PMP Exam Questions

As project manager, You notice that one of your team member's is not performing up to the mark. What is the best form of communication to handle this situation 

Options are :

  • Informal Verbal Communication (Correct)
  • Formal Written Communication
  • Informal Written Communication
  • Formal Verbal Communication

Answer : Informal Verbal Communication

Explanation It is best to talk to the team member about this at first, however if that does not solve the problem , then you will need to resort to formal written communication.

The project manager comes across an activity on a project which has never been done by your organization before. What would be the best method for estimating time for such an activity ?

Options are :

  • Analogous Estimating
  • Monte Carlo Analysis
  • Three Point Estimating (Correct)
  • Parametric Estimating

Answer : Three Point Estimating

Explanation Three point estimating allows you to take an estimate for an activity in terms of the most likely, optimistic and pessimistic scenarios. It is best used for situations where a specific sort of work has never been done in an organization.

Which of these techniques allows a project manager to determine the requirements of a project ?

Options are :

  • Expert Interviews
  • Pareto Analysis
  • Delphi Technique (Correct)
  • Earned Value Analysis

Answer : Delphi Technique

Explanation The Delphi technique provides consensus of the opinion of experts, that is why it is useful for determining project requirements.

The value of 3 Sigma from the mean value is equivalent to :

Options are :

  • 99.998
  • 99.73 (Correct)
  • 68.27
  • 95.456

Answer : 99.73

Explanation The value of 3 sigma is 99.73

A project manager is assigned to a project ideally during :

Options are :

  • When the project is being selected
  • During Planning
  • Project Initiating (Correct)
  • While executing the project

Answer : Project Initiating

Explanation The best time to assign a project manager is during Initiating.

What is the considered as the topmost form of conflict to occur in a project :

Options are :

  • Personality
  • Cost
  • Schedule (Correct)
  • Priorities

Answer : Schedule

Explanation Schedule is considered to be the number one source of conflicts during projects.

While working on the development of a new telecommunication device project, you encounter a problem for which there is no information available in the risk register. What should be the First thing to do as the project manager ?

Options are :

  • Consult Senior Management
  • Explore the impact caused by the problem
  • Consult the sponsor
  • Develop a workaround (Correct)

Answer : Develop a workaround

Explanation You need to look for an approach that is more proactive and immediately addresses the problem. Creating a workaround is the first thing you should do, followed by the rest of the answer options.

Which of the following statements is true for Analogous Estimating ?

Options are :

  • It can be used to provide a basis for measuring performance
  • It is more refined than bottoms up estimating
  • It is more favorable since it has been developed by the project team
  • It is faster than bottoms up estimating (Correct)

Answer : It is faster than bottoms up estimating

Explanation Analogous Estimating can be done more quickly than bottoms up estimating since it uses historical information and expert judgment to provide estimates.

You are working on a project for which numerous risks have been included in the risk priority list. Under which of the following situations would you (as a project manager) recognize that a risk trigger has manifested itself on the project ? 

Options are :

  • If you come across a situation you had not previously identified and it caused an identified risk to appear on the project
  • If you come across a situation you had not previously identified and it caused an unidentified risk to appear on the project
  • If you come across a situation which was expected to occur and it caused an unidentified risk to appear on the project
  • If you come across a situation which gave a warning sign that an identified risk is about to occur (Correct)

Answer : If you come across a situation which gave a warning sign that an identified risk is about to occur

Explanation A trigger is like a warning sign that tells you a certain risk has occurred or is about to occur on the project. It helps inform you so that you may prepare accordingly to deal with the risk.

As a project manager, which of the following do you think is the main objective of having contract negotiations ?

Options are :

  • To get the most return on investment
  • To get the most benefit from the other party while minimizing your own expenditure
  • To decide the specific objectives and responsibilities on the project
  • To protect the relationship (Correct)

Answer : To protect the relationship

Explanation The purpose of negotiations is not to extract the most benefit from the other party ( Not to create a Win- Lose situation). Instead, It is to protect the and build a long term working relationship where both parties are able to reap benefits.

Operations work is significantly important for the products which are produced by projects. Operations and Maintenance should :

Options are :

  • Be considered as separate projects altogether
  • Not be considered as a part of the project. (Correct)
  • Have a completely separate phase in the overall life cycle of the project
  • Be included in the list of activities to be done on the project

Answer : Not be considered as a part of the project.

Explanation A project is temporary and unique, on the other hand , operational activities are considered as ongoing activities, they are not one off or temporary.

You have recently made a change to the scope of a project. In doing so , you have also considered the impact to the costs, performed integrated change control ,made adjustments to the project management plan and updated the project baselines. What should you do Next ?

Options are :

  • You should submit the changes to the change control board
  • You should look at the impact to the schedule
  • You should notify all the stakeholders who have been affected by the change (Correct)
  • You should change the scope of the project

Answer : You should notify all the stakeholders who have been affected by the change

Explanation As seen in the question, all the stages involved in the integrated change control process have already been performed, the change has been implemented, the impact to the project has been considered, the updates to the PM plan and baselines have been made, so the only thing left to do is to inform the update and inform the stakeholders who have been affected by the change.

While managing the inventory in an automobile company that follows a Just in time environment, you need to keep a close eye on the inventory as it is in the percentage of :

Options are :

  • 50 percent
  • 70 percent
  • 0 percent (Correct)
  • 100 percent

Answer : 0 percent

Explanation In a Just in time environment, the inventory is usually little or none. Items and supplies are acquired only when they are required

Who creates the project management plan ?

Options are :

  • The project team creates the project management plan since they are responsible for the actual project work.
  • The sponsor creates the project management plan since he has knows the business objectives for the project's existence.
  • The stakeholders create the project management plan since they are the experts in their own specialized areas.
  • The project manager creates the project management plan with the help of the team since he has to manage the project and is responsible for its performance. (Correct)

Answer : The project manager creates the project management plan with the help of the team since he has to manage the project and is responsible for its performance.

Explanation The project manager creates the project management plan with the help of the team. The project team gives its input since they are responsible for handling different parts of the project and know best regarding the work details in their own specific areas.

The statement that Best describes a sponsor's role on a project is that the sponsor :

Options are :

  • Helps in developing the project management plan
  • Helps in advising on project constraints
  • Helps in finalizing the end product of the project
  • Helps prevent unnecessary changes on the project (Correct)

Answer : Helps prevent unnecessary changes on the project

Explanation Because the sponsor authorizes the project charter, it is the sponsors primary responsibility to help prevent unnecessary changes from taking place on the project.

In a web development project which requires the design to be completed before software development begins is an example of :

Options are :

  • External Dependency
  • Mandatory Dependency (Correct)
  • Discretionary Dependency
  • Design Dependency

Answer : Mandatory Dependency

Explanation Since the design is required before software development, it has to be a mandatory/required/ compulsory dependency. Without it , the project cannot move forward unless the previous task is done.

A project manager is working on a project that involves setting up telecommunication towers on a mountainous area. There is a 40 percent chance of a delay in engineering , causing an impact of $300,000 and the delays due to weather may cause an impact of $150,000 (with a probability of 50 percent). What should be the value of the reserves ?

Options are :

  • Greater than $400,000
  • Less than $150,000
  • More than $195000 (Correct)
  • Less than $100,000

Answer : More than $195000

Explanation The project manager is dealing with known unknowns. So he needs to create contingency reserves. The calculation will include calculating the Probability times impact of each of the risks separately and then adding them together. Delay in engineering : 0.40 x 300,000 = 120,0000 Delay in weather :0.50 x 150,000 = 75000 120,000 + 75000 = 195000

In procurement, the project manager's role can be most appropriately be considered as 

Options are :

  • The person who is responsible for the negotiations
  • The person who get's involved as and when their skills are required
  • The person who shares their knowledge of project risks (Correct)
  • The person who guides the procurement manager for handling the procurement process for the project

Answer : The person who shares their knowledge of project risks

Explanation The project manager should ensure that project risks are taken into account and the contract is developed while taking into consideration the risks involved.

Given that Projects can be managed at various levels, Which of the following would allow you as a project manager to manage the schedule and scope of a project at a higher level than a work package ?

Options are :

  • WBS dictionary
  • Portfolio level
  • Control Account (Correct)
  • Deliverable

Answer : Control Account

Explanation The control account is the highest level , it is higher than work package and deliverable level.

A construction project has had consistently troublesome meetings since it started. There are several gaps in communication. People often interrupt one another during the meetings. Amongst the several complaints is that the correct information rarely reaches the people it was intended for. What do you think the project manager overlooked during the initial stages of this project ?

Options are :

  • Project Charter
  • Quality Management Plan
  • Communications Management Plan (Correct)
  • Staffing Management Plan

Answer : Communications Management Plan

Explanation The communication management plan helps set up the basic guidelines for all that is related to communication on the project.

 What would you say is the major difference between the Cost budget and the cost baseline on a project ?

Options are :

  • Contingency Reserves
  • Risk Reserves
  • Cost Estimates for the project
  • Management Reserves (Correct)

Answer : Management Reserves

Explanation The management reserves are added to the cost baseline to develop the cost budget.

A project team is currently involved in designing the prototype for a supercar for the mass market. The team is exploring the types of materials used in the various parts of the car that will result in the fastest performance with the lowest cost. Which of the following techniques can help them find the answer ?

Options are :

  • Design of Experiments (Correct)
  • Benefit Cost Analysis
  • Fishbone Diagram
  • Benchmarking

Answer : Design of Experiments

Explanation The design of experiments can help them discover the right combination of variables for the most improvement in quality.

When a project manager arranges the resources so that a balanced number of them are used as per the demand is known as :

Options are :

  • Crashing
  • Fast Tracking
  • Resource Levelling (Correct)
  • Standardization

Answer : Resource Levelling

Explanation Resource levelling refers to arranging the resources in a way such that a consistent and constant supply of resources is used on the project as per their required demand on the project.

A cross cultural project team from 4 countries is assembled to tackle an underground mining project. During which stage of team development do team members become more independent ?

Options are :

  • Forming (Correct)
  • Democratic
  • Storming
  • Adjourning

Answer : Forming

Explanation The team is more independent at the forming stage since at this point, everyone is being bought together at the initial level.

The WBS is useful for tracking :

Options are :

  • Cost
  • Risk
  • Schedule
  • Scope (Correct)

Answer : Scope

Explanation The work breakdown structure tracks scope on a project. Any work that is not included in a WBS is considered beyond the scope of the project and should not be done. This is an extremely important fact that can be checked in multiple ways on the exam.

What percentage of their time do project manager's spend communicating on a project ?

Options are :

  • 30
  • 90 (Correct)
  • 35
  • 80

Answer : 90

Explanation On average ,Project manager's spend 90 percent of their time on a project communicating.

Which of the following stakeholders is involved in identifying risks on the project ?

Options are :

  • Project Team
  • Project Manager and Sponsor
  • Project Sponsor
  • All project stakeholders (Correct)

Answer : All project stakeholders

Explanation All the project stakeholders are responsible for identifying risks on the project. This is because each stakeholder is looking at the project from their own perspective while the project manager is managing it overall. So the project manager cannot possibly be everywhere and take into account each and every risk with his limited expertise and oversight. It is however the project manager's responsibility to ensure to take into account as many risks as possible on the project, he or she need to be very proactive about risks.

Your company has just been acquired by one of your bigger competitors at a significant premium. The new owners are evaluating the overall and total cost of your company as a new project. Which of the following describes this situation well :

Options are :

  • Estimate to Complete
  • Estimate At Completion
  • Life Cycle Cost (Correct)
  • Internal Rate of Return

Answer : Life Cycle Cost

Explanation The life cycle costs takes into account the overall costs of a project , including the project costs, operational costs and maintenance costs.

You are working on an a construction project for a building. The Project Sponsor has just signed off on the project charter. What should you do NEXT ?

Options are :

  • Create work breakdown structure
  • Initiate the integrated change control process
  • Create project deliverables
  • Create the management plans (Correct)

Answer : Create the management plans

Explanation You need to create the management plans before you can start doing any of the other work mentioned in the answer choices. The management plans will serve as a base for the rest of how your project is carried out.

While working on your app development project for a large online retailer, the client requests you to add a list of some small new features to the app. Given that you do not currently have extra monetary resources available, what will you do ?

Options are :

  • Follow the contract change control system (Correct)
  • Utilize funds from the contingency reserve to implement the features
  • Request more funds from the sponsor to implement the features
  • Utilize funds from the Management Reserve to implement the features

Answer : Follow the contract change control system

Explanation A good rule of thumb for project management is that any changes on a project need to be evaluated and analyzed before they can be formally approved. These changes count as new additions to the project scope and are not a part of the original contract. Hence you need to make sure the contract reflects these new features, which is why choice A is the best decision to make.

In Critical Chain Project Management, a project manager would consider all of the following as buffers EXCEPT :

Options are :

  • Project Buffer
  • Resource Buffer
  • Extra Buffer (Correct)
  • Feeding Buffer

Answer : Extra Buffer

Explanation Resource Buffer, Feeding Buffer, and Project Buffer are all considered as a part of Critical Chain Project Management. There is no official term as an Extra Buffer.

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