PMP Certification Practice

In what stage of Risk Management do you determine the Impact of Risks on the project ?

Options are :

  • Monitor and Control Risks
  • Identify Risks
  • Perform Qualitative Analysis (Correct)
  • Plan Risk Responses

Answer : Perform Qualitative Analysis

Explanation The impact and probabilities of risks are determined in the perform qualitative analysis process.

In the Salience Model, Stakeholders are classified according to :

Options are :

  • Influence , Legitimacy and Interest
  • Interest , power and urgency
  • Power, Urgency, and Legitimacy (Correct)
  • Interest, Impact and urgency

Answer : Power, Urgency, and Legitimacy

Explanation In the Salience model for analyzing stakeholders, they are classified according to their power , urgency and legitimacy.

At the recent meeting, you discover that the customer is not satisfied with a certain deliverable of the project. What is the Best thing to do ?

Options are :

  • Discuss with the team on what changes can be implemented
  • Develop another variation of the deliverable and present it to the customer immediately
  • Tell the customer the deliverable is exactly in line with the scope defined for the project
  • Ask the customer why they are not satisfied with the deliverable (Correct)

Answer : Ask the customer why they are not satisfied with the deliverable

Explanation You need to discover why the customer is not satisfied, the rest of the options can be implemented after you determine the cause of dissatisfaction.

A member of your team informs you that she does not know which project is the most important one out of the several projects she is working on. In a large organization, who is responsible for determining the priorities between the different projects  ?

Options are :

  • The Team itself
  • The Project Manager of the team
  • The Project Management Team
  • PMO ( Project Management Office) (Correct)

Answer : PMO ( Project Management Office)

Explanation The PMO is responsible for determining the priorities between projects.

In project management terms, what is known as a heuristic?

Options are :

  • A tool for monitoring and controlling
  • A rule that is generally accepted (Correct)
  • A tool for developing scope
  • A process for developing schedule

Answer : A rule that is generally accepted

Explanation Heurisitics are generally accepted rules or a rule of thumb such as cost per foot, cost as per the number of hours of manual labor etc.

While negotiating with external supplier stakeholders, how important do you think are nonverbal communications for a project manager ?

Options are :

  • Verbal skills are more important
  • Not Important
  • They are especially important only when negotiating costs
  • Very important (Correct)

Answer : Very important

Explanation Nonverbal skills comprise of a significant portion of the overall communication skills, they are of major importance.

While working on your construction project, you come across environmental risks that could negatively effect the project. It would be best to hire a consultant to share insights and advice on tackling the challenges. Which contract type should be used for hiring the consultant ?

Options are :

  • Cost Plus Fixed Fee
  • Time and Material (Correct)
  • Fixed Price
  • Cost Plus Incentive Fee

Answer : Time and Material

Explanation The most appropriate contract type is the Time and Material contract since the project is already under way and you have to hire someone in the middle of the project without a procurement statement of work.

You are working on a global partnership project in the Airline Industry. Till now , you have been diligently tracking the progress of your project via Earned Value Management (EVM).  The Actual costs on the project are $ 700 milllion, while your cost variance is $200 million. The schedule Variance shows a value of -$100 million. What are the values of SPI, CPI and PV ?

Options are :

  • 1.5,0.95,400
  • 0.95,1.28,-1000
  • 0.9,1.28,1000 (Correct)
  • 1.28,0.92,500

Answer : 0.9,1.28,1000

Explanation Actual Cost or AC = 700 Cost Variance or CV = 200 Schedule Variance or SV = -100 First, find the value of EV or Earned Value = CV + AC = 200 + 700 = 900 Next, find the value of CPI CPI = EV / AC = 900/700 = 1.28 Then , you have to find the value of PV (Note that since the value of Schedule variance is negative , it gets added) PV = EV - SV = 900 - (-100) = 1000 Finally, use the value of PV to find the value of SPI SPI = EV / PV = 900 / 1000 = 0.9

Which of the following is so important  that they should always be included on the list of items under discussion at all team meetings.

Options are :

  • Discussing project deadlines
  • Discussing project activities
  • Discussing the risks on the project (Correct)
  • Devising ways to engage stakeholders on the project

Answer : Discussing the risks on the project

Explanation It is of utmost importance to discuss risks at project meetings

One of your key suppliers for an important deliverable is constantly making delays in submitting his work to your project. You decide to deal with the situation when you have more time available from your current workload. You are using the conflict resolution technique known as :

Options are :

  • Compromising
  • Withdrawing (Correct)
  • Smoothing
  • Postponing

Answer : Withdrawing

Explanation This technique would be considered as Withdrawing since you are not dealing with the situation directly at that time.

While working approximately  mid way through a project , you receive a call from the client who now wishes to cancel the project's remaining work. The contract for the project stands cancelled. Which of the following documents would be useful in determining the purpose of the project ?

Options are :

  • The Risk Register, to find more information about the risks on the project
  • The Risk Response Plan, to evaluate what actions can be taken for risks encountered on the project
  • The Project Charter, to go over the project description and client need (Correct)
  • The WBS, to confirm the project involved the right scope of work

Answer : The Project Charter, to go over the project description and client need

Explanation The project charter contains information on the project description and the need of why the client wants this project done in the first place, i.e, Its purpose

After a 3 year long complex telecommunication industry project, it is time to begin closure. What is most necessary in order for closure to begin ?

Options are :

  • The product should have been transferred to the customer
  • The deliverables should have been accepted (Correct)
  • The lessons learned should have been updated and included in your organization's information hub
  • The project work should have been completed to the satisfaction of all stakeholders

Answer : The deliverables should have been accepted

Explanation It is necessary for the deliverables to have been accepted by the customer in order to begin project closure. Note that the emphasis is on what is required in order for project closure to "begin".

You have a meeting tonight with the client regarding  validating the scope of a project deliverable. What is the most important thing to look forward to in this meeting ?

Options are :

  • Completeness of the deliverable
  • Acceptance of the deliverable (Correct)
  • Accuracy of the deliverable
  • Whether the deliverable has been finalized

Answer : Acceptance of the deliverable

Explanation The main focus on validating scope is on getting acceptance from the customer. Most people confuse validating scope with the completeness or effectiveness of the deliverable, however, those answers are incorrect. Always remember, validating scope has to do with getting acceptance of the deliverable from the customer.

A project manager is evaluating the historical performance of a project through multiple charts and graphs over the passage of a long time span. The project manager is most likely use which of the following:

Options are :

  • Decision Tree
  • Mind Mapping
  • Benchmarking
  • Trend Analysis (Correct)

Answer : Trend Analysis

Explanation The project manager has to analyze information across a span of time, hence, trend analysis is most appropriate for this situation as it analyzes information across a certain span of time.

During a project, what should the project manager be Ideally be focusing on ?

Options are :

  • Tracking changes
  • Preventing unnecessary changes (Correct)
  • Getting changes implemented
  • Recording changes required by the customer proactively

Answer : Preventing unnecessary changes

Explanation The project manager should be proactive in preventing unnecessary changes

Which of the following is the BEST description of how a project is Formally Accepted ?

Options are :

  • When the customer has received the final deliverables
  • When the customer has transferred the final payment
  • When the customer has given you the sign off (Correct)
  • When the important milestones have been completed

Answer : When the customer has given you the sign off

Explanation Gaining the customer's sign off makes it official that the customer has formally accepted the deliverables of the project, you do not have acceptance until this has been done.

Which of the following statements best states the involvement of stakeholders on projects

Options are :

  • They develop and approve the project charter
  • They determine the resource requirements and work breakdown structure
  • They help in determining the deliverables and constraints of the project (Correct)
  • They create the management plans for the knowledge areas

Answer : They help in determining the deliverables and constraints of the project

Explanation They help in determining the deliverables and constraints of the project C is the only option which supports the role of stakeholders on a project. The sponsor is responsible for authorizing and approving the charter , while the rest of the incorrect options describe tasks which are the responsibility of the project manager.

Over the past few months you have developed a strong professional and close personal friendship with the contracted seller of your project. The seller is working on developing a new technological venture and invites you to serve as a consultant on it. The new venture is not related in any way to your current project or industry. What will you do ?

Options are :

  • Take up the consultancy offer
  • Request permission from your employer (Correct)
  • Take up the consultancy offer and inform your employer about it
  • Politely refuse the offer

Answer : Request permission from your employer

Explanation You need to ensure there is no possible conflict of interest between the offer you've been made and the work you do at your current employment. It is best to request permission from your employer to see if they have any reservations, and if they don't, you can take up the offer.

If your project is experiencing poor risk management, which of the following would you consider as the most likely cause behind it ?

Options are :

  • Lack of proper risk response plans
  • Lack of prioritized risks (Correct)
  • An incomplete scope statement
  • Lack of effective monitoring and control

Answer : Lack of prioritized risks

Explanation It is important to have a prioritized list of risks to implement effective risk management on a project.

You are managing an  enterprise level software development project for an automobile manufacturer. One of your team members is visiting the manufacturing plant to acquire confidential data in person. Which of the following actions is the most important thing to do when making an online video call to the team member ?

Options are :

  • Ask the team member to inquire about any changes the client would like to request on the project
  • Ask the team member to be extra careful while handling the confidential data shared by the client
  • Ask the team member to repeat what you mentioned (Correct)
  • Ask the team member to develop a friendly working relationship with the client

Answer : Ask the team member to repeat what you mentioned

Explanation You need to ensure that your conversation is being completely understood and that there are no ambiguities. A manufacturing facility can hinder communication because of the external noise being created in that environment. By making the team member repeat what you said , you are ensuring whatever guidance, information and instructions you have conveyed to the team member have been properly understood by him.

What technique would a group of stakeholders use to assess the time, benefits, risk , and cost estimates to evaluate requirements ?

Options are :

  • Critical Chain Method
  • Multi Criteria Decision Analysis (Correct)
  • Opportunity Cost
  • Mind Mapping

Answer : Multi Criteria Decision Analysis

Explanation The multicriteria decision analysis is used to evaluate and rank the requirements according to various factors including risk levels, cost , time and benefit estimates.

The value of the optimistic estimate is 2. The pessimistic estimate is valued at 10, and the most likely estimate has a value of 9. What is the value of the PERT Estimate ?

Options are :

  • 4
  • 6
  • 8 (Correct)
  • 9

Answer : 8

Explanation Formula for PERT = (P+4M+0)/6 =(10+4(9)+2)/6 =48/6 =8

In a ______ organization, the project manager plays the role of a coordinator/expeditor. This organization type follows a functional structure:

Options are :

  • Functional
  • Weak Matrix (Correct)
  • Strong Matrix
  • Projectized

Answer : Weak Matrix

Explanation In a weak matrix organization, the project manager does not have a lot of power.

The main purpose Project reports are developed is to :

Options are :

  • Provide information related to the project to stakeholders (Correct)
  • Provide information related to project performance to stakeholders
  • Get stakeholders to share their subject expertise
  • Allow stakeholders to request changes on the project

Answer : Provide information related to the project to stakeholders

Explanation The primary purpose of Project reports is to help distribute information regarding the project, this is not restricted only to the project's performance related information.

You discover that a quality requirement stated by the customer in the scope cannot be fulfilled. Which of the following is the least effective action you could take?

Options are :

  • Explore options that can help fulfill the quality requirement
  • Meet with the Project Team and ask their opinion
  • Communicate a message to senior management regarding the situation (Correct)
  • Request senior management for options on how to approach the matter

Answer : Communicate a message to senior management regarding the situation

Explanation The project manager is responsible for handling the situation. All the other options entail the project managers initiative in tackling the situation in order to find a solution. Answer C is the weakest since it does not involve coming up with any solutions to the problem.

At a Project Review Meeting for a large supply chain integration project, multiple concerns and issues were discussed. One of the engineer's mentions that most of the problems being faced on this project are similar to one of the previous project's he worked on earlier . He mentions he has the solutions to the current challenges this project is facing. What type of power would you say he is using ?

Options are :

  • Formal
  • Referent
  • Knowledge
  • Expert (Correct)

Answer : Expert

Explanation He is using Expert power since he has already encountered such a problem before and most likely has more knowledge about it than the rest of the team.

Which of the following is the best description of a risk owner on a project ?

Options are :

  • Risk owners help in identifying risks on projects
  • Risk owners are responsible for executing risk response strategies (Correct)
  • Risk owners are the stakeholders who are the most impacted by risks
  • Risk owners are the departments who have the most expertise on specific risks

Answer : Risk owners are responsible for executing risk response strategies

Explanation Risk owners actively look out for risk triggers and implement risk response strategies to handle the risks.

On a new project of yours, You are establishing the rules for how changes to the documents on the project will be recorded , and how everyone working on the project will be able to know which version of the documents they have with them. What are you creating ?

Options are :

  • Work Breakdown Structure
  • Configuration Management System (Correct)
  • Project Management Information System
  • Communication Management Plan

Answer : Configuration Management System

Explanation The Configuration Management System controls documents and their versions on the project. The Configuration Management System is a part of the Project Management Information System.

A new international project in your organization involves people from 3 different countries. The project sponsor is in the USA. The project manager is in Malaysia. The engineers are in India. If you were the project manager for this project, suggest a way of making sure that all the project work is identified.

Options are :

  • Develop a detailed project management plan
  • Create a work breakdown structure while taking input from all parties. (Correct)
  • Explore the laws of all the countries involved.
  • Develop a Risk Register to avoid unforeseen circumstances

Answer : Create a work breakdown structure while taking input from all parties.

Explanation Only the WBS ( Work breakdown Structure) is involved in the identification of the work involved in completing a project.

You are receiving supply chain services under contract from an external supplier. As per the contract, the supplier is supposed to charge $40,000 per month. However, you notice that since the last 4 months, your project is being billed $75000 by the supplier. What is the best thing to do in this situation ?

Options are :

  • Review the Project Scope Statement
  • Review the Performance measurement system
  • Review the Contract Change control system (Correct)
  • Review the Cost change control system

Answer : Review the Contract Change control system

Explanation In this situation, the best thing to do is to review the Contract Change control system since we are dealing with a situation that involves contracted project work with the supplier, and not the overall project itself. There is a possibility that the seller is charging more for the increased services which may not have been included in the original contract.

A project manager would consider the following to be correct regarding inspections on a project :

Options are :

  • They Prevent defective deliverables from being delivered to the customer (Correct)
  • They can only be conducted by the project manager
  • They can only be conducted once during a project to save costs and time
  • They are conducted only once the final version of the product has been developed

Answer : They Prevent defective deliverables from being delivered to the customer

Explanation Inspections can be conducted at any time during the development of a project, their purpose is to keep the customer safe by preventing defective deliverables from reaching the customer.

You are not satisfied with the way Nathan is handling a project. Given the urgent circumstances, You reassign the work to Vanessa to ensure the deadlines are met and the deliverables are completed as per the defined scope.You ask the newly assigned Vanessa to get all the information regarding the project from Nathan. However, being angry and upset over having the project work taken away from them, Nathan refuses to share the information with Vanessa, making it impossible for her to start work on the project without having the necessary information to proceed. The deadline is approaching fast, What two powers can you use in this case to make sure the project deadlines are met.

Options are :

  • Formal and Punishment (Correct)
  • Reward and Legitimate
  • Expert and Referent
  • Formal and Referent

Answer : Formal and Punishment

Explanation You have the choice of using Formal and Punishment power. Formal and Punishment powers are examples of positional power that an individual possesses just by being a project manager. Since the deadline is approaching fast and Alex is creating problems, the project manager will have to use his authority in the organization to get the work done. Alex will have to obey your order and work with Vanessa because he knows you have the authority to issue orders.

Stakeholders have the most impact on a project during :

Options are :

  • The entire project
  • The start of the project (Correct)
  • The end of the project
  • The middle of the project

Answer : The start of the project

Explanation It is important to identify and involve the stakeholders at the beginning of the project. The earlier you determine their expectations, the better and more smoother will your project progress. Otherwise you may end up having to incorporate changes later in the project which can be quite expensive.

Which of the following is the best description of the responsibility of a project management office (PMO)? 

Options are :

  • Their responsibility varies from being an advisor to having complete authority over a project (Correct)
  • Providing direction for the projects
  • Providing the right project managers based on project requirements
  • Providing guidelines and resources for projects

Answer : Their responsibility varies from being an advisor to having complete authority over a project

Explanation They can be in an advisory role or have complete authority over a project depending on what type of PMO they are. ( Supporting, Controlling or directive)

Which of the following best explains why would a Project Manager make use of User Stories ?

Options are :

  • To document the problems related to the project by stakeholders
  • To collect information regarding required project features (Correct)
  • To communicate with the stakeholders effectively
  • To collect useful information about the project so that it may be included in historical records.

Answer : To collect information regarding required project features

Explanation User stories are used to get information about the requirements and features of the project from stakeholders.

You realize that given the current market conditions, the project will end up with higher costs at completion. What is the best thing to do ?

Options are :

  • Decrease the scope of the project
  • Decrease the quality of the project
  • Consult the stakeholders
  • Eliminate risks and reestimate (Correct)

Answer : Eliminate risks and reestimate

Explanation You can’t really do much regarding the market conditions, these are beyond the scope of control of you as a project manager, your only responsibility is towards the project. Hence, the best thing to do, is do eliminate risks and reestimate. Other options such as decreasing scope and qualitywill have a negative impact on the project. So always choose the option which will have the LEAST negative effect.

Free Float can be defined as the amount of time that an activity can be delayed on a project without delaying :

Options are :

  • The final date of delivery of the final deliverables
  • The early start of the successor activity (Correct)
  • The project itself
  • The completion date of the project

Answer : The early start of the successor activity

Explanation The free float is the amount of time an activity can be delayed without delaying the early start of the successor activity.

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