ANSWERS

Module 5: Keeping the Business in Mind

Practice Exam

PMAC 1
Case study

• You are managing a project to coordinate a risk assessment

for a large energy company with nuclear power plants.
• There are many challenges relating to compliance. You need
to find solution to these challenges.
• You become aware that the FAA is planning to change the
flight paths for a major airport located just two miles from
your nuclear plant. The new flight path would reduce airline
noise for local residents but would require more than 50% of
the air traffic to fly directly over the cooling towers. What risk
responses would you consider in such a scenario?

PMAC 2
 Question 1
1. What risk responses would you consider in the
scenario described in the case study? (Choose
Three)
A. Avoid
B. Sensitivity analysis
C. Workaround
D. Transfer
E. Mitigate
F. Risk urgency assessment

PMAC 3
 Answer Q1
1. What risk responses would you consider in the scenario described in
the case study? (Choose Three)
A. Avoid
B. Sensitivity analysis – it is not risk response but a technique used in
quantitative risk analysis to know severity levels of various risks.
C. Workaround – an action to settle an issue is called workaround.
D. Transfer
E. Mitigate
F. Risk urgency assessment – it is not risk response but a technique
used in qualitative risk analysis to know urgency of occurrence of
identified risks.

PMAC 4
 Question 2
2. You become aware that the FAA is planning to change the flight paths for a
major airport located just two miles from your nuclear plant. The new flight
path would reduce airline noise for local residents but would require more
than 50% of the air traffic to fly directly over the cooling towers. Outline the
risks and the potential impacts, and then consider risk responses.
Your company is subject to a broad array of regulatory compliance
requirements for all of its operations. What would you do to gather these
requirements and ensure they are properly weighted as part of your risk
assessment? (Choose Three)
A. Hold detailed conversations about possible ways to reroute the flight
path.
B. Hold detailed conversations about issues which have impacted to the
flight path.
C. Assessments of potential financial (and other risks) and potential
mitigation options, and how much residual risk is acceptable.
D. Review policy documents, risk checklists, or other tools.

PMAC 5
 Answer Q2
2. You become aware that the FAA is planning to change the flight paths for a
major airport located just two miles from your nuclear plant. The new flight
path would reduce airline noise for local residents but would require more
than 50% of the air traffic to fly directly over the cooling towers. Outline the
risks and the potential impacts, and then consider risk responses.
Your company is subject to a broad array of regulatory compliance
requirements for all of its operations. What would you do to gather these
requirements and ensure they are properly weighted as part of your risk
assessment? (Choose Three)
A. Hold detailed conversations about possible ways to reroute the flight
path.
B. Hold detailed conversations about issues which have impacted to the
flight path.
C. Assessments of potential financial (and other risks) and potential
mitigation options, and how much residual risk is acceptable.
D. Review policy documents, risk checklists, or other tools.

PMAC 6
 Continued Answer Q2
For gathering regulatory compliance requirements and ensuring they are
properly weighted as part of your risk assessment, we would do the following:

1. Hold detailed conversations about possible ways to reroute the flight

path,
2. Assessments of potential financial (and other risks) and potential
mitigation options, and how much residual risk is acceptable.
3. Review policy documents, risk checklists, or other tools.

NOTE: A large array of existing compliance requirements should exist in

current policy documents, risk checklists, or other tools that can be leveraged
and validated for this project.

➢ The project manager should avoid trying to research all of this from
scratch, but instead leverage existing documentation wherever possible,
subject to validation for accuracy and currency.

PMAC 7
 Case study
• The new shopping center project needs an external
consultant to assist with the town's zoning application.
• Three vendors have provided you with their quotes for
the work, and you refer to these values as the cost of
making a decision.
• Your team assessed each consultant's rate of success in
providing advice based on previous projects, and
estimated the impact that this advice would have on
the project. (For example, if Vendor A delivers on time,
the project would realize a $6,000 benefit; if it is late,
the project would realize a $1,000 penalty.) You plotted
the results as shown.

PMAC 8
 Case study

Interpretation
_____ means probability of online delivery
Vendor A 40% probability of on-time delivery
Vendor B 50% probability of on-time delivery
Vendor C 30% probability of on-time delivery
Interpretation
-------- means probability of overrun
Vendor A 60% probability of overrun
Vendor B 50% probability of overrun
Vendor C 70% probability of overrun

PMAC 9
 Question 3
3. Which analysis technique was used in the
image to determine the most cost-effective
choice of an external consultant?
A. Decision tree
B. Simulation
C. Delphi
D. Diagrammatic

PMAC 10
 Answer Q3
3. Which analysis technique was used in the
image to determine the most cost-effective
choice of an external consultant?
A. Decision tree
B. Simulation
C. Delphi
D. Diagrammatic

PMAC 11
 Question 4
4. What is the probability that Vendor A will
complete the project on time?
A. 60%
B. 50%
C. 40%
D. 70%

PMAC 12
 Answer Q4
4. What is the probability that Vendor A will
complete the project on time?
A. 60% See the diagram and Interpretation
_____ means probability of online delivery
B. 50%
Vendor A 40% probability of on-time delivery
C. 40%
D. 70%

PMAC 13
 Question 5
5. What is the probability that Vendor B will run
over the allotted time for the project?
A. 50%
B. 60%
C. 70%
D. 40%

PMAC 14
 Answer Q5
5. What is the probability that Vendor B will run
over the allotted time for the project?
A. 50% See the diagram and Interpretation
B. 60% -------- means probability of overrun

C. 70% Vendor B 50% probability of overrun

D. 40%

PMAC 15
 Question 6
6. What is Vendor C's expected monetary value?
A. $10,300
B. $1,700
C. $0
D. $200

PMAC 16
 Answer Q6
6. What is Vendor C's expected monetary value?
A. $10,300 Expected Monetary Value (EMV) =
B. $1,700 P x I of opportunity (best case) + P x I of threat (worst
case)
C. $0
Calculation for Vendor C (See diagram for Data)
D. $200
P x I of opportunity (best case) = 0.3 x $3,000 = $900

P x I of threat (worst case) = 0.7 x - $1,000 = - $700

Vendor C’s EMV = $900 + (- $700) = $200

PMAC 17
 Question 7
7. Your team combines each vendor's EMV and
costs. You want to choose the vendor bid with
the most economic advantage for your
organization. Based on this number, which
vendor should your team choose?
A. Vendor A
B. Vendor B
C. Vendor C
D. Vendor A and Vendor C
PMAC 18
 Answer Q7
7. Your team combines each vendor's EMV and costs. You want to
choose the vendor bid with the most economic advantage for your
organization. Based on this number, which vendor should your team
choose?
A. Vendor A
B. Vendor B
C. Vendor C
D. Vendor A and Vendor C
EMV of vendors Conclusion
Vendor A’s EMV = $2,400 + (- $600) = $1,800 We select a vendor that provides maximum
Vendor B’s EMV = $3,500 + (- $500) = $3,000 Expected Monetary Value (EMV). Vendor B
Vendor C’s EMV = $900 + (- $700) = $200 provides maximum EMV, so we will choose
Vendor B.
Cost of decision
Vendor A: $8,000 EMV represent economic advantage.
Vendor B: $6,000
Vendor C: $10,000

PMAC 19
 Question 8
8. There are necessary changes being requested to a project; however,
team members are not in agreement regarding how to implement the
changes. The Project Manager needs to address this issue.

Which action should the Project Manager take?

A. Use the change management plan and ensure all team members
and stakeholders understand and follow it.
B. Schedule an in-person meeting with the project sponsor and the
board to address the issue.
C. Hold a meeting with team members to assess the issues and
request changes where needed.
D. Ensure all requested changes are applied to the project and
communicate face-to-face with all team members.

PMAC 20
 Answer Q8
8. There are necessary changes being requested to a project; however, team members
are not in agreement regarding how to implement the changes. The Project Manager
needs to address this issue. Which action should the Project Manager take?
A. Use the change management plan and ensure all team members and
stakeholders understand and follow it.
B. Schedule an in-person meeting with the project sponsor and the board to
address the issue.
C. Hold a meeting with team members to assess the issues and request changes
where needed.
D. Ensure all requested changes are applied to the project and communicate face-
to-face with all team members.
Explanation: The change management plan describes how the change requests
throughout the project will be formally authorized and incorporated.

PMAC 21
 Question 9
9. You are coaching the business product owner. Since you are running a
project using an agile approach, early delivery of the highest value aspect of
the solution is possible, and you want the product owner to work together
with their stakeholders to assess when enough of the solution is available to
launch a Minimum Viable Product. What considerations should you NOT
choose to socialize this idea with the customer and their stakeholders?
A. You should educate them on the risk management benefits of early value
delivery.
B. You should educate them that more enhanced features will help gain
early business value.
C. will You should educate them on early feedback to the teams.
D. You should educate them that most agile solutions are in a constant state
of iteration and improvement all the time.

PMAC 22
 Answer Q9
9. You are coaching the business product owner. Since you are running a
project using an agile approach, early delivery of the highest value aspect of
the solution is possible, and you want the product owner to work together
with their stakeholders to assess when enough of the solution is available to
launch a Minimum Viable Product. What considerations should you NOT
choose to socialize this idea with the customer and their stakeholders?
A. You should educate them on the risk management benefits of early value
delivery.
B. You should educate them that more enhanced features will help gain
early business value.
C. will You should educate them on early feedback to the teams.
D. You should educate them that most agile solutions are in a constant state
of iteration and improvement all the time.

PMAC 23
 Case study
• Senior management asked you to consider the types
of organizational structure and working styles that
might be followed at your development company
that builds homes for low-income families, and the
possible impact on the projects you will be
managing.
• Your organization has departments for donations,
construction, marketing, volunteers, and finance.
• But before you start working on it, you need to
verify your knowledge on the organizational
structures and functions.
PMAC 24
 Question 10
10. In addition to the departments listed in the scenario,
your company also has a manager of project
management to oversee all of the ongoing projects. As
one of the project managers, you report directly to the
project management department but share staff with
other departments. What type of organizational structure
does this describe?
A. Functional
B. Projectized
C. Matrix
D. Composite
PMAC 25
 Answer Q11
11. In addition to the departments listed in the scenario,
your company also has a manager of project
management to oversee all of the ongoing projects. As
one of the project managers, you report directly to the
project management department but share staff with
other departments. What type of organizational structure
does this describe?
A. Functional
B. Projectized
C. Matrix
D. Composite
PMAC 26
 Question 12
12. Choose the organizational structure where
the authority of the project manager is the
highest.
A. Functional
B. Projectized
C. Matrix
D. Composite

PMAC 27
 Answer Q12
12. Choose the organizational structure where
the authority of the project manager is the
highest.
A. Functional
B. Projectized
C. Matrix
D. Composite

PMAC 28
 Question 13
13. Which organizational structure is a
combination of all the other types of
organizations?
A. Functional
B. Projectized
C. Matrix
D. Composite

PMAC 29
 Answer Q13
13. Which organizational structure is a
combination of all the other types of
organizations?
A. Functional
B. Projectized
C. Matrix
D. Composite

PMAC 30
 Case study
• The company you work for builds and
operates large shopping centers throughout
the United States, and its culture is committed
to continuous improvement.
• You are about to embark on managing your
first shopping center project, and your
sponsor is testing your knowledge about
continuous process improvements.

PMAC 31
 Question 14
14. Which of the following are key attributes of
continuous improvement? (Choose three.)
A. Better design of products to improve service
B. Exceeding customer expectations
C. Striving to always lower costs
D. Higher level of uniform product quality
E. Increasing sales through global markets
F. Minimizing changes to the project

PMAC 32
 Answer Q14
14. Which of the following are key attributes of
continuous improvement? (Choose three.)
A. Better design of products to improve service
B. Exceeding customer expectations
C. Striving to always lower costs
D. Higher level of uniform product quality
E. Increasing sales through global markets
F. Minimizing changes to the project

PMAC 33
 Question 15
15. Which of the following individuals is often
cited as the father of Total Quality
Management?
A. Crosby
B. Smith
C. Kaizen
D. Deming

PMAC 34
 Answer Q15
15. Which of the following individuals is often
cited as the father of Total Quality
Management?
A. Crosby
B. Smith
C. Kaizen
D. Deming

PMAC 35
 Question 16
16. Which continuous improvement approach is
built upon ideas coming from the workers
themselves and improvements coming from
many small changes?
A. TQM
B. Kaizen
C. Plan Do Check Act
D. Deming cycle
PMAC 36
 Answer Q16
16. Which continuous improvement approach is
built upon ideas coming from the workers
themselves and improvements coming from
many small changes?
A. TQM
B. Kaizen
C. Plan Do Check Act
D. Deming cycle
PMAC 37
 Question 17
17. A Project Manager is presented with the following situation:

- An iteration just ended.

- A team member tells the Project Manager that a planned task is not
complete due to an issue that appeared 4 days ago that was not resolved.

The Project Manager wants to prevent this scenario in the future.

When is an appropriate time to discuss this issue?

A. During the retrospective

B. In the demo
C. During the next iteration planning meeting
D. In the next daily stand-up meeting

PMAC 38
 Question 17
17. A Project Manager is presented with the following situation:

- An iteration just ended.

- A team member tells the Project Manager that a planned task is not
complete due to an issue that appeared 4 days ago that was not resolved.

The Project Manager wants to prevent this scenario in the future.

When is an appropriate time to discuss this issue?

Explanation: The
retrospective allows issues
A. During the retrospective
with the execution
B. In the demo
approach to be identified
C. During the next iteration planning meeting
and discussed in a timely
D. In the next daily stand-up meeting fashion along with ideas
for improvement.
PMAC 39