PMP Certification Question and Answers

While working as a project manager for a leading Technology consulting firm, you were involved in a project which had a budget of $93000 with a duration of 1.5 months. You have currently spent $35000 to complete the work which was originally expected to cost $39000. As per your schedule, you should have spent $40,000 by this time. How would you describe your project ?

Options are :

  • On Budget
  • Under Budget (Correct)
  • Over Budget
  • Equal to Budget

Answer : Under Budget

Explanation CPI = EV/AC CPI = 39000 / 35000 CPI = 1.09 (This means that the project is currently under budget. You are getting more value out of the project by having spent lesser)

From amongst the contract types listed below, The _____________ contract has the most cost risk for the buyer 

Options are :

  • Cost Plus Percentage of Costs (CPPC) (Correct)
  • Cost Plus Incentive Fee
  • Cost Plus Award Fee (CPAF)
  • Cost Plus Fixed Fee (CPFF)

Answer : Cost Plus Percentage of Costs (CPPC)

Explanation The buyer has the most cost risk in a CPPC contract from amongst the options listed above.

Currently, there are 7 people in the project team. 2 more resources are added later on in the project's life. What is the number of the additional channels of communication ?

Options are :

  • 21
  • 15 (Correct)
  • 36
  • 9

Answer : 15

Explanation Formula = [N(N-1)/2] First there were 7 members of the project team [7(7-1)/2] = 21 Channels of Communication Then there were 9 members of the project team [9(9-1)/2] = 36 Channels of Communication 36-21 = 15 additional channels of communication

A project manager has correctly decided to address a risk by using passive risk acceptance. What sort of a situation do you think he must have been faced with ?

Options are :

  • A situation in which he was unable to understand and analyze the risk
  • A situation in which it was difficult to check whether the risk had taken place
  • A situation in which it the chances of a risk occurring were low
  • A situation in which the risk would be dealt with as it occurred (Correct)

Answer : A situation in which the risk would be dealt with as it occurred

Explanation There are two types of risk acceptance strategies. Passive and Active acceptance. A passive acceptance strategy involves handling the risk as it occurs on the project. Passive acceptance refers to not having any plan in place to deal with the risk beforehand. On the other hand, active acceptance refers to coming up with a plan to address the risk when it occurs on the project.

Which of the following would a project manager consider as an example of a Cost Plus Fixed Fee Contract?

Options are :

  • $50,000 plus a fee
  • $20,000
  • $250 per hour
  • Cost plus $30,000 as fee (Correct)

Answer : Cost plus $30,000 as fee

Explanation In this contract type, the buyer pays for all the costs plus a fixed fee. Hence the cost , and 30,000 as the fee are the right choices.

Which of the following is the definitive list of constraints on a project :

Options are :

  • Scope, time, Cost
  • Scope, time, cost , quality, risk , resources, customer satisfaction (Correct)
  • Scope, Resources, quality
  • Customer satisfaction and customer loyalty

Answer : Scope, time, cost , quality, risk , resources, customer satisfaction

Explanation Scope, time, cost , quality, risk , resources, and customer satisfaction are the constraints a project manager has to deal with on a project.

Given the circumstances surrounding the project, The project manager has decided to Fast Track the Project. This will likely result in:

Options are :

  • Reducing the number of people involved on the project
  • Decreased project costs
  • A lesser amount of supervision required by senior management
  • A Smaller duration of the project (Correct)

Answer : A Smaller duration of the project

Explanation Fast tracking refers to doing more activities at the same time which results in work getting done faster, hence resulting in a shorter or smaller project duration.

When it comes to integration, the project manager is mainly responsible for : 

Options are :

  • Making sure the project team is working well with each other
  • Making sure the aspects of the project are in smooth coordination with one another (Correct)
  • Ensuring the various stakeholders are involved in the project
  • Ensuring that the senior management is kept up to date with the project.

Answer : Making sure the aspects of the project are in smooth coordination with one another

Explanation Project integration involves making sure that the various aspects of the project are working properly and are well coordinated with each other. This is the best answer since it also involves the rest of the answer choices which are also correct but integration involves several things and not just one task, hence , B is the best choice.

While working on your project, you identify a new risk at 50 percent project completion. There is a very high probability the risk will occur on the project, while at the same time, it is expected to have a low impact. Which of the following mitigation strategies would you use ?

Options are :

  • You will add the risk to the watch list (Correct)
  • You will Get insurance to cover the risk
  • You will eliminate the risk and its impact
  • You will avoid the risk

Answer : You will add the risk to the watch list

Explanation Since the risk has a low impact, it is best to add the risk to the watch list and see if it's impact will be greater down the road. Risks will always present themselves on projects, you need to decide which one of them are important enough to stop you from creating the final deliverable as required within the cost and schedule. This is why you have a list of prioritized risks which you need to address. It is not worth spending time and money on a risk with low impact.

A project team is working on a project that includes people working in 5 different locations including France, India, USA, Australia  and Dubai. There are over 123 main employees in the team. Which of the following can have the Biggest Impact in making the dynamics of the project easier to manage :

Options are :

  • Integrated Change Control System
  • Staffing Management Plan (Correct)
  • Project Planning
  • Scope Management Plan

Answer : Staffing Management Plan

Explanation Because of the large size of the team, the staffing management plan will have the biggest impact since it would help in managing the people working on the project.

You are due to start work on a new project and have recently been handed the approved Project Charter. What is the first thing you must do ?

Options are :

  • Develop the Project Management Plan
  • Develop Project Scope Statement
  • Analyze risks on the project and develop contingency plans
  • Identify the stakeholders involved in giving their input on the scope of the project (Correct)

Answer : Identify the stakeholders involved in giving their input on the scope of the project

Explanation The first responsibility of the project manager, after having been newly assigned to the project after the project charter has been approved, is to understand the project charter.

A project manager is going to use the milestone chart. In what situation is it most relevant to use the milestone chart ?

Options are :

  • When reporting to senior management (Correct)
  • When having a discussion with the project team
  • When analyzing risks
  • In planning the project

Answer : When reporting to senior management

Explanation A milestone chart is most appropriately used when reporting to senior management in order to show them the major milestones which have been achieved on the project.

A project that is experiencing constant Communication Blockers is most likely to 

Options are :

  • Result in a delay
  • Result in increased productivity as it will bring together the team members
  • Have conflict occur (Correct)
  • Get senior management involved to recommend solutions

Answer : Have conflict occur

Explanation Frequent communication blockers can lead to a gap in communications on a project , which can result in a conflict due to miscommunication.

Events that cannot occur together in a single trial are known as :

Options are :

  • Independent Events
  • Separate Events
  • JIT
  • Mutually Exclusive (Correct)

Answer : Mutually Exclusive

Explanation Mutually exclusive events are those which cannot occur together in a single trial, e.g if you toss a coin, you cannot get heads and tails at the same time.

If the Actual Cost = 450 , Earned Value = 400 and Planned Value = 350 , What is the value of the Cost Variance ?

Options are :

  • 50
  • 100
  • -50 (Correct)
  • -100

Answer : -50

Explanation CV = EV - AC CV = 400 - 450 CV = -50

The company you are working at is currently going through downsizing due to slow economic conditions globally.  Every team is going through layoffs and it is inevitable that some of your team members will be next in line. Your team is discussing this topic constantly, so you decide to add your thoughts by saying "Dont worry about it , we will simply improve our performance and that will help protect us from getting layed off".  Which of the following techniques do you think your actions represent:

Options are :

  • Collaborating
  • Problem Solving
  • Smoothing (Correct)
  • Withdrawal

Answer : Smoothing

Explanation In this case, you are not tackling the issue head on. You are acknowledging that it exists, however you decide not to face it outright. This is smoothing. If it was withdrawal, it would have resulted in the project manager completely ignoring the issue.

After the Plan Risk Responses process, you notice there are residual risks left on the project. What should you do ?

Options are :

  • Deal with the risks immediately
  • Develop contingency plans for them
  • Use management reserves to take care of them
  • You should document the risks and revisit them later to see if any action needs to be taken (Correct)

Answer : You should document the risks and revisit them later to see if any action needs to be taken

Explanation Document them and revisit them later. Remember that you have already developed contingencies for the major prioritized risks by this point. You can check on the residual risks later to see if they should be prioritized and taken action upon.

Organization put a strong emphasis on the creation of lessons learned documents. What is the most relevant use of lessons learned ?

Options are :

  • To create records for the ongoing project
  • To keep senior management informed about the project's progress
  • To track the success of the project
  • To serve as historical records for projects in the future. (Correct)

Answer : To serve as historical records for projects in the future.

Explanation To serve as historical records

The configuration management includes multiple processes. Which of the following does not belong to configuration management ?

Options are :

  • Configuration Status Accounting
  • Configuration Identification
  • Configuration Closure (Correct)
  • Configuration Audit

Answer : Configuration Closure

Explanation Configuration management includes all the other processes apart from Configuration Closure.

Who creates the WBS ?

Options are :

  • Project Manager
  • Sponsor
  • Project Team (Correct)
  • Management of the Company

Answer : Project Team

Explanation The team is responsible for creating the work breakdown structure. The team are the technical experts so they know better regarding the exact work which needs to be done to complete the project. Remember that the project manager is only responsible for managing the project, he is not responsible for actually doing the work involved on the project.

The project status reports for the month are due in two days time. One of the team members mentions to you that some of the other members of the team have not been accurately reporting the number of hours being spent on the project's activities. As the project manager, what action should you take first?

Options are :

  • Keep reporting the information as submitted to you by the team
  • Provide accurate information in the project status reports (Correct)
  • Discuss and report the actions of the team members with their functional managers
  • Conduct a meeting to discuss the impact of the actions of the team members

Answer : Provide accurate information in the project status reports

Explanation The inaccurate values provided by the team members can negatively influence the project's performance statistics. It is the primary responsibility of the project manager to first provide information that is truthful and accurate. This should be followed by a meeting with the team regarding the impact of their actions and if that does not solve the problem , their actions should be reported to their functional managers.

"Quality is Planned in, It is not inspected in". What is the best represented significance of this phrase to you as a project manager ?

Options are :

  • You only inspect for Quality once the final deliverable has been completed to check if there are any defects in the product.
  • Quality only occurs during Planning
  • It leads to lesser costs/expensive and improves the quality (Correct)
  • It is best to check the quality by asking feedback from the customer after you have delivered the final deliverable to them. You can then inspect it and improve it

Answer : It leads to lesser costs/expensive and improves the quality

Explanation It is recommended to spend more time identifying the right quality and doing the work that develops a deliverable according to the planned quality. If you do not plan quality beforehand, you might end up discovering flaws during inspection later in the project and by that time you might end up with a product of lesser quality. You will incur more costs having to do rework on the project which will increase costs.

As a newly assigned project manager on a large scale international project, Kate has recently developed the risk responses to handle the high ranking risks from the prioritized list of risks. Kate is preparing to proceed to the control risks process when Dave ( A colleague and fellow project manager from another project) reminds her of an important task she left out in the Plan Risk Response Process. What did Dave tell her ?

Options are :

  • Kate, you forgot to create the workarounds
  • Kate, you forgot to analyze the secondary risks (Correct)
  • Kate, you forgot to create the list of prioritized risks
  • Kate, you forgot to rank the project for its overall risk

Answer : Kate, you forgot to analyze the secondary risks

Explanation Kate forgot to analyze the secondary risks which result from developing risk responses for the high priority risks in this case.

As a project manager for a yearlong project, you have had regular meetings with stakeholders since the past 11 months. The team is working efficiently, and so far the project has been consistently on budget and on schedule. However, the stakeholders have expressed their dissatisfaction with the project deliverables which will end up delaying the project by two months. Which of the following could have prevented such circumstances ?

Options are :

  • Control Scope
  • Contingency Plans
  • Monitoring and Controlling
  • Define Scope (Correct)

Answer : Define Scope

Explanation As seen in the question, the project is on track and on schedule, so there is no problem as far as project performance is concerned. There should have been a better emphasis on Planning the project so that the right scope and requirements could have been developed. This would have resulted in the correct deliverables being produced which would have been according to the requirements of the stakeholders.

A project manager may find the following tool to be the most useful in coming up with the best price from the sellers :

Options are :

  • Weighting System
  • Screening System
  • Independent Estimate (Correct)
  • Past Performance History

Answer : Independent Estimate

Explanation The project manager uses the Independent Estimate to compare cost bids from different sellers. The other tools are mostly used for shortlisting sellers while the independent estimate is primarily focused on comparing bidder's cost estimates with in house bids or those suggested by experts.

You are assigned as a project manager in another country to develop a crucial project with global implications for your organization. You are requested to make a payment to the country officials so that they may authorize the work order. What should be your decision ?

Options are :

  • Dont make the payment
  • Make the payment
  • Ask head office for advice
  • Consult with your legal team to see if the payment falls under a bribe (Correct)

Answer : Consult with your legal team to see if the payment falls under a bribe

Explanation If you are not sure about whether such a payment is legal or a bribe, you should consult and seek legal advice about the nature of the payment. If it falls within the legal official payments to the government, then you may proceed with the payment.

Which of the following  is the BEST for completing lessons learned ?

Options are :

  • The Client
  • The Stakeholders (Correct)
  • The Project Manager
  • The Sponsor

Answer : The Stakeholders

Explanation The stakeholders can best tell you about the lessons learned on a project. This is because each different stakeholder can give you input about the project from their respective expertise, domain and perspective.

The Actual cost is $42000, the planned value is $32000 and the earned value is $34000. What is the schedule variance ?

Options are :

  • $2000 (Correct)
  • $10,000
  • $8000
  • (1000)

Answer : $2000

Explanation Schedule Variance = Earned Value - Planned Value = $34000 - $ 32000 = $2000

In your years of experience, you have accumulated vast and specialized knowledge on the project management discipline. What is the best way to use that knowledge ?

Options are :

  • You should keep the knowledge a secret since it has been hard earned
  • Your priority is to make sure you bring success to your clients projects, there is little time for anything else.
  • You should share your knowledge with the world by transmitting it through lectures, presentations, articles, books etc. (Correct)
  • You should let other project manager's with vast expertise share their knowledge

Answer : You should share your knowledge with the world by transmitting it through lectures, presentations, articles, books etc.

Explanation As a certified PMP, it is your responsibility to share your knowledge with the global community and spread information about the best project management knowledge and practices.

As a project manager, In what situation would Formal Written communication be most relevant when interacting with the customer on a project ?

Options are :

  • When the project's actual costs go above the planned costs
  • When the project schedule gets delayed
  • When there are flaws in the deliverables
  • When the customer wants to add more features to the final product (Correct)

Answer : When the customer wants to add more features to the final product

Explanation When the customer requests for additional work to be added, it needs to be added to the scope as the current scope does not include extra features as requested. Procurement related matters are more formal than the rest of the project related activities, so more official paperwork is required to make sure everything between your organization and the client is in writing.

While working on your project, you encountered a complicated problem that involved multiple stakeholders and processes. You took a decision to tackle the situation and executed your solution. A year later, you notice the same problem has reoccurred. What did you most likely not do ?

Options are :

  • Create contingency plans for risks
  • Consulted the stakeholders for the solution
  • Confirmed that your decision solved the problem at hand (Correct)
  • Used a Fishbone Diagram

Answer : Confirmed that your decision solved the problem at hand

Explanation The last steps of problem solving include implementing a decision, going over and reviewing it, and then finally confirming whether the problem has actually been solved. Hence , it was necessary for you as a project manager to confirm whether your decision actually ended up solving the problem for good or not.

You are working on a project that involves the development of an enterprise level software. The customer has conveyed his dissatisfaction with how the project is performing. Upon checking, you notice that the project is performing perfectly well as per the baselines which were originally decided upon. What is the FIRST thing you should do as project manager?

Options are :

  • Have a discussion with the project team
  • Have a meeting with the customer (Correct)
  • Calculate the baselines again
  • Make Changes to the Project to bring it to a satisfactory level of performance

Answer : Have a meeting with the customer

Explanation Firstly, Have a discussion with the customer to figure out why the project is not performing as per their satisfaction. Once that is done , then you may decide other actions accordingly. Always remember to find out which answer choice brings you the closest to identifying and solving the problem.

The costs of nonconformance include all of the following listed below with the exception of :

Options are :

  • Quality Training (Correct)
  • Scrap
  • Warranty
  • Rework

Answer : Quality Training

Explanation Quality training is a cost of conformance, not non conformance.

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