PMP & ITIL Study Guide

(61) Which of the following is true about pure risk?

1. The risk can be deflected or transferred to another party through a contract or insurance policy.
   
2. Pure risks involve the chance of both a profit and a loss.
   
3. No opportunities are associated with pure risk, only losses.
   
4. a and c
   
5. a and b
   
   

Answer:D

(62) A contingency plan is:

1. A planned response that defines the steps to be taken if an identified risk event should occur.
   
2. A workaround
   
3. A reserve used to allow for future situations which may be planned for only in part.
   
4. a and c
   
5. a and b
   
   

Answer:A

(63) Deflection or transfer of a risk to another party is part of which of the following risk response categories?

1. Mitigation
   
2. Acceptance
   
3. Avoidance
   
4. Analysis
   
   

Answer:A

(64) Management reserves are used to handle which type of risk?

1. Unknown unknowns
   
2. Known unknowns
   
3. business risks
   
4. pure risks
   
   

Answer:A

(65) Which of the following is considered during the Procurement Planning Process?

1. Whether to procure
   
2. How to procure and how much to procure
   
3. What and when to procure
   
4. b and c
   
5. all of the above
   
   

Answer:E

(66) From a buyer's standpoint, which of the following is true?

1. Procurement planning should include consideration of potential subcontracts
   
2. Procurement planning does not include consideration of potential subcontracts since this is the duty of the contractor.
   
3. Subcontractors are first considered during the Solicitation Process
   
4. none of the above
   
   

Answer:A

(67) Which of the following is true about procurement documents?

1. Procurement documents are used to solicit proposals from prospective sellers.
   
2. Invitation for Bid and Request for Proposal are two examples of procurement documents.
   
3. Procurement documents should be structured to facilitate accurate and complete responses from prospective sellers.
   
4. b and c
   
5. all of the above
   
   

Answer:E

(68) Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on source selection?

1. Weighting system
   
2. Screening system
   
3. Selecting system
   
4. none of the above
   
5. all of the above
   
   

Answer:A

(69) Which of the following are examples of indirect costs?

1. Salaries of corporate executives
   
2. Salaries of full-time project staff
   
3. Overhead costs
   
4. a and b
   
5. a and c
   
   

Answer:E

(70) Which of the following contract types places the greatest risk on the seller?

1. Cost-plus-fixed-fee contract
   
2. Cost plus-incentive-fee contract
   
3. Fixed-price-incentive contract
   
4. Firm-fixed-price contract
   
   

Answer:D

(71) In which of the following contract types is the seller's profit limited?

1. Cost-plus-percentage-cost contract
   
2. Cost-plus-fixed-fee contract
   
3. Fixed-price-plus-incentive
   
4. b and c
   
5. none of the above
   
   

Answer:D

(72) A cost-plus-percentage-cost (CPPC. contract has an estimated cost of $120,000 with an agreed profit of 10% of the costs. The actual cost of the project is $130,000. What is the total reimbursement to the seller?

1. $143,000
   
2. $142,000
   
3. $140,000
   
4. $132,000
   
   

Answer:A

(73) A fixed-price-plus-incentive-fee (FPI. contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000, and a share ratio of 80/20. The actual cost of the project was $150,000. How much profit does the seller make?

1. $10,000
   
2. $15,000
   
3. $0
   
4. $5,000
   
   

Answer:A

(74) Under what circumstances is it better for a contractor to subcontract?

1. The subcontractor possesses special technical and engineering skills that the contractor does not have.
   
2. The work to be subcontracted represents almost all of the overall work effort.
   
3. The subcontractor can perform the work at a lower cost than the contractor.
   
4. all the above
   
5. a and c
   
   

Answer:E

(75) Which type of bilateral contract is used for high dollar, standard items?

1. Purchase order
   
2. Request for proposal (RFP.
   
3. Invitation for bid (IFB.
   
4. Request for quotation (RFQ.
   
5. all of them are appropriate
   
   

Answer:C

(76) In which stage of the negotiation meeting are points of concession identified?

1. Probing
   
2. Closure
   
3. Agreement
   
4. Scratch bargaining
   
   

Answer:D

(77) Which of the following is NOT a method of government procurement?

1. Assistance
   
2. Sealed Bidding
   
3. Competitive proposals
   
4. Acquisition
   
5. Small purchases
   
6. No answer provided
   
   

Answer:D

(78) The "rule of seven" as applied to process control charts means that :

1. If there are seven points on one side of mean, then an assignable cause must be found.
   
2. Seven consecutive points are ascending, descending, or the same.
   
3. At least seven inspectors should be in place for every thousand employees.
   
4. A process is not out of control even though seven measurements fall outside the lower and upper control limits.
   
   

Answer:A

(79) There is project with CPI of 0.81 and TCPI=1.00001 this project is:

1. Overbudget and cannot recover
   
2. Underbudget
   
3. Overbudget and early in its evolution
   
4. No interference cam be made
   
   

Answer:D

(80) A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project, is called:

1. Project life cycle
   
2. Product life cycle
   
3. Project life event
   
4. All of the above
   
   

Answer: A

(81) What does RDU stand for?

1. Really Dumb User
   
2. Ready for Download Use
   
3. Remaining Duration unassisted
   
4. Remaining Duration
   
   

Answer: D

(82) Who is responsible for risk identification, risk quantification, risk response development, risk Monitor and Control?

1. Project Communications Management
   
2. Project human resource Management
   
3. Project Procurement Management
   
4. Project Risk Management
   
   

Answer: D

(83) Three Point Statistical Estimating Formula Group. Expected Value =

1. (Optimistic + (4 X Most Likely) + Pessimistic ) x 6
   
2. (Optimistic + (4 X Most Likely) + Pessimistic ) divided by 6
   
3. (Optimistic + (4 X Most Likely) x Pessimistic ) divided by 6
   
4. (Optimistic + (4 + Most Likely) + Pessimistic ) divided by 6
   
   

Answer: B

(84) Two Point Delphi Estimate, The Best and Worst Case effort calculation:

1. Calculate (Best + Worst) / 2
   
2. Calculate (Best +2 ) / Worst
   
3. Calculate (2 + Worst) / Best
   
4. none of the above
   
   

Answer: A

(85) What does TQM stand for?

1. Time Quality Managed
   
2. Target Quality Management
   
3. Total Quality Management
   
4. Time Quote Management
   
   

ANSWER: C

(86) Examples of Projects include:

1. Implementing a new business procedure or process
   
2. Constructing a building or facility
   
3. Designing a new transportation vehicle
   
4. All of the Above
   
   

ANSWER: D

(87) Projects are undertaken at all levels of the organization?

1. True
   
2. False
   
3. Both True and False
   
4. Neither true nor false
   
   

ANSWER: A

(88) 7. ________ means that every project has a definite beginning and a definite end.

1. Overall
   
2. Project Chart
   
3. Temporary
   
4. Duration
   
   

ANSWER: C

(89) The smallest unit of time used in scheduling the project is known as:

1. Calendar Unit
   
2. Scope unit
   
3. Time Measurement
   
4. All of the Above
   
   

ANSWER: A

(90) Who should be involved in the project planning phase?

1. The Project Manager.
   
2. The customer.
   
3. The Sub-contractors/vendors.
   
4. The project team members.
   
5. All of the above.
   
   

Answer: E