PMP & ITIL Study Guide: PMP Sample Questions

PMP Sample Questions – Part 7

Posted by Sikander Baig

Tuesday, April 6, 2010

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
A project manager would find team development the most difficult in which form of organization?
1. Weak Matrix organization
2. Balanced Matrix organization
3. Projectized organization
4. Tight Matrix organization
Answer: A

Explanation: In a functional organization, the project team members have dual reporting to two bosses - the project manager and the functional manager.

In a weak matrix organization, the power rests with the functional manager.

In a balanced matrix organization, the power is shared between the functional manager and the project manager. A projectized organization is grouped by projects and the project manager has complete control on the project and its team.

A Tight matrix organization refers to co-locating the project team and has nothing to do with a matrix organization.

Therefore, a project manager would find it difficult to drive team development in a weak matrix organization.
The project manager of a large multi-location software project team has 24 members, out of which 5 are assigned to testing. Due to recent recommendations by an organizational quality audit team, the project manager is convinced to add a quality professional to lead the test team at additional cost, to the project.

The project manager is aware of the importance of communication, for the success of the project and takes this step of introducing additional communication channels, making it more complex, in order to assure quality levels of the project.

How many additional communication channels are introduced as a result of this organizational change in the project?
1. 25
2. 24
3. 1
4. 5
Answer: A

Explanation: Number of communication channels with "n" members = n*(n-1)/2

Originally the project has 25 members (including the project manager), which makes the total communication channels as 25*24/2 = 300.

With the addition of the quality professional as a member of the project team, the communication channels increase to 26*25/2 = 325.

Therefore, the additional channels as a result of the change, that is, 325-300 = 25.
Once the project is complete, the complete set of project records should be put in which of the following?
1. Project Archives
2. Database
3. Storage room
4. Project Report
Answer: A

Explanation: Project records should be prepared for archiving by the appropriate parties.
Which of the following is a common format for performance reporting?
1. Pareto Diagrams
2. Bar charts
3. Responsibility Assignment Matrices
4. Control Charts
Answer: B

Explanation: Common formats for Performance Reports are, bar charts (also called Gantt Charts), S-curves, histograms and tables etc.
If the cost variance is positive and the schedule variance is also positive, this indicates the:
1. Project is under budget and behind schedule
2. Project is over budget and behind schedule
3. Project is under budget and ahead of schedule
4. Project is over budget and ahead of schedule
Answer: A

Explanation: Positive Schedule Variance means the project is ahead of schedule; Negative Cost Variance means the project is over-budget.
During execution of a project, an identified risk event occurs that results in additional cost and time. The project had provisions for contingency and management reserves. How should these be accounted for?
1. Contingency reserves
2. Residual risks
3. Management reserves
4. Secondary risks
Answer: A

Explanation: The question is about correct accounting for risk events that occur and updating the reserves.

Reserves are meant for making provisions in cost and schedule, to accommodate for consequences of risk events.

Risk events are classified as "unknown unknowns" or "known unknowns", where "unknown unknowns" are risks that were are not identified and accounted for, while "known unknowns" are risks that were identified and provisions were made for them.

Provisions for "unknown unknowns" are in management reserves while those for "known unknowns" are accommodated in contingency reserves. Management reserves are at the discretion of senior management while the contingency reserves are at the project manager's discretion.

Residual and secondary risks are remaining unmitigated risks and resultant risks of mitigation, respectively. These are not reserves.

In this case, the risk event is one of the identified risks and therefore, 'contingency reserve' is the one where the cost and schedule impact would be accommodated in.
Which one of the following is the last step of project closing?
1. Client has accepted the product
2. Archives are complete
3. Client appreciates your product
4. Lessons learnt are documented
Answer: B

Explanation: Archiving is the last step in the project closing.
Who should be involved in the creation of lessons learned, at closure of a project?
1. Stakeholders
2. Project team
3. Management of the performing organization
4. Project office
Answer: A

Explanation: 'Stakeholders' include everyone who are actively involved in the project or whose interests may be affected as a result of the project execution or completion.

The 'project team' creates the lessons learned on the project.

The role of the 'project office' depends on the function defined for it within the performing organization and it could be either facilitating best practices for all projects or could constitute the project team.

As lessons learned should capture all variations and what could have been done better for future deployment, 'stakeholders' should be involved in creation of lessons learned.
An organization has recently started outsourcing work to a low cost, high value, engineering center located in a different country.

Which of the following should the project manager provide for the team as a proactive measure?
1. A training course on the laws of the country
2. A course on linguistic differences
3. An exposure to the cultural differences
4. A communication management plan
Answer: C

Explanation: Understanding cultural differences is the first step towards an effective communication amongst the project team involving outsourced work from a different country. So, what is needed in this case is 'an exposure to the cultural differences', which is being mentioned as choice C.

Choice A, that is, 'a training course on the laws of the country' is a subject of legal experts and not of the project team.

Choice B, that is, ' a course on linguistic differences' would not serve the purpose of understanding and appreciating cultural differences, for better teaming.

Choice D, that is, 'a communication management plan' is a document that provides data gathering and dissemination amongst stakeholders of the project. It is necessary for the project but does not help in bridging communication gaps across different cultures
While reviewing the progress, the project manager assesses that an activity has been missed out from the implementation plan. A milestone, scheduled to be achieved within another week, would be missed with the current implementation plan.

Which of the following is the next best action for the project manager in this situation?
1. Report the error and the expected delay
2. Omit the status update on the milestone
3. Report the error and the planned recovery actions
4. Assess alternatives to meet the milestone
Answer: D

Explanation: Choice D, that is, 'assess alternatives to meet the milestone' indicates confronting the issue with an attempt to resolve the issue. Hence this would be the best approach.

Choices A and C, that is, 'report the error and the expected delay' or 'report the error and the planned recovery actions' do not attempt to solve the problem.

An attempt to solve the problem is the next best thing to do in this situation, before reporting the issue correctly.

Choice B, that is, 'omit the status update on the milestone' is unethical.
Which of the following it the logical flow of any project?
1. Planning, Initiating, Executing, Controlling, Closing
2. Initiating, Planning, Controlling, Executing, Closing
3. Planning, Initiating, Executing, Controlling, Closing
4. Initiating, Planning, Executing, Controlling, Closing
Answer: D
In which phase of a project would you estimate activity duration and resources?
1. Initiating
2. Executing
3. Planning
4. Controlling
Answer: C
Which of the following according to the PMBOK is described as, "a category or rank given to entities having the same functional use but different technical characteristics?"
1. Grade
2. Quality
3. Flow design
4. Benchmark
Answer: A
Which of the following is another name for an Ishikawa diagram?
1. Cause and Effect Diagram
2. Bell Curve
3. Pareto Diagram
4. Trend Analysis
Answer: A
Refinements are considered updates for the ____.
1. GERT
2. ADM
3. WBS
4. CQM
Answer: C
The acronym CPPC stands for?
1. Cost Plus Percentage of Control
2. Cost Plus Percentage of Contract
3. Cost Plus Percentage of Cost
4. Cost Plus Plus Cost
Answer: A
Which of the following is not considered part of Maslow's Hierarchy of Needs?
1. Social needs
2. Safety
3. Motivation
4. Self-actualization
Answer: C
Parento diagrams work on the ___ rule.
1. 50/50
2. 60/40
3. 80/20
4. 90/10
Answer: C
Which of the following is a key aspect of quality control?
1. Limited in scope
2. Minimal planning resources
3. Generic cost controls
4. Project wide focus
Answer: D
The creator of the project charter is identified as the ______.
1. Project manager
2. Outside senior manager
3. Internal control expert
4. Quality control expert
Answer: B
You are managing the release of a new drug in the market. Your role is that of a:
1. Functional Manager, because you have good understanding functional knowledge of the pharmaceutical industry
2. Project Manager, because you are creating a unique product within specific time schedules
3. Operations Manager, because you have to do several repetitive tasks
4. Program Manager, because you have to manage several sub-projects to effectively do your job
Answer: B

Explanation: Projects involve doing something that has not been done before and which is, therefore, unique. A product or service may be unique even if the category to which it belongs is large....

A project to bring a new drug to market may require thousands of doses of he drug to support clinical trials
Which of the following is not the feature of a project?
1. Constrained by limited resources
2. Planned, executed and controlled
3. Creates unique product or service
4. May be ongoing and repetitive
Answer: D

Explanation: Operations and projects differ primarily in that operations are ongoing and repetitive while projects are temporary and unique. A project can thus be defined in terms of its distinctive characteristics - a project is a temporary endeavor undertaken to create a unique product or service
You are managing the release of a new drug in the market. Your role is that of a:
1. Functional Manager, because you have good understanding functional knowledge of the pharmaceutical industry
2. Project Manager, because you are creating a unique product within specific time schedules
3. Operations Manager, because you have to do several repetitive tasks
4. Program Manager, because you have to manage several sub-projects to effectively do your job
Answer: B

Explanation: Projects involve doing something that has not been done before and which is, therefore, unique. A product or service may be unique even if the category to which it belongs is large.

A project to bring a new drug to market may require thousands of doses of he drug to support clinical trials.
Which of the following statement related to Standards and Regulations is not correct?
1. Standard is a document approved by a recognized body - there can be multiple standards for one product.
2. Regulations are mandatory but Standards are not mandatory.
3. Standards after widespread adoption may become de facto regulations.
4. The influence of standards and regulations for a project is always known
Answer: D

Explanation: For many projects, standards and regulations (by whatever definition) are well known and project plans can reflect their effects. In other cases, the influence is unknown or uncertain and must be considered under Project Risk Management
Your IT company is responsible for making software virus programs. You are responsible for managing both the individual product releases and the co-ordination of multiple releases over time. Your role is that of a:
1. Program Manager
2. Project Manager
3. Functional Manager
4. Operations Manager
Answer: A

Explanation: A program is a group of projects managed in a co-ordinated way to obtain benefits which are not available from managing them individually. Many programs also involve elements of ongoing operations.
A Project Manager must have good understanding of the mechanics of power and politics to be effective. As defined by Pfeffer, power includes all the following except:
1. The Potential to influence behavior
2. Potential to change the course of events and overcome resistance
3. Ability to get people to do things that they would not otherwise do
4. Ability to handle power struggles and organizational games
Answer: D

Explanation: Pfeffer defines power as "the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."…The negative sense, of course derives from the fact that attempts to reconcile these interests result in power struggles and organizational games that can sometimes take on a thoroughly unproductive life of their own.
Which of the following statement related to Standards and Regulations is not correct?
1. Standard is a document approved by a recognized body - there can be multiple standards for one product.
2. Regulations are mandatory but Standards are not mandatory.
3. Standards after widespread adoption may become de facto regulations.
4. The influence of standards and regulations for a project is always known
Answer: D

Explanation: For many projects, standards and regulations (by whatever definition) are well known and project plans can reflect their effects. In other cases, the influence is unknown or uncertain and must be considered under Project Risk Management.
A Project Manager must have good understanding of the mechanics of power and politics to be effective. As defined by Pfeffer, power includes all the following except:
1. The Potential to influence behavior
2. Potential to change the course of events and overcome resistance
3. Ability to get people to do things that they would not otherwise do
4. Ability to handle power struggles and organizational games
Answer: D

Explanation: Pfeffer defines power as "the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."…The negative sense, of course derives from the fact that attempts to reconcile these interests result in power struggles and organizational games that can sometimes take on a thoroughly unproductive life of their own.
Phase end review of projects is also referred to as:
1. Phase Exits
2. Kill Points
3. Stage Gates
4. All the above
Answer: D

Explanation: The conclusion of a project phase is generally marked by a review of both key deliverables and project performance to date, to a) determine if the project should continue into its next phase and b) detect and correct errors cost effectively. These phase-end reviews are after called phase exits, stage gates or kill points
You are working in the Project Office of your organization. What is your job responsibility?
1. Managing the different activities of a project
2. Always being responsible for the results of the project
3. Providing support functions to Project Managers in the form of training, software, templates etc.
4. Providing Subject Matter Expertise in the Functional areas of the project
answer: C

Explanation: Project Office: There is a range of uses for what constitutes a project office. A project office may operate on a continuum from providing support functions to project managers in the form of training, templates, etc. to actually being responsible for the results of the project

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