PMP & ITIL Study Guide: PMP Sample Questions

PMP Sample Questions – Part 5

Posted by Sikander Baig

Tuesday, April 6, 2010

The _________ is a time-phased budget that will be used to measure and monitor cost performance in the project.
1. work breakdown structure
2. project schedule
3. cost baseline
4. cost budget
Answer: C
To transfer most of the cost risk to the contractor, the client may use a ___________ contract.
1. cost plus award fee
2. cost plus incentive fee
3. cost plus fixed fee
4. fixed price
Answer: D
An appropriate sequence for risk management activities is:
1. risk identification, risk quantification, and risk response development and control.
2. risk identification, risk assessment, and risk planning.
3. risk identification, risk mitigation, and risk management.
4. risk identification, risk elimination, and risk mitigation.
Answer: A
Theory X holds that:
1. quality improvements lie in the hands of quality circles.
2. profits are tied to meeting schedule deadlines.
3. absenteeism is tied to poor working conditions.
4. workers are inherently unmotivated and need strong guidance.
Answer: D
All of the following are characteristics of parametric estimating except:
1. historical information.
2. quantifiable.
3. scalable.
4. activity lists.
Answer: D
Inputs to cost budgeting include all of the following except:
1. cost baseline
2. cost estimate
3. work breakdown structure
4. project schedule
Answer: A
Inputs used during scope planning include all of the following except:
1. constraints.
2. project charter.
3. budget/cost analysis.
4. product description.
Answer: C
Cost control outputs include all of the following except:
1. estimate at completion.
2. budget updates.
3. revised cost estimates.
4. cost baseline.
Answer: D
Risk identification outputs include the following except:
1. decision trees.
2. inputs to other processes.
3. risk symptoms.
4. potential risk events.
Answer: A
Inputs into overall change control include all of the following except:
1. project plan.
2. change requests.
3. change control system.
4. performance reports
Answer: C
At XYZ InC., the hourly wage for semi-skilled workers is $14.00. The annual audit shows that fringe benefits cost 30% of basic wages, and that overhead costs are 60% of wages plus fringe benefits. What is the "loaded" hourly wage for a semi-skilled worker at XYZ Inc.?
1. $27.14.
2. $28.96.
3. $30.03.
4. $29.12.
Answer: D
Of the following estimates, which most accurately reflect the actual cost of the project?
1. conceptual estimates.
2. order of magnitude estimates.
3. preliminary estimates.
4. bottom-up estimates.
Answer: D
The most crucial time for project risk assessment is:
1. when a problem surfaces.
2. during the planning phase.
3. during the close-out phase.
4. after the project schedule has been published.
Answer: B
When there is uncertainty associated with one or more aspects of the project, one of the first steps to take is to:
1. revise project plan.
2. conduct a risk-benefit analysis.
3. conduct a needs analysis.
4. increase the estimated cost of the project.
Answer: B
Including a contingency reserve in the project budget is intended to:
1. reduce the probability of scope changes.
2. increase the probability of scope changes.
3. reduce the probability of a cost overrun.
4. increase the probability of a cost overrun.
Answer: C
Given the information in the following table, what is the expected value from this risk event? Probability Result
.4 -10,000
.3 -7,500
.2 -5,000
.1 +2,500
1. -10,000.
2. - 7,500.
3. + 2,500.
4. -7,000.
Answer: D
A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor's project manager informs their contract administrator that financial problems are making it difficult for them to pay their employees and subcontractors. The contractor asks for a partial payment for work accomplished.

Which of the following actions by the buyer is most likely to cause problems for the project?
1. starting partial payments for work accomplished.
2. making no payments because it would violate the conditions of the contract.
3. paying for work accomplished to date.
4. negotiating a change to the payment conditions in the contract.
Answer: B
A precise description of a physical item, procedure, or service for implementation of an item or service is called a:
1. work package.
2. baseline.
3. product description
4. work breakdown structure (WBS) element.
Answer: C
A project should be terminated for all of the following reasons except:
1. lack of team synergy.
2. the project no longer meets the company's objectives.
3. the resources are not available to complete project activities.
4. project funding has been significantly reduced.
Answer: A
One common way to compute estimated at completion (EAC) is to take the project budgeted-at-completion and:
1. divide it by the schedule performance index.
2. multiply it by the schedule performance index.
3. multiply it by the cost performance.
4. divide it by the cost performance index.
Answer: D
Which of the following is a tool used to secure expert judgment?
1. Peer review
2. Delphi technique
3. Expected value technique
4. Work Breakdown Structure (WBS)
Answer: B

Explanation: The 'Delphi technique' is a commonly used tool to secure expert judgment while initiating a project.

'Peer review' is a project selection tool, 'Expected value' is a method quantitative risk analysis, and 'WBS' is a project-planning tool.
Based on the information provided below, which project would you recommend pursuing?

Project I, with BCR (Benefit Cost ratio) of 1:1.6;
Project II, with NPV of US $ 500,000;
Project III, with IRR (Internal rate of return) of 15%
Project IV, with opportunity cost of US $ 500,000.
1. Project I
2. Project III
3. Either project II or IV
4. Can not say from the data provided
Answer: B

Explanation: Project III has an IRR of 15%, which means the revenues from the project equal the cost expended at an interest rate of 15%.
This is a definitive and a favorable parameter, and hence can be recommended for selection.

Project I have an unfavorable BCR and hence cannot be recommended.

Information provided on projects II and IV is not definitive, and hence neither of projects II and IV qualifies for a positive recommendation.
What the project manager to ensure that all work in the project is included should do?
1. Create a contingency plan
2. Create a risk management plan
3. Create a WBS
4. Create a scope statement
Answer: C

Explanation: A WBS is a deliverable oriented grouping of project components that organizes and defines the total scope of the project.
What kind of a relationship is implied when completion of a successor is dependent on initiation of its predecessor?
1. finish-to-start (FS)
2. finish-to-finish (FF)
3. start-to-start (SS)
4. start-to-finish (SF)
Answer: D

Explanation: A start-to-finish (SF) relationship between two activities implies that the completion of successor is dependent on the initiation of its predecessor.

A finish-to-start (FS) relationship between two activities implies that the initiation of successor is dependent on the completion of predecessor.

A finish-to-finish (FF) relationship between two activities implies that the completion of successor is dependent on the completion of predecessor.

A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation of predecessor..
What should a project manager do or follow to ensure clear boundaries for project completion?
1. Scope verification
2. Complete a scope statement
3. Scope definition
4. Risk management plan
Answer: B

Explanation: The project team must complete a scope statement for developing a common understanding of the project scope among stakeholders. This lists project deliverables - summary level sub-products, whose full and satisfactory delivery marks the completion of the project.

Scope verification is the process of securing a formal acceptance of the project scope by stakeholders.

Scope definition is the process of subdividing the major project deliverables into smaller, more manageable components.

A risk management plan involves setting up processes for identifying and dealing with project risks.
An organization is certified to a stringent environmental standard and uses that as the key differentiator with its competitors. Alternative identification during scope planning for a particular project has thrown up an expeditious approach to achieve a project need, but this involves a risk of environmental contamination. The team evaluates that the likelihood of the risk is very low. What should the project team do?
1. Drop the alternative approach
2. Work out a mitigation plan
3. Procure an insurance against the risk
4. Plan all precautions to avoid the risk
Answer: A

Explanation: The organization's reputation being at stake, the threshold for such a risk would be very low.

Mitigation plan against an environmental contamination would mean reducing the impact, which may not be a plausible response.

Procuring an insurance against the risk would only transfer the monetary impact of the risk, and not the intangible impact like, the reputation of the organization.

Planning precautions against the occurrence would still leave an opportunity of occurrence.

This cannot be completely avoided.

The best option would be to drop the approach - that is, complete avoidance of the risk.
The following three tasks form the entire critical path of the project network. The three estimates of each of these tasks are tabulated below. How long would the project take to complete expressed with an accuracy of one standard deviation?

Task	Optimistic	Most likely	Pessimistic
A	15	25	47
B	12	22	35
C	16	27	32

75.5
75.5 +/- 5.08
75.5 +/- 8.5
75.5 +/- 2.83

Answer: B

Explanation: The critical path is the longest duration path through a network and determines the shortest time to complete the project. The PERT estimates of the tasks listed are 27, 22.5 & 26. Therefore, the length of the critical path of the project is 27+22.5+26 = 75.5.

The standard deviations of the estimates of the three tasks are determined as (P-O)/6 = 2, 3.83 & 2.67 respectively. The standard deviation of the total path is determined as Sq. root (sum of variances), where variance = square of standard deviation. Thus, standard deviation of critical path = Sq. root (4+14.67+7.13) = 5.08.

After a study of the work processes on a project, a quality audit team reports to the project manager that irrelevant quality standards were being used by the project, which might lead to rework. What was the objective of the project manager in initiating this study?
1. Quality control
2. Quality planning
3. Checking adherence to processes
4. Quality assurance
Answer: D
Explanation: Determining validity of quality standards, followed by the project is a 'quality assurance' activity.

Compliance of work results to required specifications is a 'quality control' activity.

Determining quality standards is a 'quality planning' activity.

'Checking adherence to processes' is a quality audit activity to ensure that standard operating procedures or job instruction documents (SOPs or JIDs) are being followed for producing the deliverables of the process.
Which of the following provides the foundation for team development?
1. Motivation
2. Organizational development
3. Conflict Management
4. Individual Development
Answer: D

Explanation: Individual development (managerial and technical) is the foundation of a team.
Which of the following is NOT an input to project plan execution?
1. Work authorization system
2. Project plan
3. Corrective action
4. Preventive action
Answer: A

2 comments:

Education Interaction said... March 9, 2022 at 11:59 AM: pmp certification eligibility

PMP Certification is one of the toughest tests, and aspirants need to be well prepared and meet the eligibility criteria. Click on this link-PMP CERTIFICATION ELIGIBILITY
Education Interaction said... March 14, 2022 at 2:53 PM: pmp certification eligibility

If you want to know about the pmp certification eligibility click on this link-
pmp certification eligibility

PMP & ITIL Study Guide

This blog is for those looking for ITIL ,PMP study guide as well as the sample questions.

Welcome

Blog Archive

Labels

PMP Sample Questions – Part 5

2 comments:

Post a Comment