Explanation

Explanation
X1
The correct answer is A.
All the project documentation goes into the archives. Therefore, it must be completed. The archive is the last
thing to create before releasing the remaining team members.
Knowledge Area: Integration
Process Group: Closing
Source: PMP® Exam Prep
Page: 164
Explanation
X2
The correct answer is C.
This is a role of the project management office.
Knowledge Area: PM Framework/Processes
Process Group: Initiating
Page: 29
Explanation
X3
The correct answer is D.
You do not know if you have a problem until you reexamine the detailed schedule, taking into account the new
information, and determine whether or not the original schedule can still be met.
Knowledge Area: Schedule
Process Group: Monitoring & Controlling
Page: 264
Explanation
X4
To answer the question, you must first realize that it is never appropriate for a project manager to just cut
estimates across the board. You should have created a project estimate based on realistic work package
estimates that do not include padding. Then, if costs must be decreased, you can look to cut quality, decrease
risk, cut scope, or use cheaper resources (and at the same time, closely monitor the impact of changes on the
project schedule). One of the worst things a project manager can do is to start a project knowing that the
schedule or cost for the project is unrealistic. Did you notice the choice of adding additional resources? Even
though they have lower hourly rates, that would add cost. Evaluating, looking for alternatives, and then reporting
the impact of cost cutting to the sponsor is the best action to take.
Knowledge Area: Cost
Process Group: Planning
Page: 238
Explanation
X5
The correct answer is B.
Risk is so important that it must be discussed at all team meetings.
Knowledge Area: Risk
Page: 479
Explanation
X6
Cost-benefit analysis is done earlier in the project to help select between alternatives. All the other choices are
done during the Close Project or Phase process. Therefore, performing cost-benefit analysis must be the best
answer.
Page: 164
Explanation
X7
Did the term probabilistic risk analysis confuse you? Be prepared to see terms that are described, but not
named, on the exam. A prioritized list of quantified risks from Quantitative Risk Analysis is an input to the Plan
Risk Responses process.
Page: 466
Explanation
X8
The important words here are "subdividing project work packages." This indicates a WBS has already been
created, and it is being further broken down into activities. If the question said the team was subdividing "project
deliverables," the answer would have been creating a WBS. Remember, that decomposition is a tool for both
creating the WBS and defining activities.
Page: 224
Explanation
X9
An improved work authorization system might help ensure things get done on time and that people know what
work they need to do and when, but it is not related to quality. Using cause-and-effect diagrams when there is a
defect looks backward. It is reactive, so it is not the best choice. Risk response plans are created to address
risks that have been identified and qualified. Ongoing quality audits directly deal with quality improvements to
processes and the quality management plan.
Knowledge Area: Quality
Process Group: Executing
Page: 334
Explanation
X10
Quality is defined as conformance to requirements and specifications. We do not achieve quality if we exceed
expectations, get a verbal OK, or stop adding features requested by the customer. The best answer here is
when the requirements have been met.
Page: 322
Explanation
X11
This is another question about the process of project management. Remember that every project has a product,
service, or result. Some of those could be intangible. The product of the project is created in project executing.
Page: 95
Explanation
X12
A review of cost proposals could be done, but it is not a pressing issue based on the situation provided.
Examining the budget reserves could also be done, but not until risk planning is completed. It is always
important to carefully complete a project charter, but there are other issues needing detailed attention in this
situation. Since this project has never been done before, and there will be a large cost outlay, it would be best
for the project manager to spend more time on risk management. Risk identification is the most proactive
response and will have the greatest positive impact on the project.
Page: 453
Explanation
X13
Calculating estimate to complete is done in project monitoring and controlling.
Page: 294
Explanation
X14
All five process groups are addressed in each project. It is the responsibility of the project manager to determine
the level of attention to give to each process group.
Page: 60
Explanation
X15
Stakeholder management is an ongoing effort throughout the project. This work begins in initiating, with the
Identify Stakeholders process. It continues in planning with Plan Stakeholder Management, in executing with
Manage Stakeholder Engagement, and in monitoring and controlling with Control Stakeholder Engagement.
Knowledge Area: Stakeholder
Page: 584
Explanation
X16
Because the team is inexperienced, the part of procurement that they should attend to first is looking for any
existing procedures related to the procurement process (organizational process assets). Based on the situation
in the question, another good option for this team is to look for anyone who might be able to provide them with
expert judgment. This could be a lawyer or procurement expert. Additionally, since project managers are
supposed to be involved in the procurement process, even if it is managed by another department, the project
manager should be involved in the selection of a contract type.
Knowledge Area: Procurement
Page: 507
Explanation
X17
This is the essence of Herzberg's hygiene factors.
Knowledge Area: Resource
Page: 386
Explanation
X18
The project scope statement is created in project planning. All the other choices are addressed in project
initiating.
Page: 89
Explanation
X19
Activities A and F have float and are not on the critical path.
Page: 245
Explanation
X20
The new activity is added to the critical path making it easy to compute the new duration. The critical path is
Start, A, B, C, G, H, J, K, End which equals 44. Adding activity R, with a duration of 5, the critical path changes
to Start, A, R, B, C, G, H, J, K, End with a duration of 49.
Page: 243
Explanation
X21
This type of payment is not a bribe.
Page: 603
Explanation
X22
The seller can try to negotiate changes or simply continue the original contract and refuse requests to complete
additional work, but the seller cannot unilaterally decide to start over with a new contract. Both parties have to
agree to this option through negotiations.
Page: 540
Explanation
X23
Delaying the issue is called withdrawal.
Page: 396
Explanation
X24
You need to select an activity on the path with activity G. This will allow activity G to start and finish earlier,
meeting the milestone.
Page: 253
Explanation
X25
Do you know the terms for the forms of PMO? The main types are supportive, controlling, and directive.
Authoritative and dictatorial PMOs are made-up terms. This question provides the definition of a directive PMO.
Such a PMO typically provides project managers for projects and is responsible for the results of those projects.
This type of PMO exercises a high level of control over projects.
Page: 29
Explanation
X26
A lessons learned document describes more than just the decisions made. It should include what went right,
wrong, progress, etc.
Page: 110
Explanation
X27
Discussing feedback refers to lessons learned. Obtaining customer sign-off and reviewing project documentation
are always part of closure. When project closure occurs at the end of the project (as opposed to at the end of a
phase), the project management plan would not need to be updated, making that the exception.
Page: 164
Explanation
X28
This question tests two areas: your knowledge of stakeholders and your understanding of the level of
stakeholder involvement that would justify including the official in meetings. The government official could be a
stakeholder, but that alone is not a definitive reason to include him in meetings. The fact that the official could
negatively impact the project justifies the need to include him in such meetings.
Page: 576
Explanation
X29
Notice the use of the word "detailed." Such a budget is created during project planning.
Page: 92
Explanation
X30
The project charter is created in initiating. The project management plan and risk management plan are outputs
of project planning. Project records, including the charter and all management plans, are archived in the Close
Project or Phase process.
Page: 164
Explanation
X31
Every project must be closed, as closure provides benefit to the performing organization. This means simply
stopping work is not the best choice. Shifting work and releasing team members will only postpone dealing with
the problem, not solve it. The best thing for the project manager to do is begin the Close Project or Phase
process.
Page: 164
Explanation
X32
The requirements management plan includes a plan for what will be included in the requirements traceability
matrix. The requirements management plan is an output of the Plan Scope Management process. The other
output of that process is the scope management plan.
Knowledge Area: Scope
Page: 186
Explanation
X33
Develop Project Charter occurs in project initiating.
Page: 90
Explanation
X34
You want to capture data at the end of each phase of a project. If you wait until the end of the project, you may
forget important information.
Page: 163
Explanation
X35
Since this is an issue involving everyone, everyone should be involved in the solution. Spending extra time with
the team on creating the WBS is generally a good idea, but it does not specifically address cultural issues. The
best choice is to ask one person at each team meeting to describe something unique about their culture. This
will lead to better understanding among people of different cultures, and help to avoid potential culture-related
problems.
Page: 602
Explanation
X36
If your organization retains the intellectual property rights, the organization can reuse the work without issue. If
not, they cannot reuse their efforts with company B.
Page: 601
Explanation
X37
Look for the proactive approach. When we plan for quality, we define the appropriate level of quality needed,
which will improve quality overall and will likely be less expensive over the long run. NOTE: You may spend
more initially on determining the right level of quality and doing the work to produce the required level of quality,
but you will save through reduced rework, waste, and scrap.
Page: 324
Explanation
X38
A quality audit assesses the effectiveness of quality processes, not deliverables. Variance analysis is used to
analyze variances in cost or schedule performance. A cause-and effect-diagram could be used at a later point to
determine why the defect occurred, but the question is asking how to prevent a worker from getting a deliverable
with defects. An inspection would have prevented the other project from providing you with a defective
deliverable.
Page: 338
Explanation
X39
This situation does not describe an actual measurement (a monitoring and controlling activity), but rather a
meeting occurring during project executing.
Page: 97
Explanation
X40
The project manager should be assigned during project initiating.
Page: 63
Explanation
X41
As a general rule, one cannot say that quality (as defined in the question) is either of high or low cost. Quality
provides what the customer wanted, which may not be the lowest or highest cost. When a product or service
completely meets a customer's needs, quality is achieved.
Page: 322
Explanation
X42
If you have completed the Plan Risk Responses process, strategies have already been created. You will not
implement these responses until the identified risks actually occur. Workarounds are created when unidentified
risks have occurred. To answer this question correctly, you need to remember that Plan Risk Responses is one
of the few planning processes that have change requests as an output. You also need to remember the concept
of rolling wave planning, to understand that some risk responses may be developed or refined after the project
baselines have been established. New risk response plans may entail changes to the project baselines.
Page: 470
Explanation
X43
The contract with the original seller specifically included a five-day window for cancellation. Since the
cancellation notice was not issued within that amount of time, the contract can no longer be cancelled. You still
would want to take advantage of the opportunities presented to you, by using the existing hardware and
redeploying the ordered hardware whenever possible.
Page: 529
Explanation
X44
While still employed by the construction firm, the project manager's primary obligation is to the construction firm,
not to the design firm. There is a conflict of interest in this case. The project manager's failure to fully disclose his
new position while continuing to negotiate and approve bids on behalf of his current employer is not appropriate.
Page: 604
Explanation
X45
Stakeholders can be identified throughout the project. However, the earlier stakeholders are identified, the better
for the project. If all the stakeholders' needs and requirements are taken into account before plans are finalized
and project work is begun, fewer changes will be needed later in the project, when they will be more costly.
Page: 576
Explanation
X46
Bottom-up estimates require that the project be defined and well understood before estimating, but this is a
disadvantage, as compared to analogous estimating. Analogous estimates are less costly to create and overall
project costs will be capped for a project analogous estimate. Bottom-up estimates are based on detailed
analysis of the project; therefore, they are more, not less, costly to create. An advantage of bottom-up estimating
is that bottom-up estimates are more accurate than analogous estimates.
Page: 287
Explanation
X47
There is no reason to think that the board's rejection would not contain an explanation already, since providing
that information is commonly done. Suggesting a change process that circumvents the change control board's
authority is not ethical. There is no reason to think that approval processes are not already in place. A rejected
change should be recorded for historical purposes, in case the idea is resurrected later, and for other reasons.
Page: 163
Explanation
X48
The project manager is neither empowered nor competent to determine the legality of company procedures. The
other choices all represent responsibilities of the project manager.
Page: 549
Explanation
X49
The estimates received in the project management process before the final schedule are based on "how much
or how long will it take." It is also important to check "when" on a calendar basis the work can be done.
Enhancing team buy-in may also result from this, but confirmation that the work fits the schedules of those
assigned is the most critical reason to seek agreement.
Page: 240
Explanation
X50
Project network diagrams are schematic displays of the logical relationships among activities.
Page: 227
Explanation
X51
This is a legitimate fee for special accommodations. It is therefore not a bribe.
Page: 603
Explanation
X52
The project manager knows the project risks. They need to make sure provisions are included in the contract to
address these risks.
Page: 504
Explanation
X53
You do not necessarily take written notes or express empathy, although the latter might be useful. You do not
mirror the speaker's nonverbal cues, nor do you point them out. The best description of effective listening is
attending to the speaker without distractions, confirming what the speaker says, and taking note of body
language.
Knowledge Area: Communications
Page: 422
Explanation
X54
Notice that this question asks about the use of a tool of project management. Many people can learn from a
book what a lessons learned register is, but questions like this can more readily be answered if you actually use
the tool and know from experience its value. Ask yourself about the other tools of project management. Why are
they beneficial? The best uses of lessons learned are as continuous improvement tools within the current
project, historical records for future projects, and tools for improving the organization’s processes and systems.
There are other tools that are better for accomplishing the things listed in the other choices.
Page: 44
Explanation
X55
Fast tracking does not result in decreases in project resources, project costs, or the level of management
oversight required. Fast tracking means making more activities happen at the same time. The result is a
decrease in project duration.
Page: 252
Explanation
X56
To answer this question, you need to know the procurement processes. The question is taking place in Plan
Procurement Management. The next procurement process is Conduct Procurements. Selected sellers, change
requests, and project management plan updates are outputs of that process.
Page: 541
Explanation
X57
Many people choose to perform a quality audit. However, performing a quality audit relates to determining
whether you are using the right processes and whether those processes are effective, rather than improving
processes. Discovering non-value activities is part of process analysis.
Page: 334
Explanation
X58
The buyer has the right to terminate the contract for cause or if the seller breaches the contract by not
performing in accordance with the contract. Therefore, the procurement should enter closure. Any disputed
payments or terms should be handled according to the dispute resolution procedures in the contract.
Page: 549
Explanation
X59
You have a responsibility to address this situation. Reporting the incident is not problem-solving; it is a form of
withdrawal. Rather, you should initiate a discussion of diversity and professional behavior to avert similar
behavior in the future.
Page: 602
Explanation
X60
Changing to a component with a lower life cycle cost will not decrease project costs; it will just decrease costs to
the organization after the results of the project have transitioned into ongoing business operations. Using a more
experienced resource will almost always lead to higher costs, and making activities occur concurrently could
affect costs later, due to the increased risk. Although it may not be the first choice to think of, deleting a test
would decrease project costs, so it is the best answer offered. It may also decrease quality, there are possible
impacts to customer satisfaction but that is not what the question is asking you to solve.
Page: 306
Explanation
X61
You want to document the change to be sure that everyone gets the message, but it does not require formal
communication.
Page: 420
Explanation
X62
The question is asking, "What is done after Estimate Activity Durations?" Collecting historical records, creating
an activity list, and updating the WBS are done before Estimate Activity Durations. Schedule compression is
done as part of the Develop Schedule process, after Estimate Activity Durations.
Page: 252
Explanation
X63
Product reviews, audits, and walkthroughs are all forms of inspections, which may be used in the Validate Scope
process. Sensitivity analysis has nothing to do with validating scope, and is not a form of inspection.
Source: PMBOK® Guide
Page: 166
Explanation
X64
Monte Carlo analysis is a modeling, or simulation, technique. Three-point estimating uses three time estimates
per activity. One could use data from past projects to come up with the estimate (analogous estimating), but the
best answer is parametric estimating because history is being used to calculate an estimate.
Page: 232
Explanation
X65
Control accounts allow for the aggregation and analysis of work performance data so the project manager knows
how the work to produce the project deliverables is progressing.
Page: 201
Explanation
X66
Simulations can be used to assess the feasibility of meeting scheduled dates under adverse conditions. Using a
simulation technique such as Monte Carlo would tell you if there is a problem. This type of analysis should be
done before any of the other choices.
Page: 259
Explanation
X67
You should decline the offer. You should also report the offer to your manager, to avoid any indication of
impropriety.
Page: 604
Explanation
X68
Quality audits are a necessary part of the Manage Quality process. They help you assess whether the
processes are being followed correctly on the project.
Page: 334
Explanation
X69
Project management activities include work to ensure that the product scope is achieved.
Page: 183
Explanation
X70
You need to focus on the needs of the stakeholders. By understanding their needs, you will be far ahead in
developing a structured approach that fits their needs. Generally, there is no problem with doing both activities.
Page: 47
Explanation
X71
Notice how some choices contain statements that are true as well as statements that are not true. The WBS
makes use of the knowledge gained while creating the product description, but the product description is created
in project initiating, not project executing. The communications management plan is included in the project
management plan, but the WBS is created after the project charter. Again, not a completely correct choice. The
product description contains the customer's, not the sponsor's requirements, so that choice cannot be best.
"There must be an attempt to gain a complete product description before the project is initiated" is a correct
statement. This effort may be the result of another project to determine the requirements.
Page: 88
Explanation
X72
The activities of product validation, updating records, performing a procurement audit, and archiving lessons
learned are all activities of procurement closure, which is a part of the Control Procurements process.
Page: 551
Explanation
X73
Theory Y is the belief that people can direct their own efforts. Know the difference between Theory X and Theory
Y for the exam.
Page: 385
Explanation
X74
Analogous estimating uses expert judgment and historical information to predict the future. It is faster to use than
bottom-up estimating. The other choices shown are advantages of bottom-up estimating. Don't be misled by the
misdirection in the question. Although nothing in the question suggests you need a particularly fast estimate, "It
is faster" is the only answer that accurately describes analogous estimating.
Page: 287
Explanation
X75
Projects must be closed out, no matter the circumstances under which they end. Even if the project is not
completed, there is benefit to this process. The best reason of the choices here is that the closing process
gathers lessons learned for the benefit of future projects.
Page: 164
Explanation
X76
If you cannot determine an exact cost impact of the event, use qualitative estimates such as Low, Medium, and
High.
Page: 455
Explanation
X77
Did you notice that planning and executing are the only process groups offered as choices? Therefore, design
and integration can be eliminated as options. Doing the actual work (in executing) will generally take the most
project time and resources.
Page: 95
Explanation
X78
Conflict on projects is caused by schedules, project priorities, resources, and technical opinions—in that order.
Personality is the least common source of conflict.
Page: 396
Explanation
X79
The fact that the project manager was able to quickly recover from this potentially project-changing event
indicates that there was a plan in place for such an occurrence.
Page: 474
Explanation
X80
There are many things the project manager must do during project executing. However, workarounds are not
planned, and risk owners are not assigned to identify risks. Risk owners are the ones to take action when an
identified risk occurs. It is a responsibility of the project manager to look for unexpected impacts of implemented
risk responses.
Page: 475
Explanation
X81
Crashing leads to a shorter schedule, not a longer one. Doing more activities in parallel relates to fast tracking.
Although crashing includes efforts to minimize cost impact, it can result in increased cost. However, this does
not mean there will be added schedule risk.
Page: 253
Explanation
X82
Although the word "stakeholder" is used in the question, this is not an example of stakeholder analysis, nor is it
an example of scope management, as the situation described relates to past projects. Such information can
result in the identification of risks, but this is not an example of risk identification. The question describes
historical information, which is extremely valuable to consider when beginning a project.
Page: 44
Explanation
X83
This type of payment is not a bribe.
Page: 603
Explanation
X84
Straight-line depreciation uses the same amount each time period.
Page: 132
Explanation
X85
Notice that the choices for this question include the definitions for many of the control tools. Such questions can
easily confuse you if you do not remember why you use each of the tools. A histogram is used to show
information in its order of priority. Team and functional responsibilities are shown on many responsibility charts,
but not Ishikawa diagrams, and therefore cannot be the best answers. Ishikawa, fishbone, or cause-and-effect
diagrams may be used to help organize thoughts and generate discussion.
Page: 342
Explanation
X86
Determining who will be on the change control board and determining the reporting structure may have already
been done. In any case, these choices are not directly impacted by the number of sponsors who have signed the
charter. Having a single project sponsor is not necessary. This situation implies that there are six areas
concerned with this project. In addition to focusing on the added communications requirements, you should be
concerned with competing needs and requirements impacting your efforts on configuration management.
Page: 146
Explanation
X87
There is only one project management process: initiating, planning, executing, monitoring and controlling, and
closing. The project life cycle varies based on the type of product, service, or result being developed, the
industry, and the organization.
Page: 59
Explanation
X88
Sometimes, certain classifications of changes get automatic approval on a project and do not need a change
control board's approval. For example, in an emergency, changes may be made by the project manager without
the change control board. Baselines should be changed to reflect all approved changes that impact them.
Page: 162
Explanation
X89
You could deduct the cost of the deliverable, but the situation does not say you have been invoiced for the costs.
It may not be within your area of control to simply cut the deliverable. If you did not need it, it should not have
been in the contract. However, if it were to be deleted, there would be a corresponding decrease in cost, time,
etc. The best choice that upholds the contract is to require that the deliverable be completed.
Page: 542
Explanation
X90
The number of years is already included in the calculation of NPV. The project with the highest NPV should
generally be selected.
Page: 129
Explanation
X91
The problem described occurred on another project. An attempt is being made to use that information to control
this project. Realizing that this is a control activity automatically gets you the right answer.
Page: 338
Explanation
X92
Postponing the negotiations is the most ethical choice and demonstrates good faith. Why spend time in
negotiations if it may be wasted time?
Page: 603
Explanation
X93
Creating the cost baseline and the cost control system, reserve analysis, and cost aggregation occur during
project planning. Earned value is not used for reserve analysis or cost aggregation. It is used in forecasting and
project performance reviews.
Page: 293
Explanation
X94
Creating a workaround involves determining how to handle a risk that has occurred but was not included in the
risk register. The project must be in the Control Risks process if risks have occurred.
Page: 478
Explanation
X95
You need to draw a network diagram to answer this question. This diagram has two paths: Start, 1, 2, 3, End
and Start, 1, 4, End. The original length of the first path is 10 and the second is 9, making the first path critical
and the length of the critical path 10. If activity 4 now takes 10 weeks instead of 8, the critical path would change
to Start, 1, 4, End and be 11 weeks long.
Page: 243
Explanation
X96
Completion forecasts, details of work performance, and deliverables status are all work performance reports,
which are inputs to the Manage Communications process.
Page: 379
Explanation
X97
Since they are already involved in a performance review (did you realize that?), scheduling a performance
review is not the best choice. The issues discussed here do not come with a huge negative impact to the project,
nor do they violate the contract, so a letter of default is too extreme an action. Although records of events and a
record of the meeting should be maintained, a records management system is a set of processes to be followed
related to collecting records, not the actual work of collecting the records, so updating that system is
unnecessary. The best output of the meeting would be change requests to address the problems.
Page: 546
Explanation
X98
The halo effect refers to the tendency to rate team members high or low on all factors due to the impression of a
high or low rating on one specific factor. It can result in a decision to move people into a different technical field
because they are good in their current technical field. However, just because a person is good in one technical
field does not mean they will also be good in another technical field.
Page: 382
Explanation
X99
You need to know the definition of each choice in order to determine the best answer. With Monte Carlo
analysis, you can perform multiple simulations based on three-point estimates.
Page: 259
Explanation
X100
If earned value is lower than actual cost, it indicates work is costing more than planned, resulting in cost
overage. Did it confuse you that the testing cost was significantly less than expected but the actual cost was
over the EV? This indicates that other work performed to date has cost more than the amount saved on the
testing.
Page: 294
Explanation
X101
This can be a tricky question, in that most project managers dismiss the need to focus on quality. Quality, cost,
and schedule should be considered of equal importance unless specific project objectives make any one of them
most important. Quality, cost, schedule, scope, risk, and customer satisfaction may be prioritized differently on
each project.
Page: 46
Explanation
X102
Control charts, which show whether measurements of project deliverables are within specification limits, are
used in the Control Quality process. The seller cannot generally control or review the customer’s quality process.
Checking the accuracy of costs submitted by the team is more representative of a cost audit than a quality audit,
so that option cannot be the best choice. Manage Quality, of which an audit is part, focuses on processes,
procedures, and standards. One purpose of a quality audit is to identify inefficient and ineffective policies.
Page: 334
Explanation
X103
The second team member sending an email is likely to offend the other team member and escalate the
argument, rather than convince the team member. The team member asking at the next team meeting for the
team member who misunderstands to present his interpretation singles him out as likely being wrong and will
increase his defensiveness, as well as potentially confuse the others. It is the responsibility of the project
manager to make sure that all team members understand the objectives and deliverables. The project manager
sending out an email that restates the information that the team member misunderstood is not likely to help
since the one-way communication will probably continue to be misunderstood, and, with one-way
communication, the project manager will receive no feedback or confirmation of understanding. The project
manager reviewing the project scope statement in a meeting treats all team members with respect and
preserves an individual's integrity while identifying gaps in the document. It not only helps to clarify the objectives
and deliverables for the confused team member, but allows the project manager to watch body language and to
hear from the other team members to make certain all team members understand, as well as identifying and
resolving any other issues.
Page: 601
Explanation
X104
This question is worded strangely! Get used to it because you will have many instances where it will take you
awhile to figure out what the question is asking, let alone come up with the best answer. A list of activities from
previous projects may be used as an input to defining activities on a similar project.
Page: 224
Explanation
X105
The most correct answer here is team buy-in. Without buy-in, the team is not motivated to perform.
Page: 391
Explanation
X106
Many people do not close out a procurement properly. Ensuring "the archives, administrative closure, and
closure requirements as stated in the contract are all completed" includes the components of all the other
choices and is therefore the best answer.
Page: 551
Explanation
X107
At this point, you don't have enough information to stop work on the prototype and you can't decide to mitigate a
risk until you quantify it. A workaround is not appropriate because you have not been impacted by the risk yet.
As new risks are identified, it is important to update your risk management plan, including qualifying and
quantifying risks and developing planned responses as appropriate.
Page: 458
Explanation
X108
This is an example of a question with more than one correct answer. Each of the choices could have helped to
prevent the problem, but the most correct answer is Control Resources. This process includes not only
identifying and allocating equipment, materials, and supplies, but also tracking the usage of those physical
resources. A performance review would have indicated to the project manager that additional resources would
be required.
Page: 399
Explanation
X109
All theft must be reported.
Page: 601
Explanation
X110
Generally, project risks are identified after the project charter and the WBS are created, and before the Validate
Scope process is performed. Risk identification must happen after each change to the project.
Page: 453
Explanation
X111
Remember, the internal rate of return is similar to the interest rate you get from the bank. The higher the rate,
the better the return.
Page: 130
Explanation
X112
Conduct Procurements, which includes selecting a seller and awarding a contract, is a part of project executing.
Page: 97
Explanation
X113
Often, the seller is required to inform the buyer of anything that is missing or unclear in the procurement
documents. It is in the buyer's best interest to discover missing items, since it will save the buyer money and
trouble to correct the problem early. Procurement documents must include terms and conditions and selection
criteria, as well as documentation of all the work that is to be done (which includes the procurement statement of
work). This is so the seller can price the project and know what is most important to the buyer. Well-designed
procurement documents can simplify comparison of responses. This is an important point and is the best
answer.
Page: 528
Explanation
X114
In a fixed-price contract, the seller has the cost risk and therefore wants to completely understand the
procurement statement of work before bidding.
Page: 510
Explanation
X115
This is a question about problem-solving. You need to analyze the problems and identify what caused them
before taking any other action.
Page: 396
Explanation
X116
The project manager must be involved to protect the relationship between the company and the seller.
Page: 547
Explanation
X117
You must report the activities.
Page: 601
Explanation
X118
Ensuring the various project elements are properly coordinated includes all the other choices. Therefore, it is the
best answer.
Page: 125
Explanation
X119
Cost of quality is the cost of work added to the project to accommodate quality efforts. Design of experiments is
used to determine which variables will improve quality on a project. Statistical sampling is used in quality control,
when it would take too long or cost too much to evaluate an entire group. Cost-benefit analysis is used in project
selection to compare the expected project costs to the potential benefits. It is the only tool listed that would be
useful in the situation presented.
Page: 130
Explanation
X120
The expected monetary value is probability times impact. In this case you multiply the probabilities together and
then multiply the impact. 0.20 x 0.10 x 0.20 x $1000 = $4.
Page: 461
Explanation
X121
The choices all refer to the work of managing stakeholder engagement.
Page: 584
Explanation
X122
Since the stakeholder register is a project document (versus a part of the project management plan), it can be
adjusted as needed throughout the project. Stakeholders added to the initial list of stakeholders in the project
charter would not necessitate a change request, as the charter is developed in initiating. The number of new
stakeholders is not significant. The key factor in determining if a change request is necessary is whether existing
management plans (such as communications or stakeholder engagement) will change based on the work you
will do with the new stakeholders. If the newly identified stakeholders have additional requirements that you will
add to the project, it is possible that other management plans (including schedule and cost) will also need to be
changed.
Page: 586
Explanation
X123
The rule of seven applies here. If you have seven data points in a row on the same side of the mean, statistically
the mean has shifted, calling for action to correct the problem.
Page: 340
Explanation
X124
Identify Stakeholders is not a planning process and is not an input to the initiating processes. If you don't know
the difference between the performing organization (you) and your customer before the project begins, you are
really in trouble! Identify Stakeholders is an initiating process. You need a high-level understanding of
stakeholder requirements before beginning the planning processes. This understanding is achieved through
various forms of data gathering and stakeholder analysis during initiating. Remember, however, that these
efforts may be performed throughout the project, as new stakeholders may be identified at any time.
Page: 576
Explanation
X126
Determining the product description should be a giveaway. This process is addressed in the project charter, so
we must be in project initiating. Expect many questions that require you to know what occurs in each process
group.
Page: 87
Explanation
X127
Rules for when a change should formally be made are established during project planning and must follow any
existing company policies. These rules are referenced in the project's change management plan.
Page: 146
Explanation
X127
Approved change requests are an output of Perform Integrated Change Control. The remaining items in each
choice are outputs of the Monitor and Control Project Work process.
Page: 105
Explanation
X128
Activity attributes, milestone list, and an activity list are all outputs of the Define Activities process. A network
diagram is an output of the Sequence Activities process.
Page: 225
Explanation
X129
It is not common for alternatives to be discussed at the bidder conference. They may be included in bids or
proposals and discussed later.
Page: 536
Explanation
X130
This question focuses on how to control costs, not estimating. The best way to control costs is to estimate at the
beginning of the project and check costs against the baseline throughout the project.
Page: 292
Explanation
X131
The WBS is the basis for making estimates and assigning resources. Therefore, the WBS is the correct answer.
Page: 202
Explanation
X132
When someone is given the job of project manager, they will have formal, reward, and penalty power. But just
having the position does not make the project manager either a technical or project management expert. Expert
power has to be earned.
Page: 394
Explanation
X133
In a centralized contracting environment, procurement professionals work on multiple procurements throughout
the organization. Therefore, they have less loyalty to any one project. The other choices are all benefits provided
by a centralized procurement department.
Page: 504
Explanation
X134
The exam will ask questions like this to make sure you know the benefits you should be getting out of the
processes and tools of project management. The details of what needs to be done are found in the WBS
dictionary. The names of team members are included in the responsibility assignment matrix and other
documents. Project history is found in the lessons learned and other historical records. A major benefit of a
project charter is that it documents the authority given to the project manager.
Source: PMP® Exam Pre
Explanation
X135
The scope management plan covers both product and project scope. If you are building a house, the house itself
is the product scope. The planning, coordination, and management of the work to be done to ensure the product
scope is achieved are aspects of project scope management. The "entire work of the project" encompasses the
integration of all knowledge areas; this question is specifically addressing scope.
Page: 183
Explanation
X136
The Validate Scope process involves customer acceptance of project deliverables. Strategic planning addresses
the overall mission and goals of the organization. Quantitative elaboration is a made-up term. "The ongoing
definition of a project as more information becomes available" is the definition of progressive elaboration.
Page: 88
Explanation
X137
Administrative closure is performed at the end of each phase of the project. Outputs are consistent regardless of
the phase.
Page: 164
Explanation
X138
Remember that analogous estimates can be top-down, high-level project estimates and can be used on
individual activities for bottom up estimating. The estimates rely on the performance of projects or work that is
similar (or analogous) to what is being estimated. This question is asking the benefit of an analogous project
estimate. Therefore, the analogous estimate is not based on a detailed understanding all the work. The project
manager needs more than an analogous (high-level) estimate to determine whether the project will meet the
schedule. The benefit of an analogous project estimate is that it can help clarify management’s expectations for
the project with an early evaluation of whether the constraints can be met. They can be used to help clarify
management’s expectations for the project. Any differences between the analogous estimate and the detailed
bottom-up estimate can be reconciled in the planning processes.
Page: 287
Explanation
X139
A project manager must always evaluate the situation before recommending a corrective action or a change.
Page: 162
Explanation
X140
The best choice is to attempt to find a way to decrease the cost.
Page: 539
Explanation
X141
Manage Quality is the correct choice, as it is concerned with the use of proper processes.
Page: 332
Explanation
X142
The change management process should be formal so changes don't "just happen." You manage them. You
want changes documented for historical purposes so there is an audit trail indicating why you made the
changes. The change control system is a part of an organization's enterprise environmental factors.
Page: 146
Explanation
X143
Waiting until all changes are known and then printing out a new schedule is a common error many project
managers make. Instead, the project manager should be controlling the project throughout its completion. The
situation in the question does not provide a reason to believe the schedule baseline must be changed. A project
manager must be in control of the project rather than consulting with management before making any changes.
Whenever a large number of changes occur on a project, it is wise to confirm that the business case, as stated
in the project charter, is still valid.
Page: 138
Explanation
X144
A Pareto diagram is a type of histogram. It helps to identify the most frequently occurring problems and
determine which problems to focus your attention on. The result is a higher quality project. It can be used to look
at past problems, not to predict future ones.
Page: 343
Explanation
X145
The order of magnitude estimate range is not correct. Looking again at the procurement process will tell you that
Define Scope is not a part of that process. The detailed project cost budget is created by the project manager
with input from the team. Verified deliverables are an output of Control Quality and deliverables are accepted by
the customer in the Validate Scope process.
Page: 209
Explanation
X146
Risk auditors do not measure the effectiveness of risk thresholds. The only source of potential conflict listed here
is that one of the functions of risk auditors is to investigate the effectiveness of risk owners.
Page: 489
Explanation
X147
To ensure clear, concise communications, the project manager must manage communications by deciding what
form of communication is best in each situation.
Page: 426
Explanation
X148
Using the existing capacity of other departments temporarily solves the customer's problem and gives you time
to take the right steps.
Page: 547
Explanation
X149
Assumptions are factors that are considered to be true, real, or certain without proof or demonstration.
Assumptions are analyzed as part of risk identification and planning stakeholder engagement.
Page: 134
Explanation
X150
Know the top four sources of conflict on projects (schedules, project priorities, resources, and technical opinions)
so you can answer questions such as this one. Don't be fooled because "personality" is on the list. It is not a
major cause of conflict.
Page: 396
Explanation
X151
Asking questions is a great way to learn how the project is doing and to learn of any problems or potential
problems early. By looking for problems, the project manager is being proactive. It is a great way to manage
your stakeholders and to communicate.
Page: 395
Explanation
X152
Within reason, the technical experts (generally the team members) should resolve the issue. It is unlikely there
will be an opportunity to compromise on the selection of a seller.
Page: 396
Explanation
X153
This is a result of scope management.
Page: 204
Explanation
X154
This question describes things outside of a project manager's control. It is the role of the sponsor to define the
initial project and protect it from changes.
Page: 367
Explanation
X155
The Implement Risk Responses occurs during project executing. It involves following plans to address risk
events as they occur during the project.
Page: 475
Explanation
X156
A payback period is the amount of time it takes to recoup the investment in a project.
Page: 130
Explanation
X157
Notice the phrasing of this question, "most likely not do." Expect to see questions worded on the exam in ways
that can cause you to misinterpret them. You will also see questions about things we forget to do in the real
world. "Who has time," you might say, "to determine if each problem is really solved?" One could respond with,
"Who has time not to do this? Who has time to deal with the same problem twice?" The final steps of problem-
solving include implementing a decision, reviewing it, and confirming that the decision solved the problem.
Page: 401
Explanation
X158
Contingency reserves are used to accommodate previously identified risks, and should not be used here.
Crashing, fast tracking, or reporting the situation to management are not the best choices. The project manager
must evaluate before making a decision. Even if dealing with the problem is not within the project manager's
authority, it is still her job to do the evaluation before taking any other action.
Page: 264
Explanation
X159
Just-in-time refers to inventory levels. Two events occurring in the same trial are true events. By definition, two
events that are mutually exclusive cannot happen on the same trial. Statistical independence refers to two
events not being linked.
Page: 336
Explanation
X160
Negotiation of a time and material contract is generally less extensive than negotiation of other contract types.
The other choices are advantages of a fixed-price contract.
Page: 517
Explanation
X161
The biggest problem is retaining team members until closure of the project. People often start looking for their
next project and leave before administrative closure is complete.
Page: 31
Explanation
X162
This is not really as hard as it seems. Think about it from the seller's point of view. They do not want to deal with
costs; they want the buyer to accept what they submitted. If they have to go with a lower cost to the buyer, then
something has to give. Wouldn't performance give way to time, which gives way to cost? In other words, how
would a cost estimate be generated? First look at what is being asked to be done (performance) and when it is
needed (time) and then calculate the cost of achieving those targets. Since this is basic estimating practice,
performance, time, cost is the best answer.
Page: 539
Explanation
X163
Collaborating leads to a win-win situation. Smoothing emphasizes agreement, rather than differences. The act of
both parties giving up something defines compromise. The question is asking you to identify the type of action
the project manager is taking.
Page: 396
Explanation
X164
The project manager's decision is to find a middle ground. This is compromise.
Page: 396
Explanation
X165
Logical data models, benchmarking, and cost of quality are tools of Plan Quality Management. Process analysis
is used in the Manage Quality process to discover better ways of improving or optimizing processes and
achieving the completion of quality work.
Page: 329
Explanation
X166
The project scope statement is not an input to Perform Qualitative Risk Analysis, Implement Risk Responses, or
Monitor Risks. The project scope statement is an input to both Identify Risks and Perform Quantitative Risk
Analysis, making that the only completely correct choice.
Page: 396
Explanation
X167
Performance requirements describe the performance required by the customer, not the functionality. They do not
precisely describe everything that needs to be done.
Page: 527
Explanation
X168
Conflicts need to be resolved by those experiencing the problem, not the whole team. Asking the other team
members to stay out of the issue should be unnecessary, and does not solve the root cause. The question
seems to lead one to think the project manager should solve it, but there is an even better answer. Without
knowing the details of the problem, striving for fair resolution is a better choice than simply making the decision
yourself.
Page: 398
Explanation
X169
Quality is defined as conformance to requirements. If inspection work is not performed as required in the
contract, the project's quality standards are not being met.
Page: 542
Explanation
X170
The only choice that is completely correct is reviewing the milestone list and soliciting expert judgment. Can you
identify the incorrect element in each of the other choices?
Page: 195
Explanation
X171
Don't forget that according to Herzberg's theory, salary is not a motivating agent. Linkage is very important to
make the reward valuable to both the receiver and those who did not receive it. This is more important than
giving a choice of reward or presenting the reward in public.
Page: 390
Explanation
X172
The negotiation process is not a document. The proposal, procurement statement of work, and the contract
terms and conditions are all records that need to be documented and indexed.
Page: 549
Explanation
X173
A project is a temporary endeavor with a beginning and an end, a program is a group of related projects, and a
portfolio is a group of projects and programs related to a specific strategic organizational objective. Remember
to use the process of elimination, ruling out any answer that is not completely correct.
Page: 26
Explanation
X174
A project manager must always evaluate the situation and identify options before a decision can be made. If it is
determined that a change is needed, a change request must be processed through integrated change control.
The other choices offered are not appropriate options.
Page: 542
Explanation
X175
First, you need to document the reasons the customer will not sign off on acceptance. Once you understand the
issues, you can work to resolve them.
Page: 111
Explanation
X176
Read the last line, and you will find the real question. The project manager has the least authority in a functional
organization where the functional manager is king.
Page: 31
Explanation
X177
Did you remember that the project manager is part of the communication channels? Therefore, there are actually
four stakeholders to begin with and six channels of communication. The question is asking how many total
channels of communication you have with a team of five people. The formula is [n × (n-1)]/2 or (5 × 4)/2 = 10.
Page: 424
Explanation
X178
Because of the size and varying locations of the team members, in-person meetings are impractical. Limiting
communication to only a few team members will not be effective, and will likely create dissatisfaction among
team members who are not designated to represent their groups. A resource breakdown structure is needed to
clearly show responsibilities, but will not be useful in the team development the project manager is trying to
achieve. A team charter is a working agreement developed by the members of the project team. It describes the
approach the team will take regarding communications, decision-making, and conflict resolution, as well as
ground rules for team meetings. Since the team is involved in creating the charter, they are likely to adhere to it,
and can refer to it if any team members are not following the agreed-upon guidelines.
Page: 375
Explanation
X179
Administrative closure refers to the Close Project or Phase process. Performance reporting during closure
shows project progress, not progress of individual activities. Approval is not needed to start the documentation of
lessons learned. In closing, performance reports are used to gain formal acceptance, not to show it has been
achieved. Overall, performance reporting in administrative closure communicates the success of the team.
Page: 111
Explanation
X180
Did you realize this situation is taking place during project initiating? The scope statement and resource plan are
created in project planning, and so are not yet available. Therefore, we are left with deciding if the magazine
article or a conversation with a team member who worked on a similar project provides the greater value. Since
the information gained in conversing with the team member provides input more specific to your organization, it
is the best choice.
Page: 133
Explanation
X181
Integration is a key responsibility of the project manager.
Page: 125
Explanation
X182
Beta distribution uses weighted averages to compute activity durations.
Page: 233
Explanation
X183
This question is really asking what a network diagram is used for. The primary purpose of a network diagram is
to show logical relationships.
Page: 228
Explanation
X184
Did you pick Validate Scope? Then you may have forgotten that the Validate Scope process is done during
project monitoring and controlling, not project closing. Planning the risk responses and creating the staffing
management plan are done earlier in the project. The lessons learned can only be completed after the work is
completed.
Page: 164
Explanation
X185
First, you need to determine which part of the question requires preventive action. The information about the
sellers completed statements of work, and the impressive performance of sellers who have already performed
on their contracts describe situations that are progressing well, and do not appear to require preventive action.
The part of the project that requires action by the project manage is the team member not completing their
assignments on time. Removing the team member is too drastic. Only meeting with the team member gets to the
root cause of the problem.
Page: 396
Explanation
X186
The team can be involved in activity definition. The project schedule is developed after Define Activities, in the
Develop Schedule process.
Page: 224
Explanation
X187
This question integrates a lot of information and tests your ability to discern what information is relevant to the
question. Although some figures to calculate float are provided, there is no information to say that float is a
problem. Most projects have hard-to-get resources. The question does not give an indication that having hard-to-
get resources is a problem. CPI is greater than one, so cost is not something to worry about. SPI is less than
one, and is therefore the best answer.
Page: 294
Explanation
X188
Since it is illegal, ethically, you must refuse to make the payment.
Page: 603
Explanation
X189
The project manager must facilitate a fair and equitable solution, but the customer is the first of equals.
Page: 192
Explanation
X190
Product acceptance criteria is included in the requirements documentation, not the project charter.
Page: 138
Explanation
X191
The project with the lowest benefit-cost ratio should be selected for termination.
Page: 130
Explanation
X192
Bidder conferences are held to provide all sellers a clear and common understanding of the work required.
Following the bidder conferences, negotiations are held, resulting in the awarding of a contract to the selected
seller.
Page: 536
Explanation
X193
Contacting the employee's manager and arranging a meeting is the best way to handle this discreetly and
effectively. This situation does not involve project-related activities, so resolution of the issue is not within the
authority of the project manager.
Page: 603
Explanation
X194
The only choice that computes probabilities of events happening on specific days is Monte Carlo analysis.
Page: 460
Explanation
X195
The project manager is in the Perform Qualitative Risk Analysis process. This process includes risk data quality
assessment along with probability and impact matrix development. It appears the project manager has not yet
completed the matrix, which is used to sort risks based on their probability and impact ratings. Trend analysis,
the identification of triggers, and development of fallback plans will occur later in risk management.
Page: 456
Explanation
X196
A cost-benefit analysis might have been completed during project planning, but it may not have related to the
proposed change. A project sponsor is not generally involved in changes within the project. Compiling the
information necessary for a cost-benefit analysis is a form of estimating, and it is best if the person doing the
work creates the estimates. Therefore, the team member should do what was asked, to enable the project
manager to make an informed decision.
Page: 161
Explanation
X197
A risk rating matrix is developed by a department or a company to provide a standard method for evaluating
risks. This improves the quality of the rating for all projects. It should not be changed, as this would make it
impossible to compare the risk of one project to another.
Page: 456
Explanation
X198
This the definition of continuous process improvement, which is part of Manage Quality.
Page: 334
Explanation
X199
Expect questions on the exam that require you to know in what part of the procurement process activities are
done.
Page: 536
Explanation
X200
Sending data without pointing out the issue does not mean the communication will be adequately decoded by
the recipient. The other choices describe more effective communication in this instance.
Page: 396

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