PMP Mock Exam

Question - 1
Your company has been hired to configure software in 500 computers. All computers need equal time to
configure. You calculate the time to configure each computer as 5 hours. The cost for labor is calculated at
$500 each computer. Your Project Sponsor disagrees with your labor estimate. Why is so?
1.You haven't completed one computer yet, so you don't know how long the work will actually take.
2.You have not factored in all of the effort applied to the work.
3.You have not considered the law of diminishing returns.
4.You have not considered the learning curve.

Correct Answers are : 4
Explanation : 4 is the best choice. As the project team completes more and more units, the time to configure
a computer should take less and less time.

Question - 2

You have been asked to provide Cost estimates for a project which would be responsible for the complete
electrical installation in warehouses. As a project manager - you have had past experience in similar projects
in your previous organization.The organization you have joined - also has recently done a similar project -
and there is an urgency in providing the estimate as mandated by executive management - so what
estimation technique would you adopt ?
1.Ask your prior organization for the estimates.
2.Use Parametric Estimating technique.
3.Use Bottom Up Estimating.
4.Analogous Estimates

Explanation : The correct answer is Analogous estimates - since it relies on previous similar project as the
basis of execution - which is available - so it relies on historical information.This technique is used when
there is limited amount of detailed information like during early phases of the project , it is less costly and
less time consuming - and as time is a constraint stated in the question - this is the best choice.

Question - 3

An estimate is required for a new project of an R & D nature - and it has been decided to create the estimates
using WBS - with an emphasis on accuracy of the estimates.Your project manager also indicates sufficient
time is being made available to provide the estimates - what would be the best estimation approach in this
case ?
1.Parametric Estimation approach
2.Analogous Estimation approach
3.Top Down Approach
4.Bottom Up Approach

Explanation : Parametric and Analogous are clearly not the right choices.Being a new project - we do not
have any historical data to rely on - so Analogous estimation is not an option.We also dont have any data of
costs per unit - so Parametric estimation is also not an option.Now between Top down and Bottom up - both
of these approaches use the WBS to come up with the estimates.Here we start with the high level and then
drill down into the lower levels. Bottom-up estimates are more accurate as compared to Top down.Bottom up
is also a more expensive and time-consuming type of estimate - however the question clearly indicates that
time is not a concern - so the correct answer is Bottom up approach. Top down approach is used only if we
have enough historical information on the Project which is not true.

Question - 4

You are in the process of making a cost estimate for a large prestigious project. You decide to use the Three
Point Estimation technique with Triangular Distribution. Based on your analysis and understanding you are
confident that the project would be completed with a total cost of 108,000 $.You also estimate that a best
case estimate would be 90000 $ while a worst case scenario would result in the costs incurred to shoot up to
138000 USD. What would the Three point Cost estimate be using Triangular Distribution ?
1.112000 $
2.111000 $
3.11000 $
4.26000 $

Explanation : The correct answer is A.The question states we should use Three point estimate using
triangular distribution. The formula for this estimation technique is a + b + c / 3 where a = Most Likely
estimate , b = Estimate based on analysis of the Best case scenario and c = Estimate based on analysis of
the Worst case scenario. So the Three point estimate using Triangular distribution is 108000 + 90000 +
138000 / 3 = 336000/3 = 112000 $

Question - 5

Rather than use Triangular Distribution while doing Three Point Estimation you choose to use Beta
Distribution.Based on your analysis and understanding you are confident that the project would be
completed with a total cost of 108,000 $.You also estimate that a best case estimate would be 90000 $ while a
worst case scenario would result in the costs incurred to shoot up to 138000 USD. What would the Three
point Cost estimate be using Beta Distribution ?
1.110000 $
2.112000 $
3.1100000 $
4.140000 $

Explanation : The correct answer is B.The question states we should use Three point estimate using Beta
distribution. The formula for this estimation technique is 4a + b + c / 6 where a = Most Likely estimate , b =
Estimate based on analysis of the Best case scenario and c = Estimate based on analysis of the Worst case
scenario. So the Three point estimate using Beta distribution is (4 *108000) + 90000 + 138000 / 3 = 660000/6 =
110000 $

Question - 6

You are a project manager and you are currently finalizing requirements with two stakeholders BUT both
stakeholder have different views on requirements for the same project. How can you resolve the issue ?
1.look at why there is different view on requirements and discuss with both of them
2.look at why there is different view on requirements and finalize which looks good to you
3.ask your manager to deal with this
4.finalize requirement which looks good to you

Explanation : Best is "look at why there is different view on requirements and discuss with both of them and
try to resolve the issue". Option is C is an example of avoidance. Option B and D is example of forcing.

Question - 7

You are managing a project. This project must satisfy industry standards in order to be accepted by the
customer. You and your team have studied the requirements and have created a plan to implement the
deliverables with the level of quality. This process is called ________.
1.Quality Control
2.Quality assurance
3.Plan Quality
4.All of the above

Explanation : Plan Quality: Identifying the quality standards that are relevant to the project and determining
how to meet them.

Question - 8

You have just completed developing the Schedule Network Diagram for a project that deals with building
super sonic state of the art Jet planes.You have identified your critical path which includes building a wind
tunnel.You see that in addition there is another path which deals with building the tail of the plane - whose
duration is close to the critical path.You also notice considerable floats on the other paths.You now need to
assign resources to the tasks - you have a few team members who are highly skilled and a team of resources
who are relatively enexperienced.What would be the best course of action while assigning resources ?
1.It is irrelevant which resources are assigned to tasks - resource skills and critical paths have nothing in
common
2.Assign all the skilled resources to building the wind tunnel which is the critical path - all other tasks can be
ignored
3.Assign the inexperienced staff to the task of building the wind tunnel - and assign the skilled task to all
other tasks
4.Assign one half of the skilled resources to the task of building the wind tunnel and the other half to
building the tail and assign the less experienced staff to all the other tasks

Explanation : Option 4 is the best option.Option 1 and 3 are just plain wrong - you should always ensure
actvities on the critical path do not get delayed - so having the best equipped staff on critical path activities
is important.While Option 2 is an optin - it cannot be the BEST choice since if we assign all the experienced
staff on building the wind tunnel - the critical path activities are taken care of - but the question also states of
a path which is near Critical - building of the tail.Not paying attention to this path by assignining
inexperienced staff is not a good option.Amongst the choices option 4 is the best fit - where you are paying
attention to both the critical path and near critical path by assigning your best and most skilled or
experienced resources to the activities on the Critical path and Near Critical Path.

Question - 9

You are in charge of a large software development project.As a part of the project schedule - it was okanned
to complete two core components by the end of October.You are now in August and you realize that the
project is falling behind schedule.You do a quick review and decide that the schedule can be met by adding
additional staff to the activities on the critical path. This is an example of :
1.Fast Tracking
2.Resource Levelling
3.Crashing
4.Scope Creep

Explanation : The correct answer is option 3 - As the project is falling behind schedule and deliveries cannot
be impacted - the manager has chosen to add additional resources to activities on the critical path.This is an
example of Crashing - NOTE Crashing may result in increasef risk and rework.

Question - 10

You have replaced a project manager on a project that is already in the execution phase.The project is
behind schedule and you have been specifically been brought in to ensure the project meets its
schedule.You decide to review the schedule network diagram created by the earlier project manager and you
realize that the project is 3 weeks behind schedule. After reviewing the activities and the network diagram
you decide to Crash the schedule.So this means you
1.Decrease the scope of the project after discussing with the sponsors
2.Add additional resources to the activities on the Critical path
3.Perform activities in Parallel to decrease the schedule
4.Discuss with the sponsors and explain how it is not going to be possible to meet the schedule

Explanation : Option 2 is the correct answer.Crashing is a technique used to shorten the schedule by adding
resources. Option A and D are clearly not correct - and Option C is really an example of Fast Tracking.

Question - 11

Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread
evenly across all months. The project is now in the fourth month, the work is on schedule, but you have
already spent $120,000 of the project budget. What is your COST Variance in this case?
1.-$40,000
2.$40,000
3.$240,000
4.$2300

Explanation : Cost Variance = Earn Value - Actual Cost Earn Value = (Total Cost/total project months) * total
months completed = ($240,000 / 12)*4=$80,000 CV = $80,000 - $120,000 = -$40,000

Question - 12

Your company has won a project to build a school playground with specific toys and a sandpit.The school
has mandated that the project be completed prior to start of the school after Holidays .You review the plan
and see that the estimated completion date is nearly a month after the desired completion date.As resources
are sparse you do not have the option to add additional resources.However you see that the sand pit work
can start in parallel to the play kits being installed.Your analysis tells you that by performing these activities
in parallel - the project would meet its schedule.This is an example of :
1.Scope Creep
2.Resource Levellings
3.Crashing
4.Fast Tracking

Explanation : The correct answer is 4 - Crashing deals with adding additional resources which is not an
option here.Crashing is a schedule compression technique by performing activities in parallel if they can be
overlapped.NOTE Fast Tracking may result in increasef risk and rework.

Question - 13

An activity which is in critical path is delayed. What should you do ?
1.Compress the schedule
2.Scope cut
3.Inform customer about delay
4.Deliver uncompleted activity

Explanation : A is the correct answer. Compress the schedule is the best option.

Question - 14

Given the following estimates: Optimistic 3 days, Pessimistic 9 days, and most likely 6 days. What is the
PERT weighted average?
1.6
2.4
3.6.3
4.6.1

Explanation : Optimistic = Co, most likely = Cm, Pessimistic = Cp. PERT weighted average = (Co + 4Cm +
Cp)/6 = (3+4*6+9)/6 = 36/6 = 6

Question - 15

Which plan describes when and how human resources will be brought onto, and taken off of, the project
team?
1.Scope management plan
2.Risk management plan
3.Staffing Management Plan
4.All of the above

Explanation : C is the correct answer. Staffing Management Plan - Describes when and how human
resources will be brought onto, and taken off of, the project team.

Question - 16

You are project manager of a software project. Your team member want to technical change to a activity
which will add more time to that activity. What should you do ?
1.Check the activity is in critical path
2.Allow team member to change the activity
3.Report to senior management
4.Ignore change in activities.

Explanation : A is the correct answer. Check the activity is in critical path is the best option.

Question - 17

As a project manager of a project , you have just completed Schedule network diagram. What should you do
NEXT time management activity?
1.Estimate Activity Resources
2.Sequence Activities
3.Estimate Activity Durations
4.Develop Schedule

Explanation : A is the correct answer. Schedule network diagram is an output of Sequence Activities, NEXT
process is Estimate Activity Resources.

Question - 18

Your project activity float is negative 10. What is your course of action ?
1.add more resources
2.ask more time to complete the project
3.use less experienced team members
4.Ignore It.

Explanation : A is the correct answer. negative activity float means your project is behind. Add more
resource is best option.

Question - 19

You have been successfully completed a project.You have now been assigned a project which is midway
into its execution.You have had to take this project due to non availability of the current project manager due
to health.This is a complex project involving multiple contractors and teams at various geographical
locations.You decide to look up the requirements of the types of reports and frequency of sending
them.Where would you find this information?
1.Project Management Plan
2.Scope Management Plan
3.Communciation Management Plan
4.Stakeholder Analysis

Explanation : The correct answer is Communication Management Plan.This Plan provides information such
as frequency of communication , type of communication , who is responsible for communication.Hence this
is the correct answer.

Question - 20

A data point in a control chart that requires investigation is called:
1.a special cause
2.a quality fault
3.a rule of seven
4.a rule of five

Explanation : A data point in a control chart that requires investigation is called a special cause.

Question - 21

You are in charge of a project that deals with laying out a lavish 18 hole golf course.The project work is in
progress.You also have a number of contractors working on the project.Being an experienced manager you
know that communication is key to success of the project.You have identified that you have 10 stakeholders
with whom you need to communicate.Due to some internal and external organizational changes at the client
end three new stakeholders have been added with whom you need to communicate with.You also had to
reduce one of the contractors with whom you were communicating.How many communication channels do
you have now?
1.66
2.67
3.68
4.74

Explanation : Originally you had 10 stakeholders to communciate with - so number of communication
channels are 10 * (10-1) /2 = 45.However the question states that 3 new stakeholders got added while 1
stakeholder got reduced.So total number of stakeholders = 10 + 3 -1 = 12 So the total number of
communciation channels are (12 * ( 12-1 )) /2 = 66 So the correct answer is option 1.

Question - 22

__________includes all activities designed to enhance the skills, knowledge, and capabilities of the project
team.
1.Training
2.Ground Rule
3.Reward and Recognition System
4.Recognition System

Explanation : A is the correct answer. Training: Includes all activities designed to enhance the skills,
knowledge, and capabilities of the project team. Ground Rules: Ground rules establish clear expectations
regarding acceptable behavior by project team members.

Question - 23

Some risks that are output of ________ will be the candidates for further study.
1.Perform qualitative risk analysis
2.Perform quantitative risk analysis
3.Plan Risk Management
4.Identify Risks

Explanation : Some risks that are output of Qualitative Risk Analysis will be the candidates for further study
during the Quantitative Risk Analysis.

Question - 24

Which of the following is NOT the input of Direct and Manage Project Execution process?
2.Approved Change Requests
3.Enterprise Environmental Factors
4.Project Charter

Explanation : Project Charter is not an input of Direct and Manage Project Execution process. Inputs of
Direct and Manage Project Execution process are: Project Management Plan, Enterprise Environmental
Factors, Approved Change Requests, and Organizational Process Assets (PMBOK Page no, 104)

Question - 25

You are project manager of a project and you have decided to CRASH the project. Which of the following is
the most likely outcome of this ?
1.increased cost
2.added risk
3.increased project time
4.doing activities in parallel

Explanation : A is the correct answer. CRASHING is reducing project time by expending additional
resources. Therefore option A is true.

Question - 26

Changing the project plan to eliminate the risk and protect the project objectives is called ____________.
1.Avoidance
2.Transference
3.Mitigation
4.Share

Explanation : Changing the project plan to eliminate the risk and protect the project objectives is called
Avoidance.

Question - 27

Make-or-Buy Analysis is done in the_______.
1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Explanation : Make-or-Buy Analysis is done in the Plan Procurements process.

Question - 28

Which of the following helps to determine the probability of completing the project?
1.Monte Carlo Analysis
2.Impact Analysis
3.Qualitative Risk Analysis
4.Quantitative Risk Analysis

Explanation : Monte Carlo Analysis: A schedule risk assessment technique that performs a project
simulation many times in order to calculate a distribution of likely results.

Question - 29

You have an urgent requirement on your project and you hire a vendor to start the work immediately. What
contract is needed now?
1.Letter contract
2.Fixed fee
3.Incentive contract
4.Fixed Budget

Explanation : For an immediate work, a letter contract may be sufficient.

Question - 30

Work Performance Information is output of________.
1.Define Scope
2.Perform Integrated Change Control
3.Direct and Manage Project Execution
4.Monitor and Control Project Work

Explanation : Work Performance Information is output of Direct and Manage Project Execution. (PMBOK
page no, 115)

Question - 31

_________are similar to control chart without displayed limits.
1.Run charts
2.Pareto charts
3.Ishikawa diagrams
4.Histograms

Explanation : Run chart is similar to control chart without displayed limits. PMBOK Page no 242.

Question - 32

SWOT analysis is done in _________.
1.Perform Qualitative Risk Analysis
2.Identify Risks
3.Plan Risk Responses

Explanation : SWOT analysis is done in Identify Risks process. (PMBOK page no 305.)

Question - 33

Which of the following is NOT Tools and Techniques in Quantitative Risk Analysis?
1.Expected Monetary Value Analysis
2.Decision Tree Analysis
3.Sensitivity Analysis
4.Influence Diagram

Explanation : Influence Diagram is a technique to identify risks.

Question - 34

Which estimating technique is most accurate?
1.Bottom-up estimating
2.Analogous estimating
3.Parametric modeling
4.None of the above

Explanation : Bottom-up estimating: Estimating the cost of individual work items and then rolling up the
costs to arrive at a project total is more accurate.

Question - 35

Performance appraisal, recruitment, retention, regulatory issues, and labor relations are generally used in
the________ area.
1.General management
2.Administrative
3.Project Management
4.Accounting

Explanation : Skills such as performance appraisal, recruitment, retention, regulatory issues and labor
relations are generally considered more administrative than management oriented.

Question - 36

Probabilistic Analysis of a project, probability of achieving cost and time objectives and trends in
Quantitative Risk Analysis results are done during _______.
2.Perform Quantitative Risk Analysis
4.Identify Risks

Explanation : Probabilistic analysis of a project, probability of achieving cost and time objectives and trends
in Quantitative Risk Analysis results are done during Quantitative Risk Analysis.

Question - 37

You are the project manager for the large Project. You are currently busy with approximating number of work
periods required to complete individual activities with estimated resources. Which of the following inputs
you need for this ?
1.Activity List
2.Activity resource requirements
3.Resource Calendars
4.All of the above

Explanation : C is the correct answer. Approximating number of work periods required to complete individual
activities with estimated resources is done in Estimate Activity Duration process. Activity List,Activity
resource requirements and Resource Calendars are inputs of Estimate Activity Duration process. PMBOK
Page no 177.

Question - 38

You are newly appointed as a project manager of an ongoing project. You want to see the role, authority,
responsibility and competencies of all the resources working in the project. Which of the following document
lists all the above information?
1.Scope statement
2.Project Charter
3.Human Resource Plan
4.WBS

Explanation : C is the correct answer. Human Resource Plan lists role, authority, responsibility and
competencies of all the resources working in the project. PMBOK Page no 253.

Question - 39

One activity will be delay three weeks and that will affect the project completion date. Who will approve the
change ?
1.Change control board
2.project manager
3.Senior management
4.Team member

Explanation : A is the correct answer. Change control board approve the change.

Question - 40

Cost benefit analysis is done in the ___________process:
1.Plan Quality
2.Perform Quality Assurance
3.Perform Quality Control
4.All of the above

Explanation : Cost benefit analysis is done in the Plan Quality process.

Question - 41

Which of the following are output of the Collect Requirements Process?
1.Requirements Documentation
2.Requirements Management Plan
3.Requirements Tractability Matrix
4.All of the above

Explanation : The output of Collect Requirements Process are: requirements documentation (stakeholders
needs), the requirements management plan (how the requirements will be analyzed and documents), and the
requirements traceability matrix (tracking of requirements throughout the project).

Question - 42

In which of the quality management process, cause and effect diagram is used to illustrate how various
factors might be linked to potential problems or effects?
1.Plan Quality
4.Quality

Explanation : The cause and effect diagram is a tool and technique to perform Quality Control . PMBOK Page
no 222.

Question - 43

You are a project manager of a large project and you are identifying some alternative techniques to generate
different approaches to execute and perform the work of a project. You are doing it as a part of:
1.Collect Requirements
2.Control Scope
3.Verify Scope
4.Define Scope

Explanation : This is call an Alternative Identification in the Define Scope process.

Question - 44

At what part of the Procurement Management process does procurement negotiations happen?
1.Plan Procurements

Explanation : The negotiations happen at the Conduct Procurements of the Procurement process.

Question - 45

Which type of contract has the highest risk for the seller?
1.Reimbursed time
2.Time and materials
3.Fixed price
4.Reimbursed cost

Explanation : In Fixed price contract, the seller assumes the greatest risk because the price is fixed and not
going to change. Fixed price- A fixed total price for a well-defined product may include incentives for
meeting or exceeding selected project objectives.

Question - 46

Which of the following is NOT part of the Perform Quality Control process?
1.fishbone diagram
2.Quality audits
3.Pareto Diagram
4.Histogram

Explanation : Quality audits are part of the Perform Quality Assurance process.

Question - 47

Who should be consulted when establishing communication requirements in addition to stakeholders?
1.The customer
2.The project manager
3.The sponsor
4.Management

Explanation : The project manager should be consulted when establishing communication requirements in
addition to stakeholders because project manager has very important role in establishing communication
requirements.

Question - 48

You are a project manager of a company and you are assigned to a project that has already decided to be
outsourced. As a project manager, you need to organize a formal bid process and select the vendor for this
project. You own stock in one of the vendor companies who also participated in the bidding process. What is
the BEST course of action for you?
1.Get the vendor company selected for the project.
2.Keep the information to yourself.
3.Tell your manager and remove yourself from the vendor selection committee.
4.Ask other members of the selection committee to select your vendor company.

Explanation : The best option is to tell your manager and remove yourself from the vendor selection
committee.

Question - 49

Which of the following communication method is widely used to explain complex problems?
1.Written
2.Verbal
3.Formal
4.Non formal

Explanation : Written is the best option.

Question - 50

You are the project manager and you have to choose the best project from available choices. Which of the
following is the BEST choice?
1.Benefit cost ratio (BCR) of project A is 2.5
2.Benefit cost ratio (BCR) of project B is 2.1
3.Benefit cost ratio (BCR) of project C is 0.6
4.Benefit cost ratio (BCR) of project D is 1.5

Explanation : Benefit cost ratio (BCR) : A ratio describing the relationship between the cost and benefits of a
proposed project. A BCR less than 1 is unfavorable; the higher the BCR, the better.

Question - 51

You are project manager and need as many as inputs is possible in the initiation phase. Which of the
following is the best source of information for your project?
1.Historical Information
2.WBS
3.Business Plans
4.Project Closure Document

Explanation : Historical information is the best input for the initiation phase. WBS is incorrect as the WBS
would not be ready. Business is incorrect as business plans are not a likely input to the initiation process.

Question - 52

In which of the following contract types the seller's profit is limited?
1.Cost-plus-percentage-cost contract
2.Cost-plus-fixed-fee contract
3.Firm Fixed price contract
4.Fixed-price-incentive fee contract

Explanation : Cost-plus-fixed-fee contract and Cost-plus-incentive-fee contract where seller's profit is limited

Question - 53

You have elected to use parametric modeling in your Estimate Costs for the project. Which one of the
following is an example of parametric modeling?
1.$120 per kg
2.Historical information from a similar project
3.Estimates built from bottom-up based on the WBS
4.Estimates based on top-down budgeting

Explanation : A is correct; $120 per ton is an example of parametric modeling. Parametric modeling: Using
project characteristics (or parameters) in a mathematical model to predict costs (e.g., price per square foot).
B is incorrect, as historical information is analogous, not parametric. C is incorrect; bottom-up estimating is
not a parametric modeling. D is incorrect, top-down budgeting is related to analogous estimating .

Question - 54

When the performing organization lacks in-house staff to complete a project, the required services can be
acquired from outside. This is called ________.
1.Virtual Teams
2.Acquisition
3.Pre-Assignment
4.All of the above

Explanation : B is the correct answer. Acquisition: When the performing organization lacks the in house staff
needed to complete the project, the required services can be acquired from outside sources.

Question - 55

A project manager determines the number and types of tests and their impact on cost of quality. This task
belongs to ___ process.
1.Plan Quality
4.Identify risk

Explanation : Determining the number and types of tests and their impact on cost of quality is called Design
of experiments which is done in Plan Quality process. PMBOK page no 228.

Question - 56

Control chart helps:
1.determine if the process is "in control"
2.how various elements of a system are interrelated
3.show trends in a process over time
4.shows the pattern of a relationship between two variables

Explanation : Control Charts: Control charts are graphic display of the results over a time of a process. They
are used to determine if the process is "in control".

Question - 57

You are a project manager for a project. While reviewing the cost estimates for the project, you notice that
one of the cost estimates for an element in the WBS is 20% higher than the previous project for a very similar
work. What should you do next?
1.Accept the estimate.
2.Ask the person responsible about the difference.
3.Ignore it.
4.Reduce the estimate.

Explanation :
Best option is to ask the person responsible about the difference and create the most accurate estimate that
is practical.

Question - 58

Which of the following is a common problem in administrative closure?
1.Completing a project charter
2.Retaining resources to complete the project
3.Completing a project plan
4.Completing a QA plan

Explanation : The biggest problem is retaining team members until closure of the project.

Question - 59

A unilateral contract under which the seller is paid a preset amount per unit of service is called __________
1.A cost reimbursable contract
2.A lump sum contract
3.A time and material contract
4.A fixed price contract

Explanation : A unilateral contract under which the seller is paid a preset amount per unit of service is called
time and material contract.

Question - 60

Your project has a budget of $10,000 and is expect to last for 1 year, with the work and budget spread evenly
across all months. Right now CPI is 0.8. What is Variance at Completion in this case?
1.-$2,500
2.$10,000
3.$12,500
4.$12,000

Explanation : Variance at Completion = BAC - EAC Estimate at Completion (EAC) = BAC / CPI = $10,000 / .8 =
$12,500 Variance at Completion = $10,000 - $12,500 = -$2,500

Question - 61

You are the project manager of a project which is scheduled to last for 18 months. You have elected to rent a
piece of equipment for the duration of a project, even though you will need the equipment only for 6 months.
The costs of the equipment rental per month are $120. This is an example of ___________.
1.Fixed Costs
2.Parametric Costs
3.Variable Costs
4.Parametric Budget

Explanation : This is an example of Fixed Costs because $120 per month is fixed.

Question - 62

Three estimates are : Pessimistic (P) : 30 Most Likely (M) : 25 Optimistic (O) : 14 What is activity duration
(PERT) ?
1.24
2.20
3.18
4.32

Explanation : A is the correct answer. Activity duration (PERT)= (P + 4M + O) / 6 then (30+4*25+14)/6 = 144/6 =
24

Question - 63

If you are the project manager of a project and you changed the scope of a project by dropping some parts,
you have ______________ the project.
1.Rewritten
2.Truncated
3.De scoped
4.Deleted

Explanation : When you change the project plan by removing parts of the final deliverable, you have de-
scoped the project.

Question - 65

___________ is the process of performing the work defined in the project management plan to achieve the
project's objectives.
1.Define Scope

Explanation : Direct and Manage Project Execution is the process of performing the work defined in the
project management plan to achieve the project's objectives. (PMBOK page no, 114)

Question - 66

You are the project manager for the large Project. You are identifying external dependencies for the activities
with management team. Identifying external dependencies are done in ______?
1.Define Activities
3.Develop Schedule
4.Control Schedule

Explanation : B is the correct answer. Identifying external dependencies are done in Sequence Activities.

Question - 67

You are the project manager and decided to outsource a part of the project to a vendor. You have offered a
bonus to the vendor if the work is completed in two months. This is an example of _____________.
1.project incentive
2.project goal
3.fixed price contract
4.fixed budget

Explanation : This is an example of project incentive.

Question - 68

Development activities of a software projects is depends on the third party vendor, who provides hardware
for this activity. Is called ______.
1.external dependencies
2.internal dependencies
3.Discretionary dependencies
4.All of the above

Explanation : A is the correct answer. external dependencies are usually outside of project team control.
PMPBOK Page no 171.

Question - 69

You are the project manager of the MKTG Project. This project will last for 1 year and it has many
stakeholders. How often should Identify Risks take place?
1.Once at the beginning of the project
2.Throughout the execution processes
3.Throughout the QA processes
4.Throughout the project

Explanation : Identify Risks is an iterative process that should happen throughout the project life. Identify
Risks is an iterative process, involving the project team, management team, stakeholders and subject matter
experts.

Question - 70

Overtime associated with the execution effort of a project is estimated at 120 hours with probability 0.5, 250
hours with probability 0.6, and 300 hours with probability 0.3. What is the monetary value of the amount of
overtime?
1.300 hours
2.670 hours
3.250 hours
4.100 hours

Explanation : The Monetary Value of the amount of overtime is (120 x 0.5) + (250 x 0.6) + (300 x 0.3) = 300
hours.

Question - 71

If you are the project manager of a project and you break down the WBS into smaller _______ to get detail so
that you can construct a schedule.
1.Work packages
2.Section
3.Issues
4.Time

Explanation : A is the correct answer. The work packages give you the detail you need to construct a
schedule.

Question - 72

Which of the following tools are used in the quality plan?
1.Quality Checklists
2.Quality audits
3.Histogram
4.Process Analysis

Explanation : Quality Checklists are used in the quality plan.

Question - 73

You are a project manager of a construction company. You want to know with whom you will be
communicating during the project. Which of the below document you should refer to?
1.Project Plan
2.Scope Statement
3.Statement of Work
4.Project Charter

Explanation : The project plan say what, when, and how much you will communicate. It also says with whom
you will communicate during the project.

Question - 74

You are the project manager for a project to create a new product for the marketing industry. You recently
came to know that a competitor is also working on a similar project with an additional web-based tool, which
your project does not offer. You initiate a change request to update your project. This is an example of:
1.A change due to an external event
2.A change due to an error and omission in the initiation phase
3.A change due to an error or omission in the planning phase
4.A change due to a legal issue

Explanation : The change is requested to remain competitive with the competition an external event.

Question - 75

A project team member, on his own initiative, added a new tool which was not part of the project plan.
However, the team member decided that the tool was necessary to increase productivity. The project team's
experts were in agreement with the decision. This is an example of _________?
1.Ineffective change control
2.Control Costs
3.Self led teams
4.Value added change

Explanation : The project team member did not follow the change management plan's method of
incorporating changes into the scope. This is an example of Ineffective change control.

Question - 76

You are the project manager for the large Project. You have identified and documented relationship among
the project activities and created project schedule network diagram. What is your NEXT step ?
1.Define Activities
3.Develop Schedule
4.Control Schedule

Explanation : C is the correct answer. project schedule network diagram is input of Develop Schedule.
PMBOK Page no 168.

Question - 77

You are a project manager and the project is to install ACs into hotel rooms. You did project cost and time
estimates and informed the customer that the project estimates will be accurate if the requirements such as
wooden coating are met. This is an example of which of the following?
1.Risk
2.Assumption
3.Constraint
4.Budget analysis

Explanation : This is an example of assumption because estimates provided will be accurate if the rooms
meet the requirements like (wooden coated). A and C are incorrect because the scenario did not describe a
risk or constraint.

Question - 78

Change Request is an input of _________.
1.Define Scope

Explanation : Change Request is an input of Perform Integrated Change Control. (PMBOK page no, 104)

Question - 79

If the project is terminated early, then the level and extent of completion should be documented. This is done
as a part of:
2.Control Scope
3.Verify Scope
4.Define Scope

Explanation : Verify Scope

Question - 80

You are the project manager and have been assigned a new project. You have a good relation with the
sponsor and senior management. Your senior management and sponsor forcing you to start the project
immediately. What is your response ?
1.Start project immediately because your senior management is asking the same.
2.Require a project charter be written and signed off on by all stakeholders before proceeding.
3.Suggest that a scope statement be written.
4.Suggest that a project plan should be written.

Explanation : The project should be start with a project charter that authorizes the project to begin, assigns
the project manager, and describes the project objectives and business need for the project.

Question - 81

Estimating the number of work periods likely to be needed to complete each activity is called :
4.Define Activities

Explanation : C is the correct answer. Estimating the number of work periods likely to be needed to complete
each activity is called Estimate Activity Durations .

Question - 82

Which of the following is NOT Tools and Techniques in Monitor and Control Risks?
1.Risk Audits
2.Reserve Analysis
3.Sensitivity Analysis
4.Risk Reassessment

Explanation : Sensitivity analysis is NOT Tools and Techniques in Monitor and Control Risks .

Question - 83

Starting a new task before finish the old one is an example of a __________ dependency.
1.Start-to-finish
2.Finish-to-start
3.Start-to-start
4.Finish-to-Finish

Explanation : A is the correct answer. Start-to-finish An activity must start before the next activity can finish.

Question - 84

This project was originally scheduled for completion in 1 year but 2 years have already passed and even now
the project is in execution phase. Which statement is TRUE about the project?
1.It is a temporary project
2.The requirements were added later, hence the delay
3.A key resource has left the organization, hence the delay
4.The company has a limited development license environment, hence the delay

Explanation : Project is continuing to expand means it is temporary project. Other options can be achievable
to complete the project if it is important for organization.

Question - 85

You are the project manager for the large Project. You are identifying and documenting relationship among
the project activities. This process is called ______?
1.Define Activities
3.Develop Schedule
4.Control Schedule

Explanation : B is the correct answer. Sequence Activities - identifying and documenting relationship among
the project activities. PMBOK Page no 167.

Question - 86

You are a project manager and now you are comparing proposals received from sellers. Comparing
proposals received from sellers is done in _______ .
1.Plan Procurements

Explanation : Comparing proposals received from sellers done in the Conduct Procurements.

Question - 87

During the project execution phase, one of the team member asked about his or her work. Which of the
following document you will ask the person to refer?
1.Work Breakdown Structure (WBS) dictionary
2.Scope Statement
3.Activity List
4.Project Charter

Explanation : The WBS dictionary defines each element in the WBS. Therefore, descriptions of the work
packages are in the WBS dictionary.

Question - 88

Who is primarily responsible for creating design and test specifications?
1.Quality Control
2.Engineering
3.Support
4.Management

Explanation : Engineering is primarily responsible for creating design and test specifications.

Question - 89

Project Management Plan is an input to all of the following processes EXCEPT_________.
1.Direct and Manage Project Execution process
3.Close Project or Phase
4.Develop Project Charter

Explanation : Project Management Plan is NOT an input to Develop Project Charter. (PMBOK page no, 104)

Question - 90

The market conditions are a part of the________.
1.Enterprise environmental factors
2.Project management concerns
3.Organizational process assets
4.Project Charter

Explanation : The market conditions will influence all factors of procurement.

Question - 91

You are a project manager of a project. Till today you have actually completed $34,000 of work, but based on
the cost plan it should be $50,000. What is percentage Schedule Variance (SV) in this case?
1.-32%
2.-16%
3.32%
4.10%

Explanation : Schedule Variance (SV): Any difference between the scheduled completion of an activity and
the actual completion of that activity. SV % = (EV - PV) / PV SV % = ($34,000 - $50,000) / $50,000 = -32%

Question - 92

Which is the least risky phase of a project?
1.Planning
2.Closing
3.Execution
4.Control

Explanation : The Planning phase is the phase with the least risk attached because you have not committed
the major part of your project.

Question - 93

Which of the following project management process gets MOST of a project's budget expended?
1.Project Executing
2.Project Planning
3.Project Closing
4.Project Monitoring

Explanation : Most of the resources are involved in the project executing process, therefore most of a
project's budget are expended on this process.

Question - 94

In which of the following situation network diagram is better than bar chart ?
1.to show inter dependencies between activities
2.analysis of schedule progress
3.analysis of WBS
4.analysis of project plan

Explanation : A is the correct answer. network diagram is best to show Interdependencies between activities.

Question - 95

You are a project manager of a company. You have been assigned as the project manager in the middle of
the project. The customer is not happy with the performance of the project. What is the FIRST thing you
should do?
1.Talk to customer about the concerns.
2.Try to achieve the performance.
3.Ignore the customer.
4.Leave the project and ask your manager to assign another project.

Explanation : The best option is to talk to the customer about the concerns.

Question - 96

The purpose of a contract is to distribute a reasonable amount of ____________between the buyer and seller.
1.Risk
2.Responsibility
3.Reward
4.Quality

Explanation : A fair contract shares a reasonable amount of risk between the buyer and the seller.

Question - 97

If there are two people in the communication system, then how many communication channels will there be?
1.1
2.5
3.8
4.4

Explanation : Number of communication channel will be calculated using formula n*(n-1)/2 where n is the
number of people involved in the communication. Then Number of communication channel = 2(2-1)/2=2*1/2=1

Question - 98

A project manager has created a document and wants some of the team member should have read access
and some of them should have write access also. The project manager should create __________.
1.Configuration Management System
2.Project Management Information System
3.Project Management System
4.Control Management System

Explanation : Configuration Management System addresses controlling documents.

Question - 99

Teamwork is a critical factor for project success. Who is responsible to create an environment that facilitates
teamwork?
1.Team lead
2.Team members
3.Project Manager
4.Sponsor

Explanation : C is the correct answer. Project Manager is responsible to create an environment that
facilitates teamwork. PMBOK Page no 260.

Question - 100

In the quality management process, which of the following is not an attribute of the cost of non-
conformance?
1.Rework
2.Safety measures
3.Downtime
4.Uptime

Explanation : Safety measures are not an attribute of the cost of nonconformance.

Question - 101

You are the project manager for the Project. You are updating the WBS during Define Activities, are often
called ________?
1.Refinements
2.Updates
3.Activities
4.Supporting detail

Explanation : A is the correct answer. updating the WBS during Define Activities, are often called
Refinements. It occurs with riskier projects.

Question - 102

You are the project manager of a marketing project. You want a vendor to offer you one price to do all the
detailed work. Which type of document are you looking for?
1.IFB
2.Proposal
3.RFI
4.RFP

Explanation : An IFB is a sealed document that lists the seller's price to complete the detailed work.

Question - 103

Which of the following document justify the project - whether the project is worth or not?
1.Business Case
2.Project Charter
3.Project Management plan
4.Scope statement

Explanation : Business Case contains business need and cost-benefit analysis. Business Case document
justify the project - whether the project is worth or not. PMBOK page no , 106

Question - 104

If project manager can approve the changes, this is still part of the ___________.
1.Project Plan
2.Change Control System
3.Charter
4.Scope Statement

Explanation : Any change requests must go through review process, and so need to be part of Change
Control System.

Question - 105

A project team with members located in the India, the US, and the UK would be called a ___________. They
don't spent time meeting face to face.
1.Virtual team
2.Scattered team
3.Universal team
4.None of the above

Explanation : A is the correct answer. Virtual Teams: Virtual teams can be defined as groups of people with a
shared goal, who fulfill their roles with little or no time spent meeting face to face.

Question - 106

You are a project manager of MKTG project. The customers of the project have requested additions to the
project scope. You have to do additional risk planning and need to add it to the project schedule. Why is so?
1.Risk planning should always occur whenever the scope is adjusted.
2.Risk planning should only occur at the project manager's discretion.
3.Risk planning does not need to happen at every change in the project.
4.All of the above

Explanation : Risk Planning should always occur whenever the scope is change and adjusted.

Question - 107

You are a project manager of a company and your project is currently in execution phase. The customer has
requested you for additional work. This work will affect the budget, but not the schedule of the project. What
should you do next?
1.Add the additional requirements to the project plan.
2.Ignore the request.
3.Explain the change procedure and ask to submit a request for change.
4.Discuss with the project team about the change.

Explanation :
Explain the change procedure and ask to submit a request for change is the best choice.

Question - 108

Comparing target dates with the actual or forecast start and finish dates is called :
1.Variance Analysis
2.Earned Value
3.Progress Reporting
4.Crashing

Explanation : A is the correct answer. Variance Analysis : Comparing target dates with the actual or forecast
start and finish dates.

Question - 109

You are the project manager and are considering recommending a project that costs $210,000; expected
inflows are $5,000 per month for the first three years and then $6,000 per month thereafter. What is the
payback period?
1.41 months
2.36 months
3.45 months
4.21 months

Explanation : Payback period : The number of time periods required until inflows equal, or exceed, costs.
Total inflows for first three years is 36 months * $5000 = $180,000. Money left = $210,000 - $180,000 = $30,000.
Months need for $30,000 is ($30,000/$6,000)=5 months Total payback period = 36 + 5 = 41 months.

Question - 110

A risk is ____________ occurrence that has a positive or a negative effect on a project .
1.Known
2.Uncertain
3.Known
4.Potential

Explanation : Risks are not planned, they are left to chance.

Question - 111

The OBS (Organization Breakdown Structure), WBS, and RBS (Resource Breakdown Structure) are all
examples of ________.
1.Control charts
2.Hierarchical charts
3.Project standard
4.Run chart

Explanation : B is the correct answer. The OBS (Organization Breakdown Structure), WBS, and RBS
(Resource Breakdown Structure) are all examples of Hierarchical charts.

Question - 112

Project Performance Appraisal is part of the:
1.Acquire Project Team
2.Develop Project Team
3.Develop Human Resource Plan
4.Manage Project Team

Explanation : D is the correct answer. Project Performance Appraisal is part of the Manage Project Team.

Question - 113

A project has three critical path. How this affects the project ?
1.It increased project risk.
2.It need more resources.
3.It need more time.
4.It costs more.

Explanation : A is the correct answer. It increased project risk.

Question - 114

What is the purpose of a status meeting?
1.Exchange information about the project.
2.Get the status from each team member
3.Review of the activities
4.Create status report

Explanation : Best option is exchange information about the project.

Question - 115

Your company policy allow to gift exchange with customer within certain limit. By mistake, you have given a
gift to the customer's representative already which is beyond the limit mentioned in your company policy.
What should you do?
1.Forget it and don't tell anyone.
2.Contact your company's senior management and ask for assistance.
3.Ask your customer to return the gift.
4.Ask your customer to give you a gift which has the same cost

Explanation :
Best option is to contact your company's senior management and ask for assistance.

Question - 116

You are a project manager of a project and want to report the actual project result and the planned status.
You should use?
1.Forecasting report
2.Trend reports
3.Status report
4.Variance report

Explanation : variance report: An actual project result and planned status of a project.

Question - 117

Which of the following is NOT the activity in Define Activities ?
1.Decomposition
2.An activity list from a previous project
3.Progressive elaboration planning
4.Create project charter

Explanation : D is the correct answer. Create project charter is activity in initiation phase.

Question - 118

Make-or-buy decisions measure the cost of both options. What are these two options?
1.Direct, Indirect
2.Tactical, Strategic
3.Management, Project
4.Direct,Management

Explanation : Make-or-buy decisions measure the cost of both options. When doing this analysis, it should
include both direct and indirect costs so that the final decision is based on comparisons that are equal.

Question - 119

An organization's quality policy should come from the_________.
1.Project manager
2.Top management
3.Customers
4.All of the above

Explanation : An organization's quality policy should come from the top management.

Question - 120

You are project manager of a software project. You have just analyzed activity sequences, durations,
resource requirements , schedule constraints and created project schedule. The above task belongs to
which process?
1.Define Activities
3.Develop Schedule
4.Control Schedule

Explanation : C is the correct answer. analyzing activity sequences, durations, resource requirements ,
schedule constraints and created project schedule is belongs to Develop Schedule process.

Question - 121

All of the following are inputs of Perform Qualitative Risk Analysis EXCEPT ________.
1.Risk Register
2.Project Scope Statement
3.Risk Management Plan
4.Stakeholder Register

Explanation : Stakeholder Register is input of Identify Risks.

Question - 122

You were the project manager of X company for a long time, and had done lots of project management
practices. Recently, you have joined another company Y and assigned to a project. You should _________.
1.Use the forms of company Y
2.Use the forms of company X and instruct about the good project management practices
3.Talk to change control board
4.Use the forms of company Y and instruct about the good project management practices

Explanation : The best option is to use the forms of company Y and instruct about the good project
management practices.

Question - 123

If a project has an 80% chance of activity will take 2 weeks or less. what is the probability of the event?
1.75%
2.65%
3.50%
4.20%

Explanation : 20% probability of exceeding 2 weeks - 80% chance of activity will take 2 weeks or less

Question - 124

Risk Probability and Impact Assessment, and Risk Categorization are done during ________.
2.Perform Quantitative Risk Analysis
4.Identify Risks

Explanation : Risk Probability and Impact Assessment, and Risk Categorization are done during Qualitative
Risk Analysis.

Question - 125

The ___________ shows departments or units of the organization and is not organized the deliverables.
1.OBS
2.WBS
3.RBS
4.Scope statement

Explanation : A is the correct answer. OBS(Organization Breakdown Structure) shows departments or units
of the organization and is not organized the deliverables. OBS(Organization Breakdown Structure) shows the
organization's units and departments as a top-down graph.

Question - 126

The buyer and seller are bound by a________.
1.Contract
2.Responsibilities
3.WBS
4.Identification

Explanation : The buyer and seller are bound by a contract.

Question - 127

The Scope Statement does not provide___________?
1.Project Justification
2.Project Product
3.Project Manager Authority
4.Project Objective

Explanation : The project charter provides the project manager with authority.

Question - 128

You are a project manager of a company and you have been assigned to a project. You are now comparing
actual project performance against project management plan. This belongs to which process?
1.Define Scope

Explanation : Comparing actual project performance against project management plan belongs to Monitor
and Control Project Work process.

Question - 129

As a project manager of a project , you have just completed Schedule network diagram. Which of the
following time management activity you have completed?
4.Develop Schedule

Explanation : B is the correct answer. Schedule network diagram is an output of Sequence Activities.

Question - 130

Comparing your project with actual or planned project practices to generate ideas for improvement is called:
1.Benchmarking
2.Benefit/Cost analysis
3.Quality audits
4.Process Analysis

Explanation : Comparing your project with actual or planned project practices to generate ideas for
improvement is called Benchmarking.

Question - 131

You are a project manager of a pharmaceutical company. A new pharmaceutical regulation is passed that
changes your project scope. For the project to be in accordance with the new regulation, what should be
your next action?
1.Present the change to the Change Control Board (CCB)
2.Notify Management
3.Prepare a new baseline to reflect the changes
4.No need to do anything

Explanation : You must present the change to the Change Control Board (CCB) for new changes.

Question - 132

A project manager has created a document and wants to track the changes made in the document. The
project manager should create _______.
1.Configuration Management System
2.Project Management Information System
3.Project Management System
4.Control Management System

Explanation : Control Management System tracks the changes.

Question - 133

Your project has a budget of $10,000 and is expect to last for 1 year, with the work and budget spread evenly
across all months. Right now CPI is 0.8. What is Estimate at Completion (EAC) in this case?
1.$12,500
2.$10,000
3.2.5
4.3.0

Explanation : Estimate at Completion (EAC) = BAC / CPI = $10,000 / .8 = $12,500

Question - 134

You are a project manager of a Project. Which of the following techniques will you use to create the Risk
Management Plan?
1.Planning Meetings
2.Status Meetings
3.Variance Meetings
4.Risk Tolerance

Explanation : Planning meetings are used to create the Risk Management plan. Planning Meetings and
Analysis: Attendees are the PM, leadership team, key stakeholders and those in the organization responsible
to manage project risks.

Question - 135

The Pareto chart helps:
1.Focus on critical issues to improve quality.
2.Determine how various factors are linked to potential problems
3.Determine whether or not process is stable and within set limits.
4.Focus on root cause analysis

Explanation : Pareto chart: Focus on critical issues to improve quality Fishbone diagram/Ishikawa:
Determines how various factors linked to potential problems or effects, root cause Control chart: Determines
whether or not process is stable and within set limits .

Question - 136

You are a project manager of a company. You are taking over a project during the planning process, and you
discovered that many individuals have signed the project charter. Which of the following should be areas of
concern for you?
1.Who will be a member of the change control board?
2.Who are the stakeholders for the project?
3.Need to spend more time on configuration management.
4.Determining the reporting structure.

Explanation : Because of many individual signed in the project charter, areas concerned with this project are
many. You should be concern with communications requirements, competing needs and requirements
impacting your efforts on configuration management.

Question - 137

If a customer requests for additional work that is not in the contract, then what type of communication the
customer should use?
1.Formal Written
2.Verbal
3.Informal Verbal
4.Noise

Explanation : The formal written is the best for this type of request.

Question - 138

You are the project manager of a new project and you have collected the necessary input information and
delivered the project charter to the stakeholders. What should you do next?
1.Get the project charter signed.
2.Start the initial project planning process.
3.Develop the project scope statement.
4.Start to create project plan

Explanation : After delivered the project charter to the stakeholders, First thing you have to do get the
project charter signed.. Project charter is the only authorized document to start project.

Question - 139

3 sigma is equal to ______ percentage of fall between two control limits.
1.99.99%
2.99.73%
3.95.46%
4.68.26%

Explanation : memorize 3 sigma = 95.73% 1 sigma = 68.26% 2 sigma = 95.46% 6 sigma = 99.99%

Question - 140

The project quality policy should be written by ________.
1.Project team
2.Customer
3.Management
4.Accounting

Explanation : The project team, led by the project manager, must write the quality policy for each project.

Question - 141

All of the following are examples of Acquire Project Team EXCEPT:
1.Negotiations
2.Acquisition
3.Pre-assignments
4.Training

Explanation : D is the correct answer. Training is part of Develop Project Team, others are part of Acquire
Project Team. PMBOK Page no 248.

Question - 142

Which of the following chart shows position and relationships in top-down format?
1.Hierarchical-type chart
2.Matrix-based charts
3.Text-Oriented format
4.All of the above

Explanation : A is the correct answer. Hierarchical-type chart shows position and relationships in top-down
format. PMBOK Page no 253.

Question - 143

Which of the following document can be used to guide all the work in both project executing and project
monitoring and controlling phase of a project?
2.Project Risk Plan
3.Project QA Plan
4.Project Charter

Explanation : Project Management plan can be used to guide all the work in both project executing and
project monitoring and controlling phase of a project.

Question - 144

Which of the following is NOT an example of Cost of Conformance?
1.Rework
2.Testing
3.Equipment
4.Training

Explanation : Rework is part of Cost of Nonconformance. Others are part of Cost of Conformance. PMBOK
Page no 226.

Question - 145

Budget forecasts are inputs of ___________.
1.Identify Stakeholders
2.Plan communications
3.Manage stakeholder expectations
4.Reports performance

Explanation : Budget forecasts are inputs of Reports performance. PMBOK page no 275.

Question - 146

You are a project manager of a construction company. You want to manage the variance between what was
planned and what actually occurred. Which of the following methodology you should use?
1.Earned Value Management (EVM)
2.Earned Value (EV)
3.Planned Value
4.Accounting

Explanation : There could be confusion between Option A and Option B. Earned Value Management (EVM) is
the methodology and Earned Value (EV) is the technique. And so Option A is true.

Question - 147

You are a project manager of a company and you are assigned to a project that has already been decided to
out source. As a project manager, you need to organize a formal bid process and select the vendor for this
project. Your senior management is forcing you to select a vendor which has good relation with your senior
management. What is the BEST course of action for you?
1.Follow the formal bid process, and show the senior management about why the favored vendor is or is not
the best choice.
2.Report to legal department of your company.
3.Report to your Manager about this.
4.Get a written permission from your senior management to bypass the formal bid process.

Explanation : The best option is to follow the formal bid process, and show the senior management about
why the favored vendor is or is not the best choice.

Question - 148

What is the purpose of fishbone diagram?
1.To illustrate how various factors might be linked to potential problems or effects
2.Are used to determine if the process are in control
3.Show trends in a process over time
4.Shows the pattern of relationship between two variables

Explanation : Fishbone diagram : To illustrate how various factors might be linked to potential problems or
effects.

Question - 149

Which of the following tool help you determine the most common cause of problems in a process by number
?
1.Status Reports
2.Pareto Charts
3.Ishikawa Diagrams
4.Histogram

Explanation : Histogram: ordered by frequency of occurrence, that shows how many results were generated
by type or category of identified cause. PMBOK Page no 241.

Question - 150

As a project manager it is important to collect project records at the end of the project. What is the use of
"collect project records"?
1.Recall what happened on the project, good or bad.
2.Recall decisions made on the project.
3.To see cost decisions.
4.To support the risks on the project.

Explanation : The best use of "collect project records" is to recall what happened on the project, good or
bad.

Question - 151

You are the project manager of a large project. Your project sponsor and management want portions of the
project to be outsourced and you have been given the responsibility to outsource. The project sponsor and
management have approved you to outsource portions of the project. Who must ensure that all of the project
work is authorized, contracted properly, and funded?
1.Project sponsor
2.Management
3.Vendor
4.Project Manager

Explanation : Project manager has the responsibility to ensure that the project work is authorized,
contracted, and funded.

Question - 152

You area project manager of a project and have done risk response plan. What should you do NEXT?
1.Update Project Management Plan
2.Update Risk Identification Check list
3.Root causes of risks
4.Corrective action

Explanation : Update Project Management Plan is an output of risk response plan.

Question - 153

Performance Report is input of the:
1.Acquire Project Team
2.Develop Project Team
3.Develop Human Resource Plan
4.Manage Project Team

Explanation : D is the correct answer. Performance Report is input of the Manage Project Team.

Question - 154

You are a project manager of a company and you have been assigned to take over managing a project that
should have been 60 percent complete according to the schedule. After evaluation, you discover that the
project is running far behind schedule, and that the project will probably take double the time originally
estimated by the previous project manager. However, the sponsor has been told that the project is on
schedule. What is the BEST course of action you will take?
1.Add new resource to the project and complete the project on schedule.
2.Show your evaluation to sponsor.
3.Ask your senior manager to deal with this.
4.Turn the project back to the previous project manager.

Explanation : You can't turn the project back to the previous project manager because he or she may be
busy with other project. The best option is to show your evaluation to sponsor.

Question - 155

The Create Procurement document is done in the_______.
1.Plan Procurements

Explanation : The Create Procurement document is done in the Plan Procurements process.

Question - 156

The ___________ is used to document changes that occur during a project?
1.Issue Log
2.Change Log
4.Scope statement

Explanation : The Change Log is used to document changes that occur during a project. PMBOK page no
294.

Question - 157

Finding out all people or organizations impacted by the project is called_________.
1.Identify Stakeholders
2.Plan communications
3.Manage stakeholder expectations
4.Reports performance

Explanation : Finding out all people or organizations impacted by the project is called Identify Stakeholders.
PMBOK page no 277.

Question - 158

You are the project manager of a company and currently doing strategic planning with senior management.
What is the best reason for doing strategic planning?
1.To determine which projects will be sponsored in order to achieve the organizational goals
2.To determine the project resources
3.To determine the project deliverables
4.To determine the functional activities

Explanation : The strategic planning conducted by an organization's management determines which projects
will be sponsored in order to achieve the organizational goals.

Question - 159

You are the project manager of a Project. Your project will cost your organization $50,000 to complete over
the next 3 months. Once the project is completed, the deliverables will let the company earn $5000 per
month. What is the time to recover the costs of the project?
1.10 Months
2.1 Year
3.2 Years
4.3 Years

Explanation : This is calculated by dividing the ROI of $5000 per month into the project cost. 50000/5000 = 10
months

Question - 160

The line in the middle of a control chart is called:
1.mean
2.rule of seven
3.rule of five
4.specification limit

Explanation : The line in the middle of a control chart is called mean.

Question - 161

You are a project manager of a project. How you determine whether it is better to make a product or buy a
product?
1.Decision Tree Analysis
2.ROI Analysis
3.Ishikawa Diagram
4.None of the above

Explanation : A Decision Tree model can separate the pros and cons of buying product versus building
product. Ishikawa Diagram shows cause and effect, not pros and cons.

Question - 162

You are a project manager and you are working for a large project with more than hundreds of
stakeholders.Which of the following is the BEST course of action you are going to take ?
1.Consider needs of all stakeholders.
2.Consider needs of important stakeholders.
3.Eliminate some of them.
4.Ask your manager to manage the stakeholders.

Explanation : Consider needs of all stakeholders is the best choice.

Question - 163

You are working in an organization where all the employees are divided into groups by specialty such as
sales, support and engineering. In which type of organization you are working in ?
1.Functional
2.Strong matrix
3.Weak matrix
4.Tight Matrix

Explanation : In a functional organization, all employees are divided into groups such as sales, support and
engineering. Projects in a functional organization generally only involve one department.

Question - 164

Which of the following is a part of the Project Scope Management?
1.Verify Scope
3.Control Scope
4.All of the above

Explanation : Verify Scope, Collect Requirements and Control Scope are all part of the Project Scope
Management.

Question - 165

___________ is a group of process required to purchase or acquire products, services, or results needed
from outside the project team to perform the work.
1.Procurement Management
2.Planning Management
3.Scope Management
4.Control Management

Explanation : Procurement Management is a groups of processes required to to purchase or acquire the
products, services, or results needed from outside the project team to perform the work.

Question - 166

You have just started a project. The project team member reported that 20 percent of the project is done. You
agree with their completion status, but do not change any of the progress in your report to the customer.
This is an example of which one of the following?
1.0/100 Rule
2.50/50 Rule
3.Percent Complete Rule
4.20/20 rule

Explanation : The 0/100 Rule allows for zero percent credit on an activity until it is 100 percent complete. B is
wrong (50/50 rule): 50 percent completion when the work begins and 50 percent when the work is completed.

Question - 167

During the project execution phase, a risk is found which was not included in the Risk Register. What should
you do?
1.Ask senior management to deal with this.
2.Keep with yourself.
3.Find workaround.
4.Re-evaluate Risk Management process.

Explanation : The best option is to find a workaround and solve the issue.

Question - 168

You are the project manager of a global project having team members in the US and India. The client has a
budget not exceeding $12 million. Due to global concerns, the final budget must be in the U.S. dollars. This is
an example of which of the following?
1.Internationalization
2.Budget constraint
3.Management constraint
4.Technical constraint

Explanation : This is an example of a budget constraint. The budget must not exceed $12 million.

Question - 169

Your company has been hired to configure software in 500 computers. All computers need equal time to
configure. The contract for the project is set at a fixed cost, and the incentive based on how fast the project
work is going to be completed. Management has requested that you study the work method to determine a
faster, less costly, and a better method to complete the project. This scenario is an example of _________.
1.Time Constraint
2.Schedule Constraint
3.Value Analysis
4.Learning Curve

Explanation : Value Analysis is a systematic approach to find less costly ways to complete the same work. A
and B are incorrect, as this situation does not describe a specific time or cost constraint. D is incorrect: the
learning curve happens as the project team completes the work.

Question - 170

A Heuristics is best described as :
1.thumb rule.
2.activity diagram.
3.workaround.
4.control tool.

Explanation : A is the correct answer. Heuristics is thumb rule. Examples are cost per square feet etc.

Question - 171

Project X has a payback period of 26 months. Project Y has a cost of $500,000, with expected cash inflows of
$200,000 the first year and $50,000 per quarter after that. Which project should you recommend?
1.Project X because of lower payback period.
2.Project Y because of higher payback period.
3.Project Y because of payback period 25.
4.Project Y because of payback period 30.

Explanation : Project Y has a cost of $500,000. After 1 year remaining cost is $500,000 - $200,000 = $300,000.
period for remaining cost is $300,000 / $50,000 = 6 quarter = 6*3 months = 18 months. Total payback period
for project Y = 1 year + 18 months = 30 months The lower the payback period, the better.

Question - 172

Project X will take 3 years to complete and has NPV value $70,000 and Project Y will take 5 years to complete
and has NPV value $60,000. What is the opportunity cost of selecting Project X ?
1.$35,000
2.$60,000
3.$30,000
4.$130,000

Explanation : opportunity cost of selecting Project X is simply the value of the project you did not select.
Based on the NPV you have selected project X. Therefore value of the project Y is the opportunity cost.

Question - 173

During the planning phase of a project, your team members find another way to complete a portion of the
project. This method is safer for the project team but the cost may go up. This is an example of _____?
1.Alternative Identification
2.Risk Assessment
3.Alternative Selection
4.Product Analysis

Explanation : Alternative identification is a planning process to find alternatives to complete the project
scope.

Question - 174

You are the project manager and you meet with your project team to ensure the project is completed with no
deviations from the project requirements.This is part of?
1.Quality Control
2.Quality assurance
3.Plan Quality
4.All of the above

Explanation : Plan Quality should be completed prior to the work beginning and revisited as needed. Plan
Quality: Identifying the quality standards that are relevant to the project and determining how to meet them.

Question - 175

Disciplinary actions should be taken based on the___________ policy.
1.Government
2.Organizational
3.Project team
4.Sponsor

Explanation : B is the correct answer. Disciplinary actions should be taken based on the Organizational
policy.

Question - 176

If you want to print more than 25000 workbooks, printing of workbooks may be go up to 50000 workbooks .
For every 5000 workbooks created, the cost is reduced a percentage of the original printing cost. The
workbook expense is an example of which one of the following?
1.Fixed Costs
2.Parametric Costs
3.Variable Costs
4.Parametric Budget

Explanation : This is an example of Variable Costs.

Question - 177

______ is an after the fact look at caused a difference between the baseline and actual performance .
1.Variance Analysis
2.Issue Analysis
3.Simulation
4.Forecasting

Explanation : Variance Analysis is an after the fact look at caused a difference between the baseline and
actual performance. PMBOK page no 268.

Question - 178

If you are the project manager for a project. The customer has requested that you factor after-project costs,
such as maintenance and service. This is an example of which one of the following?
1.Life Cycle costs
2.Scope Creep
3.Project Spin off
4.Operations

Explanation : The after-project costs are known as Life Cycle costs.

Question - 179

Which of the following is an example of the Perform Quality Assurance process?
1.Pareto chart
2.Quality Audits
3.Inspection
4.Cost of quality

Explanation : Quality Audits are part of Perform Quality Assurance process. PMBOK page no 222. The cost
of quality is part of Plan Quality Pareto chart and Inspection are part of Perform Quality Control.

Question - 180

You are project manager of a project. In the user testing phase the primary customer of a project has
requested a change. What will be your NEXT action?
1.Create a formal change request
2.Ignore it
3.Create a risk plan and show it to the customer
4.Inform the project sponsor about the changes to scope

Explanation : Best option is create formal change request.

Question - 181

Why should quality be planned and not inspected every time?
1.To improve quality with less cost
2.To improve quality with more cost
3.To reduce quality with less cost
4.To reduce quality with more cost

Explanation : Best option is to improve quality with less cost.

Question - 182

Leading, communicating, negotiating and problem solving are examples of the _________ management
skills.
1.Project
2.Senior
3.General
4.HR

Explanation : C is the correct answer. General skills that any type of manager will need to use in order to
perform successfully for the organization. Leading, communicating, negotiating and problem solving are
examples of the General management skills.

Question - 183

Make payment to seller is done in _______ .
1.Plan Procurements

Explanation : Make payment to seller is done in the Administer Procurements.

Question - 184

Phone call and Video Conferencing are examples of _______________.
1.Interactive Communications
2.Pull Communication
3.Push Communication
4.Noise

Explanation : Video Conferencing, phone calls, etc. are examples of Interactive Communications. Letter,
memos, fax , email, etc. are examples of Push Communication. Internet site, e-learning, etc. are examples of
Pull communication. PMBOK page no 287.

Question - 185

The formal management actions that promote or reinforce desired behavior is called _________.
1.Training
2.Ground Rules
3.Reward and Recognition System
4.All of the above

Explanation : C is the correct answer. Reward and recognition systems : Formal management actions that
promote or reinforce desired behavior. Training : Includes all activities designed to enhance the skills,
knowledge, and capabilities of the project team. Ground Rules: Ground rules establish clear expectations
regarding acceptable behavior by project team members.

Question - 186

The 2 years project has 200 work packages and a $20,000 budget. After one year, 100 work packages are
completed and $10,000 has been spent. Which of the following is TRUE?
1.The project need 50 work package to be completed in 6 months.
2.Not enough information available.
3.The project need 50 work package to be completed in 3 months.
4.The project is on schedule and on budget.

Explanation : There is Not enough information available about the project. What was planned? Is the work
packages are same? Therefore Option B is TRUE.

Question - 187

Having a project team in a single location where they can work in a face-to-face environment is called
_______.
1.Collocation
2.Location construction
3.Team structure
4.All of the above

Explanation : A is the correct answer. Co-Location: Co-location involves placing many or all of the most
active project team members in the same physical location to enhance their ability to perform as a team.

Question - 188

Which of the following statement is TRUE about Expected Monetary Value (EMV)?
1.Risks have the most potential impact on the project.
2.A statistical concept that calculates the average outcome when the future includes scenarios that may or
may not happen.
3.Describes a situation under consideration, and the implications of each of the available choices and
possible scenarios.
4.Quantify the probability and impact of risks on project objectives.

Explanation : Expected Monetary Value (EMV) analysis is a statistical concept that calculates the average
outcome when the future includes scenarios that may or may not happen.

Question - 189

Which hierarchical chart shows resources?
1.RBS
2.OBS
3.WBS
4.Scope statement

Explanation : A is the correct answer. The Resource Breakdown Structure shows various resources, both
human and mechanical needed for project.

Question - 190

As a project manager you are creating a table that map requirements to their origin and traces them
throughout the project life cycle. You are doing it as a part of:
2.Control Scope
3.Verify Scope
4.Define Scope

Explanation : Creating a table that map requirements to their origin and traces them throughout the project
life cycle is called the Requirement tractability matrix, which is an output of Collect Requirements process.
PMBOK Page no, 142.

Question - 191

Complete final contract performance reporting and verify product is done in _______.
1.Plan Procurements

Explanation : Complete final contract performance reporting and verify product is done in Close
Procurements.

Question - 192

The Work Breakdown Structure is an example of a _________.
1.Hierarchical chart
2.Control charts
3.Pie chart
4.Run chart

Explanation : A is the correct answer. The Work Breakdown Structure is an example of a hierarchical chart. It
shows relationships of the various tasks and people in a top-down, graphic format.

Question - 193

All of the following are examples of Develop Project Team EXCEPT:
1.Negotiations
2.Reorganization and rewards
3.Team building activities
4.Training

Explanation : A is the correct answer. Negotiations is part of Acquire Project Team, Others are parts of
Develop Project Team. PMBOK Page no 248.

Question - 194

Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread
evenly across all months. The project is now in the fourth month, the work is on schedule, but you have
spent $120,000 of the project budget. What is your COST Variance percentage in this case?
1.-50%
2.50%
3.40%
4.20%

Explanation : Cost Variance = Earn Value - Actual Cost Earn Value = (Total Cost/total project months) * total
months completed = ($240,000 / 12) * 4 = $80,000 CV = $80,000 - $120,000 = -$40,000 CV % = CV / EV = -
$40,000/$80,000 = -50%

Question - 195

You have a piece of equipment that was purchased for your project recently for $5,000 and is expected to
last 5 years in production. At the end of the five years, the expected worth of the equipment is $2,000. Using
the straight-line deprecation, what is the amount that can be written off each year?
1.$600
2.$1200
3.$3000
4.$2000

Explanation : The straight-line depreciation takes the purchase value of the item, minus the salvage price of
the item, divided by the number of time periods. Calculation is (5000-2000)/5 = $600.

Question - 196

A process with lack of consistency and predictability is called:
1.in control
2.out of control
3.bad quality
4.quality noised

Explanation : A process with lack of consistency and predictability is called out of control.

Question - 197

Some of your team members want to work on a flexible schedule and others want all team members should
reach on fixed time. What should you do?
1.Allow them for flexible time schedules.
2.Allow them for fixed time schedules.
3.Arrange a meeting and allow them to decide.
4.Ask your senior management to decide.

Explanation : The best option is to arrange a meeting and allow them to decide.

Question - 198

80% of problems due to 20% of causes, related to:
1.Status Reports
2.Pareto Charts
3.Ishikawa Diagrams
4.Histogram

Explanation : Pareto's Law - A relatively small number of causes will typically produce a large majority of the
problems or defects (80 / 20 rule). Pareto Charts are conceptually related to Pareto's Law. PMBOK Page no
242.

Question - 199

The purpose of a quality audit is:
1.To identify inefficient and ineffective policies
2.To identify project quality for customer
3.Study organizational behavior
4.Prepare a report for the quality team

Explanation : Purpose of quality audit is to identify inefficient and ineffective policies.

Question - 200

All of the following are inputs of Perform Quantitative Risk Analysis EXCEPT ______________.
1.Cost Management Plan
2.Risk Register
3.Risk Management Plan
4.Stakeholder Register

Explanation : Stakeholder Register is an input of Identify Risks. (PMBOK page no 305.)

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