Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
You are a project manager for your company and are helping management choose a project. You’ve been presented with the following information: Project 1 has a net present value of $25,000 and will take five years to complete. Project 2 has a net present value of $45,000 and will take two years to complete. Project 3 has a net present value of $33,500 and will take six years to complete. Which project should your company choose to complete?
A. Project 1 B. Project 2 C. Project 3 D. All projects have equal value, so any project is applicable. |
Answer: B
Hint: Find the project with the largest return in the shortest amount of time. Reference: PMP Study Guide, Chapter 4 Study Guide Objective: Conduct Project Selection Methods
B is correct. The NPV of $45,000 within two years is the greatest investment of capital.
A is incorrect because Project 1 will take five years to complete and has a moderately low NPV. C is incorrect because Project 3 has a lower NPV than Project 2 and will take six years to complete. D is incorrect. The projects listed do not have equal value. |
|
|
You are the project manager for your organization and you’re working with management to determine the best project for your company. Beth, a manager, has suggested using linear programming to help determine the best project. Linear programming is an example of which project selection method?
A. Benefit/cost ratio B. Constrained optimization C. The comparative approach model D. Prioritization |
Answer: B
Hint: This method can be complex. Reference: PMP Study Guide, Chapter 4 Study Guide Objective: Conduct Project Selection Methods
B is correct. Constrained optimization methods are complex mathematical formulas and algorithms that are used to predict the success of projects, the variables within projects, and tendencies to move forward with selected project investments.
A is incorrect because benefit/cost ratios examine the cost to benefits of multiple projects. C is incorrect. This approach compares the current project to others to determine the best choice of action. D is also incorrect. Prioritization is the priority assigned to multiple existing projects within an organization. |
|
|
You are the project manager for your organization and you’re working with your project team to help coach them on the processes within project management. During this coaching you explain the difference between constraints and assumptions and how this affects project initiation. You also explain how long-term projects and short-term projects may be measured differently during project ignition. In light of this conversion, customer demands, changes to the marketplace, and opportunity are all examples of which one of the following?
A. Project constraints B. Project assumptions C. Reasons for project initiation D. The components of a long-term project |
Answer: C Hint: These are all positive inputs. Reference: PMP Study Guide, Chapter 4 Study Guide Objective: Conduct Project Selection Methods
C is correct. Projects can be initiated for varying reasons, though the most common are customer demands, changes to the marketplace, and opportunity.
A is incorrect. These are not examples of project constraints. B is incorrect because these are not assumptions. D is also incorrect. These examples are not typical components within a long-term project. They may influence the project and are thus considerations for the project. |
|
|
Management must choose a project that will be the most profitable. This approach to project selection is based on which one of the following?
A. Linear programming B. Capital management C. The economic model D. Multiobjective programming |
Answer: C
Hint: It’s for the bottom line. Reference: PMP Study Guide, Chapter 4 Study Guide Objective: Conduct Project Selection Methods
C is correct. This is a simple economic model for choosing the most profitable project.
A is incorrect. Linear programming is an example of constrained optimization. B is incorrect because this term is not valid for this question. D is also incorrect. This is an example of constrained optimization. |
|
|
You are the project manager of the NHJ Project. This project is to create a new software package for a client. You’re working with the client, business analysts, software developers, business developers, and the sales team to create the vision and requirements of the newly initiated project. Of the following, which one determines the scope of the project?
A. The project manager B. The project sponsor C. The performing organization’s management D. The customer |
Answer: D
Hint: This group or person is the most important stakeholder in a project. Reference: PMP Study Guide, Chapter 1 Study Guide Objective: Define scope D is correct because the customer determines the requirements for the project. After all, the project is completed for the customer.
A is incorrect because the project manager does not determine the requirements, but instead manages the methods to achieve them. B is incorrect because the project sponsor does not set the requirements for the project. C is also incorrect. The performing organization’s management does not set the requirements for the project. Management may have input to the process, but ultimately the customer sets the requirements of the project. |
|
|
June is managing a project which was slated to last one year. The project is now entering its third year. Of the following, which statement is most applicable to this situation?
A. The project manager must break the project into subprojects. B. The project scope has not been properly identified. C. The project team must prevent any changes from entering the project. D. The project needs to be stopped. |
Answer: B
Hint: There is one answer that can apply to all projects. Reference: PMP Study Guide, Chapter 5 Study Guide Objective: Define Scope
B is correct. The project scope has likely not been properly identified, so the project is taking longer than it should.
A is incorrect. There is no evidence in the information presented that the project should be broken into subprojects. C is incorrect. The project team may not have the power to approve or disapprove changes. In addition, the question’s information does not provide adequate information to determine whether changes are the root of the problem. D is incorrect. There is not enough information presented to determine that the project should be stopped. |
|
|
You are an IT project manager for your company and are currently defining the scope for a new project. The CIO defines project success as “implementation of standard technical components.” The project sponsor, on the other hand, defines project success as “achieving excellence in technology,” while the project customer defines project success as “the presence of sales-promoting features.” What should you do as the project manager?
A. Follow the customer’s opinion. It is their project. B. Follow the CIO’s opinion. He is in charge. C. Follow the sponsor’s opinion. He is in charge. D. Talk with the stakeholders to define the project objectives in measurable metrics. |
Answer: D
Hint: Find the opinion that can be measured. Reference: PMP Study Guide, Chapter 5 Study Guide Objective: Define Scope
D is correct. Measurable metrics cannot be applied to each of the stakeholders’ comments, and in order for the project to succeed, measurable metrics are needed.
A is incorrect. The customer did not provide any metrics for the project’s success. B is incorrect. The CIO did not provide any metrics for the project’s success. C is also incorrect. The project sponsor did not provide any metrics for the project’s success. |
|
|
Yolanda is the project manager of the newly initiated PD Project for her company. She’s working with the project team and the key stakeholders to review the project requirements and prep for the project scope creation. All of the following documents are needed to define the project scope except for which one?
A. The project charter B. The scope management plan C. The quality management plan D. Requirements documentation |
Answer: C
Hint: Find the plan that doesn’t exist yet. Reference: PMP Study Guide, Chapter 5 Study Guide Objective: Define Scope
C is correct. The quality management plan isn’t needed during scope definition. The define scope process has four inputs: the scope management plan, project charter, requirements documentation, and the organizational process assets.
A is incorrect. The project charter is an input to scope definition. B is incorrect. The project scope management plan is an input to scope definition. D is incorrect. Requirements documentation is an input to the define scope process. |
|
|
You are the project manager of the PHG project. You and your project team need to verify a project assumption. Which one of the following can most help with this process?
A. Constraints B. Historical information C. Organizational policies D. Project team members’ recollections |
Answer: B
Hint: Don’t rely on recollections. Reference: PMP Study Guide, Chapters 3 and 4 Study Guide Objective: Document Project Risks, Assumptions, and Constraints
B is correct. Historical information can most help with project assumptions.
A is incorrect. Constraints will not help the project team verify an assumption. C is incorrect. Organizational policies will set the confines of the project, but they will not help the team verify an assumption. D is incorrect. Team member recollections are not as reliable as historical information since this is an input that is documented. |
|
|
You are the project manager for your organization. You have just been assigned a new project with a predetermined budget of $250,000. This is an example of which one of the following?
A. Constraint B. Assumption C. Expert judgment D. Functional structure |
Answer: A
Hint: You’re stuck with this amount. Reference: PMP Study Guide, Chapters 1 and 5 Study Guide Objective: Document Project Risks, Assumptions, and Constraints
A is correct. A predetermined budget is a project constraint.
B is incorrect because this is not an example of an assumption. C is incorrect because this is not an expert judgment. D is also incorrect because this is not an example of a functional structure. |
