with a rough order of magnitude estimate, what tool or technique should
he use?

A. Parametric Estimating
B. Bottom Up Estimating
C. Three-point estimate
D. Analogous Estimating

Show Answer

D. Analogous Estimating
The Project Manager controls the interfacing and overlapping areas of the organization’s procurement processes, and the project schedule with
processes from this area:

A. Project Human Resource Management

B. Project Scope Management
C. Project Risk Management
D. Project Integration Management

D. Project Integration Management

Question: 1

Which of the following is not true?

(a) Every project is unique
(b) A project gives some output
(c) Projects are not repetitive
(d) Car manufacturing is an example of project

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Question: 2

What is a Product Scope?

(a) Features and functions that characterize a product
(b) The work done to deliver the product
(c) Both A & B
(d) None of above

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Question: 3

In Rolling Wave Planning:

(a) Near term work is planned in more detail
(b) All planning is completed before starting the actual work
(c) 50% of planning is completed before starting the actual work
(d) None of above

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Question: 4

Which of the following is not a basic element of Earn Value Management (EVM)?
(a) Earned Value
(b) Planned Value
(c) TCPI
(d) Actual Cost

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Question: 5

What is meant by RACI?

(a) Responsible, Accountable, Confirm, Inform
(b) Recommended, Accountable, Consulted, Inform
(c) Responsible, Accountant, Consulted, Inform
(d) Responsible, Accountable, Consulted, Inform

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Question: 6

Risks included in the Watch List are known as:

(a) High priority
(b) Low priority
(c) Negative risk
(d) Positive risk

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Question: 7
You hired a programmer for $25/hour for two months. What kind of contract is this?
(a) CPIF
(b) Fixed Price
(c) Time & Material
(d) CPAF

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Question: 8

A person who is directly or indirectly involved with your project, or affected by your project or its outcome, is known as:
(a) Customer
(b) Manager
(c) Team Member
(d) Stakeholder

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Question: 9

Code of Ethics and Professional Conduct applies to:

(a) PMI members
(b) PMP Holders
(c) PMI Volunteer
(d) All of above

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Question: 10

Which of the following statement is true about a Program?

(a) A Program is a group of related projects
(b) A Program is group of unrelated projects
(c) A Program is a part of a big project
(d) None of above

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Question: 11

What is the duration of the Milestone?

(a) Zero
(b) One
(c) Duration of the project
(d) None of above

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Question: 12

Money spent during a specific time period is known as:

(a) Budgeted Cost
(b) Actual Cost
(c) Earned Value
(d) Planned Value

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Question: 13

Which of the following is part of the Maslow theory?

(a) Hygiene Theory
(b) Hierarchy Theory
(c) Expectancy Theory
(d) Theory X & Y

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Question: 14

Which of the following strategies is not used for negative risks?

(a) Exploit
(b) Transfer
(c) Avoid
(d) Mitigate
Go to the Answer

Question: 15

Which contract is considered most risky for the bidders?

(a) Time & Material
(b) Fixed Price
(c) Cost Reimbursable
(d) CPAF

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Question: 16

During a bidder conference you see that one bidder is your close friend. What should your next step be?
(a) You will pass some confidential info to him
(b) You will disclose this relationship to your management
(c) You will resign immediately from the bidding process
(d) You will try not to give the contract to him to prove your integrity

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Question: 17

In which type of organization does the Functional Manager manage the project budget?
(a) Projectized
(b) Strong Matrix
(c) Balanced Matrix
(d) Weak Matrix

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Question: 18

For your project you need to outsource some work, so you sign a fixed price contract with a contractor. In this contract, the price above which the seller
bears all costs of cost overrun is known as:
(a) Point of Total Assumption
(b) Cost Overrun
(c) Target Cost
(d) Target Price

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Question: 19

Which of the following statement is true about the Project Charter?

(a) It authorizes the existence of a project
(b) It is a bidding document
(c) It is used to rank the risks
(d) All of above

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Question: 20

You have been given $100,000 USD to complete the project. $60,000 USD has been spent, though as per the schedule, $55,000 USD should have
been spent to complete the same work. What is the Budget at Completion (BAC)?
(a) $55,000 USD
(b) $100,000 USD
(c) $60,000 USD
(d) $105,000 USD

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Question: 21

You have six team members working under you. How many lines of communication will you have in your communication plan?
(a) 16
(b) 15
(c) 21
(d) 30

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Question: 22
A Risk that is caused by the response of another risk, is known as:
(a) Primary Risk
(b) Secondary Risk
(c) Residual Risk
(d) Negative Risk

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Question: 23

What should be your goal while negotiating with the seller?

(a) Press for lower price
(b) Press for early completion
(c) To arrive at a fair deal
(d) Give him extra benefits

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Question: 24

How will you deal with the stakeholders with High Interest but Low Power?
(a) Keep them informed
(b) Monitor them
(c) Manage them closely
(d) Try to satisfy them

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Question: 25

Which of the following is not an example of Enterprise Environmental Factor?

(a) Rules and Regulations
(b) Organization Culture
(c) Procedures
(d) Market condition

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Question: 26

Which of the following is not a component of the Scope Baseline?

(a) Project Scope Statement
(b) WBS
(c) WBS Dictionary
(d) Risk Register

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Question: 27

You have been given $100,000 USD to complete the project. $60,000 USD has been spent, though as per the schedule, $55,000 USD should have
been spent to complete the same work. What is the Actual Cost (AC)?
(a) $55,000 USD
(b) $100,000 USD
(c) $60,000 USD
(d) $105,000 USD

Go to the Answer

Question: 28

Which of the following risks will be managed with Contingency Reserve?

(a) Known Risks
(b) Unknown Risks
(c) Low Priority Risks
(d) High Priority Risks

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Question: 29

Which of the following is not an example of Organizational Process Assets?

(a) Policies
(b) Procedures
(c) Government Regulation
(d) Lessons learned

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Question: 30

You have been given $100,000 USD to complete the project. $60,000 USD has been spent, though as per the schedule, $55,000 USD should have
been spent to complete the same work. What is the Planned Value (PV)?
(a) $55,000 USD
(b) $100,000 USD
(c) $60,000 USD
(d) $105,000 USD

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Question: 31

A subcontractor is delaying the delivery of the deliverables. Which of the following should you do?
(a) Cancel the contract
(b) Schedule a meeting with contractor
(c) Inform management
(d) Delay the payment

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Question: 32

In which of the following phases of the project will most of the money be spent?
(a) Initiating
(b) Planning
(c) Executing
(d) Closing

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Question: 33

Which of the following statements is not true about the Project Charter?
(a) It may contain the name of important stakeholders
(b) It gives authority to the project manager
(c) It is signed by the project sponsor
(d) It should be approved by the project manager

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Question: 34

What does the Schedule Performance Index (SPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process

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Question: 35

The most common cause of conflict within a project is:

(a) Schedule
(b) Personnel
(c) Procedures
(d) Resources

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Question: 36

What do you do in Close Procurement process?

(a) You close the project
(b) Final product is accepted and signed off
(c) Contracts belong to that phase or project are closed
(d) You release the project team

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Question: 37

Whenever you receive a change request, what will be your next step?
(a) Process for approval
(b) Investigate it
(c) Reject it
(d) Ignore it

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Question: 38

If the optimistic estimate is 10 days, and the pessimistic estimate is 22 days, what is the standard deviation for this activity?
(a) 1
(b) 2
(c) 3
(d) 4

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Question: 39

What does the Cost Performance Index (CPI) say about the project?
(a) It says whether you are ahead of or behind schedule
(b) It says whether you are overspending or under-spending
(c) It says whether your process is under control or not
(d) Specifies the control limits of the process

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Question: 40

A contract cannot be a legal document until:

(a) Signed by the project manager
(b) Signed by the buyer
(c) Signed by the seller
(d) Signed by all parties

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Question: 41

A project has more than one critical path. What does this mean to you?
(a) Risk increases
(b) Risk decreases
(c) The duration of the project reduces
(d) The project may cost less

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Question: 42

If an un-identified risk occurs:

(a) You will use management reserve to manage it
(b) You will use the contingency reserve to manage it
(c) You will not take any action
(d) You will log it into the risk registers

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Question: 43

Who contributes, develops and updates the Lessons Learned document?

(a) Client
(b) Project Management Team
(c) Functional Manager
(d) Management

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Question: 44

You are developing the project management plan for your project. What will be your main emphasis during this process?
(a) Hide it from team members until it is completed
(b) To take input from team members
(c) Not to inform management until it is ready
(d) Hide it from everyone

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Question: 45

You have added a few extra features to the product with the intention to make the client happy. This activity is known as:
(a) Buffer
(b) Scope Creep
(c) Gold Plating
(d) None of above

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Question: 46

Which one is an example of Crashing?

(a) Starting a few activities simultaneously
(b) Adding more resources
(c) Reducing resources
(d) Increasing the duration of project

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Question: 47

TCPI = 1.5, what does it mean?

(a) You are doing well
(b) You are in bad condition
(c) You are going as planned
(d) None of above

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Question: 48

Which statement is true?

(a) Low Grade may not be a problem
(b) Low Quality is not a problem
(c) Low Grade is never acceptable
(d) None of above

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Question: 49

Which one of the following is not true about the change request?
(a) It happens usually in execution phase of the project
(b) Usually requested by the client
(c) Usually requested by the project management team
(d) It is always an informal verbal request

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Question: 50

Due to a miscommunication with the client, some features are added to the product. This process is known as:
(a) Gold Plating
(b) Scope Creep
(c) Scope Management
(d) Buffer

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Question: 51

When should you update lessons learned?

(a) At the beginning of the project
(b) At the middle of the project
(c) Throughout the project
(d) At the end of the project

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Question: 52

What is the goal of Quality Management?

(a) Customer Satisfaction
(b) Low cost product
(c) High grade product
(d) Low quality and high grade product

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Question: 53

You have identified a large number of risks during your risk identification process. What will be your next step?
(a) You will prioritize them using the Qualitative Risk Analysis process
(b) Go for the Quantitative Risk Analysis
(c) Assign the risk owner to each risk
(d) Calculate the contingency reserve

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Question: 54

Which of the following represents the correct order of project management phases?
(a) Initiating, Planning, Executing, Monitoring & Controlling, Closing
(b) Initiating, Executing, Planning, Monitoring & Controlling, Closing
(c) Initiating, Planning, Monitoring & Controlling, Executing, Closing
(d) Planning, Initiating, Executing, Monitoring & Controlling, Closing

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Question: 55

The role of the Develop Project Management Plan process is to:

(a) Create a Schedule for the Project
(b) Monitor Schedule
(c) Integrate all Subsidiary Plans
(d) Develop Cost Baseline

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Question: 56

In risk management you have many strategies to manage risks. Which strategy will you not use with the negative risks?
(a) Mitigate
(b) Exploit
(c) Transfer
(d) Avoid

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Question: 57

Which document is created by breaking the project scope into smaller and manageable elements?
(a) Scope Baseline
(b) WBS
(c) OBS
(d) None of above

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Question: 58

Rearranging resources to optimize their utilization is known as:

(a) Crashing
(b) Fast Tracking
(c) Resource Leveling
(d) Schedule Compression

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Question: 59

Which of the following statements is true about the Point of Total Assumption?
(a) Above PTA, seller bears the cost
(b) Above PTA, buyer bears the cost
(c) Below PTA, buyer bears the full cost
(d) Below PTA, seller bears the 50% of cost

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Question: 60

Pareto Chart helps you find:

(a) Minor sources creating the majority of problems
(b) Majority of causes creating the minority of problems
(c) Cause of variation
(d) Cause of deviation

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Question: 61

What is a Workaround?
(a) A response to unplanned threat
(b) A response to identified threat
(c) A response to low priority risk
(d) None of above

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Question: 62

While inspecting, you find a defective component and you repaired it. This act is known as:
(a) Preventive Action
(b) Corrective Action
(c) Defect Repair
(d) None of Above

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Question: 63

You are managing a project with a budget of $500,000 USD, and $250,000 USD has been spent. Upon review, you observe that only 40% of the work
has been completed; though, your schedule says that you should have completed 50% of the work. What is the Actual Cost?
(a) $500,000 USD
(b) $200,000 USD
(c) $300,000 USD
(d) $250,000 USD

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Question: 64

You are reviewing the control chart and observe that there are seven points in a row that are below the mean. What does it mean?
(a) The mean should be re-adjusted
(b) Investigate the cause of it
(c) Re-draw in control limit
(d) It is common, nothing to worry about

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Question: 65

The client inspects the deliverables with you, and finds that it meets the acceptance criteria. He signed off and formally approves the deliverables.
Which process is this?
(a) Control Quality
(b) Control Scope
(c) Validate Scope
(d) Close Project

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Question: 66

Which is an example of Triple Constraint?

(a) Scope, Human Resource, Time
(b) Quality, Scope, Human Resource
(c) Cost, Human Resource, Time
(d) Scope, Cost, Time
Go to the Answer

Question: 67

In which phase will the risks be at the lowest level?

(a) Initiating
(b) Planning
(c) Execution
(d) Closing

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Question: 68

Which Conflict Resolution Technique leads to consensus and commitment?

(a) Withdraw
(b) Accommodate
(c) Compromise
(d) Collaborative

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Question: 69

What is a prototype?
(a) A working model of expected actual product
(b) A blueprint of the product
(c) A 3D model of the actual product
(d) None of above

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Question: 70

Which of the following is the most accurate cost estimate method?

(a) Rough Order
(b) Three Point
(c) Parametric
(d) Bottom up

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Question: 71

Fishbone diagram is also known as:

(a) Gantt Diagram
(b) Pareto Diagram
(c) Run Chart
(d) Ishikawa Diagram

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Question: 72

What is a Project Scope?

(a) The work performed to deliver a product
(b) It is the features and functions that characterize a product
(c) Both A & B
(d) None of above

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Question: 73

Which of the following is not an output of a project?

(a) Developing a new car
(b) The production of cars
(c) An enhancement to the car
(d) Completing research on car

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Question: 74
In your project you identify a risk that, due to the possibility of the entrance of a new supplier, may provide some components at a cheaper price. What
kind of risk is this?
(a) Negative Risk
(b) Opportunity
(c) Known Risk
(d) Secondary Risk

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Question: 75

Which one is not a stakeholder of your project?

(a) Your competitor
(b) Team member
(c) Client
(d) Management

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Question: 76

In Six Sigma what percentage of accuracy is desired?

(a) 99.977
(b) 99.38
(c) 99.99966
(d) 93.3

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Question: 77

Which estimate is given more weight in the PERT estimate formula?

(a) Optimistic
(b) Pessimistic
(c) Most Likely
(d) None of the Above

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Question: 78

What does the Variance at Completion show?

(a) How much you are ahead of schedule
(b) Amount of budget surplus or deficit
(c) How fast you need to go to complete the project
(d) None of the above

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Question: 79

In which procurement contract does the buyer have the minimum risk?
(a) Firm Fixed Price
(b) Time and Material
(c) Cost Plus Incentive Fee
(d) Cost Plus Fixed Fee

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Question: 80

During which phase of the project will risks be the highest?

(a) Initiating
(b) Planning
(c) Execution
(d) Closing

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Question: 81

For your project, you have identified your project stakeholders, developed strategy and now you are in execution phase. In which project phases do
you identify the project stakeholders?
(a) Initiating and Planning and Execution
(b) Initiating and Planning
(c) Initiating, Planning, and Monitoring & Controlling
(d) All phases

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Question: 82

You are developing the project charter, with management, for a new project. You are going to be the project manager. Who will sign the project
charter?
(a) Project Manager
(b) Operational Manager
(c) Functional Manager
(d) Someone from top management

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Question: 83

What may happen if your project has more than one critical path?
(a) It will cost more
(b) The project completion date may be extended
(c) The quality may be reduced
(d) Risks will increase

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Question: 84

Which of the following diagram looks like fish skeleton?

(a) Ishikawa Diagram
(b) Tornado Diagram
(c) Decision Tree
(d) None of the Above

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Question: 85

For all your needs you have to go to the functional manager; moreover, you do not have control over the budget. In what kind of organization are you
working?
(a) Projectized
(b) Weak Matrix
(c) Strong Matrix
(d) Balanced Matrix

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Question: 86

Your management has asked you to provide them with the rough order estimate for a project on an urgent basis. In this case, which of the following
techniques will you use?
(a) Parametric
(b) Bottom Up
(c) Rough order
(d) Analogous

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Question: 87

Which is not an example of organizational process assets?

(a) Processes
(b) Procedures
(c) Lessons learned
(d) Political conditions

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Question: 88

Your project is late and to bring it back on track you are adding extra resources to some activities and giving overtime to your team members. This is
an example of:
(a) Critical Chain
(b) Fast Tracking
(c) Crashing
(d) Resource Leveling

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Question: 89

In a balanced matrix organization, who has authority over the budget?

(a) Project Manager
(b) Functional Manager
(c) Both
(d) None of the Above

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Question: 90

Which document authorizes the existence of the project?

(a) Scope Statement
(b) Project Plan
(c) Project Charter
(d) Stakeholder’s Register

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Question: 91

The successor activity cannot be finished until the predecessor activity starts. This is an example of which kind of relationship?
(a) Finish to Start (FS)
(b) Finish to Finish (FF)
(c) Start To Start (SS)
(d) Start to Finish (SF)

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Question: 92

Which of the following graphs shows the major of problems due to a minority of causes?
(a) Scatter Diagram
(b) GANTT Chart
(c) Pareto Diagram
(d) Bar Chart

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Question: 93

Regarding the project expeditor and the project coordinator, which of the following statements is correct?
(a) The coordinator has more power than the expeditor
(b) The expeditor has more power than the coordinator
(c) Both have equal power
(d) None of the above

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Question: 94

Your project is delayed by 45 days and the client has threatened that he will impose a heavy penalty if you do not complete the project on time.
Therefore, to bring the project back on schedule you hire some equipment and bring more team members to work with you. This is an example of:
(a) Resource Leveling
(b) Resource Optimization
(c) Crashing
(d) Fast Tracking

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Question: 95

Which of the following risks remain even after applying the risk response of an identified risk?
(a) Primary Risk
(b) Secondary Risk
(c) Remaining Risk
(d) Residual Risk

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Question: 96

You have been given a task to accurately calculate the cost of a project. Which of the following techniques will you use to get the most accurate cost of
the project?
(a) Parametric
(b) Analogous
(c) Bottom Up
(d) Top Down

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Question: 97

Tom is a low power stakeholder of your project, He is very interested and enthusiastic with your project. He wants you to complete the project
successfully. How will you manage him?
(a) Keep informed
(b) Monitor
(c) Keep satisfied
(d) Manage Closely

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Question: 98

Who should be involved in identifying the project risks?

(a) Project team members
(b) Sponsors and upper management
(c) All relevant project stakeholders
(d) Project manager and top management

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Question: 99

There is risk which has a 7% chance of happening, and if it occurs it will cost you 2,500 USD. What is the EMV of this event?
(a) -175 USD
(b) 2,325 USD
(c) 2,675 USD
(d) 175 USD

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Question: 100

During the procurement phase, you are analyzing whether you should outsource a particular task or do it on your own with your team. Which process
are you currently in?
(a) Plan Procurement Management
(b) Conduct Procurement
(c) Control Procurement
(d) Decide Procurement

Go to the Answer

Answer-1: d

Explanation: As per the definition, a project is unique, non-repetitive, and gives some output. Therefore, options a, b, & c are definitely the
characteristics of a project. Car manufacturing is repetitive production process; hence, it is not a characteristic of a project.

Option “d” is an example of production operation.

Reference: The PMBOK Guide, 5th Edition, Page: 3

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Answer-2: a

Explanation: The Product Scope is the features or functions of a product. It is all about the product; e.g. what it will look like, how it will perform, etc.

Reference: The PMBOK Guide, 5th Edition, Page: 105

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Answer-3: a

Explanation: In rolling wave planning, near term work is planned in more detail, while the distant work is planned broadly.

Reference: The PMBOK Guide, 5th Edition, Page: 152

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Answer-4: c

Explanation: Earned Value, Planned Value, and Actual Cost are three basic elements of Earn Value Management.

Reference: The PMBOK Guide, 5th Edition, Page: 218

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Answer-5: d

Explanation: The RACI chart is an example of Responsibility Assignment Matrix (RAM), which shows the relationship between activities and the team
members.

Reference: The PMBOK Guide, 5th Edition, Page: 262

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Answer-6: b

Explanation: Low priority risks are kept in the Watch List. These risks have low probability and low impact. These risks are kept in the Watch List for
future monitoring to determine if they may become a high probability or large impact risk.

Reference: The PMBOK Guide, 5th Edition, Page: 330

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Answer-7: c

Explanation: Time and Material contract is mostly used for temporary hiring, or hiring experts in cases where you cannot define the exact scope of
work quickly.

Reference: The PMBOK Guide, 5th Edition, Page: 364

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Answer-8: d

Explanation: This is the definition of the stakeholders.

Reference: The PMBOK Guide, 5th Edition, Page: 394

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Answer-9: d

Reference: PMI Code of Ethics and Professional Conduct, Point: 1.2, Page No: 1

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Answer-10: a

Explanation: As per the definition, a program is a group of related projects; therefore option ‘a’ is the correct answer.

Reference: The PMBOK Guide, 5th Edition, Page: 9

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Answer-11: a

Explanation: A milestone is an event which has zero duration.

Reference: The PMBOK Guide, 5th Edition, Page: 153

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Answer-12: b

Explanation: Actual Cost is the amount of money that has been spent during the specific time period.

Reference: The PMBOK Guide, 5th Edition, Page: 218

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Answer-13: b

Explanation: Maslow Hierarchy Theory is also known as the Theory of Needs; it states that when our lower order needs are met and satisfied, we tend
to be concerned with higher order of needs.

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Answer-14: a

Explanation: Exploit is the strategy where you do everything to realize the opportunity. This type of strategy cannot be used with negative risks.

Reference: The PMBOK Guide, 5th Edition, Page: 345

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Answer-15: b

Explanation: Fixed priced contract is the most risky contract for the seller because once the seller signs the contract he is legally bound to complete it
within the agreed amount.

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Answer-16: b

Explanation: There is a conflict of interest in this situation. You must inform you bosses about this relationship.

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Answer-17: d

Explanation: In Weak Matrix organization, the Functional Manager manages the budget. In Strong Matrix and Projectized organization, the Project
Manager Controls the budget, while in Balanced Matrix organization, both managers control it. In this case, option ‘d’ is the correct answer.

Reference: The PMBOK Guide, 5th Edition, Page: 22

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Answer-18: a

Explanation: This is the Point of Total Assumption (PTA). PTA is a point above which total cost overrun is borne by the seller.

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Answer-19: a

Explanation: A Project Charter is a document which formally authorizes the project and gives the project manager authority to run the project.

Reference: The PMBOK Guide, 5th Edition, Page: 66

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Answer-20: b

Explanation: BAC is the total budget assigned to your project.

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Answer-21: c

Explanation:

Communication lines = N*(N–1)/2

Where, N is the total number of member.

Here N = 7 (six team members plus you)

Hence, Communication lines = 7*(7–1)/2

=21

Reference: The PMBOK Guide, 5th Edition, Page: 292

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Answer-22: b

Explanation: A secondary risk is caused by applying the strategy to minimize the effect of the primary risk. For example you dig a trench to stop
people crossing it, but there is also a chance that someone may fall into it.

Reference: The PMBOK Guide, 5th Edition, Page: 343

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Answer-23: c

Explanation: While negotiating, your goal must be to arrive on fair deal. If you squeeze the seller for a lower price, it might affect the quality or other
project objectives.

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Answer-24: a
Explanation: You will deal with stakeholders as follows: high power and low interest category stakeholders will be kept satisfied, high power and high
interest category stakeholders will be managed closely, low power and low interest category stakeholders will only be monitored and high interest and
low power category stakeholders will be kept informed.

Reference: The PMBOK Guide, 5th Edition, Page: 397

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Answer-25: c

Explanation: Enterprise Environmental Factors are conditions that influence the project. These factors are not within the control of the project team
and they have to work within it. Enterprise Environmental Factors are not always helpful to the project team; sometimes they may harm you as well.

Rules & Regulations, Organization Culture, and Market Conditions are examples of Enterprise Environmental Factors.

Procedure is an example of Organizational Process Assets.

Reference: The PMBOK Guide, 5th Edition, Page: 29

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Answer-26: d

Explanation: Risk Register is not a part of the Scope Baseline.

Reference: The PMBOK Guide, 5th Edition, Page: 131, 132

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Answer-27: c

Explanation: The Actual Cost is the amount of money that has been spent on the project to date.

Reference: The PMBOK Guide, 5th Edition, Page: 218

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Answer-28: a

Explanation: Contingency reserve is used to manage known risks.

Reference: The PMBOK Guide, 5th Edition, Page: 310

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Answer-29: c

Explanation: Organizational Process Assets are assets possessed by an organization to help you to run the project efficiently and smoothly; e.g.
policies, procedures, lessons learned, etc.

Reference: The PMBOK Guide, 5th Edition, Page: 27

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Answer-30: a

Explanation: The Planned Value is the authorized budget assigned to scheduled work.

Reference: The PMBOK Guide, 5th Edition, Page: 218

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Answer-31: b

Explanation: You cannot simply cancel the contract just because contractor is delaying something. You also should not go to management with
incomplete information. You must meet with the contractor to find the cause.

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Answer-32: c

Explanation: In Execution phase, most of your budget will be spent, because here is where the actual work is performed.

Reference: The PMBOK Guide, 5th Edition, Page: 56

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Answer-33: d

Explanation: Project Charter gives the project manager authority to run the project. It must be signed by someone external to project and who has the
authority to do so.

Reference: The PMBOK Guide, 5th Edition, Page: 71

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Answer-34: a

Explanation: Schedule Performance Index tells us that whether we are ahead of or behind schedule.

Reference: The PMBOK Guide, 5th Edition, Page: 219

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Answer-35: a

Explanation: Schedule priorities are the most common cause of conflict within projects.

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Answer-36: c

Explanation: In Close Procurement process you close the procurement contract for the phase or project.

Reference: The PMBOK Guide, 5th Edition, Page: 386, 387

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Answer-37: b

Explanation: You will not simply approve, reject or ignore any change request. Every change request must be investigated according to the process
specified in the Change Control and Configuration Control systems.

Reference: The PMBOK Guide, 5th Edition, Page: 96

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Answer-38: b

Explanation:

Standard Deviation = (Pessimistic Estimate – Optimistic Estimate)/6

Standard Deviation = (22–10)/6

=2

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Answer-39: b

Explanation: Cost Performance Index tells us whether we are under-spending or overspending.

Reference: The PMBOK Guide, 5th Edition, Page: 219

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Answer-40: d

Explanation: A document cannot be legally binding unless it is signed by all parties involved.

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Answer-41: a

Explanation: If you have more than one critical path, risk to your project will increase because now you have more than one path to manage closely.

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Answer-42: a

Explanation: Management Reserve is used to manage un-identified risks.

Reference: The PMBOK Guide, 5th Edition, Page: 310

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Answer-43: b

Explanation: The whole project management team, including the project manager, contributes to and helps maintain the lessons learned document.

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Answer-44: b

Explanation: While developing the Project Management Plan, your emphasis should be on involving the team members. Without their input, you will
not be able to develop a solid Project Management Plan.

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Answer-45: c

Explanation: Gold Plating is a phenomenon where you add some extra features to the product in order to make the client happy. Gold Plating may
increase the cost and risks.
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Answer-46: b

Explanation: Adding extra resources to activities in order to finish them earlier is known as Crashing.

Reference: The PMBOK Guide, 5th Edition, Page: 181

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Answer-47: b

Explanation: If the TCPI is more than one, it means you need to work with better cost performance.

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Answer-48: a

Explanation: Low Grade products may not be a problem if the quality is high. However, low quality is always a problem and never accepted.

Reference: The PMBOK Guide, 5th Edition, Page: 228

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Answer-49: d

Explanation: Change request must always be a formal request. You cannot process a change request based on any informal request.

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Answer-50: b

Explanation: The uncontrolled addition to the scope is known as Scope Creep. Scope Creep indicates that you do not have adequate control over
your project.

Reference: The PMBOK Guide, 5th Edition, Page: 137

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Answer-51: c

You should update lessons learned throughout the project. If you do not, many important lessons might be missed, or may be documented incorrectly
in later stages.

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Answer-52: a

Explanation: The goal of Quality Management is meeting or exceeding the customers’ satisfaction.

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Answer-53: a

Explanation: After identifying the risk, you will prioritize the risk using the Qualitative Risk Analysis process.

Reference: The PMBOK Guide, 5th Edition, Page: 328

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Answer-54: a

Explanation: The correct sequence of project management phases is as follows: Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

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Answer-55: c

Explanation: The role of Develop Project Management Plan process is to integrate all subsidiary plans; e.g. scope management plan, schedule
management plan, cost management plan, etc.

Reference: The PMBOK Guide, 5th Edition, Page: 72

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Answer-56: b

Explanation: Exploit risk response strategy is used with positive risks.

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Answer-57: b

Explanation: In Work Breakdown Structure (WBS), you break the work into smaller and more manageable elements.

Reference: The PMBOK Guide, 5th Edition, Page: 125

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Answer-58: c

Explanation: In Resource leveling you arrange resources to maximize their utility.

Reference: The PMBOK Guide, 5th Edition, Page: 179

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Answer-59: a

Explanation: Under the FPIF, you set a ceiling price; once this ceiling price is passed, seller bears all the cost. This point is known as Point of Total
Assumption.

Reference: The PMBOK Guide, 5th Edition, Page: 363

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Answer-60: a

Explanation: Pareto Chart helps you identify the minor number of sources causing most of the troubles.

Reference: The PMBOK Guide, 5th Edition, Page: 237

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Answer-61: a

Explanation: When an unidentified risk occurs, you will take prompt action to handle it. This activity is called workaround.

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Answer-62: c

Explanation: Defect Repair is a process where you correct a defective component. Preventive Action is an action that is taken to avoid any anticipated
future defects that may appear in the component. Corrective Action is a future response to the defect repair process or the correction, so that the cause
of error or non-conformity will not occur again.

Reference: The PMBOK Guide, 5th Edition, Page: 81

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Answer-63: d

Explanation: Actual Cost is amount of money that has been spent on the project to date.

Reference: The PMBOK Guide, 5th Edition, Page: 218

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Answer-64: b

Explanation: A process is considered to be out of control if seven consecutive plot points are either above or below the mean.

Reference: The PMBOK Guide, 5th Edition, Page: 238

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Answer-65: c

Explanation: Accepted Deliverables is the output of the Validate Scope process.

Reference: The PMBOK Guide, 5th Edition, Page: 135

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Answer-66: d

Explanation: Scope, Cost and Time are considered Triple Constraints.

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Answer-67: d

Explanation: Risk will be at its highest point at the Initiating Process group and at the minimum at the Closing Process group.

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Answer-68: d

Explanation: Collaborative approach incorporates viewpoints of all parties involved in the conflict.

Reference: The PMBOK Guide, 5th Edition, Page: 283

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Answer-69: a

Explanation: Prototype is a working model of an actual product which helps you get feedback from users.

Reference: The PMBOK Guide, 5th Edition, Page: 116

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Answer-70: d

Explanation: In bottom up estimating, you estimate the cost of activities to the greatest detail, add them together, and round up to the higher level.
This is the most accurate method of determining the project budget.

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Answer-71: d

Explanation: Fishbone diagram is also known as cause-and-effect and Ishikawa diagram.

Reference: The PMBOK Guide, 5th Edition, Page: 236

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Answer-72: c

Explanation: As per the PMBOK Guide, he work performed to deliver a product, service, or result with the specified features and functions. The term
project scope is sometimes viewed as including product scope.

Reference: The PMBOK Guide, 5th Edition, Page: 105

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Answer-73: b

Explanation: The production of cars is an ongoing operation and this is not an output of the project. The output of the project should be unique.

Reference: The PMBOK Guide 5th Edition, Page: 3

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Answer-74: b

Explanation: In Positive Risk there is chance that you may gain some benefits, called Opportunities. A Positive Risk brings a positive impact on the
project objective.

Reference: The PMBOK Guide 5th Edition, Page: 310, 311

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Answer-75: a

Explanation: Your competitor is not your stakeholder because you do not have to manage him or fulfill his requirements, although he may be affected
by your project.

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Answer-76: c

Explanation: In Six Sigma 99.99966% accuracy is desired, and in Fifth Sigma 99.977%, Four Sigma 99.38%, and in Three Sigma 93.3% accuracy are
desired.

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Answer-77: c

Explanation: In the PERT estimate formula, the Most Likely estimate is given more weight. The PERT estimate formula is = (Optimistic + 4*Most-
Likely + Pessimistic)/6

Reference: The PMBOK Guide 5th Edition, Page: 171

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Answer-78: b

Explanation: Variance at Completion (VAC) is the difference between the Budget at Completion (BAC) and Estimate at Completion (EAC), which
shows how much of the budget is surplus or deficit.

Reference: The PMBOK Guide 5th Edition, Page: 224

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Answer-79: a

Explanation: In a Firm Fixed Price contract the buyer has a minimum risk because the seller has to complete the project within the agreed amount.

Reference: The PMBOK Guide 5th Edition, Page: 363

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Answer-80: a

Explanation: During the Initiating phase the risks are highest and they decrease as the project progresses.

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Answer-81: d

Explanation: Stakeholder identification is an iterative process. You will identify stakeholders throughout the project.

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Answer-82: d

Explanation: Although the project manager can help in developing the project charter, he cannot sign or approve it. The project charter must be
approved by someone from top management who has the authority to do so.

Reference: The PMBOK Guide 5th Edition, Page: 66, 67

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Answer-83: d
Explanation: If the project has more than one critical path, you will have to manage more than one path and this means more risks.

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Answer-84: a

Explanation: The Ishikawa Diagram is also known as a Fishbone Diagram or Fishikawa Diagram because it looks like a fish skeleton.

Reference: The PMBOK Guide 5th Edition, Page: 236, 239

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Answer-85: b

Explanation: In a Weak Matrix organization, the project manager has no authority over the project budget and resources. He needs permission from
the functional manager to use the resources.

Reference: The PMBOK Guide 5th Edition, Page: 21, 22

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Answer-86: d

Explanation: Rough order estimate is the lump-sum of the cost of the project; therefore, you will use the analogous technique.

Please note that rough order estimate is an estimate, it is not a technique.

Reference: The PMBOK Guide 5th Edition, Page: 204

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Answer-87: d

Explanation: Political conditions are an example of enterprise environmental factors.

Reference: The PMBOK Guide 5th Edition, Page: 27, 28, 29

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Answer-88: c

Explanation: You are adding extra resources to your activities, which is an example of Crashing.

Reference: The PMBOK Guide 5th Edition, Page: 181

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Answer-89: c

Explanation: In a balanced matrix organization structure, both managers have equal authority over the budget.

Reference: The PMBOK Guide 5th Edition, Page: 22

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Answer-90: c

Explanation: Project Charter is the document which authorizes the existence of the project.
Reference: The PMBOK Guide 5th Edition, Page: 66

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Answer-91: d

Explanation: In other words you can say that when the first activity starts, the second activity finishes; i.e. Start to Finish (SF)

Reference: The PMBOK Guide 5th Edition, Page: 156

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Answer-92: c

Explanation: This is a Pareto Diagram, based on the principle “that 80% of problems are due to 20% of causes”. This law is also known as the 80-20
principle.

Reference: The PMBOK Guide 5th Edition, Page: 237

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Answer-93: a

Explanation: In a weak matrix organization, the project manager can work as either a project coordinator or an expeditor. The expeditor has no
authority or power to make any decision while the coordinator has a little power to make decisions.

Reference: The PMBOK Guide 5th Edition, Page: 23

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Answer-94: c

Explanation: Here, you have brought some extra resources to bring the project on track, so this is an example of Crashing.

Reference: The PMBOK Guide 5th Edition, Page: 181

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Answer-95: d

Explanation: Residual Risk is the risk that still remains even after applying the risk response of an identified risk.

Reference: The PMBOK Guide 5th Edition, Page: 558

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Answer-96: c

Explanation: Bottom Up estimate techniques gives you the most accurate cost of the project.

Reference: The PMBOK Guide 5th Edition, Page: 205

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Answer-97: a

Explanation: Tom comes under the “low power – high interest” category. According to the Power/Interest Grid model, stakeholders from this category
should be kept informed.
Reference: The PMBOK Guide 5th Edition, Page: 397

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Answer-98: c

Explanation: For the risk identification purpose, all project stakeholders should be involved in the identifying risk process.

Reference: The PMBOK Guide 5th Edition, Page: 321

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Answer-99: a

Explanation:

EMV = Impact * Probability

= (-2,500)*.07

= -175

Reference: The PMBOK Guide 5th Edition, Page: 339

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Answer-100: a

Explanation: This is make or buy analysis which you do in the Plan Procurement Management.

Reference: The PMBOK Guide 5th Edition, Page: 358

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http://www.pmstudy.com/PMP-Exam-Resources/chapterTestFramework.asp
http://pmpexamforfree.com/

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

1. Constrained by limited resources

2. Planned, executed, and controlled
3. Creates a unique product or service
4. Ongoing and repetitive

Question 2: In a kick-off meeting for your project, you provided information to your team members about the
different process groups to be followed in the project. According to PMI, which are the project management
process groups?

1. Conceptualizing, Initiating, Executing, Monitoring and Controlling, and Closing

2. Initiating, Planning, Executing, Monitoring and Controlling, and Closing
3. Initiating, Verifying, Executing, Monitoring and Controlling, and Closing
4. Initiating, Planning, Executing, Controlling, and Administrative Closure

Question: You are managing the release of a new drug in the market. Your role is that of a:

1. Functional Manager, because you have good functional knowledge of the pharmaceutical industry
2. Project Manager, because you are creating a unique product within specific time schedules
3. Operations Manager, because you have to do several repetitive tasks
4. Program Manager, because you have to manage several projects to do your job effectively

Justification: Every project creates a unique product, service, or result. A project can create a service or a capability
to perform a service (e.g., a business function that supports production or
distribution). Reference: PMBOK® Guide - Fifth Edition, page 3; PMstudy.com comments: Since this is the release of
"one" new drug, it is a project. Multiple releases may qualify it as a p

Question: Your company is responsible for developing an anti-virus software. You are responsible for managing
both the individual product releases and the coordination of multiple releases. Your role is that of a:

1. Program manager
2. Project manager
3. Functional manager
4. Operations manager

Justification: A program is defined as a group of related projects, subprograms, and program activities managed in
a coordinated way to obtain benefits not available from managing them individually. Programs may include
elements of related work outside the scope of the discrete projects in the program. Reference: PMBOK® Guide -
Fifth Edition, page 9

Question: You have reached the end of the design phase of your project. You decide to call a "phase end review"
for obtaining authorization to close the design phase and initiate the next phase (i.e., execution phase) of your
project. Your manager disagrees with your suggestion. He wants a "kill point" to formally end the design phase of
the project. In this context, you should:

1. Disagree with your manager because you know that phase end reviews should be used at the end of each
phase of the project
2. Agree with your manager as kill point is a phase-end review
3. Escalate this issue to the project sponsor
4. Take advice from a senior project manager about what should actually be done at the end of each phase of
the project
Justification: A phase end represents a natural point to reassess the activities underway and to change or
terminate the project if necessary. This point may be referred to as a stage gate, milestone, phase review, phase
gate, or kill point. Reference: PMBOK® Guide - Fifth Edition, page 41, PMstudy.com comments: The answer is
option 2, as the manager is justified in asking for a kill point. Kill point is another term for phase end review.

Question: You are working in the Project Management Office (PMO) of your organization. Your job responsibility is
to:

1. Manage the operational activities in the company

2. Manage human resource and risk management issues for individual projects
3. Provide support functions to project managers in the form of training, providing software, standardizing
policies, etc.
4. Provide subject matter expertise in the functional areas of the project

Justification: A project management office (PMO) is a management structure that standardizes the project-related
governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The
responsibilities of a PMO can range from providing project management support functions to actually being
responsible for the direct management of one or more projects.

Reference: PMBOK® Guide - Fifth Edition, page 10

Question: You are the project manager in a company where you have maximum authority. To which organizational
structure does your company belong?

1. Functional
2. Weak Matrix
3. Strong Matrix
4. Projectized

Justification: Project managers have maximum authority in a company with a projectized organizational
structure. Reference: PMBOK® Guide Fifth Edition, page 22 table 2-1
Question: Which of the following exhibits greatest resistance to change?

1. Business requirements
2. Technology
3. People
4. Environment

Justification: People exhibit greatest resistance to change. Reference: PMstudy.com comments

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

1. Coordinator
2. Manager with considerable authority
3. Support person
4. Functional manager

Justification: Weak matrix organizations maintain many of the characteristics of a functional organization, and the
role of the project manager is more of a coordinator or expediter. Reference: PMBOK® Guide Fifth Edition, page 23

Question: You have recently joined as a project manager in a company where they follow a projectized
organizational structure. All your team members work in the same office where you have a lot of independence
and authority. Which of the following is NOT an advantage of a projectized organizational structure?

1. Loyalty to the project

2. Home for the team members after the project is completed
3. Effective communication
4. Efficiency in project organization

Justification: In a projectized organization, most of the organizational resources are involved in the project work.
The project team members do not belong to a specific functional group and hence do not have any "home" once
the project is over. Reference: PMstudy.com comments

Question: Your project stakeholder has asked you to create a financial plan for your project. Preparing a financial
plan will require:

1. Program management skills

2. Industry specific skills
3. Financial subject matter expertise
4. Both project management and industry specific skills

Justification: Preparing a financial plan requires both project management and industry specific skills. Although the
project manager need not have the industry-specific skills, she should talk with a person with industry-specific skills
in order to prepare the financial plan.

Question: Which of the following statements is NOT true about a project life cycle?
 1. All project life cycles are usually identical.
2. The level of risk is highest at the start of the project and decreases as the project progresses.
3. The ability of the stakeholders to influence the final characteristics is highest at the start and gets
progressively lower as the project continues.
4. Cost and staffing requirements usually peak during the intermediate phases.

Justification: Although many projects may have similar phase names with similar deliverables, few are
identical. Further, look out for absolute statements with terms like "All", "None", "Never", "Always", "Must", etc.
Such options should be carefully evaluated because they may be incorrect.

Question: In your organization, all big technical projects go through Initiate, Analyze, Design, Implement, Test, and
Closeout. In this context, a project life cycle:

1. Defines the product life cycle

2. Defines the project phases
3. Contains several product life cycles
4. Has deliverables that must be completed before work starts on the next phase

Justification: A project life cycle is the series of phases that a project passes through from its initiation to its
closure. The phases are generally sequential, and their names and numbers are determined by the management
and control needs of the organization or organizations involved in the project, the nature of the project itself, and
its area of application.

Reference: PMBOK® Guide - Fifth Edition, page 38

PMstudy.com comments: Option 1 and Option 3 are wrong because project life cycle does not include the product
life cycle. Option 4 is not accurate because work in the next phase may, at times, start before the deliverables of
the previous phase are completed.

Question: A project manager has to manage different stakeholder expectations. Project sponsor and customer are
two very important stakeholders in any project. In this context, which of the following is NOT the responsibility of
both the project sponsor and the customer?

1. Take into account risk tolerance

2. Provide key events, milestones, and deliverable due dates
3. Formally accept the product of the project
4. Provide financial resources for the project

Justification: Statements 1, 2, and 3 are correct.

Statement 4 is incorrect - A Sponsor is the person or group who provides resources and support for the project and
is accountable for enabling success....Customers are the persons or organizations who will approve and manage
the project`s product or service, or result.

Reference: PMBOK® Guide - Fifth Edition, page 32; PMstudy.com comments: Customers do not always provide
financial resources for the project.
Question: As a project manager for a construction company, you are responsible to Define Scope, Define Activities,
Develop Schedule, and Determine Budget. These responsibilities are performed as part of:

1. Closing
2. Initiating
3. Planning
4. Monitoring and Controlling

Justification: The processes of Define Scope, Define Activities, Develop Schedule, and Determine Budget are part of
the Planning Process Group. Reference: PMBOK® Guide - Fifth Edition, page 61, table 3-1

Question: Almost all projects are planned and implemented in a social, economic, or environmental context, and
have intended and unintended positive or negative impacts. In this context, which of the following statements
about Enterprise Environmental Factors is NOT true?

1. Neither promote nor hold back the project management processes

2. May restrict the project management processes
3. May promote the project management processes
4. May either promote or hold back the project management processes

Justification: Enterprise environmental factors may enhance or constrain project management options, and may
have a positive or negative influence on the outcome. Reference: PMBOK® Guide - Fifth Edition, page 29

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

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

2. Stakeholders have varying levels of responsibility and authority when participating on a project and these can
change over the course of the project life cycle.
3. Some key stakeholders include project manager, operations management, project team, customers, and
sponsor.
4. Stakeholder expectations may be difficult to manage, because stakeholders often have very different or
conflicting objectives.

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

Reference: PMBOK® Guide - Fifth Edition, page 32

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

1. Plan resources
2. Manage cost and budget
 3. Carry out performance appraisal of project team
4. Define tasks

Justification: In a matrix organization, the project manager shares responsibility with the functional managers for
assigning priorities and for directing the work of persons assigned to the project. Reference: PMBOK® Guide - Fifth
Edition, page 546

PMstudy.com comments: In most matrix organizational structures, personnel performance management is not the
responsibility of the project manager; this task is usually done by the functional manager. However, a project
manager is always responsible for Plan resources (Option 1), Manage cost and budget (Option 2), and Define tasks
(Option 4).

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

1. Keep the project on track in terms of schedule and budget

2. Identify, monitor, and respond to risk
3. Provide accurate and timely report of project metrics
4. Ensure integrity of project team members

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

Although the project manager is responsible for the integrity of the overall project, she is not
responsible for the integrity of individual team members.

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

1. Formal phase completion necessarily includes authorization for the subsequent phase.
2. The closure of a phase is required to be approved in some form before it can be considered closed.
3. A project phase should not be divided into sub-phases even in complex projects, because it will be difficult to
manage.
4. All deliverables in the project phase should correspond to the project management process.

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

Reference: PMBOK® Guide - Fifth Edition, page 41

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

1. Set up a PMO
2. Assign a very competent project manager to manage activities in the call center
 3. Move to a projectized organizational structure
4. Continue with a functional organizational structure, and try to streamline activities

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

In this context, the CEO should not try to handle this issue as a project and do none of the activities
mentioned in option 1, option 2, or option 3.

Since this is an operation, option 4 provides the best course of action for the CEO to address this
situation, i.e., continue with a functional organizational structure (which is recommended for
managing operations) and try to streamline activities.

Question: You are planning for your project. In this context, which of the following processes
should you consider?

1. Define Scope, Develop Schedule, Plan Risk Management, Plan Communications Management
2. Plan Quality Management, Plan Procurement Management, Plan Risk Responses, Control Costs
3. Perform Quality Assurance, Develop Project Team, Manage Communications, Plan Risk Management
4. Validate Scope, Control Quality, Control Schedule, Control Costs

Justification: Please refer to table 3-1 and figure A1-7, PMBOK® Guide - Fifth Edition, pages 61
and 428 respectively

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

1. Stakeholder influence, risk, and uncertainty are highest at the start of the project.
2. Ability of the stakeholders to influence final characteristics of the project`s product increases as the
project progresses.
3. The project life cycle determines which transitional actions at the beginning and end of the project are included,
so that the project can be linked to the ongoing operations of the performing organization.
4. Stakeholder influence, risk, and uncertainty decrease as the project progresses.

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

Question: You are working as a portfolio manager. Which of the following are you responsible for
managing?

1. Project interdependencies
2. Projects and programs
3. Projects, programs, and operations
4. Functional work and operations

Justification: A portfolio refers to projects, programs, sub-portfolios, and operations managed as

a group to achieve strategic objectives.

Reference: PMBOK® Guide - Fifth Edition, pages 8 (table 1-1) and 9

PMstudy.com comments: Portfolio management includes projects, programs, subportfolios, and
related work (i.e. functional or operational work); so, this is the best answer.

Question: Your company CEO wants to set up a Project Management Office (PMO) in the
company. You have been assigned the responsibility to define the scope of work for the PMO. In this
context, which of the following is NOT the function of a PMO?

1. Help manage shared resources

2. Bring order and organize communications across projects
3. Provide support functions like training and mentoring
4. Define specific strategic objectives

Justification: The primary function of a PMO is to support project managers in a variety of ways,
which may include, but are not limited to: managing shared resources across all projects
administered by the PMO....coordinating communication across projects.

Portfolio Management refers to the centralized management of one or more portfolios to achieve
strategic objectives. Reference: PMBOK® Guide - Fifth Edition, page 11, PMstudy.com comments:
Option 4 refers to an activity that would be a part of Portfolio Management.

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

1. Projectized
2. Balanced Matrix
3. Strong Matrix
4. Weak Matrix

Justification: Refer to PMBOK® Guide - Fifth Edition, page 22 (table 2-1) and page 24 (figure 2-
3). PMstudy.com comments: While the balanced matrix organization recognizes the need for a
project manager, it does not provide her with the full authority over the project, human resources,
and funds. Option 1 (Projectized Organization) is incorrect because resources in a projectized
organization are not shared with the functional manager. Option 3 (Strong Matrix) is incorrect
because only 30% of the employees work on projects and the remaining work in functional activities.
Option 4 (Weak Matrix) is incorrect because full-time project managers do not exist in Weak Matrix,
which have project coordinators and/or expeditors.

Question: You are responsible for the development and launch of a NASA satellite. Your role is
that of a:
 1. Project Manager
2. Project Coordinator
3. Program Manager
4. Functional Manager

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

activities managed in a coordinated way to obtain benefits not available from managing them
individually. Reference: PMBOK® Guide - Fifth Edition, page 9
PMstudy.com comments: Developing and launching a NASA satellite will involve two projects and
hence, it is a program.

Question: Which of the following is NOT a Project Management Knowledge Area?

1. Project Integration Management

2. Project Procurement Management
3. Project Configuration Management
4. Project Communications Management

Justification: Project Configuration Management is not a Project Management Knowledge Area.

Reference: PMBOK® Guide - Fifth Edition, page 61

Question: As a project manager, you have identified the stakeholders of your project. What
should you do next?

1. Update Project Charter

2. Create Project Management Plan
3. Create Communications Management Plan
4. Create Stakeholder Register

Justification: The main output of the Identify Stakeholder process is the Stakeholder Register. It
is a project document including the identification, assessment, and classification of project
stakeholders.
Reference: PMBOK® Guide - Fifth Edition, pages 393 (figure 13-2) and 563

Question: You are working as a project manager and are in the process of defining and
documenting stakeholders` needs to meet project objectives. What documents are you going to use
for this purpose?

1. Project charter
2. Requirements documentation
3. Stakeholder register
4. Project charter and stakeholder register

Justification:Reference: PMBOK® Guide - Fifth Edition, page 111 (figure 5-4)

PMstudy.com comments: Collect Requirements is the process of determining, documenting, and

managing stakeholder needs and requirements to meet project objectives. Requirements
documentation is an output for Collect Requirements process. Scope management plan,
requirements management plan, stakeholder management plan, project charter, and stakeholder
register are inputs to this process.

Question: You are responsible for managing a project in your company but you have least
authority and have to constantly report to a functional manager. To which organizational structure
does your company belong?

1. Matrix
2. Functional
3. Projectized
4. Balanced

Justification: A classic functional organization... Staff members are grouped by specialty, such as
production, marketing, engineering, and accounting at the top level. Reference: PMBOK® Guide -
Fifth Edition, page 22 (table 2-1)

PMstudy.com comments: Project manager has least authority in a functional organization structure.

Question: Which of the following is not an example of a project?

1. Develop a new product or service or result

2. Change the password of a user for logging into a bank website
3. Run a campaign for political office
4. Implement a new business procedure or process

Justification: A project is a temporary endeavor undertaken to create a unique product, service,

or result. Operations are ongoing endeavors that produce repetitive outputs, with resources
assigned to do basically the same set of tasks according to the standards institutionalized in a
product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors.

Reference: PMBOK® Guide - Fifth Edition, pages 3 and 13

PMstudy.com comments: Changing the password of a user for logging into a website is an operation
because: a) It is not a unique activity.b) It does not have a specific start and end date, i.e.,
passwords need to be changed whenever there is a request from any user.
The activities stated in all the other options are examples of projects.

Question: Organizations performing projects will usually divide each project into several project
phases to improve management control. This also provides links to the ongoing operations of the
performing organization. Collectively, project phases are also called:

1. Project management life cycle

2. Project life cycle
3. Product life cycle
4. Project phases life cycle
Justification: A project life cycle is the series of phases that a project passes through from its
initiation to its closure. Reference: PMBOK® Guide - Fifth Edition, page 38

Question: You are the project manager in a company, which has a balanced matrix organizational
structure. Who do you report to?

1. Functional Manager
2. Program Manager
3. Chief Project Manager
4. Portfolio Sponsor

Justification: The project manager reports to the functional manager in a balanced matrix
organization. Also, please refer to PMBOK® Guide - Fifth Edition, page 24 (figure 2-3).

Question: You are a project manager in XYZ Company, which has a projectized organizational
structure. In this context, which of the following statements is incorrect?

1. Team members are often co-located.

2. There is a "home" for project team members after a project is completed.
3. You have a great deal of authority and independence.
4. Organizational units (or departments) either report directly to you or provide support services to the various
projects.

Justification: One disadvantage of a projectized organization is that there is "no home" for the
project team members once the project is completed. All the remaining answer options mentioned
are features of a projectized organization.

Question: You are working as a coordinator in an organization where decisions are primarily
made by the senior management. The structure of the organization you are working in is:

1. Weak Matrix
2. Balanced Matrix
3. Functional
4. Strong Matrix

Justification: Weak matrix organizations maintain many of the characteristics of a functional

organization, and the role of the project manager is more of a coordinator or
expeditor. Reference: PMBOK® Guide - Fifth Edition, page 23

PMstudy.com comments: In a weak matrix organization, project manager plays the role of a
coordinator or expeditor and all decisions are primarily made by the top/senior management.

Question: The dictionary meaning of authority is "power to influence or command thought,

opinion, or behavior.” Your authority as a project manager is greatly dependent on:

1. Support from functional managers

 2. Support from senior management
3. Your influencing and leadership skills
4. Organizational structure

Justification: Please refer to PMBOK® Guide - Fifth Edition, page 22 (table 2-1)

PMstudy.com comments: The most important factor for determining the authority of a project
manager is the organizational structure. Depending on the organizational structure, the project
manager may have high to almost total authority (as in a Projectized organization), little or none (as
in a Functional organization).

Question: Your director has appointed you as a portfolio manager in the company. Your
responsibility as a portfolio manager is to:

1. Select and support projects or program investments

2. Manage groups of projects in a coordinated way
3. Create a unique product, service, or result
4. Ensure that customer requirements are satisfied through progressive elaboration of projects

Justification: A portfolio refers to projects, programs, subportfolios, and operations managed as a

group to achieve strategic objectives. Reference: PMBOK® Guide - Fifth Edition, page 9

PMstudy.com comments: Project portfolio management refers to the selection and support of
projects or program investments. These investments in projects and programs are guided by the
organization`s strategic plan and available resources.

Option 2 refers to programs. Options 3 and 4 refer to projects.

Question: Your project sponsor has specified that you have to complete your project within 3
months with a funding limit of $250,000. This is an example of:

1. Authoritative project management

2. Constraint
3. Assumption
4. Laissez-faire management

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

Reference: PMBOK® Guide Fifth Edition, page 124

PMstudy.com comments: Here, the project sponsor has imposed two constraints: a) completion time
of 3 months and b) funding limit of $250,000.

Question: At what stage of the project are factors like probability of successfully completing the
project, cost of changes, and cost of error correction, the highest?

1. Beginning
2. End
3. Executing
4. Beginning and end

Justification: The cost of making changes and correcting errors typically increases substantially
as the project approaches completion.

Reference: PMBOK® Guide - Fifth Edition, page 40

Mstudy.com notes:

Question: A project manager is responsible for managing project costs and human resources.
Factors like cost and staffing level for a project:

1. Increase with duration of the project

2. Decrease with duration of the project
3. Are low at the start, peak as the work is carried out, and drop rapidly as the project draws to a close
4. Cannot be determined, as they are specific to the project

Justification: Refer PMBOK® Guide - Fifth Edition, page 39 (figure 2-8).

Reference: PMBOK® Guide - Fifth Edition, page 39

PMstudy.com Comments:

Question: Project performance must be monitored and measured regularly to identify variances
from the plan. Which of the following processes does not belong to the Monitoring and Controlling
Process Group?

1. Validate Scope
2. Control Risks
3. Control Communications
4. Perform Quality Assurance

Justification: Perform Quality Assurance is a process in the Executing Process group.

Reference: PMBOK® Guide - Fifth Edition, page 61, table 3-1

Planning process group outputs including the project management plan become inputs for project
implementation. In this context, which of the following statements is inaccurate?

1. Process groups are non-overlapping activities that occur with varying intensity throughout the project.
2. If the project is divided into phases, the process groups interact within a project phase and may also cross over
to other phases.
 3. Not all processes will be needed on all projects and not all of the interactions will apply to all the projects or
process groups.
4. Among the process groups and their processes, the process outputs are related and have an impact on the
other process groups.

Justification: The Process Groups are seldom either discrete or one-time events; they are
overlapping activities that occur throughout the project. The output of one process generally
becomes an input to another process or is a deliverable of the project, subproject, or project phase.

Reference: PMBOK® Guide - Fifth Edition, page 51

PMstudy comments: Also, please refer to PMBOK® Guide - Fifth Edition, page 78, table 4-1.

Question: You are the project manager of a new project, tasked with construction of a bridge on
the River Nile in Egypt. While initiating the project, you should:

1. Create a scope management plan to document project scope definition, verification, and control
2. Develop a project management plan
3. Determine specific activities that need to be performed to produce various project deliverables
4. Develop a project charter

Justification: Project Charter is a document issued by the project initiator or sponsor that formally
authorizes the existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.

Reference: PMBOK® Guide - Fifth Edition, page 553

PMstudy.com comments: Initiating process group consists of the processes that facilitate the formal
authorization to start a new project or a project phase. The activities stated in the first 3 options are
undertaken after the project is initiated.

Option 1 refers to Define Scope, Validate Scope, and Control Scope; Option 2 refers to Develop
Project Management Plan; and Option 3 refers to Define Activities. All these are processes are
related to the Planning Process Group and are performed after the processes related to the Initiating
Process Group.

Question: In your project, you are coordinating people and resources as well as integrating and
performing activities of the project in accordance with the project management plan. This is
performed during:

1. Initiating Process Group

2. Executing Process Group
3. Planning Process Group
4. Monitoring Process Group

Justification: The Executing Process Group consists of those processes performed to complete
the work defined in the project management plan to satisfy the project specifications. This Process
Group involves coordinating people and resources, managing stakeholder expectations, as well as
integrating and performing the activities of the project in accordance with the project management
plan.

Reference: PMBOK® Guide - Fifth Edition, page 444

Question: ABC company has recently launched a new model of their car in the market and the
market response has been overwhelming. Sales have gone up to a level much higher than what the
company anticipated. To cater to the increased market demand, the company plans to start a project
to create a new assembly line for the cars. Who, according to you, is the user for this project?

1. Project manager and project management team

2. Person who may buy the car in the future
3. Project sponsor who provides funding
4. Assembly line worker who is going to work on the new assembly line being created

Justification: Customers are the persons or organizations who will approve and manage the
project’s product, service, or result.
Users are the persons or organizations who will use the project’s product, service, or result.

Reference: PMBOK® Guide - Fifth Edition, page 32

PMstudy.com comments: Here the assembly line worker will use the project`s product, i.e., the new
assembly line being created. So, he is user of the project.

Question: At the end of the closing process group,

1. It is verified that the defined processes are completed within all the process groups to close the project
or project phase.
2. It is determined that the product will be successful in the market.
3. The project management plan is written off by the project sponsor.
4. The new change requests are initiated as required.

Justification: The Closing Process Group, when completed, verifies that the defined processes
are completed within all of the Process Groups to close the project or a project phase, as
appropriate, and formally establishes that the project or project phase is complete.

Reference: PMBOK® Guide - Fifth Edition, page 57

Question: You recently joined ABC bank as a project manager. Although the project is within
budget and doing well, recently there have been several change requests. The outgoing project
manager was using twelve project management processes during the project execution. Given this
information, which of the following could be the most likely cause of frequent change requests?

1. The new project manager was appointed for a very critical project and proper training was not provided.
2. All stakeholders were not identified.
 3. New methods of communication like email and SMS were not used as part of project communication
management.
4. Very few project management processes were used by the outgoing project manager.

Justification: We should try to find out the reason for the problem. The question clearly states
that recently there have been several change requests. The root cause of the problems is that all
stakeholders are not identified.

Training (option 1), communication methods (option 3) or the number of project management
processes (option 4) cannot be contributing factors to the increase in change requests. However, if
some stakeholders are not identified (option 2), there is a possibility that some requirements of those
stakeholders are left out. This is the most important reason for increase in change requests.

Question: Earlier you were working at the helpdesk of ABC company managing a team. Your job
primarily involved handling customer queries, analyzing customer feedback, and supervising your
team. You have recently been re-assigned to a new project involving integration of the helpdesk
activities with an ERP (Enterprise Resource Planning) package. This project will improve efficiency
in the company and help in integrating all inter-related activities. In this context, which of the
following is not a difference between project work and work at helpdesk?

1. The objective of the project is to meet strategic objectives of the company. The objective of the helpdesk was to
sustain the business.
2. A project has to be planned, executed, and controlled, and it is not so in the case of helpdesk.
3. As part of the project, you are creating a new information system, but nothing unique was being created as part
of the helpdesk activities.
4. Unlike a project, helpdesk was an ongoing operational activity.

Justification: Helpdesk work is an operational activity.

Organizations perform work to achieve a set of objectives. In many organizations, the work
performed can be categorized as either project or operations work. These two types of work share a
number of characteristics as follows:
a. Performed by individuals
b. Limited by constraints including resource constraints
c. Planned, executed, monitored and controlled

Both projects and operations need to be planned, executed, and controlled. However, projects and
operations differ primarily in that operations are ongoing and produce repetitive products, services,
or results. Projects are temporary, and end.

Question: You are working as the project manager simultaneously on four (4) projects in your
organization, which vary in complexity. In this context, which of the following does not contribute to
the success of the projects?

1. Project Manager must comply with the requirements to meet stakeholders` needs and aspirations
2. Applying knowledge, skills, and processes uniformly across various projects in your portfolio
3. Balancing competing needs of time, cost, and quality
 4. Using a defined approach to adapt the product specifications and plans to meet project and product
requirements

Justification: For any given project, the project manager, in collaboration with the project team, is
always responsible for determining which processes are appropriate, and the appropriate degree of
rigor for each process.

Reference: PMBOK® Guide Fifth Edition, page 48

PMstudy.com comments: Knowledge, skills, and processes will not always be applied uniformly on
all projects. Since the projects are of varying complexity levels, the same processes may not be valid
for all the four (4) projects. Please note that options 1, 3, and 4 are requirements for a project to be
successful.

Question: You are preparing a document using project statement of work, business case,
agreements, enterprise environmental factors, and organizational process assets. These are valid
inputs for:

1. Develop Project Management Plan

2. Direct and Manage Project Work
3. Develop Project Charter
4. Perform Integrated Change Control

Justification: Project statement of work, business case, agreements, enterprise environmental

factors, and organizational process assets are inputs for the Develop Project Charter process.

Reference: PMBOK® Guide - Fifth Edition, page 66, figure 4-2

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

1. Expert judgment and risk identification

2. Change control tools and project document updates
3. Expert judgment, meetings, and change control tools
4. Expert judgment, meetings, and stakeholder analysis

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

Option 1: Risk identification is a separate process, which is not done as part of Perform Integrated
Change Control process.

Option 2: `Change control tools` is a tool and technique of Perform Integrated Change Control
process, but project document updates is not a tool and technique for any process.

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

Reference: PMBOK® Guide - Fifth Edition, page 65, figure 4-1 (for options 1, 2, and 3) and page
392, figure 13-1 (for option 4).

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

1. Product scope description

2. Configuration management system
3. Statement of work
4. Project management plan

Justification: Option 2: Configuration management system: This is a collection of formal

documented procedures used to apply technical and administrative direction and surveillance... to
verify conformance to requirements.

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

Option 3: The statement of work (SOW) is a narrative description of products or services, or results
to be delivered by a project.

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

Reference: PMBOK® Guide - Fifth Edition, page 532 (for option 2), page 68 (for options 1 and 3),
and page 74 (for option 4).