Full Length PMP Simulation Test 2

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1. A ______ is a collection of projects or programs grouped together for strategic business needs.

Explanation

A - A portfolio is the collection of projects or programs and helps facilitate efficient management.

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About This Quiz
Full Length PMP Simulation Test 2 - Quiz

Full Length PMP Simulation Test 2 assesses knowledge in project management, focusing on prototype building, network diagrams, budget analysis, and cost estimation. It prepares learners for PMP certification... see moreby testing critical skills and decision-making in realistic project scenarios. see less

2. The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of:

Explanation

A - The correct response is 'S' curve. The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of: an S curve and is developed by summing estimated costs by period.

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3. A project manager colleague of yours is currently working under contract on a short term project. He has expressed some concerns about finding work after the project ends. The project he is working on is currently ahead of schedule and he expects they will finish a month sooner than initially expected. What advice would be appropriate to provide him?

Explanation

B - It would be appropriate to advise him to continue the work within the project's scope as scheduled. Project managers have a responsibility to act in a truthful and complete manner. Continuing the scheduled work with no hidden slow downs fulfills the responsibility of the project manager to the profession and their client. It is unfortunate that this action will result in your colleague being without a job a month earlier than anticipated but their reputation and the reputation of other project management professionals will be upheld.

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4. What are the three-point estimates used during the Estimate Activity Duration process?

Explanation

D - Most likely, optimistic, and pessimistic are the three-point estimates used during the Estimate Activity Duration process.

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5. At which stage, in a typical project, do stake holders have maximum influence?

Explanation

D - Stakeholders typically have the most influence during the initial stages of a project.

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6. Which process group corresponds to the "do" part of the plan-do-checkact cycle?

Explanation

D - The "Executing" process group corresponds with the "do" portion of the PDCA cycle.

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7. A project manager is about to start on a new project. Where would he find details about his authority level in the project?

Explanation

B - The project charter contains details of the assigned project manager and authority level. It provides the project manager the authority to apply organizational resources to project activities.

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8. The five process groups should be done in the correct order to achieve maximum results. What is the correct order for the process groups?

Explanation

D - These process groups should be done in the correct order to obtain maximum results: Initial, Planning, Executing, Monitoring and Controlling, and Closing.

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9. Your company has a very elaborate project selection method. You use multiple factors to determine if a project will be undertaken. Which of the following factors would not be part of this system?

Explanation

The Pareto Analysis cannot be used in project selection. It is an excellent tool to show distribution but has nothing to do with the problem at hand.

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10. PMBOK recognizes five process groups typical of almost all projects. Which of the following is not one of them?

Explanation

D - Time Management is not a process group. It is one of the knowledge areas.

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11. You are the project manager responsible for building a 100,000 sq ft. data center. One of the schedule activities in your plan is to install the Computer Room Air Conditioning (CRAC) units, however in order to start the installation of the units the raised floor in the data center must be completely installed first. This is an example of what type of precedence relationship?

Explanation

D - The successor activity, in this case the installation of the CRAC units, can't be started until the raised floor in the data center is finished (i.e., the units need to sit on the floor), therefore this is an example of a finish to start relationship.

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12. The project managers have maximum authority in which type of organization?

Explanation

B - A Strong Matrix organization provides project managers with the most authority.

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13. Your company is holding their annual employee get together. This year 123 employees have attended. Let's assume that each employee had a brief conversation with each of the other employees. How many conversations took place?

Explanation

The formula to calculate communication channels (or in this case “conversations”) is n * (n-1) / 2. Therefore you calculate 123 * (123 - 1) / 2 = 7,506

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14. The Plan-Do-Check-Act (PDCA) cycle as the basis for Quality Improvement is generally attributed to:

Explanation

A - The correct response is Deming.

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15. You are meeting with your team, early in the project, and would like to address all the strengths, weakness, opportunities and threats the project is facing. What tool should be used?

Explanation

A - A SWOT Analysis chart would be the best choice. SWOT is an acronym for strengths, weakness, opportunities and threats.

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16. The three categories into which contracts can be broadly classified are:

Explanation

C - Broadly speaking, contracts can be classified as: 1. Fixed price (Firm Fixed Price, Fixed Price Incentive) 2. Cost reimbursable (Cost Plus Fixed Fee, Cost plus Incentive Fee, Cost Plus Award Fee) 3. Time and Material (T&M)

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17. Lucy is a project manager involved in the Estimate Costs process in the initiation phase of a project. Given the limited detail available to her, what would you expect the range of her estimate to be and what would you call such an estimate?

Explanation

D - During the initial stages of the project, the level of information available will be limited. Hence the Rough Order of Magnitude (ROM) estimate is usually prepared and has an accuracy range of -50 to +50 %

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18. Using the Benefit Cost Ratio, which of the following projects do you select?

Explanation

The higher the BCR the better. Project Platinum has the highest BCR of 1.2 and should be selected if you rely only on the BCR. Here is why: Project Gold has a BCR of 0.9, so it is clearly less than Project Platinum’s 1.2.
Project Silver has a CBR of 0.9 and a Cost of 100,000. We cannot compare a CBR to a BCR. We have to first calculate its BCR. This is a two step process: First you have to calculate the benefits by dividing the cost by the ratio: 100,000 / 0.9 = 111,111. Now you calculate the BCR by dividing the benefits by the cost: 111,111 / 100,000 = 1.11. Now we see that project Silver has a BCR of 1.11 which is less
than Project Platinum’s 1.2.
Project Diamond doesn’t give us the BCR. So we have to calculate it by dividing the benefits by the cost: 110,000 / 100,000 = 1.1. Now we see that project Diamond has a BCR of 1.1 which is less than Project Platinum’s 1.2.

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19. Your 8-person team is getting support from 2 external consultants. How many communication channels are added by hiring these consultants?

Explanation

To find the answer you have to subtract the communication channels of an 8- person team from those of a 10-person team.
8-person team = n * (n-1) / 2 = 8 * (8-1) / 2 = 8 * 7 / 2 = 28 channels
10-person team = n * (n-1) / 2 = 10 * (10-1) / 2 = 10 * 9 / 2 = 45 channels
And the difference is 45 - 28 = 17.

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20. You are in the initiation phase of your project and believe the project can be completed for $100,000. However, you are an experienced project manager and know that many things can happen between the initiation phase and the closure of the project. You have provided an estimate in the project charter of $50,000 - $150,000. This is an example of?

Explanation

C - A ROM estimate is given in the beginning of a project and is defined as +/- 50% of the estimated cost.

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21. During your weekly status reports you are reporting the earned value for the project this information is important to you and the stakeholders to gauge the progress of the project. What process is the cost and schedule control part of?

Explanation

D - The earned value technique is a tool and technique for managing and controlling the project.

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22. You have been asked to provide a somewhat accurate estimate, but not to spend much money generating the estimate, for a project to create material safety data sheets (MSDS) for a chemical company. This is project is similar to one that your company closed last year, so you have decided to gather the project team members from the previous project to discuss and come up with an estimate for your management team. This is an example of what type of estimating?

Explanation

B - The estimate used expert judgment (past team members), costs from an old project and didn't spend a much money getting the estimate is an example of analogous estimating.

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23. Which of these is not a component of the scope baseline that is contained in the project management plan?

Explanation

B - The Stakeholder register is not a component of the scope baseline. It contains all details about identified stakeholders.

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24. Which of the Project Time Management processes involves identifying and documenting dependencies between schedule activities?

Explanation

A - Sequence Activities is the process of identifying and documenting dependencies between schedule activities.

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25. Rolling wave planning is a form of:

Explanation

C - Rolling wave is a form of progressive elaboration planning where the near term work is planned in detail and the work for the far future is planned at much higher level. As the project progresses, the subsequent milestones are planned in greater and greater detail.

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26. You are working in the US, but have outsourced programming to India and structural engineering to people in Australia. The project doesn't have the budget to bring all the team together, so you will be relying on e- mail, fax, video conference and chat to work together. This is an example of?

Explanation

B - Any team that doesn't meet face to face, but relies on electronic communications, is an example of a virtual team.

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27. Project stakeholders are individuals and organizations that are actively involved in the project or have an interest in it. Which of these is a likely stakeholder?

Explanation

C - The Project Sponsor is the most obvious stakeholder.

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28. The project charter should be authorized by the ______

Explanation

D - The project charter is authorized by the project sponsor or initiator who is usually external to the project.

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29. Although not a separate process in the Project Cost Management knowledge area, the cost management plan is created as a part of what?

Explanation

A - The activities to create the cost management plan are part of the Develop Project Management Plan process.

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30. You recently installed a new PMIS tool that also allows you to perform Earned Value Analysis. The tool gives you the following EV data: EV = 231,000, PV = 261,000, AC = 256,000. Which of the following do you expect to see in your PMIS tool?

Explanation

You have to apply the formulas for CV and SV as follows:
CV = EV - AC = 231,000 - 256,000 = -25,000
SV = EV - PV = 231,000 - 261,000 = -30,000

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31. There are two activities on your schedule, which are: 1) Install server in lab 2) Move server into the data center. However, the second task can't start until the server has run in the lab for 5 days without failure. This is an example of what?

Explanation

D - A Lag is a modification of a logical relationship that directs a delay in a successor activity. In this case, there is a 5 day delay before the server can be moved into the data center.

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32. Accepted deliverables are an input to the Close Project or Phase process. These deliverables would have been accepted through which of the following processes?

Explanation

A - Accepted Deliverables are those that have been accepted through the Verify Scope process.

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33. The Manage Project Team process is part of what process group?

Explanation

B - The Manage Project Team process is part of the Executing process group.

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34. An organization wishes to ensure that the opportunity arising from a risk with positive impact is realized. This organization should:

Explanation

A - Three strategies to deal with risks with potentially positive impacts on project objectives are to exploit, share or enhance the opportunity.

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35. Pierre is a project manager who has just finished a project. This project yielded less than desirable results. Which of the following is an important activity that Pierre must conduct with key internal and external stakeholders?

Explanation

A - The correct response is Lessons Learned Sessions. Lessons learned provide future project teams with the information that can increase effectiveness and efficiency of project management.

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36. PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, ETC = 300, EAC = 407. How much is the Actual Cost?

Explanation

The answer to this question can be found right in the question. It states that “AC = 102”, therefore Actual Cost has to be 102. This question is trying to throw you off by giving you way too much information.

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37. Your quality assurance team is doing a review of a process. They find that the process used the following cycle times: 45sec, 49sec, 48sec, 50sec, 52sec, 49sec, 48 sec, 50sec, 46sec. How do you calculate the mean?

Explanation

In mathematics, an average refers to a measure of the "middle" of a data set. The most common method is the arithmetic mean. That is why the “Average” is sometimes also and simply called the “Mean”. As such the question asks you to calculate the average of the times given. This is calculated as follows: the sum of all the members of the list divided by the number of items in the list.

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38. Which of the following is your estimate for the work that has been finished on the project so far?

Explanation

Earned Value (EV) is the estimated amount (usually in a currency) for the work that has been completed on a project.

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39. Which of the following is not one of the Knowledge Area processes?

Explanation

D - Execution management is not a knowledge area. Note that execution is a process group.

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40. You have just returned from the weekly change control board meeting where you presented the requested changes to the employee move project. You had five change requests approved, however one rejected request. These are outputs of what process?

Explanation

D - Approved and rejected change requests are outputs of the Perform Integrated Change Control process.

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41. Organizations strongly influence the project framework. Which of the following are recognized types of organizations?

Explanation

A - Both projectized and functional are formally recognized terms for organizations.

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42. You are 8 months into a project and you have been given a new resource due to an employee resigning. After a couple weeks on the job, the new resource indicates it isn't clear to him what exactly he should be accomplishing. While this is disturbing to you as the PM, you decide to give him a document that contains detailed descriptions of work packages. What document did you give him?

Explanation

C - The WBS dictionary can include contract information, quality requirements and technical references. All the other documents would help the individual, but not give him an exact idea of what he needs to accomplish.

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43. Alan is the project manager of a project with 6 stakeholders. If the number of stakeholders goes up to 8, how many additional channels does he have to manage?

Explanation

C - The formula to calculate the number of channels is n*(n-1)/2 where n is the number of stakeholders. In the original situation, with 6 stakeholders, the no. of channels is 6 * (6 - 1) / 2 = 30 / 2 = 15 In the new situation, with 8 stakeholders, the no. of channels is 8 * (8 - 1) / 2 = 56 / 2 = 28. Hence the additional number channels to manage is = 28-15 = 13

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44. Cause and Effect diagrams are used to illustrate how various factors might be linked to potential problems or effects. They are also called:

Explanation

C - Cause and Effect diagrams are also called Ishikawa diagrams

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45. As part of a new project that you have just started on as project manager, you are putting together your team and find that one of the critical pieces of work requires a specialist from one of the functional departments. However, you are aware that the functional manager may not be very happy giving the resource to your project since your project is not a very high-profile one. Which of the following techniques will you need to apply:

Explanation

D - The correct response is Negotiation. This is typically done on many projects. The project management team may need to negotiate with functional managers to ensure that the team receives appropriately competent staff in the required timeframe. They may also need to negotiate with other project management teams.

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46. Your project team has 25 members. You have a monthly "All hands" meeting and in the past 3 months you have had the following attendance: January 21 attendees, February 16 attendees, March 23 attendees. What is the mean attendance?

Explanation

In mathematics, an average refers to a measure of the "middle" of a data set. The most common method is the arithmetic mean. That is why the “Average” is sometimes also and simply called the “Mean”. It is calculated by taking the sum of all the members of the list divided by the number of items in the list. In our question here this is calculated as follows: 21 + 16 + 23 / 3 = 20.

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47. You have been assigned a project where you are responsible for building a condo complex in a resort town. The project is expected to take 2 years to complete. During your work breakdown structure meeting you have decomposed many deliverables into work packages and schedule activities, however there are some work packages that will be occurring a year from now, so you have elected not to decompose those deliverables and work packages at this time. This is an example of what tool and/or technique?

Explanation

C - The correct answer is rolling wave planning. Rolling wave planning is a form of progressive elaboration and is used when the project management team does not have enough information for a phase or deliverable that will occur quite a long way into the future.

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48. Your project has a CV of -200. This means:

Explanation

CV is calculated CV = EV - AC. Therefore, a negative Cost Variance means that you have spent more Actual Cost than you have Earned Value. Thus you are spending more than is coming in and you are over budget.

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49. Lee is the project manager of a project and is planning responses to a set of risks. As a direct response of implementing this risk response, he anticipates certain other risks to arise. These would be termed as:

Explanation

A - Secondary risks are those that arise as a direct response of implementing a risk response.

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50. The change requests created as an output of the Monitor and Control Project Work process may be attributed to all of the following except:

Explanation

C - Proactive Action is not a valid reason for change requests. The other three choices Corrective Action, Preventive Action and Defect Repair are valid reasons for change requests in the Monitor and Control Project Work process.

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51. You have met with your project sponsor and have been told that the project MUST be completed by the end of the year, no exceptions. This should be included in the project scope statement as a:

Explanation

A - A preimposed deadline or milestone is an example of a constraint.

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52. The Develop Project Management Plan process includes which of the following?

Explanation

D - All of these items are included in the Develop Project Management Plan process.

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53. You have received the following values from your statistical sampling: 80, 83, 85, 90, 82, 88, 90, 91, 94, 79. What is the mean of this number set?

Explanation

“Mean” is another term for “Average”. To calculate the mean (or average) you take the sum of all the members of the list divided by the number of items in the list: (80+83+85+90+82+88+90+91+94+79) / 10 =86.2

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54. Project Cost Management is primarily concerned with the cost of resources need to complete schedule activities. From a broader point of view, it is also concerned with the effect of project decisions on using, maintaining and supporting the product, service or result of the project. This is referred to as:

Explanation

A - This is referred to as Life Cycle costing. It refers to the broader view of project cost management and considers the effect of project decisions on the cost of using, maintaining, and supporting the product, service or result. It goes beyond just the costing of the project.

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55. The Risk Register is a component of the project management plan. It contains details of all identified risks and current status. It is a document containing the results of:

Explanation

D - The Risk Register contains the results of the Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, and Plan Risk Responses. It details all identified risks, including description, category, cause, probability of occurring, impact(s) on objectives, proposed responses, owners, and current status.

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56. You have been assigned as a project manager of a new project to be executed out of New York. However, you determine that the project requires a Global Positioning Systems Expert who is not available within the company in New York. On doing a little checking, you determine that the company has an expert based in London, who is suitable for the project. However, the London based employee is not willing to relocate to New York for the project. In such a case:

Explanation

B - The use of Virtual teams has created possibilities of having teams located in different global locations working towards a common goal. The availability of email, video conferencing has made such teams possible. Virtual teams do present additional challenges, but these can be managed in most cases. The other choices are not valid.

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57. Three strategies that typically deal with negative risks or threats are

Explanation

D - Risk Avoidance, Risk Transference and Risk Mitigation are the three techniques that deal with Negative Risk.

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58. Which of the following is least likely to be a project?

Explanation

A - Regular updates of the company website is an operational activity and is clearly not a project. 'Responding to a contract solicitation' and 'Running a campaign' are clearly projects. The endeavor lasting for ten years cannot be ruled out as a project just because of the duration. Projects can last from a few weeks to many years.

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59. You are involved as project manager in a fairly large-sized project. You are in the process of making a procurement decision and plan to go with a simple purchase order. However, you are doubtful whether this is the correct thing to do and decide to find out more details about the process to be followed. Based on your findings, which of the following would be correct?

Explanation

D - Organizational process assets provide the existing formal and informal procurement-related policies, procedures, guidelines and management systems that are considered in developing the procurement management plan and selecting the type of contracts to be used. Organizational policies frequently constrain procurement decisions. They may limit use of simple purchase orders and may require all purchases above a particular value to use a longer form of contract.

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60. You are assigned to prepare the Procurement Management Plan for a project that involves setting up an org-wide Supply chain management system. You are looking for a guideline on what type of contracts you can use and what type of contract forms are to be used for this project. Which source will help you obtain this?

Explanation

C - Organizational process assets provide existing formal and informal procurement-related policies, procedures, guidelines, and management systems that are considered in developing the procurement management plan and selecting the contract type to be used.

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61. The correct sequence of processes in the Risk management area is:

Explanation

D - The correct sequence is: Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis and Plan Risk Responses. Perform Qualitative Risk Analysis includes methods for identifying risks for further action such as Perform Quantitative Risk Analysis and Plan Risk Responses.

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62. A project is contracted as a Time & Material (T&M) type of contract. The service provider initially estimates that the total effort involved would be about 1000 hours of effort. The project is contracted at a rate of US$ 75 per hour of effort. If the project ended up with 1200 hours of effort, what would the contract payout be.

Explanation

B - The correct answer is US$ 90,000. Since this is a T&M contract, the contract is open-ended in value. Hence the contract value is the actual effort multiplied by the agreed rate = US$ 75 X 1200 = US$ 90,000

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63. When writing the roles and responsibilities for team members you should include the following in your write up:

Explanation

A - A good role and responsibility document includes: Role, Responsibility, Authority, Competency.

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64. Inspection shows that roughly 72% of your products are produced defect free. What sigma level is this?

Explanation

1 Sigma = 68.26%. 2 Sigma = 95.46%, 3 Sigma =99.73% and 6 Sigma = 99.99%. Even though 72% is not a “true” sigma value, it is closest to answer A and therefore A is the best available answer.

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65. As a project manager, you periodically do project performance reviews to compare cost performance over time, schedule activities or work packages over-running and under-running budget, milestones due, and milestones met. Which of the following is not a valid technique that you would use for performance- reporting?

Explanation

D - Integration analysis is not a valid choice. The other three choices, namely Variance Analysis, Trend Analysis and Earned Value Performance, are performance reporting techniques.

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66. You have just sat through an exhausting change control meeting discussing a change in scope to the project you have been working on for the last 7 months. After lengthy discussion the change in scope was approved. As the project manager you should now update all of the following documentation, EXCEPT:

Explanation

D - It is the project scope statement and not the project charter that should be updated. The project charter only contains the high-level requirements and high-level project description. All of the other documents listed in the question should also be updated.

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67. How much is the Cost Performance Index?

Explanation

The formula to calculate the CPI is as follows: CPI = EV / AC. Only answer D gives us all the correct figures.

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68. Your earned value analysis shows the following values: EV = 90,000, ETC = 100,000, EAC = 190,000, PV = 110,000, AC = 90,000. Which of the following is true?

Explanation

The project is behind schedule because our Earned Value tells us that we have earned only 90,000 and the Planned Value shows that at this time in the project we should have earned 110,000. Therefore we are 20,000 behind schedule. We are on budget because both our Actual Cost and Earned Value are 90,000.

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69. Your Project has the following 4 tasks:  Task A starts at the beginning of the project and has a duration of 2 days  Task B starts after the completion of task A and has a duration of 3 days  Task C starts after the completion of task A and has a duration of 7 days  Task D starts after the completion of both tasks B and C and has a duration of 4 days   What is the critical path on your project?

Explanation

To properly calculate the critical path on your project you have to draw a network diagram and then do a backward pass / forward pass.
However, this drawing can take you up to 5 minutes, which is too long on the exam. The shortcut (during the exam) is to draw the boxes for each task approximately to scale of their duration and line them up.

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70. You will be reporting to management, for the week of 07/15, that your project has an EV of $7700 and a PV of $9600. What is the status of your project?

Explanation

D - Your project is behind schedule. You had expected to have $9600 worth of work completed, that is your planned value (PV). However, you completed $7700 (EV) worth of work. Your schedule variance is -$1900, SV=EV-PV.

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71. You just found out that a major subcontractor for your project consistently provides deliverables late. The subcontractor approaches you and asks you to continue accepting late deliverables in exchange for a decrease in project costs. This offer is an example of:

Explanation

D - In this scenario both parties are giving up something, this is an example of compromise.

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72. You the project manager responsible for building a 100,000 sq ft. data center. One of the schedule activities in your plan is to install the Computer Room Air Conditioning (CRAC) units, however in order to start the installation of the units the raised floor in the data center must be completely installed first, so the units have something to be bolted on to. This is an example of what type of dependency?

Explanation

D - This is an example of a mandatory dependency, since the units will be bolted to the raised floor. A required dependency is not PMBOK term.

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73. You are the project manager for a large petroleum company and are in the process of writing the project charter for your sponsor. You have used the following as inputs except:

Explanation

C - The WBS is not an input to the creation of the project charter.

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74. You have been contracted to build a manufacturing plant in Kuala Lumpur, however you are not familiar with the building codes in the city of Kuala Lumpur or in the country of Malaysia, so you are reviewing all of their building codes prior to "putting a shovel in the ground". This is an example of?

Explanation

B - Any type of quality plans, such as building codes, OSHA guidelines, ISO9000 or company quality plans are examples of Organizational Process Assets which are inputs in the Plan Quality process.

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75. John, a project manager, for Code Crashers Inc. has been assigned a project where he must lead a group of inexperienced programmers in developing a software package that creates Material Safety Data Sheets (MSDS) for a chemical company. This is very similar to a project that his colleague, Peter, worked on in 2006, with some junior programmers. If John needs to come up with a rough order of magnitude estimate, what tool or technique should he use?

Explanation

D - Analogous estimating is the correct choice. This technique relies on parameters from a similar previous project and is a gross value estimating approach. It is also generally less accurate.

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76. A process that states how formal verification and acceptance of the completed project deliverables will be obtained is documented in the:

Explanation

A - The correct response is the Scope Management Plan. This plan provides guidance on how project scope will be defined, documented, verified, managed and controlled by the project management team.

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77. You are working with your team and are looking at the cost risks in the project. For risks with no cost risk they have assigned a value of .05, for risks that will impact cost less than a 10% increase they have assigned a value of .1. For an increase to cost greater than 10% they have assigned a value of .2. With these values the team can build what qualitative risk analysis tool output?

Explanation

C - The probability and impact matrix chart is a tool used in the Perform Qualitative Risk Analysis.

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78. The paint on the exotic cars that are manufactured in your plant is bubbling after about a year of application. What would be the BEST tool for your team to use to find potential causes of the peeling paint?

Explanation

B - All the choices are tools/techniques in quality control, however the BEST choice would be the Ishikawa or Cause and Effect diagram.

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79. During a work breakdown structure meeting you have decomposed the deliverables into work packages and created your WBS dictionary. However, you now want to decompose the work packages to assist you in estimating, executing and control the project. These decomposed work packages are called?

Explanation

B - Activities represent the effort needed to complete a work package and are an output of the Define Activities process.

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80. AC = 100, CPI = 0.9, SPI = 1.1. How much is the Cost Variance?

Explanation

The formula to calculate the Cost Variance is as follows: CV = EV - AC.
However, in this question the Earned Value isn’t given. Yet, two of the three available values (AC = 100 and CPI = 0.9) enable us to calculate the EV. The complete process is as follows:
The formula for the CPI is: CPI = EV / AC.
. We invert this formula in order to calculate the EV:
. EV = AC * CPI = 100 * 0.9 = 90
Now we apply the normal formula for CV
. CV = EV - AC = 90 - 100 = -10
The SPI is extra information and not needed for the calculation.

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81. Lisa is the project manager of a large project. Early on she identifies a number of risks in the project and wants to adequately prepare for them. Which of the following can be used to transfer project risk?

Explanation

B - Transferring project risk (to a third party) can be done through tools such as insurance contracts, performance bonds, and warranties. Changing the project management plan is a form of risk avoidance; while developing a prototype would imply risk mitigation.

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82. Management Contingency Reserve is identified in which process:

Explanation

B - The Management Contingency Reserve is identified in the Determine Budget Phase.

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83. Which of the following is accurate regarding the Estimate Activity Resources process?

Explanation

D - The Estimate Activity Resources process determines what and how many resources will be used.

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84. You are managing a project team that is distributed across global locations. You communicate via email on a daily basis and have a telephonic status call once a week. Which of the following statements is valid?

Explanation

D - Nonverbal cues form a significant portion of communication. In the absence of this element, as project manager, you need to take special precautions to ensure that the communication is being properly understood by the remote team. If required, you may look at options such as team-building to improve team cohesiveness and video- conferences to help the communication process on a periodic basis. The other options do not present valid options since they quote invalid inferences.

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85. An estimating technique that uses a statistical relationship between historical data and other variables (for example, square footage in construction, lines of code in software development) is known as:

Explanation

A - This technique is known as Parametric Estimating and can produce higher levels of accuracy depending on the sophistication, as well as the underlying resource quantity and cost data built into the model.

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86. A project is estimated to cost $ 50,000 with a timeline of 50 days. After 25 days, the project manager finds that 50% of the project is complete and Actual costs are $ 50,000. What is the Cost Performance Index (CPI) ?

Explanation

D - The correct answer is 0.5. The Cost performance Index (CPI) is given by the formula CPI = EV/AC where EV is the Earned Value and AC is the Actual Cost. Earned Value = 50% of $ 50,000 = $ 25,000 since 50% of the project is complete. Hence CPI = 25,000 / 50,000 = 0.5. A value less than 1 indicates cost overruns in the projects. This is quite apparent in the current case since the budgeted cost has already been reached ($ 50,000 )

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87. What information does the EAC contain?

Explanation

The EAC is the Estimate at Completion. It represents the estimated cost of the total project upon completion

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88. You and your team have diligently been working on a project over the past 2 years and yesterday you met with the Operations area to turn over the production system to the Operations team. You came back from the meeting with signed formal documentation indicating the project was completed to specifications and the deliverables have been officially turned over to production for ongoing maintenance. This is an example of what?

Explanation

D - Project closure documents consist of formal documentation and the official turnover to Operations.

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89. You are responsible for measuring the errors in the paint process for the exotic cars that are manufactured at the plant where you work. Your control limits were set previous to your measurement and you found that 95.46% of the paint samples were in the acceptable range, this is an example of?

Explanation

C - 1 Sigma = 68.26% 2 Sigma = 95.46% 3 Sigma = 99.73% 6 Sigma = 99.99985%

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90. You work at a software company that authors Material Safety Data Sheets (MSDS) for chemical companies. Prior to releasing the MSDS to the company you have created a list of items to be reviewed to see that they appear on the document such as: chemical name, CAS#, protection required, what to do an emergency, etc. This is an example of what type of tool?

Explanation

A - The scenario describes a checklist that someone would use to review the document prior to it being released. Creating checklists is a tool in the Plan Quality process.

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91. When does the Close Project or Phase process need to be performed in case of multi-phased projects?

Explanation

The Close Project or Phase process needs to be performed at the end of each phase of the project and involves closing out the portion of project scope applicable to that phase. This means that after completing each phase, the project manager should review and finalize the work completed in that phase, ensuring that all deliverables and objectives have been met. By doing this, the project can be effectively managed and controlled, and any necessary adjustments can be made before moving on to the next phase.

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92. Steve is the project manager of a global project. He finds that of late, there has been a deterioration in the quality of communication between various team members across the globe. What would you term this?

Explanation

A - Anything that interferes with the transmission and understanding of a message is termed noise. Distance would be such an example, as in the case of global teams.

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93. You are the project manager managing a project to design a print head for dot matrix printers. In order to determine ideal settings for print quality, the quality manager of the company suggests trying out various scenarios for printing by varying certain parameters on the print head. Identifying such variables which influence the product or process under development is called:

Explanation

B - The correct response is Design of Experiments.

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94. What does it mean if the Earned Value is equal to Actual Cost?

Explanation

C - There is no cost variance when Earned Value is equal to Actual Cost.

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95. While the five process groups are typically completed in order, they often overlap with each other throughout the project. Which two process groups should never overlap unless a project is canceled?

Explanation

A - Throughout the project, the different process groups often are conducted at the same time except for the initial and the closing, which are separated by the other three groups.

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96. In a Finish to Start relationship between predecessor and successor activities, a project manager decides to schedule a successor activity 5 days before its predecessor is complete. This is accomplished by providing 5 days of:

Explanation

D - A lead allows an early start of the successor activity.

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97. You are working on a large project that has been divided into the following phases: feasibility, conceptual, design, prototype, and build. You want to use the process groups with these different phases. What is the recommended approach?

Explanation

D - Process Groups should not be confused with project phases and each phase should contain all of the process groups.

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98. What is the EMV of the following event? Probability (Impact in $) 0.5(-8,000) 0.2(-7,000) 0.2(-4,500) 0.1(2000)

Explanation

The Expected Monetary Value is calculated by multiplying the probability with the impact and then adding up the total

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99. You are in the execution stage of your project and you have been informed that "corporate" will be sending in a team of consultants to review whether your project activities comply with company and PMI policies, standards and procedures. This is an example of?

Explanation

A - Any activity that is a structured and independent review to examine the project is an example of a Quality Audit. A quality audit is a quality assurance tool.

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100. You are attempting to estimate the resources required to put the server racks together in the new data center you are building. It has occurred to you that you may be able to compress the schedule if you look at using power tools vs. hand tools to build the racks and use individuals who have worked on this brand of rack in the past. This is an example of what type of resource estimating tool?

Explanation

C - In this scenario you are looking for alternative ways to compress the schedule by using experienced resources and power tools instead of hand tools. This is an example of alternative analysis.

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101. You are analyzing the risk in a project and decide to do Sensitivity analysis to determine which risks have the most potential impact on the project. You look at a tool to help compare the relative importance of variables that have a high degree of uncertainty to those that are more stable. One such tool is:

Explanation

D - A tornado diagram is useful for comparing the relative importance of variables that have a high degree of uncertainty to those that are more stable.

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102. The project management plan can best be described as

Explanation

C - The Project Management Plan is the combination of all the other management plans such as: scope management plan, risk management plan, cost management plan, etc.

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103. You have been identified as the project manager for constructing a large shopping mall in your city. Which of the following are not necessarily stakeholders in your project?

Explanation

C - Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. A senior project manager who worked on a similar project may not necessarily be a stakeholder. The other three choices are valid since they have an interest in the project.

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104. You estimate that a task will take anywhere from 60 - 70 days to complete. Assuming that you estimated towards 3 sigma, how certain are you about this duration?

Explanation

The values for sigma are as follows: 1 sigma = 68.26%; 2 sigma = 95.46%; 3 sigma = 99.73%; 6 sigma = 99.99%. Therefore, if you are “certain by 3 sigmas” then you are 99.73% certain.

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105. When a project is performed under contract, the contractual provisions will generally be considered as _____________ for the project.

Explanation

A - When a project is performed under contract, the contractual provisions are generally considered as constraints for the project.

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106. Which technique among the following will help to improve decision making and isis often used to reduce cost and execution time and to improve the quality and performance of the project deliverable?

Explanation

D - This is referred to as Value Engineering. It is a creative approach used to optimize project life-cycle costs, save time, increase profits, improve quality, expand market share, solve problems and/or use resources more effectively.

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107. You have recently started working at a company as a senior project manager. The company has no employee training programs in place for junior project managers. Some junior project managers have been asking you for assistance in dealing with some work related issues. You feel that they could benefit from some guidance. Which courses of action would NOT fulfill your responsibility?

Explanation

A - PMI expects Project Management Professionals to share their knowledge with other professionals. Doing nothing to assist the employees because it does not strictly fall within your job description would not fulfill your responsibility to transfer knowledge to others. Even if the project managers job description does not include helping to transfer knowledge to others it is your responsibility as a project manager to do so.

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108. You are the project manager of the Gutenberg project. One major activity in this project is the purchase of a printing press at a cost of CHF 2,500,000. The printing press has an expected life of 25 years but it will only be used for the project for 5 of these. Using straight line depreciation, what is the value of the printing press at the end of its usage for the project?

Explanation

In the straight line depreciation method, the same value is depreciated from the investment every year. The cost of the press is 2.5 million with a lifespan of 25 years. This means that we depreciate 2,500,000 / 25 = 100,000 every year. After 5 years of depreciation the remaining value is 2,500,000 - (5 * 100,000) = 2,000,000.

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109. Your company has been chosen to develop a new line of business for a large insurance company. This is a large and important project for the company and you have told senior management that you will be creating a team meeting room for this project. This is one of the strategies for:

Explanation

A - Collocation is when all the team members are brought together, such as in a team meeting room. Collocation is highly recommended as a good project management practice.

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110.    AC = 105, EV = 100, PV = 97, CV = -5. How much is the Schedule Variance?

Explanation

The formula for calculating the SV is as follows: SV = EV - PV = 100 - 97 = 3.

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111. As part of your staffing management plan, you have developed a chart indicating the # of hours (X axis) a senior programmer will be working over the months (Y axis) of the project. This is an example of what?

Explanation

C - A chart representing hours and the time the position, department, company will be working on the project is an example of a resource histogram

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112. You are a sponsor of a project that is designed to record phone calls for quality control purposes. You are in the process of writing the charter, what is NOT an input into this document?

Explanation

D - The project charter is an input to the project scope statement. All the other choices are inputs into the project charter. All the other choices are enterprise environmental factors or organizational process assets.

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113. As a project manager, you are analyzing a process and looking at the causes for variation. Which of the following is not a classification of the causes?

Explanation

D - Perpetual causes is not a valid cause. Special causes are unusual events and common causes or random causes are normal process variation

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114. Which of the following is an output of the Define Activity process?

Explanation

A - A milestone list is a valid output of the Define Activity process.

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115. You are working with your team and are looking at the cost risks in the project. For risks with no cost risk they have assigned a value of .05, for risks that will impact cost less than a 10% increase they have assigned a value of .1. For an increase to cost greater than 10% they have assigned a value of .2. With these values the team can build what qualitative risk analysis tool output?

Explanation

C - The probability and impact matrix chart is a tool used in the Perform Qualitative Risk Analysis.

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116. As part of the Define Scope process, a project manager documented the specific project assumptions associated with the project scope in the project scope statement. While reviewing this document, an experienced project manager pointed out that the project manager should also document:

Explanation

C - It is important to list out the potential impact of assumptions if they prove to be false. The assumptions listed out in project scope are typically more numerous and detailed than the assumptions listed in the project charter.

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117. A control chart is used to determine whether or not a process is stable or has predictable performance. When a process is within acceptable limits, the process need not be adjusted. What are the upper and lower control limits usually set as?

Explanation

A - The upper / lower control limits are normally set at + / - 3 sigma -99.73% (standard deviation)

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118. You are managing a project to lengthen a runway at a major airport. However, after working on the project for six months and holding weekly status meetings, many of your stakeholders are not satisfied with the deliverables, even with a CPI of 1.0 and an SPI of 1.0. Which of the following phases has probably not been done properly?

Explanation

B - With an CPI of 1.0 and an SPI of 1.0, the schedule is on time and on budget, however the stakeholders don't like deliverables. The indicates that the Define Scope phase was not properly done.

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119. Your company owns an asset with an original value of $1,000. This asset will be depreciated using the double declining balance method over the period of 5 years. What is the percentage of the annual depreciation in year 2?

Explanation

For the detailed explanation please refer to question #22 above. Also, please note that the question asks “What is the percentage” and not “What is the Dollar value”.

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120. You have just received an email from your customer that contains the specification limits that they expect from your production process. You add these specification limits to your chart. The chart also contains the control limits. What do the control limits represent?

Explanation

Control Limits are always set at 3 standard deviations above and below the mean. Control limits reflect the expected variation in a process. The assumption is that you expect 99.73% of your process to be in control. Hence we set the control limits to these levels

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121. In the past you have had issues with stakeholders who come back to you a year after you thought the project was complete, so this time you are going to have the stakeholders sign an acceptance of deliverables document. This procedure should be included in what project management plan?

Explanation

C - Any process that formalizes the acceptance of the deliverables of a project should be included in the scope management plan.

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122. A tool that is used for charting human resources is a:

Explanation

A - The correct response is Resource Histogram. This bar chart illustrates the number of hours that a project, department or entire project team will be needed each week or month over the course of the project. The chart can include a horizontal line that represents the maximum number of hours available for a particular resource. Bars that extend beyond the maximum available hours indicate the need for a resource leveling strategy.

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123. Your project has an SPI of 1.1 and a CPI of 0.9. What does this mean?

Explanation

A Schedule Performance Index (SPI) of > 1 means that we are ahead of schedule because the work is progressing at a rate of greater than what was planned. A Cost Performance Index (CPI) of

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124. Which of the following Projects will you select?

Explanation

When selecting between several projects that offer multiple variables look for those values that give you a “definite” number. For instance: profit is not definite, because you don’t know the investment or the duration of the Project. Similarly, the Payback Period is not definite. The only definite value among all of the various\ variables given in this question is the Return on Investment because it tells you at
what percentage your investment will be “paid back” to you. And when selecting between several projects, you will always select the one with the highest ROI. Other values that can be considered “definite” are: Net Present Value and Internal Rate of Return.

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125. A new CEO has come into your company and promptly shut down your project because it no longer met the business needs of the company. While not pleased with the decision, you document the level and completeness of the project to date. What activity or process is this part of?

Explanation

A - Documenting the completeness of the project to date in case of premature termination of a project is an activity under the Close Project or Phase process.

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126. In a project, Activity A has a duration of 4 days and begins on the morning of Monday the 4th. The successor Activity, B, has a Finish-to-Start (FS) relationship with A. The Finish -to- Start relationship has 2 days of lag, and Activity B has a duration of 3 days. If Saturday and Sunday are non working days, which of the following statements is true?

Explanation

B - Activity A has a duration of 4 days and completes by end of the day on Thursday, 7th. There is a 2 day lag and since Saturday and Sunday are non-working, Activity B can begin only on Tuesday, 12th. Activity B has a duration of 3 days and completes by end of the day on Thursday, 14th.

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127. PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, EAC = 390. How much is the VAC?

Explanation

The formula for calculating the Variance at Completion (VAC) is VAC = BAC – EAC. Therefore you calculate 400 - 390 = 10.

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128. Which of the following inaccurately describes a prototype?

Explanation

B - Prototypes usually go through multiple feedback cycles after which the requirements obtained from the prototype are sufficiently complete to move to a design or build phase.

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129. You are 3 months into a 9 month project. The project is progressing as planned and you expect no major problems in the foreseeable future. Your PMIS is reporting the following values: BAC = 500,000, SPI = 1.1, CPI = 1.05, EV = 173,000, AC = 164,761. How much is the EAC?

Explanation

There are many ways to calculate the EAC depending on how the project has been progressing. Therefore, questions about the EAC will always contain some information about the current “health” (or progression) of the project. There are certain keywords that you can look for. This information is important in order for you to pick the correct variation of the formula. Don’t ignore it! Sometimes the
question doesn’t use the exact keywords, but a variation. So your interpretation is needed.
For instance in our question here the information is: “The project is progressing as planned and you expect no major problems in the foreseeable future.” This indicates that there were no variances and that you expect it to continue at the same rate. Hence you need to use the first formula:
EAC = BAC / CPI = 500,000 / 1.05 = 476,190

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130. Which of the following is a control tool that helps the project management team quantify and categorize defects according to sources?

Explanation

B - A Pareto Diagram helps the management team quantify and categorize defects.

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131. Your sponsor would like to know how long it takes to build the prototype on your project. He tells you that a similar project last year produced a prototype in 28 days. Your engineer tells you that the design of the prototype will take anywhere from 25 to 45 days and based on the design changes he thinks it will probably be close to about 32 days. What is the weighted average of the numbers that you have received?

Explanation

The formula for the weighted average is (Pessimistic + (4 * Most Likely) + Optimistic) / 6. The numbers to use are only those from your engineer. The sponsors 28 days are irrelevant. Therefore you calculate (45 + (4 * 32) + 25) / 6 = 33 days

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132. The Administer Procurements process ensures that the seller's performance meets contractual requirements and that the buyer performs according to the terms of the contract. This process is part of which process group?

Explanation

D - Administer Procurements is part of the Monitoring and Controlling Process Group and is necessary for managing the contract and relationship between the buyer and seller.

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133. Your project is exactly half finished. You consult your earned value system and you receive the following numbers: BAC = 500,000, CPI = 1.1, SPI = 1.2, CV = -15,000, SV = -19,000. How much is your EV?

Explanation

Since your project is “exactly half finished” this means that your % complete = 50%.
Therefore you calculate the EV as follows:
EV = % complete * BAC = 50% * 500,000 = 250,000

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134. 2 hours after a successful project status presentation you get a call from your senior engineer. He asks to see you immediately for an urgent discussion. 3 minutes later he is in your office, door closed and he looks downcast. He tells you that your presentation earlier in the day had made him think. He had suddenly realized that he had missed several key project components. Because of that he realized that his original cost estimations were completely wrong. At the end of the meeting he promised to give you a new estimate tomorrow. The new estimate arrives less than 24 hours later and your numbers now look as follows: BAC: 1,600,000. AC = 170,000, CPI = 1.03, SPI = 1.05, EV = 175,100. How much do you now estimate that the project will cost, if the new estimate to complete that you received from your engineer is 1,570,000?

Explanation

There are many ways to calculate the EAC depending on how the project has been progressing. Therefore, questions about the EAC will always contain some information about the current “health” (or progression) of the project. There are certain keywords that you can look for. This information is important in order for you to pick the correct variation of the formula. Don’t ignore it! Sometimes the
question doesn’t use the exact keywords, but a variation. So your interpretation is needed. You will come across the following scenarios (keywords are underlined):

. No variances from the BAC have occurred or are expected to continue
at the same rate of spending (typical):
EAC=BAC/CPI.

. Original estimate was fundamentally flawed or conditions have changed and invalidated original estimating assumptions:
EAC = AC+ETC
. Current variances are thought to be atypical in the future. EAC = AC+BAC-EV
. You are over budget but need to meet a schedule deadline: EAC = AC+((BAC-EV) / (CPI*SPI))

For instance in our question here the information is: “Because of that he realized that his original cost estimations were completely wrong.” This indicates that there was a fundamental flaw in the estimate. Hence you need to use the second formula:
EAC = AC + ETC = 170,000 + 1,570,000 = 1,740,000

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135. You are in the procurement process for a high-tech product that is needed for your current project. You have sent out an RFP to several vendors and you expect a target price of about £10,000. The first estimate has arrived this morning. You open the envelope and you see that the vendor is offering the product to you at a cost of £9,500 - £11,000. What type of estimate have you received from this vendor?

Explanation

For the PMP exam you must know the following estimate types as well as percent ranges:

Order of Magnitude estimate -50% to +50% (PMBOK® Guide)
Preliminary estimate -15% to + 50%
Budget estimate -10% to +25%
Definitive estimate -5% to +10%
Final estimate 0%

Since your expected target price was around £10,000 you can easily see that the
definite estimate of -5% and +10% is what you received from the vendor.

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136. Under which of the following scenarios would you not use a Decision tree?

Explanation

C - You would use a Decision Tree when uncertainty and unknowns exist regarding future scenarios and their outcomes.

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137. Contractual agreements with unions or other employee groups can require certain roles or reporting relationships. This is an example of:

Explanation

C - Constraints limit the flexibility in the HR planning process. Examples are: 1) Organizations whose basic structure is a weak matrix means a relatively weaker role for a project manager. 2) Collective bargaining agreements - contractual agreements with unions or other employee groups can require certain roles or reporting relationships.

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138. The activity "Pack Container" in your network diagram has an early start of day 12, a late start of day 15, a duration of 3 and a late finish of day 17. What is the total float of this activity?

Explanation

The total float of an activity determines how many days you can delay an activity without delaying the project. There are two formulas both will give the same result:
Total Float = LS - ES
Total Float = LF - EF.
In our question we have the following values:
ES = 12
LS = 15
LF = 17
Therefore we calculate Total Float = LS - ES = 15 - 12 = 3 days.

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139. How much is the Estimate to Complete?

Explanation

There are several ways to calculate the Estimate to Complete (ETC).
ETC = EAC-AC
ETC = BAC-EV
ETC = (BAC-EV) / CPI
Answers A, B and C all contain the numbers to calculate each of the formulas, but only answer A has the correct result of 30,000. The results shown for answer B (120,000) and C (110,000) are incorrect. The correct result for Answer B is 80,000
and the correct result for answer C is 90,909. Answer D is completely impossible,
because you cannot calculate the ETC by using BAC and AC in any combination.

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140. Your company is constructing a new just in time manufacturing facility in Puerto Rico. This facility will be producing 3,000 bicycles every day. The raw materials are delivered to the facility on standard pallets, each taking up 1m2 (one square meter) of space. Every day approximately 500 pallets will be delivered to the facility. You have asked four local companies to submit their offers for constructing this new manufacturing facility. If you had to pick a vendor based on just the following information, which one would you choose?

Explanation

This is an example of a question with a large amount of unnecessary information. The answer to the question can be found in the first sentence: “Your company is constructing a new just in time manufacturing facility in Puerto Rico.” Per definition, the amount of inventory in a just in time environment is 0% or very close to 0%. This means that the new facility doesn’t require any special pallet storage space. (Of course, in the real world a thousand other factors would need to be considered to make a decision, but for this particular question, answer D is the best one.)

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141. EV = 105 and SPI = 0.9375. How much is the Schedule Variance (SV)?

Explanation

The formula to calculate the Schedule Variance is as follows: SV = EV - PV.
However, in this question the Planned Value isn’t given. Yet, the available two values (EV = 105 and SPI = 0.9375) enable us to calculate the PV. The complete process is as follows:

The formula for the SPI is: SPI = EV / PV.
We invert this formula in order to calculate the PV:
PV = EV / SPI = 105 / 0.9375 = 112
Now we apply the normal formula for SV
SV = EV - PV = 105 - 112 = -7

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142. Which of the following is not accurate about the initial phase of a project?

Explanation

B - The reason why this response is NOT accurate is because: at the initial stage of a project, the cost is typically not at its highest.

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143. Report Performance includes information on how resources are being used to achieve project objectives. It should also generally include information on:

Explanation

B - The Report Performance process involves collection of all baseline data and distribution of performance information to all stakeholders. Generally, the performance reporting should provide information on scope, schedule, cost and quality.

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144. You have landed your dream job, as project manager working in an exotic sports car factory. Your project involves coming up with a smoother ride for the car. You have tasked the engineers to determine which type of suspension and what type of tires will provide the best ride and the most reasonable cost. This is an example of?

Explanation

D - Design of Experiments is a statistical method that helps identify which factors may influence specific variables of a product or process under development or in production. It is a tool in the quality planning process.

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145. You are the project manager of the Sterling project. The goal is to explore 2 possible new products for your company. Over €150,000 have been spent on this exploratory project. Market studies with focus groups show that there is a need for both products. However, your sponsor is worried that you are only 60% finished and that the current ETC tells you that another €175,000 is required to finish. What should you do?

Explanation

All decision on whether or not to continue with a project should be based on forward looking criteria. The sunk cost (= money that has been spent) should not be a factor in the decision making process. Take your car as an analogy: If you learn that you need to have the flux capacitor replaced (at a cost of €750) then you should not be thinking “Gee… I just replaced the intake valve for €250 last month!”
Instead you should look at the value of your car and whether this investment / repair is worth the future usage of the vehicle. It is the same with projects. Make forward looking decisions and ignore sunk cost.

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146. What are the outputs of the Plan Procurements process?

Explanation

C - Procurement management plan, Procurement statements of Work, Make-or-buy decisions are the outputs of the Plan Procurements process.

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147. You work in the PMO of a mid-sized company. Your PPM tool shows that there are currently 3 new projects waiting for selection. They are Project Stone with an NPV of a15,000,000, Project Paper with an NPV of a17,000,000 and Project Scissors with an NPV of a13,000,000. You present these 3 projects at the monthly project selection board meeting. After initial discussion it was immediately decided that Project Scissors will not be pursued at all. At this point a lengthy discussion begins about the benefits of both Project Stone and Project Paper. After 45 minutes the CEO asks you: "What is the opportunity cost of selecting Project Stone instead of Project Paper?" What is your answer?

Explanation

This is an extremely simple question, presented to you as if it were a complex problem. The opportunity cost when selecting between two projects is simply the value of the project that is not selected. Or in numbers:

. Project Paper has a value of ¥17,000,000.
. If you don’t do this project, then your lost opportunity is ¥17,000,000.
. The value of the project that was actually selected is irrelevant.
. You do not have to do any calculation whatsoever

Here is another way of explaining this: Let us assume that you had enough resources in your company to tackle both projects. In this case you would make the profit of ¥15,000,000 from Project Stone plus the profit of ¥17,000,000 from Project Paper, giving you a total profit of ¥32,000,000. But because you only have capacity for Project Stone, you are unable to realize the profit from Project Paper. Therefore, your lost opportunity is the profit from the project that you did not do.

Note also, that Project Scissors was never part of this equation. The CEO only asked what the opportunity cost was when selecting between the other two projects

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148. Stakeholders have vested interest in the outcome of the project. Which of the following is a role of a stakeholder?

Explanation

B - Project stakeholders are also risk owners for a given project.

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149. Which of the following is not true about the WBS?

Explanation

C - The WBS puts a greater focus on the deliverables than on actual activities.

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150. Your project is budgeted at £500,000 with a schedule duration of 8 months. You are currently at the end of month 4 and you know that you are £20,000 ahead of schedule. Your estimated earned value is £350,000. How much of the project budget is complete?

Explanation

The formula for calculating percent complete of a project budget is EV / BAC * 100. Therefore you calculate 350,000 / 500,000 * 100 = 70. (Note if the question had been how much of the project schedule is complete then 50% would have been correct, since you are at the end of month 4 of 8.)

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151. Contingency Reserves are estimated costs to be used at the discretion of the project manager to deal with:

Explanation

B - Contingency Reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain events. These are also called as "Known unknowns"

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152. You are on the phone with your project sponsor discussing the most recent project figures. There are slight variances to the original budget. Your project sponsor says: "If I look at the Budget at Completion and the Earned Value, then our ETC should still be around 200,000. So we are OK." Based on this information, what do you know?

Explanation

There are many ways in which you can calculate the ETC and each is based on a particular assumption on how the project is progressing. Your interpretation of the assumptions is required. Here are the formulas:
. ETC = EAC-AC: Use formula when no keywords (i.e. typical, atypical or flawed) are given.
. ETC = BAC-EV: Assumption: use formula if current variances are thought to be atypical in the future.
. ETC = (BAC-EV) / CPI: Assumption: use formula if current variances are thought to be typical in the future.
. ETC = New estimate when it is thought that the original estimate was flawed.

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153. Calculate the Point of Total Assumption on the following contract: Target Cost: 1,000,000; Target Profit: 100,000; Target Price: 1,200,000; Ceiling Price: 1,450,000; Share Ratio: 80% buyer–20% seller for overruns, 60%–40% for underruns.

Explanation

The Point of Total Assumption (PTA) is calculated as follows:
PTA = ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost
PTA = ((1,450,000 - 1,200,000)/ 0.80) + 1,000,000 = 1,312,500
The percentages for underruns are irrelevant for this question and can be ignored

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154. You are a consultant specializing in recovery of troubled projects. Your latest assignment is on a project where the CPI = 0.78 and the SPI = 0.65. Without knowing anything else about this project, how would you best explain this situation?

Explanation

To answer this question correctly you must first analyze and understand that CPI = 0.78 and SPI = 0.65 means that this project is both over budget and behind schedule. So you need to pick an answer that could explain why we are having problems with both the budget and schedule. Let’s analyze the available answers together:

A.).The project manager did not create a resource loaded schedule. This answer does not address either budget or schedule problems. It just shows that the PM forgot on particular action during scheduling.
B.) 35% of the tasks were not finished on time. This answer can explain why we are behind schedule, but not why we are above budget.
C.) The construction machines used were too expensive. This answer can explain why we are above budget, but not why we are behind schedule.
D.) This project has been staffed with a team that was not sufficiently experienced. An inexperienced staff can explain both. Because of their lack of experience tasks will take a lot longer to finish. This will cause a delay in the schedule and because the tasks take longer to finish they will also cost more.
This explains both the CPI and SPI and is therefore the best available answer.

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155. Which of the following is not a valid instance of Risk Transference?

Explanation

A - A Cost reimbursable contract does not transfer risk to the seller, rather, the risk is with the buyer. Risk Transference involves shifting the negative impact of a risk, along with the ownership of the response, to a third party. Risk transference nearly always involves payment of a premium to the party taking on the risk. Examples are use of performance bonds, Warranties, Fixed price contracts.

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156. Which of the following statements best describes Time & Material (T&M) contracts?

Explanation

A - T&M contracts are hybrid type of contractual agreements that contain aspects of both cost-reimbursable and fixed-price type arrangements. They resemble cost-reimbursable contracts in that they are open ended, but resemble fixed price type contracts where the unit rates can be preset and agreed upon between buyer and seller for a specific resource category.

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157. Which of these is not an example of an Information Gathering technique used in identifying risk?

Explanation

D - Delta technique is not a valid example of an Information Gathering Technique.

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158. Your company owns an asset with an original value of $1,000. This asset will be depreciated using the double declining balance method over the period of 5 years. What is the dollar value of the annual depreciation in year 2?

Explanation

To calculate the annual depreciation % for the double-declining-balance method you have to first calculate the straight-line depreciation rate. Since the asset has a 5 year life, the straight-line depreciation rate is 100% / 5 years = 20% per year. With double-declining-balance method, as the name suggests, the double of that rate (40%) is used.

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159. Your company has a small staff and due to resource constraints not all projects that are proposed can be undertaken. There are two new projects that have been proposed. Project Gold will take 1.5 years and will bring a profit of around €290,000 at the end of year 2. Project Silver will take 1 year and reduce internal cost by €270,000 by the end of year 4. Assuming a 3% interest rate, which of the following is true?

Explanation

Project Gold has a PV of €273,352 and Project Silver has a PV of €239,891. This is a difference of €33,461, making answer B the best one.

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160. Which of these is accurate regarding the Develop Schedule process?

Explanation

B - The accurate statement regarding the Develop Schedule process is that the critical path method is a schedule network analysis technique that is performed using the schedule model

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161. Your Vice President has asked you what the Estimate at Completion is going to be for an extremely small project you are working on. You were given a budget of $30, and to date you have spent $20 but only completed $10 worth of work.

Explanation

A - Estimate at Completion (EAC)=BAC/CPI Budget at Completion (BAC) is $30 in this example Cost Performance Indicator (CPI)= Earned Value (EV) ($10)/Actual Cost ($20), which is .5 EAC=30/.5 EAC=$60

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162. You are about to contract out a project to a service provider. However at the time of awarding the contract, you are not sure of the total effort involved. Which of the following would best suit your purpose?

Explanation

B - This type of a project situation calls for a Time & Material type of contract. The contract will be open ended since the effort is not completely known. However, the unit rates will be negotiated and agreed upon for a particular resource category.

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163. While managing a project, you decide to contract to an external enterprise. You enter into a contract where you pay the external enterprise a set amount (as defined by the contract), irrespective of the seller's costs. What would best describe this type of contract?

Explanation

B - This is an example of a Firm- Fixed Price project.

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164. How do you calculate the Estimate to Complete?

Explanation

There are three formulas to calculate the ETC. They are listed below. The 2nd one in the list is the one we were looking for.
. ETC = EAC-AC - Expected total cost minus actual cost to date. Result is a monetary value that will tell us how much more the project will cost.
. ETC = BAC-EV - The planned budget minus the earned value. Result is a monetary value that will tell us how much more the project will cost.
Assumption: use formula if current variances are thought to be atypical in the future.
. ETC = (BAC-EV) / CPI - The planned budget minus the earned value modified by project performance. Result is a monetary value that will tell us how much more the project will cost.
Assumption: use formula if current variances are thought to be typical in the future.

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165. You have just been assigned to a new project that is very similar to the previous one. One particular task on the previous project took 146 days to finish. You are doing a top down estimate of the new project and you estimate that the same task on the new project will take at least 138 and at maximum 157 days. What is the variance of this estimate?

Explanation

The formula to calculate the variance of a task is as follows: Variance =
((Pessimistic - Optimistic) / 6)^2. Therefore you would calculate:
((157 - 138) / 6)^2 = (19 / 6)^2 = 3.1666^2 = 10.02 days

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166. Which of these are not inputs to the Determine Budgets process?

Explanation

A - The Cost baseline and Requirements traceability matrix are not inputs to the Determine Budgets process. The others are valid inputs.

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167. One of the configuration management activities in the project involved capturing, storing and accessing configuration information needed to manage products and product information. This is known as:

Explanation

A - The correct response is configuration status accounting

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168. A project is contracted as a Cost- Plus-Incentive-Fee (CPIF) type of contract. The project is negotiated such that if the final costs are less than expected costs, the sharing formula for cost savings is 75:25. The targeted cost is US$ 100,000 with an 8% incentive fee. If the project comes in at US$ 80,000, what would be the cost of the total contract?

Explanation

B - The correct answer is US$ 93,000. The calculation is as follows: Incentive fee based on budgeted costs = 8% of 100,000 = 8,000 Actual costs = 80,000 Share of cost savings = 25% of 20,000 = 5,000 (since the cost savings is 100,000 - 80,000) Hence the payout = 80,000 + 8,000 + 5,000 = US$ 93,000.

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169. Analogous Cost Estimating is which of the following?

Explanation

B - Analogous cost estimating is generally deemed less accurate than other methods of estimation.

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170. You have received the following estimates from vendors: Vendor 1: €75,000, Vendor 2: €65,000, Vendor 3: €93,500, Vendor 4: €82,000, Vendor 5: €94,000. What is the median estimate that you have received?

Explanation

The Median is the middle value that separates the higher half from the lower
half. In our example, you have to first order the numbers ascending:
£65,000 - £75,000 - £82,000 - £93,500 - £94,000
Now it is easy to see, that the Median value is £82,000. It is exactly in the middle

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171. You are in the procurement phase of a government project. You are the seller, the government the buyer. You have been asked to calculate the PTA. How much is the PTA if you have the following information available: Target Price is 2.1 million; Ceiling Price is 2.3 million, Target Cost is 1.9 million; your share is 30%.

Explanation

The Point of Total Assumption (PTA) is calculated as follows:
PTA = ((Ceiling Price - Target Price)/Buyer's Share Ratio) + Target Cost PTA = ((2.3 – 2.1)/ 0.70) + 1.9 = 2,185,000
One important thing to realize in this question is that the 30% share ratio given is your share ratio. The question also clearly says that you are the seller. The PTA formula, however, requires you to input the buyer’s share ratio. So you must first realize that if your share ration is 30% then the buyer’s share ration must be 70%.
Therefore, the appropriate number to use as the “Buyer’s Share Ratio” is 0.7 and not 0.3.

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172. You are a project manager arranging for some interviewing techniques to be applied. This would not apply to which of the following Project Risk Management processes?

Explanation

D - Of the Project Risk Management processes listed as response options, interviewing is a tool or technique which applies to all of them except for Plan Risk Responses.

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173. Which of these statements is accurate regarding quality management?

Explanation

A - As the correct item states, modern quality management complements project management.

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174. You are an expatriate working in a foreign country and have been asked to offer a cash payment gift to the procurement manager at a company you are bidding on work for. How BEST should you interpret this request?

Explanation

C - It is important to understand the local customs and standards in the area where your project is taking place. This knowledge will ensure your decisions are considered ethical. Project managers have a responsibility to not accept or offer inappropriate payments. In some cultures it would be considered inappropriate to offer a cash payment to a company accepting bids, however, in the scenario

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175. After the last project meeting your sponsor has asked you to give her a new estimate of the cost at the end of the project. This is because during the meeting it was found that so much has gone wrong until now, that the numbers are probably off. It is expected, that from now on things will progress normally. You gather all the necessary numbers from your PMIS. Which formula will you use to create the expected total cost of the project?

Explanation

The sponsor has asked you to calculate the Estimate at Completion (EAC). Based on the information in the scenario we learn that the past variances are not typical because things should be normal going forward from here. Hence we will use the EAC formula which is used when past variances are thought to be atypical. We will calculate the actual cost to date plus remaining budget. (BAC - EV is the
remaining budget.)

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176. Funding requirements for a project are usually in incremental amounts that are not continuous, and these appear as a step function in the graph depicting Cash flow, Cost baseline and Funding. Any gap at the end of the project, between funds allocated and the cost baseline and cash flow amounts represents:

Explanation

A - This represents the amount of management reserve that was not used.

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177. You have your project team members record the time they spend on different activities during the day such as: programming, electrical, HVAC, etc. This is an example of a tool and technique in what process?

Explanation

C - Time reports and the amount of time expended on a project are part of Performance Reporting.

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178. As the project manager on the construction of a new hotel you have developed a project management plan that you believe is realistic and will be formally approved. The organizational assets that influenced the development of the plan may include all of the following except:

Explanation

D - The business case for the project is used to develop the project charter and may not play a role in the development of the project management plan.

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179. A Probability and Impact Matrix contains risks prioritized according to their potential implications for meeting the project's objectives. The typical approach is:

Explanation

A - A look-up table or Probability and Impact Matrix with specific combinations of Probability and impact that lead to a risk being rated as "high", "moderate" or "low" importance is used. The importance for planning responses to the risk are usually set by the organization. The project manager can tailor this to the specific project during the Plan Risk Management process.

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180. PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, ETC = 300, EAC = 407. The ETC is given as 300. However, how much would the Estimate to Complete be if we assume that current variances are thought to be atypical?

Explanation

The formula for calculating the ETC when variances are atypical is ETC = BAC-EV. Therefore you calculate 400 - 105 - 295

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181. Your customer is asking for an order of magnitude estimate. What numbers do you give him, assuming that your bottom up estimate gave you a project cost of approximately CHF 200,000?

Explanation

An Order of Magnitude estimate is from -50% to +50%. Answer B is best because it comes closest to this range. (Answer A would be a Preliminary Estimate, C would be a Definite Estimate and D would be a Budget Estimate).

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182. Assuming a 3% interest rate, which of the following projects would you select?

Explanation

The “profit at the end of year x” represents a Future Value (FV). To determine which of these projects to select you must calculate the Present Value (PV) for each of the 4 projects. This is calculated by using the formula PV = FV / (1 + r)^n

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183. The activity "Ship Container" in your network diagram has an early start of day 17, a late start of day 22 and a late finish of day 37. What is the activity duration?

Explanation

The formula to calculate activity duration is Late Finish - Late Start +1.
Therefore you calculate 37 - 22 + 1 = 16

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184. A technique that uses a project model to translate the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project is called:

Explanation

C - This is known as simulation. Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level, and are typically performed using Monte Carlo Analysis.

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185. PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, ETC = 300. How much is the EAC if the variances from the BAC are expected to continue at the same rate?

Explanation

The formula for calculating the Estimate at Completion (EAC) if we expect the variances to continue at the current rate is EAC=BAC/CPI. However, the question does not give you the CPI.
So you first have to calculate the CPI: CPI = EV / AC = 105 / 102 = 1.0294
Now you can calculate the EAC: EAC = BAC / CPI = 400 / 1.0294 = 388.57

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186. You are planning a speed networking event. The idea is to bring 50 top executives from local companies who don't know each other together into one room and give them 3 minutes to talk with each other and then move on to the next person in the room. At the end of the event each attendee will have spoken to each of the other attendees. Speed networking begins at 5pm. When will it end?

Explanation

This is an interesting variation of the “Communications Channels” formula designed to test your logical thinking. In fact, the goal of the question is not to use the communication channels formula at all. If you use the formula you will get the wrong answer. Why? Because the question isn’t asking you to calculate the communication channels. Instead the question asks the following:
We have 50 executives. Each of them will speak to the 49 others for 3 minutes. How long will it take?
The mistake you could make is to calculate the communication channels (50 * 49 / 2 = 1225) multiply that by 3 minutes and then the end-time would be about 20 hours later. No executive would stay this long. Yes, you have correctly calculated the communications channels, but you have to remember that during the event you always have 25 simultaneous conversations going on in the room. I speak to you
and the other 48 executives speak to each other as well.
The actual calculation you have to do is much simpler: If I am one of the 50 executives, then I have to speak to 49 others. If you are one of these executives then you also have to speak to 49 others. In fact, each of the attending 50 executives has to speak to 49 others. Therefore, you calculate 49 * 3 minutes = 147 minutes = 2 hours 27 minutes. This gives you an end time of 7:27pm

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187. A variance threshold for costs or other indicators to indicate the agreed amount of variation allowed is called:

Explanation

B - Control thresholds are variance thresholds for costs or other indicators such as person days and indicate the agreed amount of variation allowed.

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188. Which of the following is not an example of a procurement document?

Explanation

B - Letter of Intent (LOI) is not a procurement document. Procurement documents are used to seek proposals from prospective sellers. Examples are: Invitation for bid, Request for proposal, Request for Quotation, tender notice, Invitation for Negotiation and contractor initial response.

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189. You have successfully passed your PMP and are leading a project to replace the storage devices in a data center. In the following week you and your team of experts will be meeting with a storage device vendor to discuss the status of their deliverables that are due at week's end. What management process do these activities reflect?

Explanation

B - The question is asking for the project management process. The only project management process in the answers is Administer Procurements, a process of the Project Procurement Management knowledge area. The other choices are tools and techniques of Administer Procurements process.

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190. Your friend Joe is planning to retire 20 years from today. He is investing $200,000 in a long-term investment at 3.5%. How much will this money be worth in 20 years?

Explanation

You are asked to calculate the Future Value of a 200,000 investment at 3.5% for 20 years. The formula for Future Value is FV = PV * (1+r)^n. Therefore you calculate 200,000 * (1 + 0.035)^20 = 397,957.

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191. As an experienced PMP, you have found that running a WBS meeting is tricky because you need to find a balance between decomposition and excessive decomposition. When items are excessively decomposed it leads all of the following, EXCEPT:

Explanation

A - Excessive decomposition can lead to: inefficient use of resources, decreased efficiency and non productive management efforts.

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192. Which of the following is accurate regarding Project Integration Management?

Explanation

C - Project Integration Management is needed more where individual processes interact.

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193. When solving complex problems with the team, what type of communication should be used extensively?

Explanation

A - Any time there are complex issues that need to be solved you should use written communication to ensure that all parties are receiving the same message and are on the "same page".

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194. Your project is mid-way through a delivery schedule. As project manager, you want to understand how much work is left. Which is the most accurate way to determine the remaining work to be done by the project team?

Explanation

C - Although the Earned value technique of determining the balance work in the project is quick and automatic, it is not as valuable or accurate as the manual forecasting of the remaining work by the project team. This however is more time- consuming.

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195. What is the BEST way to make an accurate forecasting of ETC?

Explanation

C - Manual forecasting of costs for remaining work is generally the best means of generating an accurate forecast.

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196. Your company owns an asset with an original value of $5,000. This asset will be depreciated using the Sum-of-Years' Digits Method over the period of 5 years. What is the depreciation rate in year 2?

Explanation

First, determine the years' digits. Since the asset has useful life of 5 years, the Years' digits are: 5, 4, 3, 2, and 1.
Now, calculate the sum of the digits: 5+4+3+2+1=15.
Therefore, the depreciation rates are as follows: 5/15 for the 1st year, 4/15 for the 2nd year, 3/15 for the 3rd year, 2/15 for the 4th year, and 1/15 for the 5th year

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197. You have just returned from the weekly change control board meeting where you presented the requested changes to the employee move project. You had five changes approved, however one was denied. You now are updating the project management plan to incorporate the changes. In what project management process would this be done?

Explanation

A - Adapting changes to the project management plan are part of the Direct and Manage Project Execution.

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198. Your customer is asking you for a preliminary estimate. Your numbers show that the project will most likely cost DKK 100,000. What number will you give to your customer?

Explanation

The percentages for the various estimates that you need to know for the exam are as follows: Order of Magnitude estimate = -50% to +50% (PMBOK® Guide); Preliminary estimate = -15% to + 50%; Budget estimate = -10% to +25%; Definitive estimate = -5% to +10%; Final estimate = 0%. You have been asked to provide a preliminary estimate. Therefore your range has to be -15% to + 50% from
the 100,000 starting point.

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199. Your designer has given his resignation. This means that you will be losing him and your team size (including yourself) will go from 12 to 11 people. How many fewer communication channels do you personally have on your project?

Explanation

This question doesn’t require you to use the communication channel formula.
Let’s first look at the question: It does not ask “How many fewer communication channels are there on the project”. Instead, the question asks: “How many fewer communication channels do you personally have on your project?” So to find the correct answer, we have to concentrate on your own channels and not on those of the team. Let’s do that.
We know that the team has 12 team members, including you. This means that there are 11 other team members on the project and you communicate with them. Since there are 11 other team members, that means that you personally have 11 communication channels - one with each of the other team members. One of these 11 team members has resigned and will leave the team. This means that there are now only 10 other team members on the team, leaving you with only 10 communication channels. So the difference for you is 11 - 10 = 1.
In other words: Team of 12 = You personally communicate with 11 others = 11 channels
Team of 11 = You personally communicate with 10 others = 10 channels
The difference is 1.

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200. You have run away and joined the carnival as a project manager and are in charge of constructing the Ferris wheel in each town the carnival visits. However, this is something you have never done before and you are getting different opinions from others on how long it takes. Joe, is new and has given you what you believe to be an optimistic estimate of 3 hours, Bill says it will take 10 hours, which seems too long to you and quite pessimistic. Lastly, Margie, who is the most experienced at this task is telling you it will take 8 hours. You are not sure who to believe, so you decide to do a PERT estimation, based on this you have determined it will take how many hours to assemble the Ferris wheel.

Explanation

A - The PERT formula is Estimate= (Optimistic + (Most Likely *4) + Pessimistic)/6

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You have just received an email from your customer that contains the...
In the past you have had issues with stakeholders who come back to you...
A tool that is used for charting human resources is a:
Your project has an SPI of 1.1 and a CPI of 0.9. What does this mean?
Which of the following Projects will you select?
A new CEO has come into your company and promptly shut down your...
In a project, Activity A has a duration of 4 days and begins on the...
PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, EAC = 390. How much...
Which of the following inaccurately describes a prototype?
You are 3 months into a 9 month project. The project is progressing as...
Which of the following is a control tool that helps the project...
Your sponsor would like to know how long it takes to build the...
The Administer Procurements process ensures that the seller's...
Your project is exactly half finished. You consult your earned value...
2 hours after a successful project status presentation you get a call...
You are in the procurement process for a high-tech product that is...
Under which of the following scenarios would you not use a Decision...
Contractual agreements with unions or other employee groups can...
The activity "Pack Container" in your network diagram has an early...
How much is the Estimate to Complete?
Your company is constructing a new just in time manufacturing facility...
EV = 105 and SPI = 0.9375. How much is the Schedule Variance (SV)?
Which of the following is not accurate about the initial phase of a...
Report Performance includes information on how resources are being...
You have landed your dream job, as project manager working in an...
You are the project manager of the Sterling project. The goal is to...
What are the outputs of the Plan Procurements process?
You work in the PMO of a mid-sized company. Your PPM tool shows...
Stakeholders have vested interest in the outcome of the project. Which...
Which of the following is not true about the WBS?
Your project is budgeted at £500,000 with a schedule duration of...
Contingency Reserves are estimated costs to be used at the discretion...
You are on the phone with your project sponsor discussing the most...
Calculate the Point of Total Assumption on the following contract:...
You are a consultant specializing in recovery of troubled projects....
Which of the following is not a valid instance of Risk Transference?
Which of the following statements best describes Time & Material...
Which of these is not an example of an Information Gathering technique...
Your company owns an asset with an original value of $1,000. This...
Your company has a small staff and due to resource constraints not all...
Which of these is accurate regarding the Develop Schedule process?
Your Vice President has asked you what the Estimate at Completion is...
You are about to contract out a project to a service provider. However...
While managing a project, you decide to contract to an external...
How do you calculate the Estimate to Complete?
You have just been assigned to a new project that is very similar to...
Which of these are not inputs to the Determine Budgets process?
One of the configuration management activities in the project involved...
A project is contracted as a Cost- Plus-Incentive-Fee (CPIF) type of...
Analogous Cost Estimating is which of the following?
You have received the following estimates from vendors: Vendor 1:...
You are in the procurement phase of a government project. You are the...
You are a project manager arranging for some interviewing techniques...
Which of these statements is accurate regarding quality management?
You are an expatriate working in a foreign country and have been asked...
After the last project meeting your sponsor has asked you to give her...
Funding requirements for a project are usually in incremental amounts...
You have your project team members record the time they spend on...
As the project manager on the construction of a new hotel you have...
A Probability and Impact Matrix contains risks prioritized according...
PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, ETC = 300, EAC = 407....
Your customer is asking for an order of magnitude estimate. What...
Assuming a 3% interest rate, which of the following projects would you...
The activity "Ship Container" in your network diagram has an early...
A technique that uses a project model to translate the uncertainties...
PV = 100, EV = 105, BAC = 400, AC = 102, CV = 3, ETC = 300. How much...
You are planning a speed networking event. The idea is to bring 50 top...
A variance threshold for costs or other indicators to indicate the...
Which of the following is not an example of a procurement document?
You have successfully passed your PMP and are leading a project to...
Your friend Joe is planning to retire 20 years from today. He is...
As an experienced PMP, you have found that running a WBS meeting is...
Which of the following is accurate regarding Project Integration...
When solving complex problems with the team, what type of...
Your project is mid-way through a delivery schedule. As project...
What is the BEST way to make an accurate forecasting of ETC?
Your company owns an asset with an original value of $5,000. This...
You have just returned from the weekly change control board meeting...
Your customer is asking you for a preliminary estimate. Your numbers...
Your designer has given his resignation. This means that you will be...
You have run away and joined the carnival as a project manager and are...
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