## PMP Certification Questions

##### As a project manager, you have been working with a team of 5 people. Recently, 2 more people have been added to the team. How many communication channels are there ?

Options are :

• 15
• 10
• 28 (Correct)
• 30

Explanation The team comprised of 5 people originally, however note that the project manager was also a part of the overall team apart from your team members, so in total there were 6 people originally. Now 2 more people have been added, which brings the total to 8 people. Formula = [N(N-1)/2] Formula = [8(8-1)/2] =28

##### A new supplier is being bought on board the project which the customer recommended. This supplier will allow the project to be completed within time, however, it will also lead to an increase in the project's risk. Which of the following actions should you take First ?

Options are :

• Have a discussion with the customer regarding the risk
• Analyze the impact of the risk (Correct)
• Add the expected monetary value of the risk to the project costs
• Consult the sponsor on how to tackle the risk

Answer : Analyze the impact of the risk

Explanation The first thing to do is to analyze the impact of the risk. You first need to understand the nature and effects of the risk before having discussions or taking any other actions.

##### If Project A has a Net Present Value of \$40,000, and Project B has an NPV of \$60,000, What is the opportunity cost to the organization if Project B is Selected ?

Options are :

• \$ 60,000
• \$ 20,000
• \$ 40,000 (Correct)
• \$ 25,000

Explanation The opportunity cost refers to the value of the opportunity that was not selected. If project B is selected, then \$40,000

##### The significance of value analysis for project management is to :

Options are :

• To decrease the cost while doing the same work (Correct)
• To find the actual value the project will bring to the organization
• To discover the monetary value of the project
• To analyze the project in order to get the support of senior management

Answer : To decrease the cost while doing the same work

Explanation Value Analysis refers to decreasing the cost of the project while maintaining the same amount of scope / work involved in doing the project.

##### A project manager has made some changes on a Project. What should she do immediately right after making the changes ?

Options are :

• Evaluate the impact of the changes
• Update and Revise the Project Management Plan and Project Documents (Correct)
• Seek advice from the Change Control Board
• Analyze whether the change fits in with the project charter

Answer : Update and Revise the Project Management Plan and Project Documents

Explanation The project manager needs to revise the project management plan and project documents to reflect the changes. If the changes have already been implemented , this means the change had already been analyzed, its impact evaluated, and then approved by the change control board. The only things that's left to do is to update and revise the documents. You need to follow the proper flow and sequence for getting changes implemented to answer change related questions.

##### The project manager has just developed the scope baseline for the new augmented reality software project. What does the scope baseline comprise of ?

Options are :

• The Configuration management system and the configuration management plan
• WBS, WBS dictionary and Scope Statement (Correct)
• The schedule, cost and scope baseline
• The project scope statement and the project charter

Answer : WBS, WBS dictionary and Scope Statement

Explanation The scope baseline comprises of 3 things, the wbs, wbs dictionary and the scope statement.

##### At an organization, John and David have recently joined as project manager's. They realize their roles are that of a project expeditor and a project coordinator. Which of the following statements provides information about the difference between a project expeditor and a project coordinator ? It can be said that the project expeditor :

Options are :

• Reports to senior management
• Does not have any authority to make any decisions (Correct)
• Is able to make more decisions than the project coordinator
• Is responsible for solving problems and providing solutions for the project

Answer : Does not have any authority to make any decisions

Explanation The project expeditor does not have the authority to make any decisions while the project coordinator reports to a higher manager and has the authority to make some decision.

##### Which of the following variables is present in a resource histogram and not in a responsibility assignment matrix?

Options are :

• Time (Correct)
• Activities
• The individual in charge of each activity

Explanation The resource histogram shows the use/usage of resources on a project over time

##### At HG engineering, the project team is discussing the candidacy of the different sellers who have submitted proposals for the multimillion dollar project. Out of the 5 different sellers, the project team is stuck on making the final decision between 3 sellers, each of whom is supported by an equal number of members of the project team. Which of the following can help the team in focusing on making the selection ?

Options are :

• Procurement documents
• Resource Management Plan
• Procurement Management Plan
• Source Selection Criteria (Correct)

Explanation The source selection criteria helps the team in evaluating and deciding the seller.

##### While working as a project manager on a high end watch brand's  manufacturing plant , you carefully evaluate as project work is being completed.  The best way of making sure the end product batch of watches is acceptable, is to

Options are :

• Perform Benefit Cost Analysis
• Check the quality of the watches with respect to the quality standards in the quality management plan (Correct)
• Find the cause of problems through the ishikawa diagram
• Identify quality standards for the watches being manufactured

Answer : Check the quality of the watches with respect to the quality standards in the quality management plan

Explanation At this point , the best thing to do is to check the quality against the standards defined in the quality management plan. There is no point in identifying quality standards at this stage since this is something that should have already been done earlier in the project.

##### For a project that spans across multiple countries, which of the following would be the best way to solve conflict as the lead project manager

Options are :

• Forcing
• Withdrawal
• Smoothing
• Collaborating (Correct)

Explanation Collaborating and Problem Solving mean the same thing and are considered as the best ways to solve conflicts.

##### When it comes to risks which are added to the watch list, what is the most appropriate action that can be taken to address them ?

Options are :

• Analyze them again during monitoring and controlling (Correct)
• Transfer them to another company
• Research them as historical information for future projects
• Document them and use contingency plans to address them

Answer : Analyze them again during monitoring and controlling

Explanation The risks on the watch lists need to be revisited to evaluate whether they have become critical risks. In case non critical risks become critical risks, it becomes important to address them.

##### While working on an project that is under budget, the client calls you to request the addition of extra features to the project. What should you do as a project manager ?

Options are :

• Give the approval for the change
• Request the sponsor to approve the change
• Request the change control board to evaluate and approve the change
• Look for the impact of the change (Correct)

Answer : Look for the impact of the change

Explanation Before you put the request forward for getting the change implemented, you first need to determine the impact of the change. You cannot simply approve changes directly without evaluating their impact on the project.

##### Which of the following terms determines today's value of a future cash flow :

Options are :

• Opportunity Cost
• Sunk Cost
• Fixed Cost
• NPV (Correct)

Explanation The NPV is also known as the Net Present Value, and it is regarded as the value today of a cash flow in the future.

##### Your team members are having an argument about the difference between a project management process and the project life cycle. You clarify the difference between the two terms to your employees by telling them that :

Options are :

• The project management process takes much more time than the project life cycle
• Project management processes only apply to engineering projects
• The project life cycle includes information about how to manage the project work
• The project life cycle tells what needs to be done to complete the work on the project (Correct)

Answer : The project life cycle tells what needs to be done to complete the work on the project

Explanation The project management process explains how to manage the project while the project life cycle explains what needs to be done to complete the work on the project.

##### Because of the recent thunderstorms, the construction project has to be halted and further schedule delays are confirmed given the current weather conditions. The project will require extensive schedule changes. Who should you communicate these changes to ?

Options are :

• Functional Manager and his team
• Stakeholders (Correct)

Explanation These are extensive project wide changes, you need to inform the stakeholders instead of just one party. The stakeholders would include the rest of the options as well, including the Sponsor, Functional manager and the project team.

##### At a Steel Manufacturing Plant, the control chart displays that the last 10 steel bars produced were greater than the average weight. This situation is an example of :

Options are :

• Rule of 10
• 3 Sigma
• Rule of 7 (Correct)
• 80/20 Rule

Explanation The bars produced are above the average weight that is normally produced at the plant. Since this situation has occurred 7 and more times in a row, the process is out of control and is known as the rule of 7.

##### A Responsibility Assignment Matrix includes the following data points :

Options are :

• Estimates for time and resources
• Resource and Activity (Correct)
• Activity and Time Duration
• Resource Usage and Responsibility

Explanation A responsibility assignment matrix shows the relationship between the activities to be performed on the project and the resources assigned to perform them.

##### How would a project manager interpret a CPI ( Cost performance Index) value of 0.69 ?

Options are :

• The project is performing at the rate of 69 percent of the originally planned rate
• The project is getting 69 cents for every dollar invested (Correct)
• The project is getting 69 dollars for every dollar invested
• The project is performing at 31 percent of the rate originally planned

Answer : The project is getting 69 cents for every dollar invested

Explanation A CPI of less than one means the project is not performing well. In this case , the project is getting 69 cents for every dollar invested meaning you are investing more but getting less out of the project. The cost performance index refers to the value of the work completed on the project.

##### A program can be described as :

Options are :

• A software used by an organization to manage projects
• A Quality assurance policy to reward employees
• Groups of related projects which hold benefit in being carried out together (Correct)
• A government policy

Answer : Groups of related projects which hold benefit in being carried out together

Explanation A program is a group of related projects.

##### You are working on a machinery automation software project which has detailed requirements. You have to choose a contract type for this project. The contract you will choose is :

Options are :

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

Explanation For projects with well-defined and complete requirements, Fixed price contracts are used.

##### The work breakdown structure is considered effective for communicating with which of the following ?

Options are :

• Stakeholders (Correct)
• Project Team
• Project Manager

Explanation The work breakdown structure can also be used as a communication tool for communicating with all the stakeholders. The term stakeholder includes all the other choices listed in the answers.

##### Total float refers to the amount of time an activity can be delayed without delaying :

Options are :

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

Answer : The completion date of the project

Explanation Total float is the amount of time an activity can be delayed without delaying the project completion date.

##### Milestones are an important part of a successful project. What is considered to be the duration of a milestone on a project in general ?

Options are :

• 1
• 0 (Correct)
• The entire duration of the project
• The duration of a single activity

Explanation A milestone is considered as an event on a project which has a duration of 0.

##### There are 4 different projects you can choose to pursue. Project A has an IRR of 32 percent. Project B has an IRR of 20 percent. Project C has an IRR of 13 percent. Project D has an IRR of 21 percent. Which of these is the best project ?

Options are :

• Project A (Correct)
• Project C
• Project D
• Project B

Explanation Project A. The higher the rate of return (IRR), the better it is.

##### The form of power which is not related to the position of a project manager in an organization's hierarchy is :

Options are :

• Penalty
• Expert (Correct)
• Formal
• Reward

Explanation Expert power has to be earned by being established as a technical and knowledgeable expert. The other forms , penalty, formal and reward are all related to the position the project manager holds in the organization.

##### A project manager may consider that quality has been achieved on a project when :

Options are :

• The customer has given their acceptance of the product
• When you have gone above the expectations of the customer
• When the requirements of the project have been met (Correct)
• When the customer gives you a bonus

Answer : When the requirements of the project have been met

Explanation Quality is achieved when you have fulfilled the requirements of the project. It has nothing to do with exceeding expectations so always remember that quality is only concerned with getting a product to do what it is supposed to , nothing more and nothing less.

##### As the project has been performing well and the forecasted risks wont be occuring, you realize you will not be needing the contingency reserves you created for the project, what will MOST LIKELY happen to such reserves ?

Options are :

• You can use them as per the Functional Manager's advice
• You will delete them from the project budget (Correct)
• They will be used for another purpose in the same project
• The senior management will make the final decision on what to do with them

Answer : You will delete them from the project budget

Explanation If the risk for which the contingency reserve was created will not occur, the funds will be deleted from the budget and most likely be allocated on another project within the organization.

##### You have just joined as the project manager for a 5 year long project that has recently reached 50 percent completion. The project consists of a team which spans across 4 different countries and over 50 team members. The sponsor wants you to quickly become up to speed with where the project stands , which report type would be Most useful for you to read

Options are :

• Trend Report
• Forecasting Report
• Variance Report
• Progress Report (Correct)

Explanation The main point to understand here is that the project manager doesn't have a lot of time since he quickly needs to read up about the project. The progress report would be the most useful to read since it would quickly inform you of what has been accomplished on the project till now.

##### All projects should contain which of the following process groups ?

Options are :

• Initiating , planning , executing , and closing
• Planning, Executing, Monitoring and Controlling ,and Closing
• Initiating, Executing, Closing
• Initiating, Planning,Executing,Monitoring and Controlling, and Closing (Correct)

Answer : Initiating, Planning,Executing,Monitoring and Controlling, and Closing

Explanation All process groups need to be covered in each project that is to be done.

##### A project manager is working on an international project with stakeholders spread across Asia, Africa and Europe. The PM recently came across technical issues which could have a considerable negative impact on the project. What is the most effective way to involve all the experts from the different regions and solve the problem?

Options are :

• Conduct Interviews
• Speak to them on the phone
• Use the Delphi technique (Correct)
• Use a survey

Answer : Use the Delphi technique

Explanation The delphi technique uses a series of questionnaires to ask insights from experts who give their input on a task/issue/problem. Their input will be summarized and then sent back to them. This process will be repeated until the range of answers decreases and the group of experts agrees on single solution.

##### One of your project team member's informs you that the activity he was working on will be delayed. As a project manager, what is the best thing to do at this moment ?

Options are :

• Use contingency reserves to address the situation
• Use Crashing
• Use Fast Tracking
• Evaluate the problem (Correct)

Explanation It is best to evaluate the problem first before taking any actions. You need to understand the problem first before deciding on and implementing solutions.

##### What is the right way of dealing with stakeholders who have a High Interest and high power

Options are :

• Keep them satisfied
• Manage them closely (Correct)
• Keep them informed
• Monitor them regularly

Explanation High power and high interest stakeholders need to be managed closely.

##### An organization has a Fixed Price contract with a seller. Which of the following stakeholders has the most risk related to cost ?

Options are :

• Project Team
• Seller (Correct)
• Project Manager

Explanation In this contract type, the seller has the most cost risk. Because if the cost of the project increases, the seller will have to pay out of their own pocket since the price the buyer has to pay is already fixed.

##### In which of the following situations should the project baseline be changed ?

Options are :

• When there is a delay to the project schedule
• When an important stakeholder makes a request
• When the cost of the project increases
• When the change is approved on an official level (Correct)

Answer : When the change is approved on an official level

Explanation The project baselines can only be changed when they have been approved on an official level.

##### At the team meeting for an ERP solutions project, your project team member recommends an addition to the scope of the project. Realizing this scope addition is beyond the scope as mentioned in the Project Charter, you suggest that the team should only concentrate on completing the work that is required and nothing extra. This is known as  :

Options are :

• Scope Management (Correct)
• Change Management
• Work Breakdown Structure
• Validating scope

Explanation Scope Management refers to doing only the work that is required on the project as per the project charter. The team member had suggested doing project work that was outside the scope of the project.

##### Both Team Performance Assessments and Project Performance Appraisals are vital tools for a Project Manager. They differ from one another in the sense that Project Performance Appraisals are inclined towards

Options are :

• building the team
• keeping the team motivated
• evaluate the effectiveness of the team
• the individual performance of a team member (Correct)

Answer : the individual performance of a team member

Explanation Team performance Assessments focus on the performance of the project team as a whole while Project Performance Appraisals focus on the individual performance of a team member working on the project.

##### Your company is involved in a very competitive bidding to win a government project in a neighboring country. Your correspondent in the country suggests that you make a small payment to the finance minister to increase your chances of winning the contract. How should you proceed ?

Options are :

• Pay the finance minister slightly lesser than what the correspondent suggested
• Refrain from making the payment (Correct)
• Make the payment through your correspondent and not through your company

Answer : Refrain from making the payment

Explanation This sort of payment is illegal. It is a non routine payment and should not be entertained. If the payment was part of a procedural payment on part of the government then it could have been made

##### As an organization that manufactures chairs, measuring one chair for quality standards out of a production of 100 chairs is an example of measuring :

Options are :

• Sample (Correct)
• Mutually exclusive variables
• Random Variables
• Population

Explanation When a smaller number of items is tested out of a total of a large number , it is known as a sample, while the larger number is known as the population.

##### You are working on an urgent project for a loyal client, your manager has approved the project charter and at the same time requests that you start working immediately and share the schedule with him. What is the FIRST thing you should do ?

Options are :

• Create the Project Scope Statement (Correct)
• Create the list of activities and assign those activities to resources.
• Create a list of deliverables
• Shortlist the project team

Answer : Create the Project Scope Statement

Explanation Before anything else, you need to make sure you create the project scope statement , since this is an important part of the planning stage. The other tasks will be done once you have the project scope statement.

##### The purpose of a work authorization system is to manage:

Options are :

• When and in what sequence work is done on the project (Correct)
• Who is responsible for each work activity
• When exactly work is done on the project
• Who is responsible for each work activity and at what time

Answer : When and in what sequence work is done on the project

Explanation The work authorization system manages when work is done on the project and in what sequence is it done. It is used for authorizing the order of work on the project.

##### As a project manager working on a large Enterprise management software project, you have invited sellers at a bidder's conference. Which of the following would be the best thing to do for you ?

Options are :

• Give complete answers to all of the seller's questions
• Ensure the seller's ask all their questions (Correct)
• Share all the relevant and important documentation with the sellers
• Build relationships by meeting all the seller's and their teams