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200 Cards in this Set

  • Front
  • Back
1. During testing, multiple defects were identified in a product. The project
manager overseeing this product's development can best use which tool
to help prioritize the problems?

A. Pareto diagram
B. Control chart
C. Variance analysis
D. Order of magnitude estimate

Pareto charts are column charts that rank defects based on the number of occurrences from highest to lowest. Because this tool is based on frequency, it prioritizes the most common causes.
'B' is used to determine whether or not a process is in control.
'C' is used to measure the difference between what was planned and what was done, and 'D' is a type of estimate used in cost management.
2. You are the manager of an aircraft design project. A significant portion of this aircraft will be designed by a subcontracting firm. How will this affect your communications management plan?

A. More formal verbal communication will be required
B. Performance reports will be more detailed
C. More formal written communication will be required
D. Official communication channels will significantly increase

Because this is being done under contract, you will need to use more formal, written communication. Many people incorrectly guess 'D' on this one, but official channels of communication could just as easily decrease since you are using another company and will probably have a single point of contact as opposed to your own team of many people doing the work. 'B' is not correct since performance reports should be detailed regardless of who is doing the work.
3. What officially creates the project?

A. The project initiation document
B. The kickoff meeting
C. The project charter
D. The statement of work

The charter is the document that officially creates the project, names the project manager, and gives him authority on the project.
4. Refer to the table at right. What is the critical path?

A. Start-A-B-C-I-Finish
B. Start-A-B-H-I-Finish
C. Start-D-E-H-I-Finish
D. Start-F-G-I-Finish

This problem should be solved in 3 steps. First, draw out the network diagram based on the table. Your representation should resemble the one below:
The next step is to list out all of the possible paths through the network. In this example, they are:

The last step is to add up the values associated with each path. Using the paths above, they are:
Start-A-B-C-I-Finish = 11 units
Start-A-B-H-I-Finish = 12 units
Start-D-E-H-I-Finish = 12 units
Start-F-G-I-Finish = 16 units
The critical path is the longest one, in this case, Start-F-G-I-Finish.
5. The Delphi technique is a way to:

A. Analyze performance
B. Gather expert opinion
C. Resolve conflict
D. Estimate durations

The Delphi technique is a way to solieit expert opinion by hiding the identities of group members from each other. This prevents the group from forming a single opinion or from letting one person dominate the group.
6. The work authorization system makes sure that:

A. All the work and only the work gets performed
B. Work gets performed in right order and at the right time
C. Work is done completely and correctly
D. Functional managers are allowed complete control over who is assigned and when

The definition of the work authorization system (WAS) is found in chapter 2 and the glossary. It is a system used to ensure that work gets done at the right time and in the right sequence.
7. Your team is hard at work on their assigned project tasks when one team member discovers a risk that was not identified during risk planning.
What is the FIRST thing to do?

A. Halt work on the project
B. Update the risk management plan
C. Look for ways to mitigate the risk
D. Assess the risk

Typically you should assess, investigate, understand, and evaluate before acting. There may be exceptions to this rule, but in general you probably want to select the answer that lets you get all of the information. If there is a series of answers and you are asked what to do FIRST (as in this example), selecting the answer that allows you to be full informed is usually best. 'A' is incorrect because halting work would probably send risks skyrocketing. 'B' is a good thing to do, but not until you have full evaluated the risk. 'C' is something you may or may not choose to do, but you should not take action until you have fully assessed the risk.
8. The activity duration estimates should be developed by:

A. The person or team doing the work
B. The project manager
C. Senior management
D. The customer

This is frequendy missed because people do not fully understand the role of the team in planning. The team should help estimate and should support those estimates. If possible, the person who will be doing the work should have a say in the estimate. 'B' is incorrect because the project manager cannot possibly estimate all of the activities on the project, nor should he even try. 'C' and 'D' are incorrect since management and the customer are probably not aware of all of the low-level details needed, and their estimates would not be accurate.
9. The project plan should be all of the following EXCEPT:

A. A formal document
B. Distributed to stakeholders in accordance with the
communications management plan
C. Approved by all project stakeholders
D. Used to manage project execution

The stakeholders do not have to approve the project plan.
They may be very interested in the final product, but the actual plan cannot undergo approval by all stakeholders. Some stakeholders may never approve of the plan since they may be against the project!
'A' is incorrect because the project plan must be formal.
'B' is incorrect because the communications management plan will specify to whom you should communicate the plan. 'D' is incorrect since the purpose of the project plan is to guide execution and control.
10. You have been asked to take charge of project planning for a new project, but you have very little experience in managing projects. What will be the best source of help for you?

A. Your education
B. Your on-the-job training
C. Historical information
D. Your functional manager

Your best source of help would be the information you can use from past projects.
'A' is incorrect since education may or may not be applicable to this project, and although it is good, education is principally theoretical, while historical information contains practical, hard data.
'B' is incorrect since much practical experience only reinforces bad practices.
'D' is incorrect since functional managers have expertise in
domains but not necessarily in the management of projects.
11. The majority of the project budget is expended on:

A. Project plan development
B. Project plan execution
C. Integrated change control
D. Project communication

The majority of a project's budget is expended in the execution of the work packages. You may have guessed 'A' due to the number of processes that occur as part of planning, but most projects do not involve as many people or resources in planning as they do in execution. Choice 'D' is incorrect because, while a project manager spends 90% of his time communicating, that does not take most of the team's time or the project budget.
12. Corrective action is:

A. Fixing past anomalies
B. Anything done to bring the project's future performance in line
with the project management plan
C. The responsibility of the change control board
D. An output of project plan execution

This is a very important definition. Corrective action is making adjustments to avoid future variances.
'A' is more in line with the definition of rework.
'C' is incorrect since there may or may not be a change control board, and their job would be to approve or reject change requests that have been forwarded by the project manager.
D' is incorrect because corrective action does not come out of execution, but out of various control processes.
13. Outputs of Direct and Manage Project Execution include:

A. Deliverables and performance reports
B. Deliverables and corrective action
C. Deliverables and work performance information
D. Performance reports and change requests

This is the only one where both parts of the answer fit the definition.
'A' is incorrect since performance reports do not come out of the execution process.
'B' is incorrect since corrective action typically comes out of monitoring and controlling processes.
'D' is incorrect because performance reports do not come out of the Direct and Manage Project Execution process.
14. Your original plan was to construct a building with six stories, with each story costing $150,000. This was to be completed in four months; however, the project has not gone as planned. Two months into the project, earned value is $400,000. What is the budgeted at completion?

A. 450,000
B. 600,000
C. 800,000
D. 900,000

This type of question often appears on the PMP. It is easier than it first appears. Did you think the question was asking for the estimate at completion (EAC)?
It is the originally budgeted amount, or budgeted at completion (BAC) that the question wants. That is calculated simply by taking 6 stories and multiplying it by $150,000/story. This yields the total project amount, which is $900,000.
15. Project integration is primarily the responsibility of:

A. The project team
B. The project manager
C. Senior management
D. The project sponsor

This is an important point. The project manager is the one responsible for integration. 'A' is incorrect because the team should be doing the work. 'C' is incorrect since senior management is not involved in integration management. 'D' is incorrect since the sponsor pays for the project but is not directly involved in integration.
16. One of your team members has discovered a way to add an extra
deliverable to the project that will have minimal impact on the project
schedule and cost. The project cost performance index is 1.3 and the
schedule performance index is 1.5. The functionality was not included in
the scope. How should you proceed?

A. Conform to the project scope and do not add the deliverable
B. Deliver the extra work to the customer since it will not increase
their costs
C. Reject the deliverable because you are behind schedule
D. Ask senior management for a decision

You should not add the deliverable. The reason is that this represents "gold plating," or adding functionality over and above the scope. It is not a good idea since this introduces risk and a host of other potential problems on the project. 'B' is incorrect because you do not know how it will affect risk, quality, or other factors. 'C' is incorrect because you are ahead of schedule with an SPI of 1.5. 'D' is incorrect because it is the project manager's job - not the role of senior management - to deal with this kind of change request.
17. If a project manager is unsure who has the authority to approve changes in project scope, she should consult:

A. The customer
B. The scope statement
C. The sponsor
D. The scope management plan

The scope management plan is the document that
specifies how changes to the scope will be managed.
18. An end user has just requested a minor change to the project that will
not impact the project schedule. How should you, the project manager,

A. Authorize the change quickly to ensure that the schedule can truly
remain unaffected
B. Deny the change to help prevent scope creep
C. Evaluate the impact of the change on the other project
D. Submit the change request to the customer for approval

Any of the words "evaluate," "investigate," "understand," or "assess" should automatically put that answer at the top of your list to evaluate. 'D' is incorrect because the customer has hired you to evaluate and approve or reject change.
19. Which of the following is NOT used in initiating a project ?

A. Project statement of work
B. The contract
C. Enterprise environmental factors
D. Earned value analysis

This question was very hard, but there was a way to reason out the answer. When initiating a project, you are essentially performing two processes: Develop Project Charter and Identify Stakeholders. During those processes, it makes sense that you might use the project's statement of work, the contract, and the enterprise environmental factors. 'D', earned value analysis, would probably not be useful until (much) later when the work was being performed.
20. You overhear a casual conversation between two team members in which one confides to the other some problems he is having in completing his part of the project work. You realize that the work being discussed is on the project's critical path and that the information you overheard could
mean a significant delay for your project. What should you do?

A. Let the team member know that you heard his conversation and
discuss the work problems with him immediately
B. Begin analyzing ways to compress the project schedule in
anticipation of the potential delay
C. Ask a third team member to get involved immediately and
encourage the two other team members to come to you with the
D. Ask human resourees for help in resolving the problem

Another bias of PMI is that you should confront situations directly whenever possible. If you see a choice that represents things like confront, problem-solve, or deal with the situation directly, that is a good hint that you may be on the right answer.
In this case, all of the other choices do not deal with the actual problem. Although the first choice may not be pleasant in real life, you should deal with the situation head on and solve the problem.
21. In which group of processes should the project manager be assigned his or her role in the project ?

A. Initiating
B. Planning
C. Executing
D. Controlling

The project manager is officially named and assigned in the project charter, which is one of the outputs of Develop Project Charter, an initiating process.
22. A project charter should always include:

A. Historical information
B. The business need underlying the project
C. A detailed budget
D. The scope management plan

The project charter is a document, and that document should include the business need behind the project. This is a general description of why the project was undertaken.
23. Your project team has just received the sponsor's approval for the scope statement. What is the NEXT step that needs to be taken?

A. Develop the product description
B. Create a work breakdown structure
C. Hold the kickoff meeting
D. Create the network diagram

The scope statement is an output of Define Scope. The next step is the Create WBS process, and the output of that is the work breakdown structure (WBS).
24. Which of the following is NOT an input into Define Scope?

A. Accepted deliverables
B. Organizational process assets
C. Project charter
D. Requirements documentation

Hopefully your instincts kicked in here and said "this won't happen until later." If so, then you were right, Accepted deliverables are an output of Verify Scope. During Define Scope, you are still trying to determine what the scope will include.
25. The key function of the project manager's job in project integration is:

A. Minimizing conflict to promote team unity
B. Making key decisions about resource allocation
C. Communicating with people of various backgrounds
D. Problem-solving and decision-making between project subsystems

The project manager's job during integration is to solve problems and make decisions. It is not the team's job to do this! Their job should be to execute the work packages. The project manager should be fixing the problems that come up and keeping the team focused on the work.
26. In which of the following documents could the sponsor find work package descriptions?

A. The work breakdown structure dictionary
B. The project charter
C. The scope management plan
D. The project scope statement

Work package descriptions are contained in the WBS dictionary.
27. The process in which project deliverables are reviewed and accepted is called:

A. Plan scope
B. Verify scope
C. Initiation
D. Control scope change

Verify scope is the process where the customer and sponsor verify that the deliverables match what was in the scope.
28. A statement of work is:

A. A type of contract
B. A description of the project's product
C. Necessary for every project
D. A description of the part of a product to be obtained from an outside vendor

The statement of work (SOW) describes the pieces of the project that are to be performed by an outside vendor. It often starts off general and is revised as the project progresses. 'A' is incorrect because the SOW does not meet the strict qualifications of a contract. 'B' is incorrect because it is too broad - the SOW is only about the pieces that will be outsourced. 'C' is incorrect because an SOW is not needed for all projects - only those that will be procuring parts.
29. A commercial real-estate developer is planning to build a new office complex. He contracts with a construction firm to build one of the buildings for the actual cost of providing the materials and services plus a fixed fee for profit. What type of contract does this scenario represent?

A. Independent vendor
B. Fixed price
C. Cost-reimbursable
D. Time and materials

This meets the definition of a cost-reimbursable contract.
'A' is a made-up term. 'B' is incorrect since the price is not fixed. 'D' is also incorrect. If you selected this one, you should review the difference between the time and materials and cost-reimbursable contracts.
30. You and your spouse both work for large companies in different industries. However, one day you learn that your company will be soliciting bids for a project and your spouse's company intends to bid.
Your spouse will not be involved in the bidding process or any of the work it might produce if won. What should you do?

A. Request to be transferred off the project
B. Inform management of the situation
C. Say nothing and go on with the bidding process
D. Say nothing but set up a system of checks and balances to ensure
that your team selects the contractor impartially

In the code of conduct, PMPs are instructed to avoid conflicts of interest. Your strategy in selecting answer 'B' should have been to look for the one choice that both solved the problem and avoided the conflict of interest. 'A' is incorrect because leaving the project represents avoidance and does not deal with the issue directly.
'C' is incorrect because the conflict of interest remains.
'D' is incorrect because by saying nothing, you are not dealing with the situation directly.
31. Which of the following is NOT a purpose that Create WBS serves?

A. To increase the accuracy of estimates
B. To help facilitate roles and responsibilities
C. To document the relationship between the product and the
business need
D. To define a baseline for project performance

Documenting the relationship between the product and the business takes place before Create WBS. A justification of the business need is included in the project charter.
'A', 'B', and 'D' all fall under the definition of Create WBS.
32. You are assigned to replace a project manager on a large software project for a telecommunications company in the middle of executing the work. Portions of the software are being supplied by subcontractors working at your company's offices. You would like to know what performance metrics are going to be tracked for these contract workers. Where could you find such information?

A. The project charter
B. The procurement management plan
C. The work breakdown structure
D. The organizational chart

The procurement management plan, which is created in the Plan Procurements process, includes performance reporting specifications. If one of the choices had been "the communications management plan", that might have been a better selection, but given the choices provided, 'B' was the best one.
33. Which of the following is NOT a type of contract?

A. Cost-revisable
B. Fixed-price
C. Cost-reimbursable
D. Time and materials

Cost-revisable is not a valid choice (and from the sound of the name, it does not sound particularly safe to either party)! Choices 'B', 'C', and 'D' are all valid contract types.
34. Your team has identified a component that they need for a project. There is some concern that they have never constructed a component like this one, but there are similar components available from sellers. Which of the following procurement activities would be MOST appropriate to perform?

A. Solicitation
B. Make-or-buy analysis
C. Benefit/cost analysis
D. Conduct procurements

In this case, make-or-buy analysis is the most appropriate.
It is where you decide whether your organization should create the product or whether you should go through procurement.
Choice 'A' would be an activity that was performed later in the process.
Choice 'C' is a tool for measuring whether a project is worth pursuing and is performed in initiation.
Choice 'D' is also an activity performed after the decision has been made to go through procurement.
35. The activity list serves as an input to:

A. Create WBS
B. Define Activities
C. Estimate Activity Durations
D. Plan Resources

With activities, the important order is define - order - estimate.
The activity list is an input in Estimate Activity Durations.
36. The person or group that formaIly accepts the project's product is:

A. The qualiry team
B. The customer
C. The project team
D. Senior management

Many people may formally accept the product, but in this list, the customer is the only one that fits the definition.
37. The schedule activity list:

A. Serves as an extension of the work breakdown structure
B. Is synonymous with the work breakdown structure
C. Is used to create the project scope statement
D. Is included in the project charter

The activity list is a decomposition of the WBS.
It takes the work packages and breaks them down into
activities that can be sequenced, estimated, and assigned.
38. Float refers to:

A. A method for decreasing risk on a project
B. How long an activity can be delayed without affecting the critical
C. A time lapse between a project communication and the response that follows
D. The difference between the budgeted cost and actual cost

Float is how long an activity may be delayed without delaying the project. Choice 'B' is the only one that fits this definition.
39. If a project scope requires goods or services that must be obtained
outside the project organization, what management process will be used
in obtaining them?

A. Project contract management
B. Project solicitation management
C. Project procurement management
D. Project source management

Procurement management is used when you go outside
of the project for components of the project.
40. You are producing a training video for your company's human resource department. After the project is underway, a member of senior management requests that you use a copyrighted piece of music as background in the video. This video will not be sold or viewed outside of your company. As the project manager, you should:

A. Use the song as requested by management
B. Investigate obtaining permission from the music publisher to use the song
C. Submit the request to the change control board
D. Produce the video without the song as specified in the project plan

This best choices here may be narrowed down to 'B' and 'D'.
Think of this senior management request as a change request.
Why would you simply ignore it without investigating further?
'B' is the better of the two answers since it solves the problem.
If 'D' appears to be a better choice, consider that it actually
represents conflict avoidance, which is almost never a good
41. What is the most important function the project manager serves?

A. Staffing
B. Motivating
C. Team building
D. Communicating

Communication is the most important activity because the
project manager spends an estimated 90% of his time communicating.
42. If a task has been estimated at 0 = 4 days, P = 9 days, and M = 7, what is the standard deviation?

A. 5/6 of a day
B. 6.83 days
C. 1/3 of a day
D. 1/2 of a day

The formula for standard deviation on a PERT estimate is
(P-O) / 6. This equates to 5/6. If you guessed 'B', you were
probably thinking of the formula for a PERT estimate.
43. Refer to the table at the right. If task H were increased from 3 to 7, what impact would this have on the project?

A. The project would finish later
B. The project would finish earlier
C. The schedule risk would decrease
D. The critical path would change, but the finish date
would not change

At first glance, many people think that the wording of answer 'D' is impossible, but it is the correct choice. This problem should be solved in the usual 3 steps with one additional step at the end. (Did you notice that this was the same project network diagram as shown earlier? This is not uncommon on the PMP.)
First, draw out the network diagram based on the table.
Your representation should resemble the one below:

The next step is to list out all of the possible paths through the network. In this example, they are:

The third step is to add up the values associated with each path. Using the paths above, they are:

Start-A-B-C-I-Finish = 11
Start-A-B-H-I-Finish = 12
Start-D-E-H-I-Finish = 12
Start-F-G-I-Finish = 16

The final additional step is to increase the value of H from 3 to 7 and evaluate the impact. That would change the list to:

Start-A-B-C-I-Finish = 11
Start-A-B-H-I-Finish = 16
Start-D-E-H-l-Finish = 16
Start-F-G-I-Finish = 16

The answer, therefore, is that the critical path would change (there are now 3 critical paths), but the end date remains the same. Moving from 1 critical path to 3 increases the schedule risk considerably, invalidating choice 'C'.
44. All of the following are needed for creating the project budget except:

A. The cost estimates
B. The schedule
C. The contract
D. The cost performance baseline

The cost performance baseline is another term for the budget.
'A', 'B', and 'C' are all inputs into the process of Determine
Budget, where the budget is created.
45. Your company's CIO has requested a meeting with you and two other project managers for a status update on your various projects. What is the BEST document you can bring with you to this meeting:

A. The milestone chart for this project
B. The network diagram for this project
C. Copies of the most recent status reports from the team members
D. The project charter

Milestone charts are useful for communicating high-level status on a project. This represents the best of the 4 choices. 'B' would be far too much detail for an executive status meeting. 'C' would not be a bad thing to bring, but it would not be the best document for showing status. 'D' would not provide the status that the CIO seeks.
46. Resources are estimated against which project entity:

A. The work packages
B. The schedule activities
C. The scope baseline
D. The level set by the project office

Resource requirements should be developed against the schedule activities. This is a level below the work packages. That is why they are properly called "activity resource requirements."
47. Analogous estimating uses:

A. Estimates of individual activities rolled up into a project total
B. Actual costs from a previous project as a basis for estimates
C. Computerized estimating tools
D. Parametrie modeling techniques

Analogous estimates, also called top-down estimates, use
previous project costs as a guideline for estimating.
48. If the optimistic estimate for an activity is 15 days and the pessimistic estimate is 25 days, what is the realistic estimate?

A. 19 days
B. 20 days
C. 21 days
D. Unknown

You cannot calculate the three-point estimate without knowing values for optimistic, pessimistic, and realistic. In this case, you are only provided with 2 of the 3 numbers, therefore the answer is unknown.
49. What does the standard deviation tell about a data set?

A. How diverse the population is
B. The mean of the population as it relates to the median
C. The specification limits of the population
D. The range of data points within the population

The standard deviation measures how diverse the population is.
It does this by averaging all of the data points to find the mean, then calculating the average of how far each individual point is
from that mean. For a very diverse population, you will have a high standard deviation. For a highly similar population, your
standard deviation will be low.
50. Quality management theory is characterized by which of the following statements:

A. Inspection is the most important element for ensuring quality
B. Planning for quality must be emphasized
C. Contingency planning is a critical element of quality assurance
D. Quality planning quantifies efforts to exceed customer expectations

This is the best answer. Modern quality management stresses planning and prevention over inspection. This is based on the theory that it costs less to prevent a problem than it does to fix one. 'A' is incorrect, since prevention is stressed over inspection. 'C' is incorrect since contingency planning is part of risk management - not quality management. 'D' is incorrect since Plan Quality seeks to satisfy the quality standards. It is not focused on exceeding customer expectations.
51. Which of the following is NOT emphasized in project quality management?

A. Customer satisfaction
B. Team responsibility
C. Phases within processes
D. Prevention over inspection

Phases within processes is a made-up term and is not stressed in quality management.
Many people mistakenly select 'A' for this; however, quality management does stress that the customer's specifications should be taken into account (the implication being that if the customer's specifications are satisfied, the customer should be satisfied with the product). 'B' is incorrect because Deming's TQM philosophy stresses that the entire team has a responsibility toward quality. 'D' is incorrect because prevention over inspection is a big thrust of quality management, stressing that it costs less to prevent a problem than it does to fix one.
52. Scatter diagrams, flowcharts, run diagrams, control charts, and inspection are all techniques of what quality process?

A. Plan Quality
B. Perform Quality Control
C. Perform Quality Execution
D. Define Quality Metrics

Perform Quality Control is the process that uses these five tools. The tool of inspection should have tipped you off and helped you eliminate 'A' and 'C', 'D' is a made up process name that is not mentioned anywhere else in this book.
53. Which of the following is NOT an input to Plan Quality?

A. Enterprise environmental factors
B. Organizational process assets
C. Quality metrics
D. Risk register

Organizational process assets, enterprise environmental, and the risk register are all used as inputs into Plan Quality, but the quality metrics is an output.
54. The procurement management plan provides:

A. Templates for contracts to be used
B. A formal description of how risks will be balanced within
C. A list of preferred sellers
D. The types of contracts to be used for items being procured

Contract type selection is a tool used in procurement planning. The type(s) of contract(s) used are included
in the procurement management plan.
55. Ultimately, responsibility for quality management lies with the:

A. Project team
B. Quality team
C. Project manager
D. Functional manager

The project manager is ultimately responsible for the quality of the product. If you guessed 'A', you were on track because Deming said that the entire team is responsible, but the word "ultimately' is the key here. The person ultimately responsible is the PM. 'B' is incorrect because the quality team is not a team identified by PMI. 'D' is incorrect because functional managers may be very involved in the quality management process, but they are not ultimately responsible.
56. All of the following are tools used in Perform Quality Control EXCEPT:

A. Benchmarking
B. Pareto charts
C. Histograms
D. Statistical sampling

This one is tricky because all of these tools are used in quality management! 'B', 'C', and 'D' are all used in Perform Quality Control, but 'A' is used in Plan Quality and Perform Quality Assurance. Benchmarking is used to establish quality standards based on the quality attributes of other projects, and it is not used in Perform Quality Control, where the standards should already be set.
57. Control charts are:

A. Used in product review
B. Used to chart a project's expected value
C. Used to determine if a process is in control
D. Used to define a statistical sample

The purpose of a control chart is to statistically
determine if a process is in control.
58. Which of the following statements regarding stakeholders is TRUE?

A. They have some measurable financial interest in the project
B. Their needs should be either qualified or quantified
C. Key stakeholders participate in the creation of the stakeholder
management plan
D. They may either be positively or negatively affected by the
outcome of the project

Stakeholders may want the project to succeed or fail!
They may benefit or lose if the project succeeds.
This is contrary to the way the word is used in many circles,
and it is hard for many people to think of a stakeholder as
potentially being hostile to the project.
59. A probability and impact matrix is useful for:

A. Identify Risks
B. Perform Qualitative Risk Analysis
C. Perform Quantitative Risk Analysis
D. Monitor and Control Risks

A probability impact matrix is the defining tool of Perform Qualitative Risk Analysis, and it is used to rank risks qualitatively, that is, based on their characteristics.
It is important that you associate this tool with this process.
60. Your company must choose between two different projects. Project X has a net present value of $100,000. Project Y has a net present value of $75,000. What is the opportunity cost of choosing Project X?

A. $100,000
B. $75,000
C. $25,000
D. $50,000

The opportunity cost is what you missed - not the difference
between them. Because you invested in Project X, you missed out on the net present value of Project Y, which equals $75,000.
61. A risk register is created during:

A. Plan Risk Management
B. Monitoring and Control Risks
C. Assess Risks
D. Identify Risks

A risk register is created during Identify Risks, and it is used
and updated in the subsequent risk processes (perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Response, and Monitor and Control Risks).
62. A workaround is:

A. A technique for conflict management
B. An adjustment to the project budget
C. A response to an unplanned risk event
D. A non-critical path on the network diagram

When an anticipated risk event occurs, the plan for addressing that is followed; however, some risks cannot be anticipated.
In that case, a workaround is needed.
63. You are managing a team developing a software product. You have contracted out a portion of the development. Midway through the project you learn that the contracting company is entering Chapter 11 bankruptcy. A manager from the subcontracting company assures you that the state of the company will not affect your project. What should you do FIRST?

A. Perform additional risk response planning to control the risk this situation poses
B. Stop all pending and future payments to the subcontractor until the threat is fully assessed
C. Contact your legal department to research your options
D. Meet with senior management to apprise them of the situation

The first thing you should do is to plan for the new risks this situation presents. Remember that you should look for a proactive approach to almost everything. 'B' is incorrect because you cannot simply decide to withhold payment if you are in a contractual relationship. 'C' is incorrect because even though that may be something you would do, it is not the FIRST thing you should do. 'D' is also not the FIRST thing you should do because this problem should be dealt with by the project manager. Running off to apprise senior management of the situation would not be the first thing a project manager does. It would be far better to do that after the project manager had assessed the situation and planned thoroughly for it.
64. In a functional organization:

A. Power primarily lies with the project manager
B. Power primarily lies with the functional manager
C. Power is blended between functional and project managers
D. Power primarily lies with the project office

In a functional organization, most of the power rests
with the functional manager.
'A' is incorrect since that describes a projectized organization.
'C' is incorrect because that describes a matrix organization.
'D' is incorrect since there is no explicit model in which power rests with the project office
65. The process of identifying, documenting, and assigning roles, responsibilities, and reporting relationships for a project is called:

A. Develop Project Interfaces
B. Align Organizational
C. Plan Staff Management
D. Develop Human Resource Plan

Develop Human Resource Plan is the process concerned with understanding and identifying the reporting relationships on a project, among other things.
The organizational charts and position descriptions are tools used to create the human resource plan.
66. A Responsibility Assignment Matrix (RAM) does NOT indicate:

A. Who does what on the project
B. Job roles for team members
C. Job roles and responsibilities for groups
D. Project reporting relationships

The responsibility assignment matrix (RAM) does not include reporting relationships. Those are included in the project's organizational chart. 'A' is incorrect because the RAM does show who is responsible for what on the project. 'B' is incorrect because it shows roles on the project for the various team members.
'C' is incorrect because the RAM can be for either individuals or for groups (e.g., engineering or information technology).
67. A manager who follows Theory X believes:

A. EmpIoyees can be trusted to direct their own efforts
B. Project success requires that project objectives must align with company objectives
C. Workers must be cIosely supervised because they dislike work
D. Effective quality management requires the use of performance measurements

McGregor's Theory X manager distrusts people and believes that they must be watched every moment. 'A' is incorrect because that is more descriptive of the opposite, Theory Y manager. 'B' is incorrect because that is more descriptive of the practice of MBO (management by objectives). 'D' is incorrect because Theory X is not directly related to quality management.
68. Which of the following is NOT a constructive team role?

A. Withdrawer
B. Information seeker
C. Clarifier
D. Gate keeper

The withdrawer is someone who does not participate in the meeting and therefore is not a constructive role. 'B' is incorrect because someone who is trying to gather more, good information is contributing in a positive way. 'C' is incorrect because a person who clarifies communication is adding to the meeting as well. 'D' is tricky, but it is incorrect. In project management terminology, a gate keeper is someone who helps others participate and draws people out. Gate keepers would help withdrawers become active
69. If a project team is experiencing conflict over a technical decision that is negatively affecting project performance, the BEST source of power the project manager could exert to bring about cooperation would be:

A. Legitimate
B. Penalty
C. Referent
D. Expert

In this case, the conflict is of a technical nature, so the best way the project manager could solve the problem is by using his or her technical expertise. 'A' is incorrect because legitimate power might stop the fight, but it wouldn't solve the problem.
'B' is incorrect because it also might stop the fight, but would not solve the problem. 'C' would probably be the least effective approach to solving this particular problem, since referent power is relying on personality or someone else's authority.
70. You have asked a team member to estimate the duration for a specific activity, and she has reported back to you with three estimates. The best case scenario is that the activity could be completed in 18 days; however, her most likely estimate for the task is 30 days. She has also indicated
that there is the possibility the task could take as long as 60 days. What is the three-point estimate for this task?

A. 4 days
B. 7 days
C. 33 days
D. 49 days

The three-point estimate is calculated by adding the pessimistic estimate + 4 X realistic estimate + the optimistic estimate and dividing by 6.
In this case, it is [ 60 + 4X30 + 18 ] / 6 = 198 /6 = 33
71. Which of the following types of conflict resolution provides only a temporary solution to the problem?

A. Withdrawal
B. Compromising
C. Forcing
D. Problem-solving

Forcing does do away with the conflict ... but only temporarily. It is when the manager says "This is my project, and you will do things my way.
Period, end of discussion." The root of the problem is not addressed by this approach, thus the solution is only temporary.
72. The communications management plan:

A. Should include the performance reports
B. Should always be highly detailed
C. Should include the project's major milestones
D. Should detail what methods should be used to gather and store

Did you guess 'A' or 'B' on this one? The communication plan does not include the performance reports, and it may be either formal or informal, highly detailed or general, depending on the project and the organization.
'C' is incorrect, because it does not include the project's major milestones.
'D' is the right answer in this case because it details how you are going to gather and store information on the project.
73. When communication links are undefined or broken:

A. The communications management plan should be rewritten
B. Conflict will increase
C. The project manager's power will decrease
D. Project work will stop

One of the main reasons conflict arises on a project is over communication, and one of the results of a project's communication lines being broken is that conflict increases.
74. For two days you have been asking a member of your team for a status report on one of the key deliverables of your project. You finally get the report thirty minutes before you are to meet with your manager for a project update. A quick review of the status report reveals some information that you know is incorrect, What action should you take?

A. Fix what you can in the report before the meeting starts and try to steer discussion away from the areas you don't have time to fix
B. Bring your team member with you to the meeting and confront her with the inaccuracies in her report
C. Reschedule the meeting for a later date and have the team
member rewrite the report
D. Cancel the meeting, fix the repon yourself, and circulate the new report to senior management in lieu of the original meeting.

To answer this one, you should have asked "which choice solves the problem?" The problem is that an employee is giving you incorrect information, and you cannot ethically pass that information on. The only choice that directly deals with the problem and fixes it is 'C'. The solution is not painless, but it is the best choice of the four.
75. There were 10 people on your project, and 5 more people were added last week. How many additional paths of communication were created?

A. 10
B. 45
C. 60
D. 105

If there were 10 people on your project, that would yield 45 communication paths.
Add 5 more, and you now have 15 people, which yields 105 communication paths.
The question asks how many more paths would you have, thus the answer is 105 - 45 = 60.
76. A project manager is having difficulty getting resources from a functional manager. Which of the following would be the MOST appropriate to help resolve this problem?

A. Senior management
B. The customer
C. Key stakeholders
D. The sponsor

It is the role of senior management to resolve organizational conflicts and to prioritize projects, and either of those may be at the root of this problem.
'B' is incorrect since this is a matter internal to the organization, and the customer should be buffered from it. 'C' is incorrect since the stakeholders cannot always bring influence to bear inside the organization. 'D' is incorrect since the sponsor functions much like a customer internal to the organization.
The sponsor does not prioritize projects and would not be the best person to go to in order to sort out an organizational conflict.
77. Communicating via email is considered:

A. Formal written communication
B. Informal written communication
C. Formal electronic communication
D. Informal nonverbal communication

E-mail is informal written communication. Formal written communication involves such things as changes to the project plan, contract changes, and official communication sent through channels such as certified mail. As e-mail evolves in its usage and protocol, test takers should be aware that although they may use e-mail in a formal manner.
It is not considered to be formal communication.
78. Smoothing, forcing, and withdrawing are all forms of:

A. Organizational power
B. Communication
C. Conflict resolution
D. Schedule compression

These are all considered to be forms of conflict resolution, even though none of these is considered to be an effective way to resolve conflict.
79. You have a team member who is habitually late to meetings with the customer. The customer has expressed dissatisfaction with the situation and has asked you to resolve it. Your BEST course of action is:

A. Issue a formal written reprimand to the team member
B. Meet with the team member to discuss the problem and ask for solutions
C. Meet with the team member and the customer to promote further understanding
D. Email the team member to bring the situation to his attention

Again, ask yourself "what is the choice that solves the problem?"
In this case, 'B' is the best choice that solves the problem. Before you do anything else, you would want to meet with the person directly and discuss the problem.
'A' may be appropriate at some point but would not be considered best in this case. 'C' is not a good choice since it is your job to resolve the problem and not the customer's job. 'D' is incorrect since it is too passive a choice and does not really deal with the problem.
80. You are midway through managing a project with a sponsor-approved budget of $850,000. Using earned value management, you have determined that the project will run $125,000 under budget. You have also determined that if the project is delivered that far under budget you will not make your bonus since you are compensated for the hours you bill. What is your BEST course of action?

A. Add extra features to the project scope that take advantage of the available budget, and increase customer satisfaction
B. Meet with the project sponsor to inform him of your findings
C. Maintain current project activities, and bill for the original
D. Ask the sponsor to approve additional features, given the available budget

This question is not only difficult, but there is a lot of information here to distract you. In this case, you should go to the sponsor and let him know since he has approved the budget.
If the project stands to deviate significantly (over or under), then the person paying for it should know as soon as possible. 'A' is incorrect because you are supposed to conform to the scope - not increase it!
'C' is also incorrect. You are working for the sponsor here, and it would not be wise to bill them more than the project costs.
'D' is incorrect since you do not want to gold plate the scope by adding more than was originally planned.
81. The most important factor in project integration is:

A. A clearly defined scope
B. Timely corrective action
C. Team buy-in on the project plan
D. Effective communication

Communication is important at all points in the project, but it is critical during integration. When performing integration management, the project manager's job is primarily to communicate.
82. You are a project manager for a software development firm. You are in the final stages of negotiation with a third party vendor whose product your company is considering implementing. You discover by chance that one of your employees has scheduled a product demonstration with
herself, the vendor, and your boss, but you have not been notified about the meeting. What do you do?

A. Show up at the meeting unannounced and discuss the situation with the employee later in private
B. Report this employee's actions to your boss using the company's formal reporting procedure
C. Discuss the employee's actions with her before the meeting
D. Report the employee's actions to her functional manager

Focus on direct, polite confrontation over practically any other method of conflict resolution. In this case, you are the one who needs to resolve the conflict, so you should take the initiative. Discussing the employee's actions with her before the meeting should actually produce a solution to the problem.
'A' appears direct at first, but it is not really a direct way to deal with the problem. 'B' is simply making the problem someone else's problem - in this case, your boss's. 'D' is incorrect for the same reason 'B' is.
This is a problem that you, the project manager, should solve.
83. Your team has encountered recent unanticipated problems. After extensive earned value analysis you determine that the project has a schedule performance index of 0.54 and a cost performance index of 1.3. Additionally your customer has just requested a significant change.
What should you do?

A. Alert management about the schedule delays
B. Alert management about the cost overruns
C. Alert management about the scope change
D. Reject the requested change

With an SPI this far below 1, you have a significant schedule delay, and you should report this to management.
'B' is incorrect because you are doing quite well on cost, and there is no overrun.
'C' is incorrect since it is your job to deal with scope change - not management's.
'D' is incorrect because you cannot simply reject changes on the project. They must be evaluated thoroughly and fairly and sent through the scope change control system.
84. You are in the middle of bidding on a large and complex project that will produce a great deal of revenue for your company should you win the bid.
The buyer has specified several conditions that accelerate some of the key dates and milestones. You have done extensive planning with your team and have determined that there is no way that your organization can perform the required scope of work under these new deadlines. Your
boss, however, is not convinced that you are right and is also concerned that if you don't agree to the new dates you will lose the contract. What should you do?

A. Appeal to the buyer for additional time to estimate
B. Ask your boss to make the commitment on behalf of the team
C. Adhere to the estimates your team has made
D. Agree to the dates the customer has requested

The team should be involved in the estimating process, and once they have bought into those estimates, you should resist pressure to automatically slash them.
'A' is incorrect since additional estimating is not what is needed here.
'B' is incorrect since this is just delaying rhe inevitable and perhaps making matters much worse. 'D' is incorrect since the dates need to come from your estimates and schedule development and not from the client.
85. Your company is soliciting bids from advertising firms for the marketing of the product your project will produce. A sales representative from one of the bidding firms calls to invite you to attend a sporting event with him at his expense so that he can ask you some questions about the product to help him put together his bid. How should you respond ?

A. Attend the event and discuss the project with the representative
B. Accept his offer but tell him in advance that you cannot answer questions about the project
C. Attend the event and answer all questions, but then write a report on the questions and answers and submit the FAQ to the other bidders
D. Reject the offer and invite the sales representative to pose his questions at the bidders' conference

To answer this, you should consider two things:
1. You need to avoid all conflicts of interest.
2. The solicitation process is supposed to keep all potential sellers on a level playing field. With these facts in mind, 'D' should emerge as the only choice that makes sense.
86. Analogous estimating is also called:

A. Vendor bid analysis
B. Bottom-up estimating
C. Scalable model estimating
D. Top-down estimating

Another name for analogous estimating is top-down estimating because it looks at projects as a lump sum and not broken down into pieces (which is known as bottom-up estimating)
87. You are beginning construction of a bridge in another country when you discover that this country requires that one of its licensed engineers sign off on the plans before you break ground. Your senior engineer on the project is licensed in your own country and is probably more qualified than anyone to sign off on this, and their engineer is not available to
review the plans for another three weeks. The customer has stressed that this project must not be delayed. What do you do?

A. Have your engineer sign off on the plans, forward them to the other engineer and begin construction
B. Have your engineer sign off on the plans since he is licensed in your country and begin construction
C. Wait to begin construction until the country's engineer signs off on the plans
D. Forward the plans to the country's engineer for his signature and start construction.

This is a no-win situation, but you must obey laws in the country where you are performing the work, and 'C' is the only option that fuIly complies with the law.
Refer to the PMI code of conduct and you will see that you cannot bend or break laws just to get the project done on time.
88. Which is the BEST definition for Cost of Quality?

A. The total cost of inspection and defect repair
B. All external costs related to quality plus direct overhead costs required to administer
C. The costs related to product quality but not related to process quality
D. The total cost of quality efforts throughout the product life cycle

The definition of Cost of Quality is "the total cost of all efforts related to quality throughout the product life cyde." The other definitions may be true to varying degrees, but 'D' is right on the mark.
89. You are managing the installation of a new oil well (Bohrloch) pump in a very productive well. Due to very efficient management and significant personal effort, the project is completed several days ahead of schedule.
The customer is ecstatic and offers you a 2,500 "appreciation fee." What should you do?

A. Accept the fee, but notify management
B. Do not accept the fee and notify management
C. Put the gift into the project's reserve fund
D. Donate the gift to charity

PMI's code of conduct states that you have a "responsibility to refrain from offering or accepting inappropriate payments, gifts, or other forms of compensation for personal gain."
The best thing to do in this case is refuse the gift and let management know of the situation.
90. Decomposition is a technique used in:

A. Define Activities
B. Estimate Activity Durations
C. Sequence Activities
D. Develop Schedule
A. Define Activities uses the technique of
decomposition to produce the activity list.
91. A fixed-price contract offers the seIler:

A. A higher risk than the buyer
B. A risk level equal to that of the buyer
C. A lower risk than the buyer
D. Reimbursement of actual costs

In a fixed price contact, the seller is the one who bears the risk. If the cost runs high, the seller must deliver at the original cost. The buyer's costs are set (fixed), thus offering a measure of security.
'B' is incorrect since the seller has higher risk.
'C' is incorrect since the seller's risk is higher than the buyer's.
'D' is incorrect since cost reimbursable is another form of contract separate from this.
92. The individual on a project with limited authority who handles some communication and ensures that tasks are completed on time is:

A. The project manager
B. The project leader
C. The project coordinator
D. The sponsor

A project coordinator is someone who is weaker than a project manager but may have some limited decision-making power.
'A' is incorrect since a project manager does not have "limited authority" on a project. 'B' is a made up term, and 'D' refers to the sponsor whose role on the project is to pay for the project, receive the product at the end, and give the project good visibility in the organization.
93. At what point in project planning would you decide to change the project scope in order to avoid certain high-risk activities?

A. Identify Risks
B. Qualify Risks
C. Monitor and Control Risks
D. Plan Risk Responses

Plan Risk Responses would be the point at which you determine an appropriate response to the risks that have been identified, qualified, and quantified. Only after the risks are fully understood and analyzed would you make a change to the scope.
94. Which of the following techniques is used in Define Scope?

A. Project selection methods
B. WBS templates
C. Expert judgment
D. Inspection

Define Scope is all about one thing: creating the project scope statement, and the tool of expert judgment is used to help create it.
95. Which of the following statements is NOT TRUE of integration management?

A. Integration is primarily concerned with making sure various elements of the project are coordinated
B. Integration is a discrete process
C. The project management information system is used to support all aspects of the project
D. The project manager must make tradeoffs between competing project objectives

Integration (in addition to most of the other knowledge areas) is not discrete. In other words, it isn't performed in a vacuum, but instead it is performed with all of the other knowledge areas in mind. This is even more pertinent for integration than any of the other knowledge areas. Also keep in mind that the word "integrated" has nearly the opposite meaning of the word "discrete."
'A' is incorrect because that is exactly what integration does.
'C' is also a purpose of integration because the PMIS is the tool that the project manager uses to know what is going on with the project. 'D' is incorrect because that is also a definition of integration. The project manager is supposed to keep people focused on the work while he solves problems.
96. Maslow's Hierarchy of Needs theory concludes that:

A. Higher needs cannot be realized until the lower needs are satisfied
B. Hygiene factors are those that provide physical safety and emotional security
C. Psychologieal needs for growth and fulfillment are ineffective motivators
D. The greater the financial reward, the more motivated the workers will be

Maslow's hierarchy is based on the fact that your basic needs, like food and water, must be satisfied before higher needs, such as esteem, will become important.
'B' is incorrect because Herzberg's theory of hygiene factors is a different theory of motivation.
'C' is incorrect because this is a different motivational theory.
'D' is related to another theory of scientific management not covered in PMI's materials.
97. A project is all of the following EXCEPT:

A. Progressively elaborated
B. Has never been done by this organization before
C. Something that creates a product, service, or result
D. Strategy to the company

Definitions are very important, and this definition question is missed by many people. Understand that projects may or may not be strategic to the company. Although everyone wants his or her project to be exciting and strategie, more mundane projects also must be undertaken. 'A', 'B', and 'C' are all part of the core definition of a project.
98. Your manager has asked to review the quality management plan with you to ensure that it is being followed appropriately. In which process is your boss involved?

A. Perform Quality Control
B. Perform Quality Management
C. Plan Quality
D. Perform Quality Assurance

In this case, your manager is auditing the process, and audits are used in Perform Quality Assurance. Audits are performed primarily to make sure that the process is being followed. 'A' is incorrect because quality control is inspecting specific examples and is not focused on the overall process. 'B' is incorrect because quality management is too broad a term to fit the definition of this process. 'C' is incorrect because Plan Quality is the process where the quality management plan is created.
99. Variance analysis is a tool used to:

A. Measure variance between actual work and the baseline
B. Measure variance between planned value and schedule variance
C. Measure variance between earned value and actual cost
D. Measure variance between earned value and cost variance

Variance analysis looks at the difference between what was planned and what was executed. It is a tool used in four processes, Report Performance, Control Scope, Control Schedule, and Control Costs. Choice 'A' is the one that correcdy identifies its purpose.
100. In a strong matrix organization:

A. More power is given to the functional manager
B. More power is given to the project manager
C. More power is given to the project expeditor
D. More power is given to the project coordinator

In a matrix organization, power is shared between the project managers and functional managers. In a strong matrix, the project manager is more powerful, while in a weak matrix, the functional manager has more power. In no circumstances would 'D' be correct, as the project coordinator is, by definition, weaker than a project manager.
101. Team performance assessments are made during which process ?

A. Human Resource Planning
B. Acquire Project Team
C. Develop Project Team
D. Manage Project Team

Team performance assessment is a output of the Develop Project Team process. When creating this, the project manager evaluates the team's performance with the goal of understanding strengths and weaknesses and ultimately improving them.
102. The Project Scope Statement is typically:

A. A definitive list of all the work and only the work to be done on the project
B. Issued by senior management
C. Progressively elaborated
D. Defined before the functional specifications

The project scope statement typically starts off general and becomes more specific as the project progresses. Progressive elaboration is a term that describes the way in which the details of the scope are discovered over time.
'A' is incorrect since it is more descriptive of the WBS than the project scope statement.
'B' is incorrect since the project scope statement is created by the project team and not by senior management.
'D' is incorrect because the project scope statement is a functional specification.
103. Which of the following is a negative team role?

A. Initiator
B. Information seeker
C. Devil's advocate
D. Gate keeper

A devil's advocate is considered to be a negative team role.
'D', a gate keeper, is incorrect because in project management terminology a gate keeper is someone that draws non-participantsand withdrawers into the process.
104. During "Manage Project Team", your project team should be:

A. Focused on making sure earned value is equal to planned value
B. Communicating work results to the stakeholders
C. Ensuring that all project changes are reflected in the project plan
D. Executing the work packages

In Manage Project Team, the team is executing the work packages and creating the product of the project. Your job as project manager is to keep them focused on this.
'A' is incorrect because that may be your focus, but it is not the team's focus. 'B' is incorrect, because that is the project manager's job and not the team's focus. 'C' is incorrect for the same reason. It is the job of the project manager and not the team.
105. The system that supports all aspects of the project management processes from initiating through closing is:

A. Information technology
B. The information distribution system
C. The project management information system
D. The work authorization system

The project management information system (PMIS) is the one described in the question. 'A' is not a good choice because you don't have to have information technology from beginning to end in order to successfully deliver many projects.
'B' is a made up term. 'D' is not a good choice because the work authorization system (WAS) is used to make sure that the work is performed at the right time and in the right sequence.
106. In a typical project, most of the resources are utilized and expended during:

A. Initiation processes
B. Planning processes
C. Executing processes
D. Monitoring and controlling processes

On typical projects, most of the resources (both human resources and material resources) are expended during executing processes. Many people incorrectly choose 'B' because there are so many planning processes, but on the average, project planning takes less effort and resource than execution.
107. A project manager is taking the product of his project to his customer for verification that it meets the scope. The customer and the project manager are working together to carefully compare the product to the project's scope to ensure that the work was done to specification. The tool that the customer and the project manager are using is:

A. Inspection
B. Perform Quality Assurance
C. Perform Quality Control
D. User acceptance testing

Inspection is a tool of Verify Scope, which is the process being described in the question. In inspection, the product of the project is compared with the documented scope.
108. Which of the following is NOT a project quality management process?

A. Perform Quality Assurance
B. Plan Quality
C. Perform Quality Audits
D. Perform Quality Control

"Perform Quality Audits" is something you may do as part of Perform Quality Assurance, but it is not a process.
109. Schedule constraints would likely include all of the following EXCEPT:

A. Imposed dates
B. Key events
C. Major milestones
D. Leads and lags

Schedule constraints would not contain leads and lags for activities.
'A', 'B', and 'C' would all make sense to include as schedule constraints.
110. Which of the following choices fits the definition for benchmarking?

A. Comparing planned results to aetual results
B. Comparing actual or planned results to those of other projects
C. Statistical sampling of results and eomparing them to the plan
D. Comparing planned value with earned value

Benchmarking is a tool of quality management for both the Plan Quality and Perform Quality Assurance processes. It takes the results of previous projects and uses them to help set standards for other projects.
'A' and 'C' are incorrect because they would be more closely aligned with Perform Quality Control. 'D' is largely unrelated to quality.
111. The activity list should include:

A. The schedule aetivities on the project that are on the critical path
B. A subset of all schedule activities
C. All of the schedule activities defined on the project
D. A superset of the schedule activities for this and related projects

The activity list should indude every schedule activity defined on the project.
These schedule activities are then used to create the project network diagram.
112. Close Project or Phase should be performed:

A. At the end of the project
B. Before formal acceptance of the project's product
C. As a safeguard against risk
D. By someone other than the project manager

The Close Project or Phase process should be performed at the end of each phase or at rhe end of the project. Since that was not a choice, however, 'A' is closest to that. Remember that if the choice you want is not present, you should choose the best one from the list.
113. Release criteria for team members is defined as part of:

A. The organizational management plan
B. The human resourees management plan
C. The staffing management plan
D. The work authorization system

The release criteria for team members is defined in the staffing management plan.
114. Which of the following is NOT an input into Define Activities ?

A. The work breakdown structure
B. Organizational proeess assets
C. Project scope statement
D. The activity list

The activity list is the output of the Define Activities process.
'A', 'B', and 'C' are all inputs into Define Activities.
115. A project to lay 10 miles of a petroleum pipeline was scheduled to be completed today, exactly 20 weeks from the start of the project. You receive a report that the project has an overall schedule performance index of 0.8. Based on this information, when would you expect the project to be completed?

A. 2 weeks early
B. In 2 more weeks
C. In 5 more weeks
D. In 10 more weeks

There are many ways to mathernatically solve this problem, but perhaps the simplest is to divide the schedule performance index against the length of the project. 20 weeks / 0.8 = 25 weeks.
Therefore, we would expect the project to be 5 weeks late. 'A' should have been eliminated because with a schedule performance index less than 1, there is no way the project should be finished early.
116. The term "slack" is also known as:

A. Lag
B. Lead
C. Float
D. Free float

The term slack is synonymous with float.
117. Which of the following BEST describes the project plan?

A. A formal, approved document used to guide project execution, control, and closure
B. The aggregate of all work performed during planning
C. The work breakdown structure, schedule management plan, budget, cost management plan, and quality management plan
D. The document that outlines all of the work and only the work that must be performed on a project

The project plan is a formal document. It is created during planning, and is used to guide the execution processes, monitoring and control, and dosure. 'B' is incorrect because that would be doser to the definition for the product. 'C' is close to correct, although it is an incomplete list of what makes up the project plan and the question specifically asks for the BEST description. 'D' is incorrect because this is closer to the definition of the work breakdown structure than it is to the project plan.
118. Which of the following is NOT a primary goal of Perform Integrated Change Control?

A. Influencing factors that cause change
B. Determining that a change has occurred
C. Managing change as it occurs
D. Denying change whenever possible

As part of Perform Integrated Change Control, the project manager will need to now when change has occurred, manage the changes, and infiuence the factors that cause change, but the project manager should not take on the attitude of denying change whenever possible. Some change is inevitable, and all change requests should be evaluated and not automatically rejected.
119. You are providing project management services in a foreign country. In an attempt to improve employment, this country has enacted a law limiting the number of hours foreigners may work per week. You are behind schedule on the project and need to work overtime. What is the BEST way to handle this situation?

A. Work the overtime only if your own country's laws do not
prohibit this
B. Work the overtime if it is not constituted overtime by your
country's definition
C. Do not work the overtime since it is prohibited by law
D. Speak with legal representation to find out if the law is enforceable

Another no win situation. You cannot bend or break laws just to stay on schedule. The end does not justify the means! You have to obey laws and observe customs in the country where you are performing the work. In this situation, you should look at options that do not involve working overtime.
120. "The features and attributes that characterize a product" describes which of the following?

A. The product scope
B. The project scope
C. The work breakdown structure
D. The critical success factors

There is a difference between the product scope and the project scope. The scope of the project may be much larger than the scope of the product! This question defines the product scope. 'B' would have a much broader definition than this. 'C' is the work that needs to be done to complete the project, but it does not deal with the attributes of a product. 'D' is a phrase often used in project management, but it is unrelated to this definition.
121. You have assumed responsibility for a project that has completed planning and is executing the work packages of the project. In one of your first status meetings, a member of the project team begins to question the validity of the duration estimates for a series of related tasks assigned to her. What action should you take FIRST?

A. Remind the team member that planning has been completed and ask her to do her best to adhere to the estimates
B. Temporarily suspend execution and ask the team member for updated estimates
C. Review the supporting detail for the estimates contained in the project plan to understand how the estimates were originally derived
D. Ask another team member with expertise in this area to perform a peer review on the estimates to validate or invalidate the concern

The supporting detail should be included with the estimates, and that supporting detail is included for situations just like this one. It will help you and the team member understand how the estimates were derived in the first place. 'A' is incorrect since the team member may well have a valid point. 'B' is incorrect because there is no reason to either stop work on the project or to send the team member scrambling for new estimates. 'D' is not a bad choice, but it isn't the FIRST thing you would do. As a starting point, go back and check the facts first. Then if it would be helpful to get another expert involved, you may elect to do that.
122. Approved budget increases should be:

A. Added to the schedule management plan
B. Added to the project's cost baseline
C. Added to the project's reserve fund and used only if needed
D. Added to the lessons learned

The term "baseline" causes grief for many test-takers.
Memorize that the baseline (whether it is the scope baseline, schedule baseline, cost baseline, or quality baseline) includes the original plan plus all approved changes. Once the budget change was approved, it should be added to the cost baseline.
123. An organization where the project manager is in charge of the projects and has primary responsibility for the resources is:

A. Functional
B. Projectized
C. Matrix
D. Hierarchical

Although it is unusual in the real world, a projectized organizational structure gives the project manager near total control of the project and the resources. 'A' is a structure where the functional manager is in charge of projects and resources. 'C' is a structure where the project manager runs the projects and the functional manager manages the people, and 'D' is not a real term for organizational structures.
124. Based on the table at the right, which path listed below represents the LEAST schedule risk?
This problem should be solved in the usual 3 steps with one
small bit of reasoning applied at the end. First, draw out the
network diagram based on the table. Your representation should resemble the one below:

The next step is to list out all of the possible paths through the network. In this example, they are:


The last step is to add up the values associated with each path. Using the paths above, they are:

Start-A-B-C-I-Finish = 11 units
Start-A-B-H-I-Finish = 12 units
Start-D-E-H-I-Finish = 12 units
Start-F-G-I-Finish = 16 units

The question has asked for the path with the LEAST schedule risk, and that is represented by the shortest path (the one with the highest amount of float). The reason this path has the least risk is that tasks could slip the most here without affecting the critical path. In this case, it is Start-A-B-C-I-Finish, which corresponds to choice 'A'.
125. As part of your project, your customer needs a software module to handle credit card payments. Senior management informs you that they already own the rights to such a module and would like for you to use this piece of software on the project; however, upon investigation, you determine that your company's software is not a good match for this customer's needs. After informing your senior management, they maintain their request that you use their software. How should you resolve this conflict?

A. Look to build or procure another solution for the customer
B. Act in favor of the performing organization
C. Use your company's software module as requested as long as it does not jeopardize the project
D. Involve an objective outside party to help resolve the dispute

When a conflict of interest arises, it should be resolved in favor of the customer. In this case, your company's module has been determined not to be a good fit, so another solution is needed. 'B' is incorrect because conflicts should be resolved in favor of the customer. 'C' is incorrect because it has already been determined that it is not best for the project. 'D' is not correct because that is the project manager's job - not that of an outside party.
126. Leads and lags are factored into activity relationships in which process?

A. Report Performance
B. Estimate Costs
C. Control Schedule
D. Develop Schedule

Leads and lags are applied as part of the Develop Schedule
process. This technique is actually used first in the Sequence Activities process. That process name was not among the choices, so 'D' becomes the best answer.
127. You have received a report showing that your overall schedule performance index is 1.5. How should you Interpret this information?

A. You are earning value into your project at 1.5 times the rate you had planned
B. You are spending $1.50 for every dollar you planned to spend at this point in the schedule
C. You are earning $1.50 of value back into your project for every $1.00 you spend
D. You are earning $0.67 of value back into your project for every $1.00 you planned to earn

Just as important as understanding a formula is being able to interpret it. That is what this question is calling on you to do, and it can be quite hard. The schedule performance index (SPI) = EV / PV.
Studying the formula, you can see that it compares how much value you actually earned (EV) and divides that by how much you planned to earn (PV). In this case, you have earned value at 1.5 times the rate you had planned.
128. The project organization chart should include which of the following:

A. The performing organization's organizational structure
B. A representation of all identified stakeholders
C. The reporting structure for the project
D. The organizational structure for all entities related to the project

The tool of Organization Charts and Position Descriptions is used to develop the human resources plan. Among other things, this tool displays the reporting structure for the project.
129. Estimate Costs should be performed:

A. Before the work breakdown structure is created and before the
budget is developed
B. Before the work breakdown structure is created and after the
budget is developed
C. After the work breakdown structure is created and before the
budget is developed
D. After the work breakdown structure is created and after the budget is developed

Most of the planning processes have a logical order to them, and this question relies on an understanding of that. The work breakdown structure has to be created before cost estimates are performed, and the cost estimates have to be created before the budget. This should make sense when you stop to consider it.
130. A list of the risks that could affect the project is developed as part of which process?

A. Plan Risk Management
B. Identify Risks
C. Plan Risk Responses
D. Monitor and Control Risks

The list of risks, contained in the risk register, is an output of the Identify Risks process.
131. Which process focuses on producing a list of the activities needed to produce the deliverables and sub-deliverables described in the work breakdown structure?

A. Define Activities
B. Sequence Activities
C. Identify Activities
D. Estimate Activity Durations

Define Activities is the process where the work breakdown structure is further decomposed into individual activities.
132. Whose job is it to resolve competing objectives and goals between parties on the project?

A. The stakeholders
B. The project manager
C. Senior management
D. The sponsor

A good rule is that if in doubt, select the "project manager."
For this question, that would be correct. It is the project
manager's job to resolve competing stakeholder requests and goals.
133. As project manager, you have made the decision to outsource a part of your project to an outside organization with whom you have never previously worked. You are ready to begin negotiating the contract.
What should be your goal in the contract negotiations ?

A. Having a lawyer or the legal department review each clause in the proposed contract prior to sharing it with any outside entity
B. Negotiating the best possible price for your customer or
C. Arriving at mutually agreeable terms for the contract between your organization and the subcontracting organization
D. Shifting as much of the project risk to the subcontracting organization as possible

Your goal is to create a win-win situation in the negotiations.
A win-lose agreement will usually not let you win in the long term.
134. You have been working under contract on a very large automotive project that has spanned several years. As part of this project, you have been privileged to practically all of the project information. As you are transitioning off of the project, you would like to use the extensive work breakdown structure as an input into future projects. You were never asked to sign a non-disclosure agreement with the current organization.
What is the appropriate thing to do in this case?

A. Use the work breakdown structure as you are not bound by any agreement not to
B. Use the work breakdown structure, but do not share it with
C. Do not use the work breakdown structure without the
organization's permission
D. Do not use the work breakdown structure because it would still be illegal

The project manager's professional code of conduct instructs you to keep customer information confidential. You should ask permission before using or reusing any part of the project that is not owned by you or your organization.
135. Which of the following is NOT an output of Control Costs?

A. Work performance measurements
B. Budget forecasts
C. Change requests
D. Earned value alerts

Even though it may sound reasonable, there is no such thing as an output called an "Earned Value Alert".
'A' 'B', and 'C' are outputs of the Control Costs process.
136. If the schedule variance = $0.00, what must also be true?

A. Earned value must be equal to planned value
B. The cost performance index must be equal to 1
C. The schedule performance index must be greater than 1
D. The estimate at complete must be equal to budgeted at complete

The way to approach this question is to remember how to calculate the schedule variance. It is EV-PV. If the schedule variance = 0, then EV must be equal to PV.
137. Schedule aetivities are a further decomposition of which of the

A. The statement of scope
B. The work packages
C. The project network diagram
D. The functional specitication

Schedule activities are a further decomposition of the work breakdown structure, and work packages exist at the lowest levels of the work breakdown structure.
138. Which statement is TRUE regarding the human resource plan?

A. It is used as an input into Monitor and Control Project Team
B. It is a required component of the project plan
C. It should name every human and material resource who will be
working on the project
D. It should contain an organization chart for the performing organization

This one is easier than it first appears. All management plans, including the human resource plan, become part of the project plan, and although they may be formal or informal, all of them are required (with the exception of the procurement management plan, which is only required if there are procurement activities).
'A' is incorrect because (curiously) there is no monitoring and controlling process in human resource management. 'C' is incorrect because it describes the approach to staffing and not every detail. 'D' is incorrect because the organization chart for the performing organization would not be a typical component of the human resource plan.
139. Which of the following statements is TRUE regarding risk management?

A. Negative risks should be quantified, while positive risks should be
B. Identified risks should be added to the risk register
C. All known risks should be listed in the risk management plan
D. The risks that cannot be mitigated must be avoided

All of the identified risks should be added to the risk register.
'C' is incorrect since the risk management plan only contains the plan for how risk will be approached. It does not get down to the specifics of listing risks.
140. You have a friend in another organization who has shared with you that he is having difficulty understanding the value of doing a scope statement. Your friend's hoss is not familiar with formal project management processes and does not want to waste time on the project performing unnecessary activities. What is your MOST appropriate response?

A. Do not get involved since this is not within your organization
B. Pay a visit to your friend's project office and educate them on the value of a scope statement
C. Mentor your friend on the value of project management processes
D. Encourage your friend to change organizations

You have a responsibility to help mentor others in the field of project management. 'A' would be inappropriate, because your responsibility extends to the profession - not just to your organization. 'B' is incorrect because the best place to start is with your friend. 'D' is incorrect because a job change would represent withdrawal and would not solve the problem in any way.
141. You are managing a project to construct 25 miles of highway at an estimated cost of $1.2 million per mile. You have projected that you should he able to complete the project in 5 weeks. What is your planned value for the end of the 3rd week of the project?

A. $12,000,000
B. $18,000,000
C. $24,000,000
D. $30,000,000

Planned value is the value of the work you planned to do at a given point in time. The first step is always to calculate your budgeted at completion. It is 25 miles x 1,200,000/ mile = $30,000,000.
Now you want to calculate the planned value for 3 weeks of the 5 week project. Simply multiple the budgeted at completion by 3 and divide by 5. This yields $18,000,000. The interpretation of this is that you planned to earn $18,000,000 worth of value back into your project after 3 weeks of work.
142. Which term below describes the amount of time a schedule activity may be delayed before it affects the early start date of any sub sequent schedule activity?

A. Float
B. Slack
C. Free float
D. Lead

Read this one carefully. It is the definition of free float.
'A' and 'B' were synonyms, which should have thrown up a red flag for you. Those terms tell you how long a task may be delayed before it changes the finish date of the project.
143. When are the resource requirements estimated?

A. As soon as the scope has been adequately defined
B. After the schedule has been defined, but before the budget has been created
C. After the work packages have been defined, but before the activities have been defined
D. After the activities have been defined and before the schedule has been developed

Knowing the order in which these steps are performed is important and shows that you understand what is really taking place within the process.
In this case, resources are estimated after you have defined the activities, but before you have created the schedule.
This is the only answer that works, since the resources are based on activities, and you must have the resource requirements before you can create the schedule.
144. You have an unfavorable project status to report to your customer at a weekly meeting; however, you are reasonably certain that you can correct the situation by next week's meeting. The customer will not be pleased to hear the current status and based on past history, will likely overreact. How should you handle this situation?

A. Report the current status to the customer
B. Report your anticipated project status for next week to the
C. Omit the information from YOutmeeting and cover it next week when the news improves
D. Ask you project office for guidance

Even when news is unpopular or unpleasant, you must deliver accurate statuses. 'B' and 'C' attempt to cover up or hide the news. Choice 'D' is unnecessary since you should report the current and accurate status to the customer.
145. What type of process is Administer Procurements?

A. Planning
B. Executing
C. Monitoring and controlling
D. Closing

Administer Procurements is a monitoring and controlling process of procurement, and yes, it is important that you know this type of information for the exam. In this process, the buyer ensures that the seller's performance is in line with the plan through inspections, audits, and reviews.
146. Who is responsible for providing funding for the project ?

A. The qualified financial institution
B. Senior management
C. The sponsor
D. The project manager

Know the roles of each person or group on the project.
It is the sponsor who provides funding for the project.
147. The project has been successfully completed when:

A. All of the work has been completed to specification
within time and budget
B. The customer is happy
C. The sponsor signs off on the project
D. Earned value equals planned value.

Most importantly, the project should satisfy the scope, schedule, and budget. These are the principal factors of success.
'B' is important in many organizations, but you cannot control happiness as a project manager. The best you can do is to satisfy the scope of work. 'C' may be good to have, but it does not make the project successful. 'D' is also good in that you did what you planned to do when you planned to do it, but it is only an ingredient of project success.
148. What is the PRIMARY objective of the project manager?

A. To follow PMI's processes
B. To deliver maximum value for the organization
C. To deliver the agreed upon scope of rhe project
within the time and budget
D. To delight the customer

Your primary objective is to satisfy the scope of work on the project within the agreed-upon cost and schedule. 'A' is the means to your end goal of a successful project, but it is only the way you go about it. 'B' is a great goal, but there are other parties here that need to be considered - not just the performing organization. 'D' is good, but you should focus on doing so by delivering what you promised on time and on budget.
149. Which of the following would NOT
be an organizational process asset?

A. Project plan templates
B. Methodology guides
C. Previous activity lists from projects
D. Enterprise environmental factors

Organizational process assets are anything you can reuse, such as a document, a previous project deliverable, or a methodology.
Enterprise environmental factors are things that influence the project due to to the dimate in which it is performed. Often times both must be considered, but enterprise environmental factors are not organizational process assets.
150. Change control meetings would take place in which process?

A. Control Scope
B. Monitor and Control Risks
C. Monitor and Control Project Work
D. Perform Integrated Change Control

Change control meetings are a tool of Perform Integrated
Change Control. This is a "macro" process that considers change to the whole project and not merely to the scope, schedule, or cost baseline.
151. What is indicated by an activity's late finish date?

A. The latest the activity can finish without delaying a subsequent
B. The latest the activity can finish without delaying the project
C. The latest probable date that the activity will finish
D. The worst-case or pessimistic estimate for an activity

An activity's late finish date is the latest an activity can finish
without delaying the project. If it exceeds the late finish date, the
critical path will change, ultimately resulting in the finish date slipping. Choice 'A' is close to the definition of free float.
152. A speech given at a trade show is an example of which kind of

A. Informal written
B. Formal written
C. Informal verbal
D. Formal verbal

Speeches such as this one are examples of formal verbal communication.
153. Which of the following is FALSE regarding the contract change control system?

A. It is primarily used during the Administer Procurement process
B. It is part of the integrated change control system
C. It should be defined in the contract
D. It should include contract dispute resolution procedures

The contract change control system is defined in the
procurement management plan and not in the contract itself.
154. Herzberg's theory of motivation states that:

A. Hygiene factors must be present for motivational factors to work
B. Motivation to work on the project must be related back to the individual's need
C. An individual's higher needs will not emerge until the lower needs are met
D. Individuals are motivated by a desire to reach proficiency

Herzberg stated that hygiene factors must be present in order for motivational factors to work; however, hygiene factors do not motivate by themselves. They only enable the motivation factors to work.
155. If there are multiple critical paths on the project, which of the following must also be true?

A. Only one path will ultimately emerge as the true critical path
B. The schedule risk will be higher with multiple critical paths than
with one
C. The schedule should be crashed in order to resolve the conflict
D. The schedule should be fast-tracked in order to resolve the conflict

The critical path represents the highest schedule risk on the project. If there is more than one critical path, schedule risk is increased. 'A' is not necessarily true. Two or more paths could be the critical path on the project all the way from beginning to end.
'C' and 'D' are ways to "resolve the conflict" when there is no conflict. There will always be at least 1 critical path, and having 2 or more critical paths by no means represents a conflict.
156. Which projected payback period below is the MOST desirable?

A. 24 months
B. 52 weeks
C. 3 years
D. 1000 days

With a payback period, the shorter the time the better. The hardest thing about this problem is to reduce all of the times to a common denominator so you can see which one is the shortest! B is one year, and that is the shortest period of time of the choices.
157. Which of the following would be an output of Sequence Activities?

A. Mandatory dependencies
B. An activity on node diagram
C. Discretionary dependencies
D. External dependencies

A project network diagram (like activity on node) is an
output of activity sequencing. The other 3 types of dependencies fall under the tool of dependency determination in Sequence Activities.
158. While executing the project plan, you discover that a component was
missed during planning. The project schedule is not in danger, but the
component is not absolutely critical for go-live. What should you do?

A. Treat the component as a new project
B. Reject the component as it would introduce unacceptable risk
C. Appeal to the project sponsor for guidance
D. Return to planning processes for the new component

The processes are not set in stone so that once you have finished planning you can never return. Remember that projects are progressively elaborated, and that oftentimes you will need to revisit processes again and again. There is no reason not to return to planning in the example given here.
159. The goal of duration compression is to:

A. Reduce time by reducing risk on the project
B. Reduce cost on the project
C. Reduce the scope by eliminating non-critical functionality from
the project
D. Reduce the schedule without changing the scope

The goal of duration compression is to accelerate the due date without shortening the scope of the project.
160. You are managing two projects for two different customers. While
meeting with one customer, you discover a sensitive piece of information
that could help your other customer, saving them a significant percentage
of their project budget. What should you do?

A. Act in accordance with any legal documents you have signed
B. Disclose your conflict of interest and keep the information confidential
C. Share the information with the other customer if it increases project value
D. Excuse yourself from both projects if possible

Conflicts of interest should be disclosed and avoided. 'A' is not a good choice, because you are not only bound to act legally, but also ethically! 'C' is not correct because you would not be keeping information confidential. 'D' would not be a rational choice.
Resigning from both projects would cause more problems and solve nothing.
161. What is the difference between a standard and a regulation?

A. A standard is issued by ANSI, and a regulation is issued by the government
B. A standard is an input into quality planning, while a regulation is an input into initiation
C. A standard usually should be followed, and a regulation must be followed
D. There is no appreciable difference between a standard and a regulation

A standard usually should be followed, while a regulation has to be followed.
162. Evaluation techniques are used to:

A. Select a qualified seller
B. Measure conformance to quality
C. Determine if a project should be undertaken
D. Evaluate performance on the project

The source selection criteria are created in the Plan
Procurements process. In the Conduct Procurements process the evaluation techniques are used to select a qualified seller after responses have been received.
163. Richard is a project manager who is looking at the risks on his project and developing options to enhance the opportunities and reduce the threats to the project's objectives. Which process is Richard performing?

A. Plan Risk Management
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Plan Risk Responses

Richard is performing Plan Risk Responses. After the risks have been identified, qualified, and quantified, they should be responded to. Plan Risk Responses looks at how to make the opportunities more likely and better and the threats less likely and less severe. Remember that a risk is an uncertainty that could be good or bad.
164. If you are soliciting bids (Angebote einholen) for a project,
which of the following would be an appropriate output from this process?

A. Proposals from potential seIlers
B. Procurement statement of work
C. Procurement contract award (Auftragserteilung)
D. Qualified seller lists

In order to answer this question, you must first be able to identify in which process you solicit bids. It is the Conduct
Procurements process, and one of the outputs is the procurement contract award.
165. The work results of the project:

A. Are always products
B. Are products, services, or results
C. Are only considered work results if quality standards have been met
D. Are an output of the work authorization system

The work results of the project may be products, services, or results. 'A' is incorrect because work results could be a product, a service, or a result. 'C' is incorrect because the work results don't have to meet quality to be considered work! 'D' is incorrect because the output of the work authorization system is not the work itself, but that a resource is authorized to do the work.
166. You have been directed by your customer, your sponsor, and senior
management to manage a project that you believe will have a very
negative impact on the economy and society. You have shared your
concerns, but all parties continue to insist that you proceed. What
should you do?

A. Manage the project because all parties agree
B. Refuse to manage the project
C. Manage the project, but document your objections
D. Contact PMI

You have a responsibility to society, the environment, and the economy, and this comes higher than your responsibility to your boss. You are not to just follow orders, but you should think for yourself to ensure that the project does not do harm. Note that this is not merely a disagreement over the probable success of the project.
167. The quality policy is important in quality management because:

A. It defines the performing organization's formal position on quality
B. It helps benchmark the project against other similar projects
C. It provides specific quality standards that may be used to measure the output of the project
D. It details the constraints and assumptions the project must take in to consideration

Some companies rest their reputations on the high quality
of their product. Others do not. The quality policy defines
how important quality is on this project from the performing
organization's perspective. It is treated as an organizational
process asset.
168. During Control Costs, performance reviews are PRIMARILY used to:

A. Discuss the project and give the team a chance to voice any
B. Evaluate new budget change requests to deterrnine if they would
have an adverse effects on the project's performance
C. Review the status of cost information against the plan
D. Meet with the customer to evaluate and enhance satisfaction

Performance reviews review the current status against the plan.
169. A project manager has a problem with a team member's attendance,
but every time the project manager schedules a meeting to discuss the
problem, the team member comes up with a reason he cannot attend
at the last minute. Which conflict management technique is the team
member exhibiting?

A. Passive-aggressive
B. Covering up
C. Diverting
D. Withdrawing

By not facing the problem the team member is withdrawing.
'A', 'B', and 'C' are not terms regularly used in project
management circles.
170. In which of the following organizations is the project manager MOST
likely to be part-time?

A. Weak matrix
B. Strong matrix
C. Functional
D. Projectized

In a functional organization, the project manager has little
formal power and may even be part-time! It is the functional
manager who is more powerful in this structure.
171. Which output would show project roles and responsibilities?

A. A resource histogram
B. An organization chart
C. A human resource plan
D. The resouree and responsibility plan

The human resource plan, created in Develop Human Resource Plan, details roles and responsibilities on the project.
'D' may sound good, but there is no such actual plan.
172. Kim is managing a multi-million dollar construction project that is
scheduled to take nearly two years to complete. During one of the
planning processes, she discovers a significant threat to her project's
budget and schedule due to the fact that she is planning to build during
the hurricane season in a high-risk area. After carefully evaluating her
options, she decides to build earlier in the season when there is less of a
risk of severe hurricane damage. This is an example of:

A. Risk avoidance
B. Risk transference
C. Risk acceptance
D. Risk mitigation

Risk mitigation is when you try to make the risk less severe or less likely. By accelerating the construction, Kim is mitigating the likelihood of a hurricane damaging her project.
173. You are managing the development of a software product to be created under procurement. The team will span three countries and five time zones, and because of the size of the project, you are very concerned about cost. Which of the following types of contract would BEST help keep cost down?

A. Time and materials
B. Cost plus fixed fee
C. Cost plus incentive fee
D. Variable conditions

The answer "fixed price" would have been the best here, but it was not in the list of choices! Of the ones listed, cost plus incentive fee would provide the seller with an incentive to keep their costs down. 'A' provides no incentive at all for the seller to keep costs down. 'B' would not provide the same incentive since the seller gets a fixed fee regardless of the project costs. 'D' is not a real contract type.
174. If there were 16 people on the project, and that number increases to 25, which of the following mnust also be true?

A. The development of the communications management plan will
be more difficult
B. Stakeholder analysis will be more difficult
C. Information distribution will be more difficult
D. Controlling communication will be more difficult

The more channels of communication on a project, the more difficult it is to control communications. 'A', 'B', and 'C' are probably not true because these people are internal to the project, and the creation of the plan and analysis of the stakeholders, and communication with thern, would not necessarily be more difficult.
175. You are a PMP, and PMI has contacted you regarding an investigation of your best friend who is also a PMP at your company. How should you proceed?

A. Cooperate fully with PMI
B. Protest that this is conflict of interest
C. Protect your friend
D. Find out why PMI thinks your friend should be investigated

Here is an example where you should ignore the trigger words
"find out." You have a responsibility to comply fully with PMI in an investigation. 'B', 'C', and 'D' may be tempting, but you should cooperate with PMI.
176. A project is scheduled to last for 6 months and cost $300,000. At the
end of the 1st month, the project is 20% complete. What is the Earned

A. $50,010
B. $60,000
C. $100,020
D. $120,000

Earned value is what you have actually done at a point in
time. In this case the budgeted at completion for the project is
$300,000, and you have completed 20% of that. All of the other
facts in the problem are irrelevant.
The answer is $300,000 * 20% = $60,000.
177. Which of the following roles typically has the LEAST power?

A. Project coordinator
B. Project expeditor
C. Project manager
D. Project director

The project expeditor is the weakest role here. This person is typically a staff assistant to an executive who is managing the project. 'C' is the most powerful, and 'A' would be next.
'D' is not a term identified within PMI's processes.
178. Configuration management is:

A. A technique used in Develop Project Management Plan
B. Used to ensure that the product scope is complete and correct
C. Formally defined in initiation
D. A procedure to identify and document the functional and
physical characteristics of an item or system

This is a definition of configuration management. 'A' is incorrect because it is part of the Perform Integrated Change Control process and not Develop Project Management Plan.
'B' is incorrect because that is more descriptive of inspection - a tool of scope verification. 'C' is incorrect because this is performed after initiation.
179. Which two processes are tightly linked when performing a project and are often performed at the same time?

A. Plan Scope and Plan Costs
B. Direct and Manage Project Execution and Acquire Project Team
C. Perform Quality Assurance and Manage Project Team
D. Perform Quality Control and Verify Scope

Perform Quality Control and Verify Scope are very tightly linked. Perform Quality Control is the process concerned with correctness, and Verify Scope is primarily concerned with completeness. In general, Perform Quality Control is performed just before Verify Scope, but they are often performed at the same time.
180. A company in the middle of a new product development merges with another company in the middle of the project. The project is terminated because the new company already offers a similar product. What is the FIRST thing the project manager should do?

A. Make sure your lessons learned are communicated to the manager
of the existing product
B. Obtain a written project termination
C. Perform a comparative product analysis
D. Perform the Close Project or Phase process

When a project ends or is cancelled, the project manager should perform the Close Project or Phase process. 'A' would come out of Close Project or Phase. 'B' is not defined as part of closure. 'C' might be appropriate in some cases, but you should lean strongly toward terms you have read in this book and not rely on experience.
181. A benefit-cost ratio of 1.5 tells you that:

A. The payback period will be one and one half years
B. The project cannot pay for itself
C. The project will yield revenue that is 1.5 times its cost
D. The project will cost 1.5 times the revenue it produces

The interpretation of this is important. A benefit -cost ratio
indicates how much benefit you expect to receive for the cost expended. In this example you could get $1.50 profit for every dollar of cost.
182. The MOST important input into Estimate Activity Resources is:

A. The activity list
B. The cost estimates
C. The project charter
D. The constraints and assumptions

The activity list is the main input into Estimate Activity
Resources. None of the others listed are inputs into that process, but consider that you could not perform Estimate Activity Resources without first having the list of activities against which you will estimate.
183. Life-cycle costing involves:

A. Determining what physical resources will be needed to complete a
B. Considering the overall costs of a project during and after its
C. Assigning a value to each activity on the project
D. Calculating the internal rate of return

Life-cycle costing takes a broad look at the project, considering such things as operational costs, scrap value, etc. It doesn't just ask how much it costs to make a product, but it looks at the total cost of ownership.
184. A construction company is building a new office complex and has contracted with a computer hardware firm to install computer networking cables throughout the buildings. The contract states that the construction company will buy the materials and pay an hourly rate to the computer firm to cover their time on the project. Who is assuming
the primary cost risk in this contract?

A. The companies share the risk equally
B. There is not enough information given to answer the question
C. The seller
D. The buyer

The buyer is primarily assuming the risk here because they are in a time and materials contract. The seller gets paid for every hour they work.
185. Linda is managing a multi-national project that utilizes several subproject teams. Before the last team meeting, the sponsor asked her to bring a Control Account Plan for him to review. Which of the following statements is MOST correct regarding the Control Account Plan?

A. A control account plan is a node on the WBS that will be used during Monitor and Control Risks
B. A control account plan is a node on the WBS used for planning when the work packages cannot currendy be defined
C. A control account plan is a plan of how subcontractor costs will be charged, managed, and controlled
D. A control account plan should be defined and costs should be controlled at the activity level

This answer may sound good, but 'A', 'C', and 'D' are reasons to create procurement documents. 'B' is not.
186. The process where stakeholders are identified is part of which knowledge area?

A. Initiating
B. Planning
C. Project communications management
D. Project scope management

The process of Identify Stakeholders is a project
communications management process. 'A' and 'B' were process groups, and the question was asking for the knowledge area.
187. Alex is a project manager who wants to motivate his team by recognizing individual achievement, giving them control over their schedule and work environment, and building a strong sense of the team to which they belong. What theory BEST explains Alex's behavior?

A. Three Need theory
B. Contingency theory
C. Expectancy theory
D. Stimulus/Response theory

McClelland's Three Need theory is the best choice here. It states that people have needs related to achievement, power, and affiliiation. While this theory can be expressed in many different ways, it is the best of the four choices to explain Alex's motivational style.
188. All of the following are needed for creating the project budget except:

A. Cost estimates
B. Schedule
C. Resource calendar
D. Risk breakdown structure

The risk breakdown structure is not directly used in creating
the project budget. 'A', 'B', and 'C' are all inputs to the
Determine Budget process.
189. The fact that a software program must be written before it can be tested is an example of a(n):

A. Mandatory dependency
B. Discretionary dependency
C. External dependency
D. Milestone dependency

There is no way to get around that dependency, so it is a mandatory dependency.
190. What is the difference between a Gantt chart and a milestone chart?

A. A Gantt chart is a project plan and a milestone chart is not
B. A milestone chart is a project plan and a Gantt chart is not
C. A milestone chart shows interdependencies between activities
D. A milestone chart shows only major events, while a Gantt chart shows more information

A milestone chart only shows major events (milestones) on the project's timeline. 'A' and 'B' are incorrect because neither a Gantt chart nor a milestone chart are project plans. 'C' is incorrect because milestones are high level representations that do not show interdependencies between activities.
191. Your team has created a project scope statement and a work breakdown structure. What is the NEXT step that needs to be taken?

A. Create a network diagram
B. Develop the schedule
C. Determine the critical path
D. Create the activity list

After the scope statement and the work breakdown structure, you should move into Define Activities. 'A' cannot be done before the activity list since the activity list is used to create the network diagram. 'B' and 'C' cannot be done until the network diagram is completed. The correct order of these choiees listed would be: 'D', 'A', 'C', 'B'.
192. You have assumed the position of project manager for a project that
is nearly 50% complete. Because this project has reportedly had many
quality problems, you want to review what trends and variances have
occurred over time. Which tool would be most helpful to you?

A. Cause and effect diagrams
B. Run charts
C. Inspection
D. Statistical sampling

Run charts show trends and variances over time and are used in quality management.
193. A cable company is installing new fiber optic cables in a community.
You are the project manager and you will be using subcontractors to
provide some of the installations. You have completed the procurement
management plan and the statement of work, and you have gathered
and prepared the documents that will be distributed to the sellers. What
process should happen next?

A. Plan Scope
B. Direct and Manage Project Execution
C. Plan Procurements
D. Conduct Procurements

This is not the easiest question on the exam! You must first determine what you have done and then determine what is next. Look carefully at what you have created, and you will see that you have just finished the Plan Procurements process. The next process to be performed should be Conduct Procurements.
194. Evaluating overall project performance on a regular basis to ensure
that it meets expectations takes place in which process group of project

A. Planning
B. Executing
C. Monitoring and controlling
D. Closing

Generally, any time you are looking at past performance, you are in a monitoring and controlling process.
195. The MAIN use of a project network diagram is to:

A. Create the project plan
B. Show activity percentages complete
C. Show activity sequences and dependencies
D. Create paths through the network

The primary purpose of the project network diagram is to show the sequence of activities and their dependencies. 'A' is incorrect because the project plan is made up of all planning outputs. 'B' is incorrect because the percentage complete is not reflected on the network diagram. 'D' is incorrect because the project network shows the paths through the network, but it does not create them.
196. Who issues the quality policy?

A. The performing organization
B. The stakeholders
C. The project manager
D. A standards body

The quality poliey is a document issued by the performing organization that describes their attitude regarding quality. As different companies place different values on quality, the quality policy will differ. For instance, a pharmaceutical company will almost certainly have a stricter quality policy than a maker of novelty toys.
197. You are managing a project when an unplanned risk event occurs. You meet with experts and determine a workaround to keep the project on track. In which process are you engaged?

A. Perform Qualitative Risk Analysis
B. Perform Quantitative Risk Analysis
C. Plan Risk Responses
D. Monitor and Control Risks

Did you guess 'C' for this one? The risk would have been planned in Plan Risk Responses, but if it was unforeseen and it occurred then you would have caught thar in Monitor and Control Risks. That is the process where workarounds are created.
198. Which definition below best describes cost aggregation?

A. A risk management technique to view costs and their risks by an aggregated group instead of by an individual work package
B. Adding the costs associated with each work package back up to the parent nodes on the WBS to ultimately get a total project cost
C. Multiplying the costs with each work package by a multiplier to calculate the needed reserve
D. Aggregating the costs associated with work packages back to a single point in time to eliminate the time value of money.

Cost aggregation is adding the costs associated with work
packages up along the structure of the WBS to get the cost of specific branches or the entire project.
199. A project is scheduled to last 4 months and cost $300,000.
At the end of the 1st month, the project is 20% complete.
What is the schedule performance index?

A. 0.80
B. 1.02
C. 1.18
D. 2.15

The formula for the schedule performance index is earned value + planned value (EV+PV). To get EV; we need to know how much we have completed to date. The budgeted at complete is $300,000, and we are 20% complete. Therefore, EV = $300,000 * 20% = $60,000. Planned value is what we had planned to complete at this point. We are 1 month into a 4 month project, or 1/4 of the way through. 1/4 = 0.25 (25%), and our budgeted at completion of $300,000 * 25% = $75,000. Now that we have EV ($60,000) and PV ($75,000), we can calculate the schedule performance index. It is EV+PV; or $60,000 + $75,000 = 0.80.
The interpretation of this number is that the project is earning value 80% as fast as was planned, and any index that is less than 1 is a bad thing!
200. Bringing the entire project team and the customer on site to work
together is an example of:

A. Communication control
B. Co-location
C. Active participation
D. Team integration

Co-location is a tool used in the team development process
where the team is brought together in a single location.