PMstudy Exam2

Question No : 1
In making investment decisions, the senior management in your company prefers to use a rate that equates the present
value of cash inflows with the present value of cash outflows. This rate is also called:
Choice 1 Discount Rate
Choice 2 Benefit Cost Ratio
Choice 3 Internal Rate of Return
Choice 4 Net Present Value
Correct Choice : 3
Justification :
Internal Rate of Return (IRR)
 Discount Rate on an investment which makes Present value of cash inflows = Present value of cash outflows
 Project Selection Criterion: Select a project with higher IRR.
Example: There are 2 projects. Project A has an IRR of 15% and will be completed in 5 years. Project B has an IRR of
10% and will be completed in 1 year. Which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller duration than project A does not matter because
time is already taken into account in IRR calculations.
Reference: PMstudy.com comments

Question No : 2
You are completing a NASA project for the launch of a weather forecasting satellite. The satellite is being tested for a
specific quality metric: Performance under Strong Winds. For which processes are quality metrics used?
Choice 1 Perform Quality Assurance and Plan Quality
Choice 2 Plan Quality and Control Quality
Choice 3 Control Quality, Plan Quality, and Perform Quality Assurance
Choice 4 Perform Quality Assurance and Control Quality
Correct Choice : 4
Justification :
Quality metrics are used in the Perform Quality Assurance and Control Quality processes.
Reference: PMBOK® Guide - Fifth Edition, page 232, figure 8-3
PMstudy.com comments: Quality metrics form an output of Plan Quality Management process
Question No : 3
As a project manager, you are in the process of creating a list of all the project team members, their roles, and
communication information. This information should reside in:
Choice 1 Project plan
Choice 2 Project team directory
Choice 3 Performance reports
Choice 4 Responsibility assignment matrix
Correct Choice : 2
Justification :
Project team directory is a documented list of project team members, their project roles, and communication information.
Reference: PMBOK® Guide - Fifth Edition, page 556

Question No : 4
You are a procurements manager and are responsible for managing complex procurement contracts. In this context, which
of the following is the most effective means of handling complex communications?
Choice 1 Formal oral
Choice 2 Formal written
Choice 3 Informal written
Choice 4 Informal oral
Correct Choice : 2
Justification :
The best way to manage complex communications, such as in contracts, is through formal written communication.

Question No : 5
In managing risks for your project, you examine the extent to which the uncertainty of each project element affects the
objective being examined when all other uncertain elements are held at baseline values. This helps to:
Choice 1 Get a qualitative analysis of the risk.
Choice 2 Determine which risks may have impact on the project.
Choice 3 Translate the uncertainties at a detailed level into potential impact on objectives expressed at the level of the total
project.
Choice 4 Determine the implication of choosing one alternative over the other.
Correct Choice : 2
Justification :
Sensitivity analysis helps to determine which risks have the most potential impact on the project. It helps to understand
how the variations in project`s objectives correlate with variations in different uncertainties. Conversely, it examines the
extent to which the uncertainty of each project element affects the objective being studied when all other uncertain
elements are held at their baseline values.

Question No : 6
You are in the process of selecting an appropriate type of contract for your project. In this context, which of the following
statements related to fixed price, cost reimbursable, and time and material contracts is NOT correct?
Choice 1 In a fixed-price contract, the product is well defined.
Choice 2 In a cost reimbursable contract, the risk of the seller is low.
Choice 3 In a time and material contract, the risk of the buyer is low.
Choice 4 In a time and material contract, the type of payment is based on unit rates for work done. The unit rate for work
done is fixed, but the total cost increases with time.
Correct Choice : 3
Justification :
Contract Type Selection
Fixed Price Cost Reimbursable Time and Material

Definition of product Well-defined Not well-defined Not well-defined
Risk of buyer Low High High
Risk of seller High Low Low
Unit rate of payment fixed,
Payment for actual cost
Type of payment Fixed total price but the cost increases with
+ fee for seller profit
time
Reference: PMstudy.com study notes

Question No : 7
What are common updates made throughout the Project Stakeholder Management processes?
Choice 1 Project Documents, Project Management Plan, Enterprise Environmental Factors
Choice 2 Project Documents, Organizational Process Assets, Project Management Plan
Choice 3 Organizational Process Assets, Issue Log, Stakeholder Register
Choice 4 Organizational Process Assets, Stakeholder Management Plan, Issue Log
Correct Choice : 2
Justification :
Project documents such as the Stakeholder Register, Project Schedule, Issue Log, and Change Log may be updated
throughout the Project Stakeholder Management processes. Various organizational process assets such as project status
reports, lessons learned documentation, and project records (e.g., correspondence, memos, meeting minutes) may also be
updated. Finally, various components of the Project Management Plan, such as the Stakeholder Management Plan,
Communications Management Plan, Human Resource Management Plan and potentially other subsidiary plans, may need
to be updated due to stakeholder management activities.
Option 1: Enterprise Environmental Factors (e.g., organizational culture or structure, government or industry standards) are
not typically updated throughout the Project Stakeholder Management processes, but they may be used; so you will see
Enterprise Environmental Factors as an input in the Identify Stakeholders and Plan Stakeholder Management processes,
but not and output.
Options 3 and 4: Although these are all correct, option 2 is more inclusive. You should choose the most inclusive response
when there are multiple correct options.

Question No : 8
Your company manufactures car batteries. A research team discovers that there is a manufacturing flaw in the batteries,
25,000 of which are already sold. This flaw can cause fatal accidents, although no such accidents have been reported yet.
Recalling all the batteries sold would cost the company as much as $ 25 million. What first step is your company going to
take on this issue?
Choice 1 Recall all batteries for repair
Choice 2 Do nothing - there are no reported accidents till now
Choice 3 Strengthen the contingency reserves of the company to handle financial implications arising out of future
accidents occurring due to malfunction of the batteries
Choice 4 Ensure that the manufacturing defect is rectified in subsequent production
Correct Choice : 1
Justification :
Option 1: This is the correct answer as it is ethical to recall the batteries immediately on discovering the manufacturing flaw
in spite of the high cost involved and probability of accident occurrence.
Option 2 and Option 3: These are not recommended, because they are unethical actions; they presuppose inaction till
accidents happen.
Option 4: This is not recommended. This is certainly a step that the company should take--- but not the first.

Question No : 9
You are a project manager in XYZ Company, which has a projectized organizational structure. In this context, which of the
following statements is incorrect?
Choice 1 Team members are often co-located.
Choice 2 There is a "home" for project team members after a project is completed.
Choice 3 You have a great deal of authority and independence.
Choice 4 Organizational units (or departments) either report directly to you or provide support services to the various
projects.
Correct Choice : 2
Justification :
One disadvantage of a projectized organization is that there is "no home" for the project team members once the project is
completed. All the remaining answer options mentioned are features of a projectized organization.

Question No : 10
You are in the Direct and Manage Project Work process. Which of the following is NOT a result?
Choice 1 Deliverables
Choice 2 Project management plan updates
Choice 3 Product management plan
Choice 4 Change requests
Correct Choice : 3
Justification :
Please refer to PMBOK® Guide - Fifth Edition, page 79 (figure 4-6)
PMstudy.com comments: PMBOK® Guide does not define product management plan
Question No : 11
In projects, expert judgment will often be used throughout the Project Integration processes. Which of the following does
not provide expert judgment?
Choice 1 Professional and technical associations
Choice 2 Competitors
Choice 3 Consultants
Choice 4 Other units within the organization
Correct Choice : 2
Justification :
Expert judgment is available from many sources, including but not limited to:
- Other units within the organization

- Consultants
- Stakeholders, including customers or sponsors
- Professional and technical associations
- Industry groups
- Subject matter experts
Reference: PMBOK® Guide Fifth Edition, page 122
PMstudy.com comments: Competitors are not reliable sources of expert judgment.

Question No : 12
An activity has an optimistic estimate of 10 days, pessimistic estimate of 16 days, and most likely estimate of 13 days.
What is the PERT estimate for the task?
Choice 1 13 days
Choice 2 10 days
Choice 3 16 days
Choice 4 Cannot be determined with available information
Correct Choice : 1
Justification :
In a normal distribution, the PERT duration (also called mean)
= {Pessimistic + (4 x Most Likely) + Optimistic}/6
= {16 + (4 x 13) + 10}/6
= 13

Question No : 13
Which of the following projects described below will you select?
Choice 1 Project A with opportunity cost of $100,000 and investment of $1,000,000.
Choice 2 Project B with opportunity cost of $200,000 and investment of $500,000.
Choice 3 Project C with opportunity cost of $300,000 and investment of $3,500,000.
Choice 4 Cannot be determined from the above options.
Correct Choice : 4
Justification :
Opportunity cost and investment are not project selection criteria. So, we cannot use these to make a decision.

Question No : 14
In your project, you are preparing a process improvement plan for the manufacture of a new drug. You include process
configuration, as part of the process improvement plan. The use of process configuration advances this objective through:
Choice 1 Description of the process and start and end of processes
Choice 2 Graphic depiction of processes, with interfaces identified, used to facilitate analysis
Choice 3 Process metric to maintain control over status of process
Choice 4 Improvement of process activities
Correct Choice : 2
Justification :
Process configuration is a graphic depiction of processes, with identified interfaces, used to facilitate analysis.

Question No : 15
In your previous project, the project manager gave a lot of autonomy to the team members, which led to anarchy. The
management style followed by the project manager was:
Choice 1 Directing
Choice 2 Laissez faire
Choice 3 Delegating
Choice 4 Democratic
Correct Choice : 2
Justification :
The project manager usually follows different leadership styles as listed below:
• Autocratic: Makes decisions himself/herself; allows team members little involvement and discussion before a decision is
made.
• Directing: Instruct people what tasks will be performed and when and how they should be performed.
• Laissez Faire: Does not interfere; team is left unsupervised which may lead to anarchy.
• Democratic: Allows team to discuss issues and reach decisions, although still guides and advises.
• Delegating: Delegates to team members, particularly if competent to handle tasks.
• Coaching: Issues instructions and then supports and monitors.
• Discussing: Two-way communication and discussion with team members.
• Facilitating: Coordinates inputs from several sources before making a decision.
• Supportive: Provides positive assistance and encouragement; maintains and presents a positive outlook during times of
uncertainty; listens and encourages.
• Participatory: Involve others; same as Democratic style.
• Task-Oriented: Enforces task completion by deadlines.
• Team-Based: Emphasizes teamwork and working well together.
• Assertive: Confronts issues and displays confidence; establishes authority with respect.
Question No : 16
In accordance with the communications management plan, you have been providing the Sponsor with status updates on a
daily basis but now the Chief Financial Officer has been coming to your desk every week to request a status update on the
project. What should the project manager do?
Choice 1 Update the communications management plan
Choice 2 Re-examine the stakeholder registry
Choice 3 Ask the Chief Financial Officer to talk to the Sponsor to get status updates
Choice 4 Continue providing the Sponsor with the status updates and ignore the Chief Financial Officer
Correct Choice : 1
Justification :
The best course of action would be to update the communications management plan to provide updates to the Sponsor
and the Chief Financial Officer.
Question No : 17
Plan Risk Responses is the process of developing options and actions to enhance opportunities and to reduce threats to
project objectives. The output of Plan Risk Responses process may be:
Choice 1 Expert judgment
Choice 2 Project management plan updates
Choice 3 Risk management plan
Choice 4 Risk register
Correct Choice : 2
Justification :
Project documents updates and project management plan updates are outputs of Plan Risk Responses process.
Reference: PMBOK® Guide - Fifth Edition, page 342 (figure 11-18)
PMstudy.com comments:
Option 1: This is a technique used in the Identify Risks, Perform Quantitative Risk Analysis, Perform Qualitative Risk
Analysis, and Plan Risk Responses processes.
Option 3: This is an output of the Plan Risk Management process.
Option 4: This is an output of the Identify Risks process.
Question No : 18
In your company, you are in the process of deciding whether to buy a product or to make it in-house. Which of the following
statements about make-or-buy analysis are correct?
A. Make-or-buy analysis is part of the Conduct Procurements process that can be used to determine whether a particular
product can be produced cost effectively by the performing organization.
B. A make-or-buy analysis should consider all related costs.
C. Budget constraints may influence make-or-buy decisions.
D. Buy-side of the analysis includes both the actual out-of-pocket costs to purchase the product, as well as the indirect
costs of supporting the purchasing process.
Choice 1 B, C and D
Choice 2 A, C and D
Choice 3 B, C and A
Choice 4 A, B and D
Correct Choice : 1
Justification :
Make-or-buy analysis is part of the Plan Procurement Management process. It is a general management technique used to
determine whether particular work can best be accomplished by the project team or outsourced.

Question No : 19
You have just started working on a project to construct a new toll highway that has been recently approved by the
government. You are aware that some local residents are opposed to the construction of the highway and a group of them
have been lobbying against it. Some seem to be concerned with the noise from the traffic on the highway, others with the
potential that they may need to relocate due to the highway’s planned location. Which of the following would be considered
valid stakeholders that should be identified and managed in your project?
Choice 1 Residents of the city
Choice 2 Government employees
Choice 3 Lobbying group
Choice 4 All of the above are stakeholders
Correct Choice : 4
Justification :
Stakeholders include all individuals and groups who are involved in, could impact, or be impacted by the project. All of
these are valid stakeholders. Residents who live in (and near) the city will be impacted by the new highway. Government
employees have already been involved in decision-making and would likely be providing further input and approvals
needed throughout the project. The group of local residents lobbying against the highway should also be identified and
their expectations considered. Even though they are negatively impacted by the project, they should still be identified as
stakeholders and managed throughout the project.

Question No : 20
You are constructing a railway track, which will pass through a less populated area. All necessary government and
regulatory approvals have been obtained for the project. You are aware that due to the motion of the train, there is a very
low probability of houses in the vicinity developing cracks. In this context, you should:
Choice 1 Stop the project
Choice 2 Do nothing, since the probability of adverse consequences is minimal
Choice 3 Inform the local people about the possibility of damage to their houses and preventive measures
Choice 4 Teach people how to rebuild their houses with concrete
Correct Choice : 3
Justification :
According to PMI Code of Ethics and Professional Conduct, a certificant should assume:
a. Responsibility to provide accurate and truthful communications.
b. Responsibility to comply with laws, regulations, and ethical standards governing professional practice in the
state/province and/or country while providing project management services.
Option 3: This is the correct answer. Although the probability of damage to the houses is low, it is ethical to inform the local
people and provide them all necessary assistance.
Option 1: Stopping of the project is an extreme reaction, because all approvals have already been obtained.
Option 2: This is unethical and violates the PMI Code of Ethics and Professional Conduct.
Option 4: Teaching them to rebuild houses with concrete is beyond the scope of the project.
Reference: PMI Code of Ethics and Professional Conduct

Question No : 21
You are working as a coordinator in an organization where decisions are primarily made by the senior management. The
structure of the organization you are working in is:
Choice 1 Weak Matrix
Choice 2 Balanced Matrix
Choice 3 Functional
Choice 4 Strong Matrix
Correct Choice : 1
Justification :
Weak matrix organizations maintain many of the characteristics of a functional organization, and the role of the project
manager is more of a coordinator or expeditor.
PMstudy.com comments: In a weak matrix organization, project manager plays the role of a coordinator or expeditor and
all decisions are primarily made by the top/senior management.
Question No : 22
You are involved in a project for manufacturing ball bearings. You notice that the quality of the ball bearings produced has
deviated from the parameters specified in project management plan. In order to bring it in line with the specifications, you
initiate measures, which are referred to as:
Choice 1 Corrective action
Choice 2 Change requests
Choice 3 Defect repair
Choice 4 Preventive action
Correct Choice : 1
Justification :
Corrective action is an intentional activity that realigns the performance of the project work with the project management
plan.

Question No : 23
You are a project manager for a $50 million project that is highly complex and involves more than 100 people. To
successfully execute the project, you decide to break it down into smaller manageable units. Which of the following
processes will you use?
Choice 1 Control Scope
Choice 2 Collect Requirements
Choice 3 Define Scope
Choice 4 Create WBS
Correct Choice : 4
Justification :
Create WBS is the process of subdividing project deliverables and project work into smaller, more manageable
components.

Question No : 24
Which of the following statements about the creation of duration estimates is incorrect?
Choice 1 Mathematical analyses like CPM, GERT, and PERT indicate the dates on which the activity can be scheduled,
given resource limits and other constraints.
Choice 2 Duration compression techniques, including fast tracking and crashing can help in decreasing the project
schedule.
Choice 3 WBS classification allows for useful activity ordering and sorting.
Choice 4 The duration of the project is the sum of the duration of all the tasks in the project.
Correct Choice : 4
Justification :
The duration of the project should be calculated after drawing a network diagram and determining the critical path. The
duration of the project is the length of the critical path and not the sum of the duration of all the tasks in the project.

Question No : 25
You have been managing a project to build a new Baseball complex and are three months into the construction. You notice
some variances and would like to forecast a new EAC. You hope to get approval to adjust the Cost Performance Baseline
by submitting the new EAC and justification through the Integrated Change Control process. Calculate the To-complete
performance index of your project, based on this new EAC, when the actual cost of your project is $200,000, cost variance
of your project is $25,000 and the budget at completion of your project is $350,000.
Choice 1 1.125
Choice 2 -1.4
Choice 3 1
Choice 4 -1
Correct Choice : 1
Justification :
CV = EV - AC
EV = CV + AC
= $25,000 + $200,000
= $225,000
CPI = EV / AC
= $225,000 / $200,000
= 1.125
EAC = BAC / CPI

= $350,000 / 1.125
= $311,111.11
TCPI = (BAC - EV) / (EAC - AC)

= ($350,000 - $225,000) / ($311,111.11 - $200,000)
= $125,000 / $111,111
= 1.125
Question No : 26
As a project manager, you want to ensure that appropriate quality standards and operational definitions are used for your
products. In this context, which of the following tools or techniques would you use to achieve this objective?
A. Quality audit
B. Process analysis
C. Quality control measurements
D. All quality planning tools and techniques
Choice 1 Only A
Choice 2 A and B
Choice 3 A, B and D
Choice 4 All of the above
Correct Choice : 3
Justification :
Quality control measurements are an input (not tool and technique) for Perform Quality Assurance. All the remaining are
valid tools for the Perform Quality Assurance process. The Perform Quality Assurance process uses the tools and
techniques of the Plan Quality Management and the Control Quality processes.
Reference: PMBOK® Guide - Fifth Edition, pages 243 (figure 8-8) and 245
Question No : 27
You have a portfolio architect in your project, who has been with the company for 30 years. She commands a lot of respect
and recognition from others and is very self-confident. From a Maslow`s hierarchy of needs perspective, she has reached
the phase of:
Choice 1 Self-actualization
Choice 2 Social
Choice 3 Physiological
Choice 4 Self-esteem
Correct Choice : 4
Justification :
Please refer to the below diagram:
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 195 and 196
Question No : 28
Work performance reports are the physical or electronic representation of work performance information compiled in
project documents intended to generate decisions or raise issues, actions, or awareness. Which of the following is NOT a
common format for work performance reports?
Choice 1 S-curves
Choice 2 Control charts
Choice 3 Tables
Choice 4 Histograms
Correct Choice : 2
Justification :
Common formats for work performance reports include bar charts, S-curves, histograms, and tables. Control charts are a
tool used in the Control Quality process.

Question No : 29
In your new project the objective is to develop a new drug. After doing financial analysis, your finance manager provided
you with these statistics:
30% probability of success with benefits of $700,000

70% probability of failure with loss of $300,000
Based on this information, you:
Choice 1 Suggest that the project should proceed.
Choice 2 Suggest that the project should be stopped.
Choice 3 Communicate to your senior management that you cannot take a decision whether to proceed with the project or
not.
Choice 4 Start working on the project and ask your finance manager for additional information.
Correct Choice : 3
Justification :
Expected Value of the project
= Expected Value of success (0.30 x $700,000) + Expected value of Failure [0.70 x (- $300,000)]
= $210,000 - $210,000
=0
Since the Expected Value is "0", you cannot take a decision whether to continue with the project or not.

Question No : 30
Which of the following tools are used in the Control Procurements process?
A. Payment systems
B. Performance reporting
C. Inspections and audits
D. Procurement audits
Choice 1 B, C, and D
Choice 2 Only B
Choice 3 Only C
Choice 4 A, B, and C
Correct Choice : 4
Justification :
`Procurement audits` is not a tool used in the Control Procurements process. It is a tool for the Close Procurements
process. All the other options are tools and techniques used in the Control Procurements process.

Question No : 31
Which one of the following is not an input to the Manage Stakeholder Engagement process?
Choice 1 Project Management Plan
Choice 2 Change Log
Choice 3 Communications Management Plan
Choice 4 Organizational Process Assets
Correct Choice : 1
Justification :
In the Manage Stakeholder Engagement process, the Project Management Plan is not listed as an input, but instead two of
its subsidiary plans – the Stakeholder Management Plan and the Communications Management Plan – are listed. The
Stakeholder Management Plan provides information on how to manage and keep stakeholders involved in the project. The
Communications Management Plan includes information on managing stakeholder expectations in terms of their
informational needs. These are the main plans needed to Manage Stakeholder Engagement.
PMstudy.com comments: Option 2: The Change Log has information about changes that stakeholders need to be aware
of, so it is a valid input here.
Option 4: Organizational Process Assets used here might include stakeholder communication requirements, change and
issue control procedures, and relevant historical information from previous projects.
Question No : 32
You are doing a project under cost-reimbursable contract where the target price was $1,200,000. Your project is nearing
completion and CPI is currently 1.3. You are concerned that you will be losing money by billing for less. In this context, you
should:
Choice 1 Tell your buyer about the CPI as it stands today and explain the reasons for the deviation from the plan.
Choice 2 Invoice for $1,500,000 because there are chances for costs being higher in a subsequent project.
Choice 3 Tell the bad news to the buyer and suggest charging more from the customer.
Choice 4 Add some extra features to cause "customer delight".
Correct Choice : 1
Justification :
As per PMI Code of Ethics and Professional Conduct, you should assume:
a. Responsibility to maintain and satisfy the scope and objectives of professional services, unless otherwise directed by the
customer
Option 1: This is the correct answer, because it is ethical to inform the buyer about the CPI as it stands.
Option 2: This is unethical because you are over-invoicing for the project.
Option 3: This does not reflect the correct position. Since CPI is 1.3, you have extra money, and there is no need to ask the
buyer for extra funding.
Choice 4: This is also called "gold plating." We should never deliver more than what is undertaken and as approved in the
project scope.

Question No : 33
The dictionary meaning of authority is "power to influence or command thought, opinion, or behavior.” Your authority as a
project manager is greatly dependent on:
Choice 1 Support from functional managers
Choice 2 Support from senior management
Choice 3 Your influencing and leadership skills
Choice 4 Organizational structure
Correct Choice : 4
Justification :
Please refer to PMBOK® Guide - Fifth Edition, page 22 (table 2-1)
PMstudy.com comments: The most important factor for determining the authority of a project manager is the organizational
structure. Depending on the organizational structure, the project manager may have high to almost total authority (as in a
Projectized organization), little or none (as in a Functional organization).
Question No : 34
The customer communicates a request for a change in your project plan. What should be your first step towards
addressing the change request?
Choice 1 Talk with team members to understand implications of the change.
Choice 2 Communicate the change to the management to get their inputs.
Choice 3 Open up a change control.
Choice 4 Implement the change and communicate to the customer.
Correct Choice : 1
Justification :
Any time the customer requests for a change, you should:
1. Understand what kind of change is requested and talk with team members to assess the implication of the change.
2. Open up a change control if there is a formal change control mechanism.
3. Communicate the change to the management, and inform the customer about the impact of the change (e.g. increase in
sizing, schedule, etc.).
4. Implement the change, if it is accepted.

Question No : 35
Decomposition is a valuable tool for Create WBS process. However, decomposition may not be possible for a deliverable
or subcomponent if:
Choice 1 The deliverable or subcomponent is very complicated
Choice 2 The deliverable or subcomponent is already being produced
Choice 3 The deliverable or subcomponent will be accomplished far into the future
Choice 4 The deliverable is a service
Correct Choice : 3
Justification :
Decomposition may not be possible for a deliverable or subcomponent that will be accomplished far into the future.

Question No : 36
You are in the process of developing the project schedule to determine start and finish dates for project activities. Which of
the following tools would NOT be used for this purpose?
Choice 1 Critical path method
Choice 2 Schedule compression
Choice 3 Scheduling tool
Choice 4 Schedule baseline
Correct Choice : 4
Justification :
Develop Schedule is the process of analyzing activity sequences, durations, resource requirements and schedule
constrains to create the project schedule.
Schedule baseline is an output for this process. The tools and techniques specified in the other options are used in the
Develop Schedule process.

Question No : 37
Given the following information, determine the EV of your project.
AC = $120,000
PV = $125,000
CV = -$10,000
Choice 1 $130,000
Choice 2 $110,000
Choice 3 $90,000
Choice 4 $120,000
Correct Choice : 2
Justification :
The formula to calculate CV is EV - AC, so when given both CV and AC, you can use this formula as a basis for solving for
EV.
CV = EV - AC
EV = CV + AC
EV = -$10,000 + $120,000
EV = $110,000

Question No : 38
Your company manufactures bearings for the automobile industry. You have historical information on the identified errors
and defects, and you would like to use this information to determine future performance. An appropriate tool which you can
use is:
Choice 1 Scatter diagram
Choice 2 Statistical sampling
Choice 3 Control chart
Choice 4 Trend analysis
Correct Choice : 4
Justification :
Trend Analysis. An analytical technique that uses mathematical models to forecast future outcomes based on historical
results.

Question No : 39
You are the project manager of a complicated construction project, which involves building highways in the state of North
Carolina. You have several groups working with you in the project. To plan resources for this project and determine
connection between activities you should preferably use:
Choice 1 Staffing pool description
Choice 2 Staffing management plan
Choice 3 Responsibility assignment matrix (RAM)
Choice 4 Organization matrix
Correct Choice : 3
Justification :
RAM is used to illustrate the connections between activities or work packages and project team members. On larger
projects, RAMs can be developed at various levels. For example, a high-level RAM can define what a project team group
or unit is responsible for within each component of the WBS, while lower level RAMs are used within the group to
designate roles, responsibilities, and levels of authority for specific activities.

Question No : 40
The processes used in Project Communications Management are:
Choice 1 Plan Communications Management, Manage Communications, and Control Communications.
Choice 2 Plan Communications Management, Control Communications, and Integrated Change Control.
Choice 3 Plan Communications Management, Administrative Closure, Control Communications, and Manage
Communications.
Choice 4 Control Communications, Manage Communications, and Administrative Closure.
Correct Choice : 1
Justification :
Plan Communications Management, Manage Communications, and Control Communications are the processes used in
Project Communications Management.
PMstudy comments: Integrated Change Control is done as part of the Monitoring and Controlling process. Administrative
closure is done as part of the Closing process.
Question No : 41
In your project, you have just conducted a risk data quality assessment to evaluate the degree to which the data about
risks is useful for risk management. What is your next step?
Choice 1 Perform a structured review of project plans and assumptions, both at the total project and detailed scope levels.
Choice 2 Develop checklists to identify risks based on historical information and knowledge that has been accumulated
from previous similar projects.
Choice 3 Conduct planning meetings to develop the risk management plan.
Choice 4 Conduct interviews to quantify the probability and impact of risks on project activities.
Correct Choice : 4
Justification :
Risk data quality assessment is a tool for Perform Qualitative Risk Analysis.
Option 4: This is the correct answer. It refers to "Interviewing" which is a tool and technique for Perform Quantitative Risk
Analysis. Perform Quantitative Risk Analysis is conducted after Perform Qualitative Risk Analysis.
Option 1: This refers to Documentation Reviews which is a tool for Identify Risks. Identify Risks is conducted before
Perform Qualitative Risk Analysis.
Option 2: This refers to Checklist Analysis which is a tool for Identify Risks. Identify Risks is conducted before Perform
Qualitative Risk Analysis.
Option 3: This refers to "Meetings" which is a tool for Plan Risk Management process. Plan Risk Management process is
conducted before Perform Qualitative Risk Analysis process.

Question No : 42
You have just signed a contract with a seller. Due to funding issues, your management decides to terminate the contract.
For this purpose, you will:
Choice 1 Go back to procurement planning to determine what to procure and when.
Choice 2 Choose from other potential sellers.
Choice 3 Follow procedures as listed in contract closure.
Choice 4 Initiate procedures listed in contract change control system to define the process by which the contract may be
identified.
Correct Choice : 3
Justification :
Early termination of a contract is a special case of procurement closure that can result from a mutual agreement of both
parties, from the default of one party, or for convenience of the buyer if provided for in the contract.

Question No : 43
Which of the following processes is Information Management Systems a tool for?
Choice 1 Plan Stakeholder Management
Choice 2 Manage Stakeholder Engagement
Choice 3 Identify Stakeholders
Choice 4 Control Stakeholder Engagement
Correct Choice : 4
Justification :
Information Management Systems are used to collect, store, manage, and distribute information in various methods and
formats (e.g., hard copy, electronic, tables, spreadsheets, presentations, graphical). Standard tools are used by the project
manager to capture, store, and distribute information to stakeholders about project cost, schedule, and other performance
data. The project manager consolidates information from several systems and distributes reports to project stakeholders.
Reference: PMBOK® Guide - Fifth Edition, pages 392 (figure 13-1) and 412
PMstudy.com comments: Information Management Systems is also used in the Manage Communications and Control
Communications processes which also involve gathering and reporting project information to stakeholders as planned.
Question No : 44
The seller`s project is undertaken on contract and you are an employee of the seller. Since you had worked earlier with
ABC Bank, the buyer, you happen to be aware of the evaluation criteria used in ABC Bank to select sellers. You
understand that this could be a potential conflict of interest situation. How do you propose to act?
Choice 1 Do nothing and continue to work as before
Choice 2 Take appropriate person in ABC Bank into confidence and discuss this issue with her
Choice 3 Disclose the evaluation criteria to your (seller) organization and help their business growth
Choice 4 Remove yourself from the project
Correct Choice : 2
Justification :
Option 2: This is the correct answer. Since the evaluation criteria are proprietary information of ABC Bank, it is important
for you to discuss the matter directly with the appropriate person in the ABC Bank.
Option 1: This introduces conflict of interest as to whether to act or not in favor of your current employer.
Option 3: This is unethical, because proprietary information of the buyer should not be disclosed.
Option 4: This is an extreme step that could be taken only if required after talking to the buyer.

Question No : 45
Your director has appointed you as a portfolio manager in the company. Your responsibility as a portfolio manager is to:
Choice 1 Select and support projects or program investments
Choice 2 Manage groups of projects in a coordinated way
Choice 3 Create a unique product, service, or result
Choice 4 Ensure that customer requirements are satisfied through progressive elaboration of projects
Correct Choice : 1
Justification :
A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives.
PMstudy.com comments: Project portfolio management refers to the selection and support of projects or program
investments. These investments in projects and programs are guided by the organization`s strategic plan and available
resources.
Option 2 refers to programs. Options 3 and 4 refer to projects.

Question No : 46
You are the project manager for a project, which is being managed under a contract. You receive a change request from
the buyer involving a government regulation. What should you do FIRST?
Choice 1 Talk with team members to understand implications of the change.
Choice 2 Communicate the change to the management to get their inputs.
Choice 3 Open up a change control.
Choice 4 Implement the change and communicate to the customer.
Correct Choice : 3
Justification :
Since the change request pertains to a government regulation and the project is being managed as part of a contract, it is
mandatory to implement the change. The first step towards that is to activate the change control mechanism.

Question No : 47
As part of decomposing, you break down the project work that needs to be accomplished in the near term at a low level of
WBS. However, the work planned in the future is broken down at a relatively high level of WBS. This technique is called :
Choice 1 Procrastination
Choice 2 Delaying tactics
Choice 3 Futuristic planning
Choice 4 Rolling wave planning
Correct Choice : 4
Justification :
Rolling Wave Planning: An iterative planning technique in which the work to be accomplished in the near term is planned in
detail, while the work in the future is planned at a higher level.

Question No : 48
You are the project manager in the public works department, which awards contracts for constructing roads. Before
selecting the sellers, you must advertise in local newspapers. This is an example of:
Choice 1 Best practices in the industry
Choice 2 External dependency
Choice 3 Discretionary dependencies
Choice 4 Mandatory dependencies
Correct Choice : 4
Justification :
Mandatory dependencies are those that are contractually required or inherent in the nature of the work. Mandatory
dependencies often involve physical limitations, such as on a construction project where it is impossible to erect the
superstructure until after the foundation has been built, or on an electronics project, where a prototype must be built before
it can be tested.
PMstudy.com comments: The use of “must” in the sentence suggests that this is a mandatory dependency.
Question No : 49
In your project, you are aggregating the estimated costs of individual activities to establish an authorized cost baseline. For
this purpose, which of the following will NOT be used as an input?
Choice 1 Resource calendars
Choice 2 Scope baseline
Choice 3 Cost baseline
Choice 4 Basis of estimates
Correct Choice : 3
Justification :
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish
an authorized cost baseline. Cost baseline is an output, not an input, of the Determine Budget process.

Question No : 50
In your project, you would like to generate ideas that can be linked to form organized patterns of thought about a problem.
Which one of the following techniques would you use?
Choice 1 Force field analysis
Choice 2 Affinity diagrams
Choice 3 Nominal group techniques
Choice 4 Brainstorming
Correct Choice : 2
Justification :
Affinity diagrams are used to generate ideas that can be linked to form organized patterns of thought about a problem.

Question No : 51
In your software project, you have a programmer, who constantly professes to know all about project management and
keeps challenging his superiors. The programmer is playing the role of:
Choice 1 Aggressor
Choice 2 Conflict maximizer
Choice 3 Devil`s Advocate
Choice 4 Dominator
Correct Choice : 4
Justification :
Roles that undermine project management implementation
The Aggressor
- Criticizes everybody and everything on project management
- Deflates the status and ego of other team members
- Always acts aggressively
The Dominator
- Always tries to take over
- Professes to know everything about project management
- Tries to manipulate people
- Will challenge those in charge for a leadership role
The Devil’s Advocate

- Finds fault in all areas of project management
- Refuses to support project management unless threatened
- Acts more of a devil than an advocate
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, page 181
Question No : 52
Which of the following is not an organizational process asset that can influence the Control Communications process?
Choice 1 Report templates
Choice 2 Policies, standards, and procedures that define communications
Choice 3 Specific communication technologies available
Choice 4 The project`s budget
Correct Choice : 4
Justification :
The organizational process assets that may influence the Control Communications process include, but are not limited to:
• Report templates;
• Policies, standards, and procedures that define communications;
• Specific communication technologies available;
• Allowed communication media;
• Record retention policies; and
• Security requirements.
PMstudy.com comments: The project`s budget is a constraint, and not part of organizational process assets. (Please note
that scope, cost and time are the triple constraints for any project.)
Question No : 53
You are evaluating the probabilities of risks and costs or rewards for each logical path of events and future decisions. You
create a diagram that describes a decision under consideration and the implications of choosing one or another of the
available alternatives. The diagram you have created can be referred to as:
Choice 1 Simulation diagram
Choice 2 Fishbone diagram
Choice 3 Decision tree
Choice 4 Influence diagram
Correct Choice : 3
Justification :
Decision tree analysis. A diagramming and calculation technique for evaluating the implications of a chain of multiple
options in the presence of uncertainty.

Question No : 54
Which of the following is a major component in a procurement Agreement?
A. Incentives
B. Penalties
C. Warranty
D. Identified project manager
Choice 1 B, C and D
Choice 3 B and C
Choice 4 A, B and C
Correct Choice : 4
Justification :
The major components in a contract document will vary, but will sometimes include the following: Incentives, penalties,
pricing, place of delivery, warranty, etc.
Reference: PMBOK® Guide - Fifth Edition, pages 377 and 378

Question No : 55
You are the project manager for a project that involves developing a very important product for the company. While
executing the project plan, you notice that there are a lot of disagreements and conflicts occurring among project team
members, specifically regarding approved changes to the product. You review the Change and Issue Logs to gather some
information about what the conflicts could be about. After doing this, what should be your NEXT step?
Choice 1 Allow the team members to work through their disagreements without your involvement
Choice 2 Ask a senior team member to help the other members resolve their issues
Choice 3 Meet with all team members, listen to each perspective, and facilitate conflict management and consensus toward
project objectives
Choice 4 Have each team member discuss how he/she believes the changes should be made
Correct Choice : 3
Justification :
While the project is in executing phase, it is not uncommon for there to be conflict and disagreement among project team
members. The role of the project manager is to effectively manage stakeholders and promote appropriate stakeholder
engagement. It is therefore important for the project manager to have strong interpersonal and management skills.
Examples of interpersonal skills include building trust, resolving conflict, active listening, and overcoming resistance to
change. Examples of management skills include facilitating consensus toward project objectives, influencing others to
support the project, negotiating agreements to satisfy the project needs, and modifying organizational behavior to accept
the project outcomes.
Option 1: The team has already been trying to work out disagreements without success so the project manager must now
step in.
Option 2: The project manager is ultimately responsible for managing the project team members; this should not be
delegated to other team members who may themselves be involved in conflicts.
Option 4: This may be a valid exercise after the project manager explores option 3 if the issues are primarily about how the
changes to the product should be made.
Question No : 56
You observe that two technical team members have been arguing constantly. You would like to ensure that personality
clashes do not endanger your project. To resolve this issue, you should use:
Choice 1 Leading and influencing skills
Choice 2 Communication skills
Choice 3 Negotiation skills
Choice 4 Problem solving skills
Correct Choice : 4
Justification :
Problem solving skills include problem definition and decision-making. Problems may be technical (differences of opinion
about the best way to design a product), managerial (a functional group is not performing according to plan), or
interpersonal (personality or style clashes).

Question No : 57
Your project sponsor has specified that you have to complete your project within 3 months with a funding limit of $250,000.
This is an example of:
Choice 1 Authoritative project management
Choice 2 Constraint
Choice 3 Assumption
Choice 4 Laissez-faire management
Correct Choice : 2
Justification :
Constraint is a limiting factor that affects the execution of a project or process. Constraints identified with the project scope
statement list and describe the specific internal or external restrictions or limitations associated with the project scope that
affect the execution of the project, for example, a predefined budget or any imposed dates or schedule milestones that are
issued by the customer or performing organization.
PMstudy.com comments: Here, the project sponsor has imposed two constraints: a) completion time of 3 months and b)
funding limit of $250,000.
Question No : 58
In your current role as a project manager, you track, review, and regulate the progress of your project. Which of the
following would you not use to perform these activities?
Choice 1 Project management plan
Choice 2 Performance reports
Choice 3 Organizational process assets
Choice 4 Approved change requests
Correct Choice : 4
Justification :
Monitor and Control Project Work is the process of tracking, reviewing, and reporting the progress to meet the performance
objectives defined in the project management plan. Approved change requests is not an input to this process.

Question No : 59
Your company exhibited a car model in two international auto expos and obtained feedback from the global automobile
industry, auto magazines, and others. The company decided to go ahead with the designing and manufacturing of the car,
taking into consideration the feedback received. Which of the following methods did your company use to make this
decision?
Choice 1 Observation technique
Choice 2 Prototype
Choice 3 Requirement documentation
Choice 4 Requirement traceability matrix
Correct Choice : 2
Justification :
Prototype is a method of obtaining early feedback on requirements by providing a working model of the expected product
before actually building it. Since a prototype is tangible, it allows stakeholders to experiment with a model of the final
product rather than being limited to discussing abstract representations of their requirements.
Option 1: Observation technique provides a direct way of viewing individuals in their environment and how they perform
their jobs and tasks to carry out the processes
Option 3: Requirement documentation describes how individual requirements meet the business needs for the project.
Option 4: Requirement traceability matrix gives high level requirement to more detailed requirement.
Question No : 60
Based on the following, construct a project schedule network diagram and determine the duration of the critical path.
Your project has a total of five tasks. At the beginning of the project you can simultaneously begin tasks A and C. Task A
has a duration of 3 days, and task C has a duration of 4 days. When task A completes, task B can begin. Task B has a
duration of 5 days. Task C is followed by task D, which is estimated at 6 days. Once task B is done, you can start task E.
The duration of task E is 4 days. Task D is a predecessor to Task E. What is the duration of the critical path?
Choice 1 12 days
Choice 2 15 days
Choice 3 18 days
Choice 4 14 days
Correct Choice : 4
Justification :
The project schedule network diagram can be represented as shown below.
Question No : 61
In your project, you are estimating schedule activity costs. You decide to use the bottom-up estimating technique. In this
context, which of the following statements about Bottom-up Estimates is incorrect?
Choice 1 Determines the cost of individual scope requirements in the scope statement
Choice 2 Provides detailed costs at lowest levels that are rolled up to higher levels for reporting and tracking purposes
Choice 3 Is a method of estimating a component of work
Choice 4 Provide cost and accuracy, which is influenced by the size and complexity of the individual schedule activity or
work package
Correct Choice : 1
Justification :
Bottom-up estimating is a method of estimating a component of work. The cost of individual work packages or activities is
estimated to the greatest level of specified detail. The detailed cost is then summarized or "rolled up" to higher levels for
subsequent reporting and tracking purposes.
PMstudy.com comments: Scope requirements are not used for bottom-up estimating
Question No : 62
You are managing a project to design and implement a process to manufacture components for internal combustion
engines used in the automobile industry. You notice that in the past couple of days too many defects have been observed.
You would like to find out whether the process is stable or unusual events are occurring in your manufacturing process. For
this purpose, you should use:
Choice 1 Inspection
Choice 2 Pareto charts
Choice 3 Statistical sampling
Choice 4 Control charts
Correct Choice : 4
Justification :
Control charts are used to determine whether or not a process is stable or has predictable performance. Control charts can
be used to monitor various types of output variables. Although used most frequently to track repetitive activities required for
producing manufactured lots.

Question No : 63
In your project, you are determining project roles, responsibilities, and reporting relationships. Which of the following is not
an input to this process?
Choice 1 Enterprise environmental factors
Choice 2 Organizational process assets
Choice 3 Activity resource requirements
Choice 4 Project organization charts
Correct Choice : 4
Justification :
Plan Human Resource Management is the process of identifying and documenting project roles, responsibilities, required
skills, reporting relationships, and creating a staffing management plan. Inputs to this process are activity resource
requirements, enterprise environmental factors, and organizational process assets. However, project organization charts
are an output.
Reference: PMBOK® Guide - Fifth Edition, pages 257, 260, and 265
Question No : 64
In your project, you have created a list of identified risks and potential responses. You should document this information in
the:
Choice 1 Risk management plan
Choice 2 Risk database
Choice 4 Risk register
Correct Choice : 4
Justification :
The risk register is a document in which the results of risk analysis and risk response planning are recorded.

Question No : 65
You will use the Conduct Procurements process to receive bids or proposals and apply the selection criteria for selecting a
provider. Which of the following tools and techniques can be used for the Conduct Procurements process?
Choice 1 Procurement negotiations, bidder conferences, and independent estimates
Choice 2 Procurement negotiations, contract types, and bidder conferences
Choice 3 Procurement negotiations, make-or-buy analysis, and independent estimates
Choice 4 Performance reporting, advertising, and independent estimates
Correct Choice : 1
Justification :
Procurement negotiations, bidder conferences, advertising, and independent estimates are some of the tools and
techniques used in the Conduct Procurements process.

Question No : 66
You are managing a large software development project which involves an external customer. According to the Scope
Management Plan, the customer is expected to be verifying product deliverables when completed throughout the project.
This is especially important due to the complexity of the product requirements. You have sent a few of the software
modules to the customer for deliverable acceptance as scheduled; however, she appears to be busy and is slow
responding to emails and voice mails. The project is starting to fall behind and product acceptance risk has increased.
What should be your NEXT step?
Choice 1 Schedule a meeting with the customer to discuss the issue and explore ways of increasing current engagement
Choice 2 Ask the project sponsor to contact the customer and discuss the impact to the project
Choice 3 Ask the customer to provide another contact to verify the deliverables
Choice 4 Provide the customer with extra time to verify the modules and change the project schedule accordingly
Correct Choice : 1
Justification :
It is the project manager’s responsibility to effectively manage all stakeholder engagement throughout the project life cycle.
Any issues that arise should be addressed promptly to limit negative impact to the project. At this point, the next step is to
try to deal with the issue with the customer first by using appropriate management and interpersonal skills.
Option 2: The option of involving the project sponsor can be explored if option 1 is not effective.
Option 3: This is also not an immediate next step but can be explored later if the sponsor decides that her schedule cannot
accommodate the demands of the project.
Option 4: Allowing extra time for the customer to verify the scope could have significant impact to the project schedule and
other parts of the project management plan, so this would not be the best choice at this time.

Question No : 67
You are a project manager in an IT company. You have recently received an offer as a project manager in a construction
company offering a 25% salary hike. You have excellent technical knowledge in the IT field, but do not have much
exposure to the construction industry. In this context,
Choice 1 You should attend training classes related to the construction industry to get more technical expertise in the field.
Choice 2 You should not take up the assignment, because you will lose out on the experience and skills gained in the IT
field.
Choice 3 You should take up the assignment, because project management skills required in the construction company are
similar to those required in the IT field.
Choice 4 You should try to get more information about project management in the construction industry and then make an
informed decision about whether to take up the new opportunity.
Correct Choice : 3
Justification :
According to PMI, project management skills span across industries and the knowledge gained in one industry can be used
in other industries. A project manager need not be technically qualified in any specific industry to succeed.

Question No : 68
At what stage of the project are factors like probability of successfully completing the project, cost of changes, and cost of
error correction, the highest?
Choice 1 Beginning
Choice 2 End
Choice 3 Executing
Choice 4 Beginning and end
Correct Choice : 2
Justification :
The cost of making changes and correcting errors typically increases substantially as the project approaches completion.
PMstudy.com notes:
Question No : 69
As a project manager, you know that project plan development is an important element to manage projects. Develop
Project Management Plan is done as part of:
Choice 1 Initiating
Choice 2 Planning
Choice 3 Executing
Choice 4 Controlling
Correct Choice : 2
Justification :
Develop Project Management Plan process is taken up as part of the Planning Process Group. Please refer table 3-1
(page 61) and figure A1-7 (page 428).

Question No : 70
As a project manager, you are interested in creating a detailed project scope statement to clearly define what work will be
performed and what work is going to be excluded. Which of the following will NOT be a part of this project scope
statement?
Choice 1 Project exclusions
Choice 2 Work breakdown structure (WBS)
Choice 3 Project deliverables
Choice 4 Project assumptions and constraints
Correct Choice : 2
Justification :
The detailed project scope statement, either directly, or by reference to other documents, includes the following: product
scope description, acceptance criteria, deliverable, project exclusion, constraints, and assumptions. However, it does not
include WBS, which is created in the Create WBS process.

Question No : 71
Please refer to the diagram below:
What is the slack for Task 2?
Choice 1 3 days
Choice 2 2 days
Choice 3 - 4 days
Choice 4 4 days
Correct Choice : 4
Justification :
The two paths for this project are:
Task 1→ Task 2→ Task 5
Task 1→ Task 3→ Task 4→ Task 5
The lengths of the paths are:

Task 1→ Task 2→ Task 5 : 17 days
Task 1→ Task 3→ Task 4→ Task 5 : 21 days
So, the critical path is of 21 days duration.
Slack in Task 2
= 21 - 17 days
= 4 days

Question No : 72
Your sponsor has asked you to use payback period as a selection criterion to select amongst 5 competing projects. In this
context, which of the following statements related to payback period is incorrect?
Choice 1 Payback period is the number of years required to get back the initial investment in the project.
Choice 2 Payback period takes the discount rate into account to determine the best possible option.
Choice 3 Payback period is a project selection criterion widely used in conjunction with NPV and IRR to determine the most
suitable project.
Choice 4 The initial investment in the project will not impact the selection criteria when payback period is used for project
selection.
Correct Choice : 2
Justification :
Payback Period
 Number of years required for an organization to recapture an initial investment.

 Discount rate is not taken into account in calculations for payback period.
 Project Selection Criterion: Select a project with lower payback period.
Example: There are 2 projects. Project A has an investment of $500,000 and a payback period of 3 years. Project B has an
investment of $300,000 and a payback period of 5 years. Using the payback period criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than project A will not impact the
selection.
Question No : 73
You are working as a research assistant studying the growth of bacteria under different environmental conditions. Based
on your experiments, you conclude that the longevity of bacteria increases as the temperature increases. What type of
diagram can you use to illustrate your observation?
Choice 2 Run chart
Choice 3 Scatter diagram
Choice 4 Histogram
Correct Choice : 3
Justification :
A scatter diagram shows the relationship between two variables.
PMstudy.com comments: We are talking about two variables in the question, i.e., (a) temperature - the independent
variable and b) longevity of bacteria - the dependent variable. The relationship between these two variables can be
illustrated using a scatter diagram. This tool allows the quality team to study and identify the possible relationship between
changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points
are to a diagonal line, the more closely they are related.
Question No : 74
As a project manager, you realize the importance of team development for human resource management. Which of the
following is NOT a tool for the Develop Project Team process?
Choice 1 Interpersonal skills
Choice 2 Pre-assignment
Choice 3 Training
Choice 4 Ground rules
Correct Choice : 2
Justification :
Pre-assignment refers to the project team members selected in advance and is one of the tools and techniques used for
the Acquire Project Team process.

Question No : 75
In your project, the risk calculations show that there is a risk of overrunning the project scope and schedule targets to
levels that are beyond the threshold limits determined in the project. To bring the level of risk to a level acceptable to your
organization, you should:
Choice 1 Consider using contingency reserves
Choice 2 Decrease the project scope and increase the project schedule
Choice 3 Talk with your sponsor about cancelling the project
Choice 4 Do additional risk response planning
Correct Choice : 1
Justification :
Contingency reserves are needed to bring the risk of overrunning stated project objectives to a level acceptable to the
organization.

Question No : 76
In your project, the procurement statement of work (SOW) describes the procurement item in sufficient detail to allow
prospective sellers to determine if they are capable of providing the product. In this context, the details of the procurement
items` descriptions:
Choice 1 May vary, based on the nature of the item or needs of the buyer.
Choice 2 Should be at the level of work breakdown structures.
Choice 3 Should be at the activity level.
Choice 4 Should be at the level required in the proposal.
Correct Choice : 1
Justification :
The Procurement statement of work describes the procurement item in sufficient detail to allow prospective sellers to
determine if they are capable of providing the products, services, or results. Sufficient detail can vary based on the nature
of the item, the needs of the buyer, or the expected contract form.
Reference:PMBOK® Guide - Fifth Edition, page 367

Question No : 77
During which process would the project manager most often need to use skills that influence others to support the project
and facilitate consensus toward project objectives?
Choice 3 Plan Stakeholder Management
Correct Choice : 2
Justification :
These are examples of Management Skills which are tools for Manage Stakeholder Engagement.
PMstudy.com comments: While the project is being executed, it is the project manager’s responsibility to ensure that all
stakeholders are involved as needed to meet the project objectives. This can be accomplished through effective
Management Skills.
Question No : 78
Your company has recently been awarded a contract by the government to reconstruct houses devastated by an
earthquake. In this context, the government`s role will impact your:
Choice 1 Project scope baseline
Choice 2 Business case and Business need
Choice 3 Project charter
Choice 4 Project management plan
Correct Choice : 3
Justification :
Option 3: Since the government is an external agency, and this is a "recently awarded" project as mentioned in the
question, hence inputs (e.g. contract) from the government will help the project manager in creation of the project charter
for the performing organization.
Option 1: Scope Baseline includes the Scope Statement, WBS and WBS Dictionary. So, this will be created later on after
the project charter is finalized.
Option 2: Business Need/Business case for the project should be already established because the government has
contracted out the work to your company.
Option 4: Project management plan is a planning document which will be created after the project charter is finalized.

Question No : 79
A project manager is responsible for managing project costs and human resources. Factors like cost and staffing level for a
project:
Choice 1 Increase with duration of the project
Choice 2 Decrease with duration of the project
Choice 3 Are low at the start, peak as the work is carried out, and drop rapidly as the project draws to a close
Choice 4 Cannot be determined, as they are specific to the project
Correct Choice : 3
Justification :
Refer PMBOK® Guide - Fifth Edition, page 39 (figure 2-8).
PMstudy.com Comments:
Question No : 80
You are managing a small project with five team members working part-time. At the beginning of every week, you orally
allocate work to all the team members. This is an example of:
Choice 1 Work Authorization System
Choice 2 Improper planning because team members do not know in advance what needs to be done at what time
Choice 3 Project time management plan
Choice 4 Project flexible time management plan
Correct Choice : 1
Justification :
A work authorization system is a collection of formal documented procedures that defines how project work will be
authorized (committed) to ensure that the work is done by the identified organization, at the right time, and in the proper
sequence.
PMstudy.com comments: The primary mechanism is typically a written authorization to begin work on a specific activity or
work package. Depending on the size of the project, the design of a work authorization system would vary. For example,
on many smaller projects, verbal authorizations will be adequate.
Question No : 81
In your project, you are preparing the requirements management plan to define and document stakeholders` needs to meet
the project`s objectives. Which of the following is not a component of the requirements management plan?
Choice 1 Traceability structure
Choice 2 WBS
Choice 3 Requirements prioritization process
Choice 4 Product metrics
Correct Choice : 2
Justification :
Components of the requirements management plan can include, but are not limited to... requirements prioritization
process, product metrics that will be used and the rationale for using them; and traceability structure to reflect which
requirement attributes will be captured on the traceability matrix.
PMstudy.com comments: Create WBS process happens after the Requirements Management Plan is created.
Question No : 82
The Trustees of a Race Track have appointed you as the Project Manager for a $400 million redevelopment project. They
expect the project to be completed before the Race Date exactly 3 Years from Project Start Date. Which of the following
parameters will help in determining the probability of finishing on time?
Choice 1 PERT value
Choice 2 CPM
Choice 3 Standard deviation
Choice 4 Variance
Correct Choice : 3
Justification :
Standard deviation is a measure that determines the probability of getting a result.
Hence, it is a good indicator of the probability of completing the task on time.

Question No : 83
You are the project manager for a project where your team must travel to the work site by foot. The walk is 100 miles, and
is the first task on the project schedule. The total amount budgeted for this task is $4,000. If the team is scheduled to walk
20 miles per day, they should reach the work site at the end of day 5. At the end of the second day, you realize the team
has only traveled 30 miles, and you have spent $2,000. Based on this, what is the SPI for your project, and the projected
TCPI.
Choice 1 0.8, 1.4
Choice 2 0.75, 1.4
Choice 3 0.75, 1.2
Choice 4 Cannot be determined with the given information
Correct Choice : 2
Justification :
Given:
BAC = $4,000
AC = $2,000
PV = $1,600 ($4,000 / 5 days = $800 / day x 2 days = $1,600)
EV = $1,200 ($4,000 / 100 = $40 / mile; 30 miles x $40 / mile)
SPI = EV/PV = $1,200 / $1,600 = 0.75 (or 30 miles / 40 miles = 0.75)
TCPI = (BAC – EV) / (BAC – AC) = ($4,000-$1,200) / ($4,000-2,000) = $2,800 / $2,000 = 1.4

Question No : 84
After joining as a stand-in project manager for an ongoing project, you are informed by the team that certain features are
being added to the deliverable which was not asked for by the customer, to earn customer appreciation. In this situation:
Choice 1 You are concerned, because the project team is gold-plating
Choice 2 You are happy, because the project will `exceed customer expectations`
Choice 3 You are worried that this is going to increase the project size
Choice 4 You are undecided about the increase in the quality metrics of the project
Correct Choice : 1
Justification :
You should be concerned because the project team is gold-plating, which is not a recommended project management
practice.
Please note that `adding extra functionality beyond project scope` is not recommended by PMI, since a project is supposed
to deliver what is defined in its scope. Similarly, one cannot request for additional sizing for the project because the
customer had never asked for the additional requirements.

Question No : 85
Among the various conflict resolution modes (Confrontation, Compromise, Withdrawal, Forcing, and Smoothing), which
conflict resolution mode is most preferred or least preferred by project managers (answer format: most preferred, least
preferred)?
Choice 1 Compromise, Withdrawal
Choice 2 Confrontation, Withdrawal
Choice 3 Confrontation, Forcing
Choice 4 Smoothing, Withdrawal
Correct Choice : 2
Justification :
The most preferred conflict resolution techniques adopted by project managers (in descending order of preference) are as
follows:
1. Confrontation
2. Compromise
3. Smoothing
4. Forcing
5. Withdrawal
Blake and Mouton have delineated five modes for handling conflicts as listed below:
 Withdrawal: Retreating or withdrawal from a potential disagreement.
 Smoothing: De-emphasizing or avoiding areas of differences and emphasizing areas of agreement.

 Compromising: Bargaining and searching for solutions that bring some degree of satisfaction to the parties in a
dispute. Characterized by a ‘’give and take’’ attitude.
 Forcing: Exerting one’s viewpoint at the potential expense of another. Often characterized by competitiveness and
a win-lose situation.
 Confrontation: Facing the conflict directly, which involves a problem solving approach, whereby affected parties
work through their disagreements.
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 304, 305 and 306
Question No : 86
As a project manager, you are creating a risk management plan to describe how risk management will be structured and
performed on the project. Which of the following would the risk management plan not include?
Choice 1 Budgeting
Choice 2 Methodology
Choice 3 Trigger condition
Choice 4 Risk categories
Correct Choice : 3
Justification :
Trigger condition is an event or situation that indicates that a risk is about to occur.
PMstudy.com comments: Please note that trigger conditions are not discovered in the Plan Risk Management process and
are not included in the risk management plan. All the other options are included in the risk management plan
(PMBOK®Guide - Fifth Edition, pages 316 and 317).
Question No : 87
As the project manager for a critical project in your organization, you must ensure that your team has the newest available
technology, so you are procuring 25 custom desktop computers, printers, and updated software for the project team
members. You will select a vendor and conduct negotiations with the vendor you determine best able to provide the
customized computers as required. What is a key output of this process?
Choice 1 Source selection criteria
Choice 2 Procurement negotiations
Choice 3 Procurement management plan
Choice 4 Agreements
Correct Choice : 4
Justification :
You are currently in the Conduct Procurements process and one of the key output of this process is the Agreement.
Option 1: Source selection criteria is an output of the Plan Procurement Management process.
Option 2: Procurement negotiations is a tool for the Conduct Procurements process, its not an output.
Option 3: The Procurement management plan in an output of the Plan Procurement Management process.
Reference:PMBOK® Guide - Fifth Edition, page 356 (figure 12-1)

Question No : 88
Issue resolution is necessary to address obstacles that can prevent the team from achieving its goals. In order to manage
and resolve issues that arise during project execution, you develop an Issue Log and assign each issue to a team member
to ensure there is accountability for resolving specific issues by a target date. The Issue Log is generated and updated in
which Project Stakeholder Management process(es)?
Choice 3 Manage Stakeholder Expectations
Choice 4 Manage Stakeholder Engagement and Control Stakeholder Engagement
Correct Choice : 4
Justification :
The question asks where the Issue Log is generated and updated. The Issue Log is an output of the Manage Stakeholder
Engagement process. It is also an input to the Control Stakeholder Engagement process so it is used and updated there as
well.
Reference: PMBOK® Guide - Fifth Edition, pages 392 (figure 13-1), 408 and 411
Options 1 and 2: These are correct options, but it is important to read all options and go with the most inclusive option.
Option 3: Manage Stakeholder Expectations is not a valid PMI process name.

Question No : 89
Which of the following is not the responsibility of a Project Management Professional?
Choice 1 Making decisions and taking actions
Choice 2 Fulfilling the commitments that you undertake
Choice 3 Ignoring errors and omissions
Choice 4 Upholding the Code of Ethics and Professional Conduct
Correct Choice : 3
Justification :
It is the responsibility of a project management professional to take ownership of the decisions you make or fail to make,
the actions you take or fail to take, and the consequences that result from these actions. When errors or omissions are
made, the certificant should not ignore them, but should take ownership and make suitable corrections.

Question No : 90
Project performance must be monitored and measured regularly to identify variances from the plan. Which of the following
processes does not belong to the Monitoring and Controlling Process Group?
Choice 1 Validate Scope
Choice 2 Control Risks
Choice 3 Control Communications
Choice 4 Perform Quality Assurance
Correct Choice : 4
Justification :
Perform Quality Assurance is a process in the Executing Process group.
Reference: PMBOK® Guide - Fifth Edition, page 61, table 3-1

Question No : 91
To know who will approve the changes in your project deliverables and documentation, you should refer to:
Choice 1 Change control system
Choice 3 Organization chart
Choice 4 Resource assignment matrix
Correct Choice : 1
Justification :
Change control system is a set of procedures that describes how modifications to the project deliverables and
documentation are managed and controlled.

Question No : 92
Which of the following cannot be considered a benefit of a well-constructed scope statement?
Choice 1 Provides a documented basis for making future project decisions
Choice 2 Develops common understanding of project scope among stakeholders
Choice 3 Provides knowledge of project justification, deliverables, and objectives
Choice 4 Provides a basis for time and cost estimates
Correct Choice : 4
Justification :
Work breakdown structure (which is a component of the scope baseline, an output from Create WBS process) helps in
providing a basis for time and cost estimates.
Options 1, 2, and 3 are benefits of a well-constructed scope statement.

Question No : 93
You are responsible for Quality Audit in an Ongoing Project. The Audit has an optimistic estimate of ten days, pessimistic
estimate of sixteen days, and most likely estimate of thirteen days. Assuming a normal distribution, what is the probability
that the Audit will be completed within 10 to 16 days?
Choice 1 99.99 %
Choice 2 99.73 %
Choice 3 95.46 %
Choice 4 68.26%
Correct Choice : 2
Justification :
Please refer to the following Six Sigma exhibit:
In a normal distribution, the PERT duration (also called mean)

{Pessimistic + (4* Most Likely) + Optimistic} / 6
= {16 + (4 * 13) + 10}/6
= 13 days
1 Standard Deviation (sigma)

= (Pessimistic - Optimistic) / 6
= (16 - 10) / 6
= 1 day
If the task has to be completed within 10 days to 16 days, then the probability of completion within the time frame is
99.73% (3 sigma) as shown in the Six Sigma exhibit.

Question No : 94
You have calculated the projected cost performance that is required to be achieved with the remaining resources in order
to meet a specified management goal. This projected cost performance is also known as:
Choice 1 Performance measurement document
Choice 2 To-complete performance index
Choice 4 Cost performance index
Correct Choice : 2
Justification :
The To-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with the
remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the
outstanding work to the remaining budget.

Question No : 95
In your project, you recommend a specific technique to identify a problem, discover the underlying causes that lead to it,
and develop preventive actions. The recommended technique is:
Choice 1 Trend analysis
Choice 2 Process analysis
Choice 3 Risk analysis
Choice 4 Root cause analysis
Correct Choice : 4
Justification :
Root cause analysis is a specific technique used to identify a problem, discover the underlying causes that lead to it, and
develop preventive actions.

Question No : 96
You are the project manager of a high priority project, which will require more than 1,000 team members. During human
resource planning, you would like to apply proven principles to shorten the time needed to create a human resource plan
and make it effective. In this context, you will benefit if you consult an expert in the field of:
Choice 1 Networking and team formation
Choice 2 Human resource theory
Choice 3 Organizational theory
Choice 4 Cost management
Correct Choice : 3
Justification :
Organizational theory provides information regarding the way in which people, teams, and organizational units behave.
Effective use of this information can shorten the amount of time, cost, and effort needed to create the Plan Human
Resource Management process outputs and improve planning efficiency.

Question No : 97
Project Risk Management helps in maximizing the likelihood and impact of positive events, and minimizing the likelihood
and impact of negative events in the project. In this context, Plan Risk Responses process:
Choice 1 Helps in defining how to conduct the risk management activities
Choice 2 Develops procedures and techniques to enhance opportunities and to reduce threats to project objectives
Choice 3 Determines which risks may affect the project and documents their characteristics
Choice 4 Monitors residual risks, identifies new risks, and evaluates risk process effectiveness
Correct Choice : 2
Justification :
Plan Risk Responses is the process of developing options and actions to enhance opportunities and to reduce threats to
project objectives.
Option 1: This defines the Plan Risk Management process.

Option 3: This defines the Identify Risks process.
Option 4: This defines the Control Risks process.
Question No : 98
In your project, the seller is worried that the CPIF contract is reaching the point of total assumption. What is meant by
thepoint of total assumption?
Choice 1 Point where share ratio becomes irrelevant
Choice 2 Point where risk registers need to be updated
Choice 3 Point where buyer assumes all the risk
Choice 4 Point where seller decides not to do the project any more
Correct Choice : 1
Justification :
Point of total assumption refers to the point where the costs have to be incurred by the seller herself when they have
exceeded the ceiling limits stipulated in the contract. Hence, share ratio ceases to be relevant.

Question No : 99
You are working with your team to execute a project which involves implementation of 50 new Base Transceiver Station
(BTS) towers throughout remote areas of the country in order to improve wireless communication services. The project
involves many internal and external stakeholders which you have been managing throughout. Current schedule
performance is 1.3 and cost performance is 1.1 and there are no pressing issues that require escalations at this time. The
sponsor is a very high-level executive in the company who fully supports the project. However, he seems quite nervous
these days and has showed up at the past two team status meetings during which he diverted the team discussion away
from the usual agenda to issues that did not involve the project team. What is the best NEXT step for you to pursue?
Choice 1 Speak with the sponsor separately to discuss his present concerns and offer to provide any other required
information outside of the team status meetings.
Choice 2 Since the sponsor is a high-level executive, you should allow him to attend the meeting and address his concerns
there.
Choice 3 Ask the sponsor not to attend any more meetings.
Choice 4 Ask the sponsor to submit his issues prior to the meeting so you can add them to the Issue Log and the meeting
agenda.
Correct Choice : 1
Justification :
The project sponsor is a very valuable stakeholder to the project since he/she is accountable for enabling project success.
Some sponsors may be over- or under-involved in projects which could adversely impact the project’s objectives. In this
case, the sponsor is causing some distraction for the project team members by attending team meetings and bringing up
issues that should not be part of the regular status meeting. The project manager should first have a discussion with the
project sponsor to understand his present concerns and offer options for him to get any information he needs instead of
attending regular team status meetings. It is the project manager’s responsibility to manage stakeholders to ensure the
project’s success and to also ensure that they are all engaged when appropriate.
Option 2: Although the sponsor is a senior manager, he does not need to attend regular team status meetings, but rather
should be involved when issues need to be escalated, or when required for authorizing changes, phase-end reviews, very
high risks, etc.
Option 3: The sponsor does not usually need to attend team meetings but this option is a bit drastic. There are times when
the sponsor may want to check in and provide support to the project team so he may occasionally attend a meeting. Also it
would not be a good idea for the project manager to ask the sponsor not to attend any more meetings as the authority of
the sponsor is usually above that of the project manager.
Option 4: It’s always best to include all issues to be discussed in the meeting on an agenda; however, that’s not the real
problem in this situation and the issues being brought up by the sponsor are not relevant to this meeting.

Question No : 100
You have joined a company as a project manager, and although you maintain the professional conduct expected of you, it
is not reciprocated by the other employees. The BEST course of action for you would be to:
Choice 1 Maintain the same conduct
Choice 2 Change your behavior and be one among the other employees
Choice 3 Complain to the higher authority
Choice 4 Ignore others` behavior
Correct Choice : 1
Justification :
As a project manager, you are expected to behave as befitting a professional project management certificant, even when
such conduct is not reciprocated by your colleagues. This is one of the major tenets of the Code of Ethics and Professional
Conduct prescribed by PMI.

Question No : 101
As a project manager, you are aware that project management process groups are linked by their objectives. Planning
process group outputs including the project management plan become inputs for project implementation. In this context,
which of the following statements is inaccurate?
Choice 1 Process groups are non-overlapping activities that occur with varying intensity throughout the project.
Choice 2 If the project is divided into phases, the process groups interact within a project phase and may also cross over to
other phases.
Choice 3 Not all processes will be needed on all projects and not all of the interactions will apply to all the projects or
process groups.
Choice 4 Among the process groups and their processes, the process outputs are related and have an impact on the other
process groups.
Correct Choice : 1
Justification :
The Process Groups are seldom either discrete or one-time events; they are overlapping activities that occur throughout
the project. The output of one process generally becomes an input to another process or is a deliverable of the project,
subproject, or project phase.
PMstudy comments: Also, please refer to PMBOK® Guide - Fifth Edition, page 78, table 4-1.
Question No : 102
Perform Integrated Change Control process requires coordinating changes across knowledge areas. When a proposed
schedule change occurs, which of the following will not be affected?
Choice 1 Cost
Choice 2 Quality
Choice 3 Staffing
Choice 4 Communications
Correct Choice : 4
Justification :
A proposed schedule change will often affect cost, risk, quality, and staffing. Usually, communications are not impacted if
there is a schedule change in the project.

Question No : 103
You are the project manager for an initiative to release a new product in the market. But because of government
regulations, you will have to make some changes to the requirements documentation and the WBS. The changes made in
the requirements documentation are reflected in the:
Choice 1 Project document updates
Choice 2 Work breakdown structure
Correct Choice : 1
Justification :
Project Document updates: If approved change requests result from the Create WBS process, then the requirements
documentation may need to be updated to include approved changes.

Question No : 104
Of the following documents, all of which are updated during the Control Schedule process, which is NOT a part of the
project management plan?
Choice 1 Schedule baseline
Choice 3 Schedule management plan
Choice 4 Schedule data
Correct Choice : 4
Justification :
Elements of the project management plan that may be updated include, but are not limited to, schedule baseline, schedule
management plan, and cost baseline. Schedule data is the project document that gets updated as an output to the Control
Schedule process.
PMstudy.com comments: Schedule data is a project document, but all baselines/plans are part of the project management
plan.
Question No : 105
Resource calendars provide information on a specific resource or a category of resources. They show how a project team
member might be unavailable (on vacation or in a training program) or how a labor contract can limit certain workers to
certain days of the week. Resource calendars are valuable inputs to:
Choice 1 Develop an approximation of the monetary resources needed to complete project activities.
Choice 2 Aggregate the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Choice 3 Manage the actual changes when and as they occur.
Choice 4 Monitor work performance against funds expended.
Correct Choice : 2
Justification :
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish
an authorized cost baseline. Resource calendars are inputs to this process.
PMstudy.com comments: Option 1 refers to the Estimate Costs process; options 3 and 4 refer to the Control Costs
process.
Question No : 106
`Cost of quality` includes all costs incurred over the life of the product by investing in meeting requirements. In this context,
which of the following is NOT a ‘cost of quality’?
Choice 1 Opportunity costs
Choice 2 Cost of poor quality
Choice 3 External failure costs
Choice 4 Appraisal costs
Correct Choice : 1
Justification :
Cost of quality includes all costs incurred over the life of the product by investment in preventing non-conformance to
requirements, appraising the product or service for conformance to requirements, and failing to meet requirements
(rework). Failure costs are often categorized into internal (found by the project) and external (found by the customer).
Failure costs are also called cost of poor quality.
PMstudy.com comments: Opportunity costs are not included in the cost of quality.
Question No : 107
You are the project manager in an organization, so all your team members report to you. Managing a team is always a
challenge and a project manager needs to focus on:
Choice 1 Communication
Choice 2 Observation
Choice 3 Influence
Choice 4 Assessment
Correct Choice : 1
Justification :
Team management involves a combination of skills with special emphasis on communication, conflict management,
negotiation, and leadership.

Question No : 108
If there is a fire, the risk response plan developed is to use a fire extinguisher. If the fire extinguisher cannot take care of
the fire, you call in a fire engine – calling in the fire engine is an example of:
Choice 1 Secondary risk
Choice 2 Residual risk
Choice 3 Fallback Plan
Choice 4 Work around
Correct Choice : 3
Justification :
Several risk response strategies are available… A fallback plan can be developed for implementation if the selected
strategy turns out not to be fully effective or if an accepted risk occurs.

Question No : 109
The following is the data for a CPIF project you are managing:
Target cost is $100,000;

Actual cost is $80,000
Target fee is $20,000;
Maximum fee is $25,000;
Sharing ratio is 60:40.
What should be the final price of the contract?
Choice 1 $100,000
Choice 2 $108,000
Choice 3 $105,000
Choice 4 $92,000
Correct Choice : 3
Justification :
Target cost (TC) = $100,000
Target fee (TF) = $20,000
Maximum fee = $25,000
Sharing ratio = 60:40
Actual fee (AF) = {(TC - AC) * SSR} + TF = {($100,000 - $80,000) * 40%} + $20,000 = $20,000 * 40% + $20,000 = $28,000
Although the actual fee is more than the maximum fee, the maximum fee ($25,000) only is payable.
So, final price = AC + AF = $ 80,000 + $ 25,000 = $ 105,000

Question No : 110
Which of the following statements about project stakeholders is not correct?
Choice 1 Stakeholders influence over the final characteristics of the product is usually highest at the beginning of a project.
Choice 2 Stakeholders may passively or actively detract from the success of the project.
Choice 3 Stakeholder identification is a continuous process throughout the entire project life cycle.
Choice 4 Stakeholders’ levels of responsibility and authority remain the same throughout the project’s life cycle.
Correct Choice : 4
Justification :
Stakeholders have varying levels of responsibility and authority on a project, but this can change throughout the project life
cycle; so option 4 is the “not correct” statement.
Option 1: The ability of stakeholders to influence the final characteristics of the project’s product (without significantly
impacting cost), is highest at the beginning of the project and generally decreases throughout the project life cycle.
Options 2 and 3: These are both correct statements as per the PMBOK® Guide -Fifth Edition, page 31.

Question No : 111
You realize that you are not able to concentrate on your work due to an actual or potential conflict of interest situation.
Which out of the following should you NOT do, in this context?
Choice 1 Disclose the facts to the affected stakeholders
Choice 2 Prepare a mitigation plan
Choice 3 Seek stakeholders` consent to proceed further
Choice 4 Engage in decision-making activities related to the conflict of interest situation
Correct Choice : 4
Justification :
When you realize that you are in an actual or a potential conflict of interest situation, you should immediately withdraw from
engaging in decision-making activities. Decisions taken in such situations might go against the interests of your current
project and the employer company.

Question No : 112
You are the project manager of a new project, tasked with construction of a bridge on the River Nile in Egypt. While
initiating the project, you should:
Choice 1 Create a scope management plan to document project scope definition, verification, and control
Choice 2 Develop a project management plan
Choice 3 Determine specific activities that need to be performed to produce various project deliverables
Choice 4 Develop a project charter
Correct Choice : 4
Justification :
Project Charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project
and provides the project manager with the authority to apply organizational resources to project activities.
PMstudy.com comments: Initiating process group consists of the processes that facilitate the formal authorization to start a
new project or a project phase. The activities stated in the first 3 options are undertaken after the project is initiated.
Option 1 refers to Define Scope, Validate Scope, and Control Scope; Option 2 refers to Develop Project Management Plan;
and Option 3 refers to Define Activities. All these are processes are related to the Planning Process Group and are
performed after the processes related to the Initiating Process Group.
Question No : 113
You are in the initiating phase of your project and are involved with creation of the project charter. Which of the following
statements relating to the project charter is NOT correct?
Choice 1 Includes or references the business need and product description.
Choice 2 Provides authority to the project manager.
Choice 3 Formally authorizes a project.
Choice 4 Authorized only by the project sponsor.
Correct Choice : 4
Justification :
Projects are initiated by an entity external to the project such as a sponsor, program or project management office (PMO)
staff person, or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should
be at the level that is appropriate to procure funding and commit resources to the project.

Question No : 114
You are managing a complicated software development project with several deliverables. To be effective and to be alert to
potential future problems, you monitor the status of completion of the project deliverables. This information will be available
to you in the:
Choice 1 Work performance measurements
Choice 2 Project baseline changes
Choice 3 Work performance information
Choice 4 Earned value techniques
Correct Choice : 3
Justification :
Work performance information includes information about project progress, such as which deliverables have started, their
progress, which deliverables have finished, or which have been accepted.

Question No : 115
Please refer to the diagram below:
Task 1→ Task 3→ Task 4→ Task 5 is the critical path. What is the late finish date for Task 2?
Choice 1 15 days
Choice 2 17 days
Choice 3 13 days
Choice 4 3 days
Correct Choice : 2
Justification :
The length of the critical path is: (3 + 6 + 8 + 4) = 21 days.
So, the late finish for Task 2

= Critical path - time for Task 5
= 21 - 4 = 17 days
Question No : 116
As the project manager in a software company, you are determining the possible costs to complete project activities. This
is done as part of:
Choice 1 Variance analysis
Choice 2 Estimate Costs
Choice 3 Determine Budget
Choice 4 Control Costs
Correct Choice : 2
Justification :
Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project
activities. Cost trade-offs and risks should be considered, such as make versus buy, buy versus lease, and the sharing of
resources in order to achieve optimal costs for the project.

Question No : 117
You are trying to determine the cost and schedule trade-off which will be most appropriate for determining the ride quality
of a car. You classify factors like tire pressure, suspension, height of vehicle, etc., which have to be optimized to improve
ride quality. A tool you can use to facilitate making the decision is:
Choice 1 Cost of quality
Choice 2 Cause-and-effect diagrams
Choice 3 Design of experiments
Choice 4 Network diagrams
Correct Choice : 3
Justification :
Design of Experiments (DOE) is a statistical method for identifying which factors may influence specific variables of a
product or process under development or in production.
PMstudy.com comments: The technique can also be applied to project management issues, such as cost and schedule
trade-offs. For example, senior engineers will cost more than junior engineers but can also be expected to complete the
assigned work in less time.
Question No : 118
As part of your project, you were involved with improving the competencies and interaction of team members to enhance
project performance. What should you do next?
Choice 1 Manage conflicts if they arise
Choice 2 Create organization charts with appropriate position descriptions
Choice 3 Interact with others in the organization in a constructive way to understand political and interpersonal factors
Choice 4 Create a staffing management plan
Correct Choice : 1
Justification :
Develop Project Team is a process to improve the competencies and interaction of team members to enhance project
performance.
In the Manage Project Team process you manage conflicts if they arise. This follows the Develop Project Team process.
Organization charts, position descriptions, and networking are tools for the Plan Human Resource Management process.
Staffing management plan is an output of the Plan Human Resource Management process.
Since the Plan Human Resource Management process precedes the Develop Project Team process, options 2, 3 and 4
are not correct.

Question No : 119
You have created an Excel spreadsheet that shows cumulative cost at any particular point of time in the project duration.
Your director wants to review the project costs and you decide to make a presentation. Cumulative costs plotted against
time is shown in the slide as a:
Choice 1 S-curve
Choice 2 Histogram
Choice 4 Pareto diagram
Correct Choice : 1
Justification :
S-curve is a graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time.
The name derives from the S-like shape of the curve.

Question No : 120
Which of the following elements of the organizational process assets is necessary to be updated in the Control
Procurements process?
A. Procurement audits
B. Correspondence
C. Payment schedules and requests
D. Seller performance evaluation documentation
Choice 1 B, C and D
Choice 2 Only B
Choice 3 Only C
Correct Choice : 1
Justification :
Elements of the organizational process assets that may be updated include, but are not limited to: correspondence,
payment schedules and requests, seller performance evaluation documentation
PMstudy.com comments: Procurement Audit is a tool for Close Procurements process

Question No : 121
As part of your duties as a project manager, you make sensitive company data available to a vendor. In this context, which
of the following precautions should you take?
Choice 1 Insist that the vendor signs a non-disclosure agreement after you release the sensitive information.
Choice 2 Make sure that the vendor receives all the sensitive information in time.
Choice 3 Ensure that the vendor signs a non-disclosure agreement before you release the sensitive information.
Choice 4 Monitor the vendor in order to prevent her from sharing the information with her competitors.
Correct Choice : 3
Justification :
PMI Code of Ethics and Professional Conduct requires a project manager not to disclose sensitive or confidential
information. But, at times, an organization has a legitimate need to disclose confidential information to vendors,
governmental agencies, or others. When disclosing confidential or sensitive information, it is the responsibility of the project
manager to ensure that proper nondisclosure agreements are signed prior to the disclosure of the sensitive information.

Question No : 122
In your project, you are coordinating people and resources as well as integrating and performing activities of the project in
accordance with the project management plan. This is performed during:
Choice 1 Initiating Process Group
Choice 2 Executing Process Group
Choice 3 Planning Process Group
Choice 4 Monitoring Process Group
Correct Choice : 2
Justification :
The Executing Process Group consists of those processes performed to complete the work defined in the project
management plan to satisfy the project specifications. This Process Group involves coordinating people and resources,
managing stakeholder expectations, as well as integrating and performing the activities of the project in accordance with
the project management plan.

Question No : 123
Ideally, when should a project manager be assigned to a project?
Choice 1 As soon as a project is authorized
Choice 2 Soon after the scope statement is finalized
Choice 3 When the WBS is completed
Choice 4 At any time during the project life cycle, depending on requirements
Correct Choice : 1
Justification :
A project manager is identified and assigned as early in the project as is feasible.

Question No : 124
In your project, you are subdividing major project deliverables into smaller, more manageable components. This will be
done as part of :
Choice 1 Create WBS
Choice 2 Scope verification
Choice 3 Work authorization system
Choice 4 Product analysis
Correct Choice : 1
Justification :
Decomposition is a technique used for dividing and subdividing the project scope and project deliverables into smaller,
more manageable parts. (Decomposition is done as part of the Create WBS process.)

Question No : 125
Critical chain is a schedule network analysis technique that modifies the project schedule to account for limited resources.
In this context, the non-work schedule activities that are added in the critical chain method to manage uncertainty are
referred to as:
Choice 1 Duration buffers
Choice 2 Resource leveling
Choice 3 Reverse resource leveling
Choice 4 Crashing
Correct Choice : 1
Justification :
The critical chain method adds duration buffers that are non-work schedule activities to manage uncertainty.

Question No : 126
In your project, you are using project files, records, and closed contracts to determine the cost of many categories of
resources. This will help you to estimate the cost of the resources needed to complete the project activities. This
information is available to you as a part of:
Choice 1 Activity list
Choice 2 Estimating publications
Choice 3 Historical information
Choice 4 Code of accounts
Correct Choice : 3
Justification :
Historical information: Documents and data on prior projects, including project files, records, correspondence, closed
contracts, and closed projects.

Question No : 127
Which of the following statements about "Quality" and "Grade" is correct?
A. Grade is a rank given to entities having the same functional use but different technical characteristics.
B. Low quality product may be of high grade.
C. Low grade product may be of high quality.
D. It is a problem if the product is of high quality and low grade.
Choice 1 A and B
Choice 2 Only B
Choice 3 All of the Above
Choice 4 A, B and C
Correct Choice : 4
Justification :
Grade is a category assigned to deliverables having the same functional use but different technical characteristics. While a
quality level that fails to meet quality requirements is always a problem, low grade may not be.

Question No : 128
Which of the following activities does a project manager NOT perform during the Manage Project Team process?
Choice 1 To observe and converse to stay in touch with the work and attitudes of project team members
Choice 2 To perform appraisals to clarify roles and responsibilities, develop training plans, etc.
Choice 3 To negotiate for assignment of appropriate project members to the team.
Choice 4 To manage conflicts which leads to increased creativity and better decision making
Correct Choice : 3
Justification :
Option 3 (negotiation) is a tool and technique for the Acquire Project Team process. Option 1 (observation and
conversation), Option 2 (project performance appraisals) and Option 4 (conflict management) are tools and techniques for
the Manage Project Team process.
PMstudy.com comments: Manage Project Team process involves tracking team member performance, providing feedback,
resolving issues, and managing changes to enhance project performance. The project management team observes team
behavior, manages conflict, resolves issues, and appraises team member performance.
As a result of managing the project team, the human resource plan is updated, change requests are submitted, issues are
resolved, inputs are provided for performance appraisals, and lessons learned are added to the organization`s database.
Question No : 129
Utility function is a commonly used technique to determine risk tolerance levels. Some project managers are more averse
to risk than others. Which of the following is NOT a commonly used classification for risk tolerance?
Choice 1 Risk averter
Choice 2 Risk seeker
Choice 3 Risk mitigator
Choice 4 Neutral risk taker
Correct Choice : 3
Justification :
The three commonly used classifications for risk tolerance are risk averter or avoider, risk taker or seeker and the neutral
risk taker (risk averse, risk seeking, risk neutral).
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, page 746
Question No : 130
ABC Inc recently signed a contract for nuclear waste disposal from nuclear power plants in your state. During project
implementation, some employees of ABC Inc were exposed to a high level of nuclear radiation. ABC Inc now wants to get
out of the agreement. The only means for either party to exit the contract is by:
Choice 1 Getting validation from the U.S. FDA that nuclear waste is dangerous
Choice 2 Determining that the contract violates applicable law
Choice 3 Establishing that the company will be under financial difficulties due to labor issues if the project continues
Choice 4 Declaring the contract null and void
Correct Choice : 2
Justification :
Regardless of the document’s complexity, a contract is a mutually binding legal agreement that obligates the seller to
provide the specified products, services, or results, and obligates the buyer to compensate the seller. A contract is a legal
relationship subject to remedy in the courts.
The only way that either party can get out of a signed contract is if the contract violates applicable law. ABC Inc has not
violated the law of the land.
Question No : 131
You are working as a project manager in a company; you get to know that a person managing another project of your
company has furnished false reports about his PMP experience and credentials. What should you do in this context?
Choice 1 Report violation of the PMP code of conduct to PMI.
Choice 2 Report violation of the PMP code of conduct to PMI only if found true after verifying the facts.
Choice 3 Report violation of the PMP code of conduct to PMI and then verify the facts.
Choice 4 Report the violation to your manager.
Correct Choice : 2
Justification :
Reporting violations of the PMP code of conduct is one of the primary responsibilities of a project management
professional. If and when one gets to know that a violation of the PMP code of conduct has occurred, she should verify the
facts, if found true, must notify the PMI.

Question No : 132
ABC company has recently launched a new model of their car in the market and the market response has been
overwhelming. Sales have gone up to a level much higher than what the company anticipated. To cater to the increased
market demand, the company plans to start a project to create a new assembly line for the cars. Who, according to you, is
the user for this project?
Choice 1 Project manager and project management team
Choice 2 Person who may buy the car in the future
Choice 3 Project sponsor who provides funding
Choice 4 Assembly line worker who is going to work on the new assembly line being created
Correct Choice : 4
Justification :
Customers are the persons or organizations who will approve and manage the project’s product, service, or result.
Users are the persons or organizations who will use the project’s product, service, or result.
PMstudy.com comments: Here the assembly line worker will use the project`s product, i.e., the new assembly line being
created. So, he is user of the project.
Question No : 133
In the project execution phase, deliverables are produced. While monitoring and controlling project work, you track, review,
and regulate the progress to meet the performance objectives. In this context, what is NOT performed in the Monitor and
Control Project Work process?
Choice 1 Comparing expected project performance against the project plan
Choice 2 Monitoring implementation of approved changes as they occur
Choice 3 Providing information to support status reporting, progress measurement, and forecasting
Choice 4 Providing forecasts to update current cost and current schedule information
Correct Choice : 1
Justification :
The Monitor and Control Project Work process is concerned with comparing actual project performance against the project
management plan.

Question No : 134
Your project is very critical for the company and must be completed within six months. The project charter has been
signed, but the scope statement is not yet prepared. The management asks you to go ahead with the project without the
scope statement being approved. What should you do?
Choice 1 Refuse to work on the project, because the management is not following standard project management practices.
Choice 2 To save time, you should start the project with inputs from the project charter.
Choice 3 Meet the management and explain the problems you may face if you start a project without a scope statement.
Choice 4 Escalate the issue to the project sponsor and issue a risk memo.
Correct Choice : 3
Justification :
Option 3: This is the best available alternative. Without the scope statement, you do not have a good understanding of the
project justification, product, or project deliverables and project objectives. Also, you do not have all the inputs for the
scope definition and for the creation of work breakdown structure (WBS). The best option is to talk to the management
about the problems likely to be faced if you start a project without a scope statement.
Option 1: This is an extreme step and is not recommended

Option 2: This will pose problems. For example, you will not be able to create a WBS without the help of a scope
statement.
Option 4: This is an extreme measure and is not recommended.

Question No : 135
In which of the following processes is decomposition used as a tool?
Choice 1 Define Activities
Choice 2 Sequence Activities
Choice 3 Estimate Activity Resources
Choice 4 Estimate Activity Durations
Correct Choice : 1
Justification :
Decomposition is a tool used in the Define Activities process.

Question No : 136
You have recently taken over a new project. While studying the project information, you find out that cost variances are
very severe. To provide a realistic basis for performance measurement, what should you recommend?
Choice 1 Issue budget updates
Choice 2 Revise the cost baseline
Choice 3 Adjust schedule activity budget
Choice 4 Close the project
Correct Choice : 2
Justification :
In some cases, cost variances can be so severe that a revised cost baseline is needed to provide a realistic basis for
performance measurement.

Question No : 137
Which of the following should be determined during the Plan Quality Management process, so the cost of quality will
include the number of tests, expected scrap, etc.?
Choice 1 Sample frequency
Choice 2 Sample size
Choice 3 Sample time
Choice 4 Sample frequency and Sample size
Correct Choice : 4
Justification :
Sample frequency and sizes should be determined during the Plan Quality Management process, so the cost of quality will
include the number of tests, expected scrap, etc.

Question No : 138
Ten members were assigned in advance to your project. In this context, which of the following cannot be a reason for this
pre-assignment?
Choice 1 Specific people were promised as part of a competitive proposal.
Choice 2 Suitable people volunteered to work on the project.
Choice 3 Staff assignments were defined in the project charter.
Choice 4 The project was dependent on the expertise of the pre-assigned persons
Correct Choice : 2
Justification :
When project team members were selected in advance, they would be considered pre-assigned. This situation could occur
if the project was the result of specific people being promised as part of a competitive proposal, if the project was
dependent upon the expertise of particular persons, or if some staff assignments were defined within the project charter.

Question No : 139
The Plan Risk Responses process helps the project manager to develop options and actions to enhance opportunities and
to reduce threats to project objectives. The output from the Plan Risk Responses is updates to the risk register, which
should be:
Choice 1 At the level of detail of work packages in the WBS
Choice 2 At the level of detail whereby actions can be taken
Choice 3 Able to identify and document residual risks and secondary risks
Choice 4 Used for periodic risk reviews to identify risk ratings and prioritization
Correct Choice : 2
Justification :
The risk register should be written to a level of detail that corresponds with the priority ranking and the planned response.
Often, the high and moderate risks are addressed in detail.

Question No : 140
The scope of your project is very well defined and you have completed all the work described in the contract to your
satisfaction, but you think your buyer is not happy with the work. What should you do?
Choice 1 Go through arbitration proceedings to ensure that disputes are resolved
Choice 2 Talk with senior management about changing the scope of the project to accommodate requirements that would
satisfy the customer
Choice 3 Ask the customer for input and get her advice on changes that need to be made
Choice 4 Move to contract close-out
Correct Choice : 4
Justification :
As stated in the question, the scope of your project is very well defined, and you have completed all the work described in
the contract. You should now move towards contract close-out. Also note that while `you think` that your buyer is not
happy, there is no mention of the buyer explicitly stating that she is dissatisfied.

Question No : 141
You are managing a team of twenty members; you realize that some of your team members are showing less-than-
desirable customer service attitude. In this context, which of the following will be the most appropriate action?
Choice 1 Warn those team members of the consequences of their attitude.
Choice 2 Inform the senior management about those team members.
Choice 3 Influence those team members to adhere to company expectations about customer service
Choice 4 Replace those team members.
Correct Choice : 3
Justification :
A project manager has a great amount of influence on her team members. It is her responsibility to coach and influence the
team members who do not posses right attitudes, to conform to the standards of the conduct expected by her organization.

Question No : 142
At the end of the closing process group,
Choice 1 It is verified that the defined processes are completed within all the process groups to close the project or project
phase.
Choice 2 It is determined that the product will be successful in the market.
Choice 3 The project management plan is written off by the project sponsor.
Choice 4 The new change requests are initiated as required.
Correct Choice : 1
Justification :
The Closing Process Group, when completed, verifies that the defined processes are completed within all of the Process
Groups to close the project or a project phase, as appropriate, and formally establishes that the project or project phase is
complete.

Question No : 143
You have recently appointed a project manager to handle a critical project in your organization. You want to give her the
authority to apply organizational resources to project activities. Which document should you use?
Choice 1 Resource authorization document
Choice 2 Work Breakdown Structure
Choice 4 Project scope description
Correct Choice : 3
Justification :
The project charter provides the project manager with the authority to plan and execute the project...This understanding will
better allow for efficient resources allocation to project activities.

Question No : 144
You have undertaken a project under contract, where you are supposed to create an anti-virus software product for a
customer in ten months. You follow the software development life-cycle which includes analysis, high-level design, low-
level design, coding, testing, and rollout, with a deliverable at the end of each phase. Your customer has defined the scope
very well, and said that he is going to review your product after ten months. In this case, you should:
Choice 1 Insist that the customer verify the deliverables at the end of each phase
Choice 2 Ask your senior management to review the deliverables at the end of each phase to ensure that the deliverables
satisfy customer requirements
Choice 3 Complete the product as per specifications and provide the completed product to the customer as requested
Choice 4 Provide project deliverables to the customer at the end of each phase, even if the customer does not review them
Correct Choice : 1
Justification :
The verified deliverables obtained from the Control Quality process are reviewed with the customer or sponsor to ensure
that they are completed satisfactorily and have received formal acceptance of the deliverables by the customer or
sponsor.
PMstudy.com comments: It is important to ensure that the customer does formal scope verification after project
deliverables are completed. Otherwise, there is a high probability that the customer will complain of non-conformance with
requirements.
Question No : 145
Activity attributes extend the description of the activities in the activity list. Which of the following require activity attributes
as input?
A. Sequence Activities
B. Define Activities
C. Estimate Activity Resources
D. Estimate Activity Durations
Choice 1 B, C and D
Choice 2 A, C and D
Choice 3 A, B and D
Choice 4 A, B and C
Correct Choice : 2
Justification :
Activity attributes are outputs from the Define Activities process and inputs for Sequence Activities, Estimate Activity
Resources, Estimate Activity Durations, and Develop Schedule processes.
Reference: PMBOK® Guide - Fifth Edition, page 143 (figure 6 - 1)
PMstudy.com comments: Activity List and Activity attributes are created in the Define Activities process.
Question No : 146
In your project, you have determined the planned quantity of work to be performed. Luckily, a similar project was
successfully completed three months ago, and historical information from that project is readily available. To get a cost
estimate for your project, you multiply the planned quantity of work in your project with the cost per unit obtained from the
previous project. This is a classic example of:
Choice 1 Analogous estimating
Choice 2 Determining resource cost rates
Choice 3 Bottom-up estimating
Choice 4 Parametric estimating
Correct Choice : 4
Justification :
Parametric estimating uses a statistical relationship between historical data and other variables (e.g., square footage in
construction) to calculate a cost estimate for project work.

Question No : 147
A flow chart is a diagram, which shows how various elements of a system relate and includes tools like "cause and effect
diagrams" and "flowcharting." As a project manager, you find "cause and effect diagrams" a useful tool for:
Choice 1 Showing the relationship between two variables
Choice 2 Identifying which factors may influence specific variables of a product or process under development or in
production
Choice 3 Determining whether or not a process is stable or has predictable performance
Choice 4 Illustrating how various factors might be linked to potential problems or effects
Correct Choice : 4
Justification :
Option 4: This is the correct answer. Cause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams
illustrate how various factors might be linked to potential problems or effects.
Option 1: This refers to scatter diagrams, which shows the relationship between two variables
Option 2: This refers to Design of Experiment (DOE), which identifies which factors may influence specific variables of a
product or process under development or in production.
Option 3: This refers to Control Charts, which are used to determine whether or not a process is stable or has predictable
performance.
Question No : 148
Your project has two hundred and fifty people from five different countries working to create a software solution to be
deployed across fifteen countries. One of your project leads continually misses project deadlines and undermines your
authority in front of other team members. In a stakeholder meeting, you want to settle a particular conflict with this project
lead quickly and exert your authority. What conflict management technique would you use?
Choice 1 Confronting
Choice 2 Forcing
Choice 3 Withdrawing
Choice 4 Avoiding
Correct Choice : 2
Justification :
Forcing is a conflict management technique where you exert your viewpoint at the expense of the viewpoints of others and
is used if you have the authority and have to settle conflicts quickly.
Reference: PMstudy.comments
Question No : 149
In your project, you are about to complete the Plan Risk Responses process. Completion of certain tasks marks the end of
the process. Which one of the following is NOT that task?
Choice 1 People have been identified to take responsibility for each agreed-to and funded risk response.
Choice 2 High priority risks are addressed in detail in the risk register.
Choice 3 Low priority risks are included in the risk mitigation plan if they occur.
Choice 4 Negative risks have been considered for avoidance, transference or mitigation.
Correct Choice : 3
Justification :
Risks judged to be of low priority are included in a watch list for periodic monitoring.

Question No : 150
A contract which includes features of cost reimbursable and fixed price types of contract is a:
Choice 1 Fixed price plus incentive fee contract
Choice 2 Cost plus award fee contract
Choice 3 Time and material contract
Choice 4 Cost plus fixed fee contract
Correct Choice : 3
Justification :
Time and material contracts are a hybrid type of contractual arrangements that contain aspects of both cost-reimbursable
and fixed-price contracts.
Option 1: This type of contract involves fixed-price features which allow for deviation from performance, with financial
incentives tied to achieving agreed metrics.
Option 2: In this type of contract, the seller is reimbursed for all legitimate costs, but the majority of the fee is only earned
based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract.
Option 4: In this type of contract, the seller is reimbursed for all allowable costs for performing the contract work, and
receives a fixed fee payment calculated as a percentage of the initial estimated project costs.
Reference:PMBOK® Guide - Fifth Edition, pages 363 and 364

Question No : 151
You are managing a team consisting of members from four different countries; you realize that some cultural differences
among your team members are hampering the progress of your project. In this context, what should you do?
Choice 1 Conduct team building activities in which most of the team members can participate actively.
Choice 2 Train your team members on project objectives.
Choice 3 Train your team members on the broad objectives of your organization.
Choice 4 Provide training to your team members regarding cultural diversities among different countries along with training
on project objectives and the company culture.
Correct Choice : 4
Justification :
When working with team members of different countries, to ensure that cultural diversities do not hamper the progress of
the project, the project manager must provide training to her team members regarding cultural diversities among various
countries, project goals, and the ethics and culture of the company.

Question No : 152
You recently joined ABC bank as a project manager. Although the project is within budget and doing well, recently there
have been several change requests. The outgoing project manager was using twelve project management processes
during the project execution. Given this information, which of the following could be the most likely cause of frequent
change requests?
Choice 1 The new project manager was appointed for a very critical project and proper training was not provided.
Choice 2 All stakeholders were not identified.
Choice 3 New methods of communication like email and SMS were not used as part of project communication
management.
Choice 4 Very few project management processes were used by the outgoing project manager.
Correct Choice : 2
Justification :
We should try to find out the reason for the problem. The question clearly states that recently there have been several
change requests. The root cause of the problems is that all stakeholders are not identified.
Training (option 1), communication methods (option 3) or the number of project management processes (option 4) cannot
be contributing factors to the increase in change requests. However, if some stakeholders are not identified (option 2),
there is a possibility that some requirements of those stakeholders are left out. This is the most important reason for
increase in change requests.

Question No : 153
A non-governmental agency authorizes a project to provide potable water systems, latrines and sanitation education to
low-income communities. The need for the project arose due to:
Choice 1 Market need
Choice 2 Business need
Choice 3 Social need
Choice 4 Legal requirement
Correct Choice : 3
Justification :
The business case is created as a result of... social need (e.g., a non-governmental organization in a developing country
authorizing a project to provide potable water systems, latrines and sanitation education to communities suffering from high
rates of cholera).

Question No : 154
Items at the lowest level of a Work Breakdown Structure are called:
Choice 1 Work Packages
Choice 2 WBS Dictionaries
Choice 3 Work Components
Choice 4 WBS, Work Components, Work Packages or WBS Dictionaries - depending on the context in which the term is
used
Correct Choice : 1
Justification :
The planned work is contained within the lowest level of WBS components, which are called work packages.

Question No : 155
You are the project manager on a Software Creation Project. If the number of critical paths in the project increases, but the
duration of the project remains the same, what should the project manager do?
Choice 1 Perform crashing to complete project on time
Choice 2 Fast track the project
Choice 3 Perform additional risk planning
Choice 4 Decrease the scope of the project
Correct Choice : 3
Justification :
If the number of critical paths increases in the project, delay in any one of the critical paths has the potential to delay the
project. The risk of the project (in meeting the project schedule) increases; hence additional risk planning has to be
performed.

Question No : 156
Your project is in the execution stage. NPV of your project is -$200,000 and IRR is 5%. CPI is 1.2 and SPI is 0.8. What is
the recommended action?
Choice 1 Cancel the project since NPV is negative
Choice 2 Cancel the project since IRR is very low
Choice 3 Crash your project
Choice 4 Try to improve the NPV
Correct Choice : 3
Justification :
Option 3 is the most recommended action. CPI is greater than 1 and SPI is less than 1. Since SPI is less than 1, this
means that project is behind schedule; hence it is recommended to crash the project to bring it on schedule.
Please note that crashing may increase costs. Since your project has CPI greater than 1, cost will not be a concern.
Options 1, 2, and 4 are not recommended actions. NPV and IRR are project selection criteria (selection of projects is done
in the initiation stage). Since this project is already in the execution phase, NPV and IRR should not be considered.

Question No : 157
A description of how a project management team should implement the overall intention and direction of an organization
with regard to quality (as articulated by top management) is available in:
Choice 1 Operational definitions
Choice 2 Quality management plan
Choice 3 Checklists
Choice 4 Quality policy
Correct Choice : 2
Justification :
The quality management plan describes how the project management team plans to meet the quality requirements set for
the project. The performing organization`s quality policy, as endorsed by senior management, sets the organization`s
intended direction on implementing its quality management approach.

Question No : 158
You have recently taken over as project manager. In your initial meeting, you first notice that there is too much conflict
among the project team members, which harms productivity and working relationships. In this context, which of the
following would not be a technique you would use to reduce conflict in your team?
Choice 1 Establish team ground rules
Choice 2 Establish group norms
Choice 3 Minimize differences of opinion among team members
Choice 4 Better manage the communication channels
Correct Choice : 3
Justification :
Team ground rules, group norms, and solid project management practices like communication planning and role definition
reduce the amount of conflict. When managed properly, differences of opinion can lead to increased creativity and better
decision making.

Question No : 159
Your company is a pioneer in the construction industry. The government recently floated a tender for setting up a new
airport. Since you do not have all the requisite skills within the company, you enter into a joint venture with a leading airport
construction company to bid jointly for the government contract. This is an example of:
Choice 1 Risk exploitation
Choice 2 Risk sharing
Choice 3 Risk enhancing
Choice 4 Risk mitigating
Correct Choice : 2
Justification :
Strategies for positive risks or opportunities (share): Sharing a positive risk involves allocating some or all of the ownership
of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project. Examples of
sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures, which can
be established with the express purpose of taking advantage of the opportunity so that all parties gain from their actions.

Question No : 160
As a project manager, you have created a document that describes the procurement item in sufficient detail to provide a
basis for the sellers to determine if they can provide the item. This document is referred to as:
Choice 1 Statement of work
Choice 2 Contract
Choice 3 Procurement document
Choice 4 Procurement statement of work
Correct Choice : 4
Justification :
Procurement Statements of Work: The statement of work (SOW) for each procurement is developed from the project scope
baseline and defines only that portion of the project scope that is to be included within the related contract. The
procurement SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are
capable of providing the products, services, or results.
Option 1: Statement of work is a narrative description of products and services to be delivered by the project. Statement of
work is provided by the sponsor in case of internal projects, but for external projects, it is provided by the customer.
Option 2: Contract is a mutually binding agreement that obligates the seller to provide the specified product or service or
result and obligates the buyer to pay for it.
Option 3: Procurement document is a document utilized in bid and proposal activities, which includes the buyer’s invitation
for bid, invitation for negotiations, request for information, request for quotation, request for proposal and seller’s
responses.

Question No : 161
You are a member of the committee which is appointed to oversee the awarding of an important contract in your company.
In this context, which of the following cannot be treated as conflict of interest situations?
Choice 1 Your friend bids for the contract and you inform the committee and the project sponsor about it.
Choice 2 Your relative bids for the contract and you do not inform the project sponsor about it.
Choice 3 Your close friend bids for the contract and you refrain from participating in the contract awarding decision process
without informing your sponsor.
Choice 4 Your friend bids for the contract and you make sure that the contract is awarded to him.
Correct Choice : 1
Justification :
Conflict of interest arises when personal interests out-weigh professional considerations. A person`s associations and
affiliations with others can also lead to conflict of interest.
Please note that if there is a conflict of interest situation, inform the appropriate stakeholders and distance yourself from the
conflict situation, if possible.

Question No : 162
Earlier you were working at the helpdesk of ABC company managing a team. Your job primarily involved handling customer
queries, analyzing customer feedback, and supervising your team. You have recently been re-assigned to a new project
involving integration of the helpdesk activities with an ERP (Enterprise Resource Planning) package. This project will
improve efficiency in the company and help in integrating all inter-related activities. In this context, which of the following is
not a difference between project work and work at helpdesk?
Choice 1 The objective of the project is to meet strategic objectives of the company. The objective of the helpdesk was to
sustain the business.
Choice 2 A project has to be planned, executed, and controlled, and it is not so in the case of helpdesk.
Choice 3 As part of the project, you are creating a new information system, but nothing unique was being created as part of
the helpdesk activities.
Choice 4 Unlike a project, helpdesk was an ongoing operational activity.
Correct Choice : 2
Justification :
Helpdesk work is an operational activity.
Organizations perform work to achieve a set of objectives. In many organizations, the work performed can be categorized as
either project or operations work. These two types of work share a number of characteristics as follows:
a. Performed by individuals
b. Limited by constraints including resource constraints
c. Planned, executed, monitored and controlled
Both projects and operations need to be planned, executed, and controlled. However, projects and operations differ
primarily in that operations are ongoing and produce repetitive products, services, or results. Projects are temporary, and
end.
Question No : 163
Project Integration Management includes the processes and activities needed to identify, define, combine, unify and
coordinate the various processes and project management activities within the Project Management Process Groups.
When a project is initiated, one of the processes taken up early on in the project initiation stage is:
Choice 2 Define Scope
Choice 3 Plan Human Resource Management
Choice 4 Develop Project Management Plan
Correct Choice : 1
Justification :
Identify Stakeholders is the process of identifying the people, groups, or organizations that could impact or be impacted by
a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their
interests, involvement, interdependencies, influence, and potential impact on project success... It is critical for project
success to identify the stakeholders early in the project or phase and to analyze their levels of interest, their individual
expectations, as well as their importance and influence.
PMstudy.com comments: Identify Stakeholders is done as part of Initiating Process Group.

Question No : 164
Inspection includes activities such as measuring, examining, and testing undertaken to determine whether results conform
to requirements. Which of the following terms does not refer to Inspection?
Choice 1 Product review
Choice 2 Audit
Choice 3 Walkthrough
Choice 4 Stage-gate
Correct Choice : 4
Justification :
Inspections are sometimes called reviews, product reviews, audits, and walkthroughs.
PMstudy.com comments: Stage gates are also referred to as phase-end reviews or kill points. They are different from
Inspection.
Question No : 165
Control Schedule is the process of monitoring the status of the project to update project progress and managing changes
to the schedule baseline. During this process, you undertake various activities that allow you to identify any changes, or
potential changes to the project schedule. In this context, which of the following is NOT true about the Control Schedule
process?
Choice 1 Project manager determines the current status of the project schedule
Choice 2 Project manager influences the factors that create schedule changes
Choice 3 Project manager takes the anticipated changes through the change control process.
Choice 4 Project manager manages the actual schedule changes as they occur
Correct Choice : 3
Justification :
The Control Schedule process is concerned with determining the current status of the project schedule, influencing the
factors that create schedule changes, determining if the project schedule has changed, and managing the actual changes
as they occur.
PMstudy.com comments: The Project Manager will take actual (not anticipated) identified changes through the change
control process. The Project Manager cannot approve all changes to the schedule. They must be approved by the
appropriate stakeholders, as designated in the change control procedures.
Question No : 166
Project A has an initial investment of $3 million, out of which $1.5 million has been spent. Project B, which meets the same
objectives as project A, requires only $1.6 million for completion. Which project should you select?
Choice 1 Project A
Choice 2 Project B
Choice 3 Neither project A nor project B
Choice 4 Both project A and project B
Correct Choice : 1
Justification :
Project A has already spent $1.5 million, the sunk cost, which need not be considered as it has already been incurred and
cannot be avoided. So $1.5 million is required to complete project A. However, $1.6 million is required to complete project
B, so it is better to select project A.

Question No : 167
Your company has implemented ISO standards for quality. In this context, which of the following statements regarding
quality is accurate?
A. The objective of a quality audit is to compare project deliverables against the product requirements as defined in the
WBS.
B. Process analysis identifies the needed improvements from an organizational and technical standpoint.
C. Control Quality is the process of monitoring and recording results of executing the quality activities to assess
performance and recommend necessary changes.
D. The Quality management plan describes how the project management team will implement the performing
organization`s quality policy.
Choice 1 B, C and D
Choice 2 C and D
Choice 3 B and D
Choice 4 A, B and C
Correct Choice : 1
Justification :
A quality audit is a structured, independent process to determine if project activities comply with organizational and project
policies, processes, and procedures.

Question No : 168
You are the manager of a project, which aims to start 15 more schools in your state. You have to deal with several non-
government organizations, state agencies, sponsors, and other stakeholders. There are conflicts between stakeholders. In
this context, you should know that maximum intensity of conflicts happens due to:
Choice 1 Personality conflict, cost, and administration
Choice 2 Risk management, status meetings, and Define Scope
Choice 3 Schedules, priorities, and manpower
Choice 4 Administration, technical issues, and procedures
Correct Choice : 3
Justification :
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 302
Question No : 169
Probability distributions are popular tools of the Perform Quantitative Risk Analysis process. In this context, which of the
following statements on probability distributions is not accurate?
Choice 1 Beta Distribution is a continuous distribution.
Choice 2 Triangular distribution is a discrete distribution.
Choice 3 Discrete distributions can be used to represent uncertain events such as a possible scenario in a decision tree.
Choice 4 Uniform distributions can be used only if there is no obvious value that is more likely than any other between
specified high and low bounds.
Correct Choice : 2
Justification :
Beta distribution and Triangular distribution are two examples of widely used continuous distributions.

Question No : 170
As a project manager, you would like to develop a procurement statement of work. This would require (select the best
answer):
Choice 1 Scope statement and WBS
Choice 2 WBS only
Choice 3 Contract
Choice 4 Scope baseline
Correct Choice : 4
Justification :
This is the correct answer. Scope baseline describes the need, justification, requirements, and current boundaries for the
project. Procurement statement of work for each of the procurements is developed from the project scope baseline.
Options 1 and 2: Scope statement describes the project deliverables and the work required to create those deliverables.
Work breakdown structure (WBS) is a deliverable-oriented hierarchical decomposition of the work to be executed by the
project team to accomplish the project objectives and create the required deliverables. The creation of procurement
statement of work does not directly require the scope statement and WBS or the latter alone.
Option 3: Contract is a mutually binding agreement that obligates the seller to provide the specified product or service or
result and obligates the buyer to pay for it. Creation of procurement statement of work does not directly rely on contract.
Reference: PMBOK® Guide - Fifth Edition, page 366 and 367

Question No : 171
Your company has been awarded an engineering, procurement and construction (EPC) contract to build a combined-cycle
gas turbine (CCGT) plant. You have been assigned to manage this project, but your expertise as a project manager is in
the field of information technology. In this context, what should you do?
Choice 1 Explain to your senior management about your knowledge and experience.
Choice 2 Ask for adequate training in your new area of operation.
Choice 3 Accept the responsibility and put in your best efforts.
Choice 4 Reject the assignment stating that it is beyond your capabilities and experience.
Correct Choice : 3
Justification :
A project manager must always be truthful while reporting about her qualification, experience, background, and past
performances to one`s prospective employers, customers, etc.
PMI believes that a project manager need not be a subject matter expert, and similar project management skills can be
used across different industries.

Question No : 172
You are working as the project manager simultaneously on four (4) projects in your organization, which vary in complexity.
In this context, which of the following does not contribute to the success of the projects?
Choice 1 Project Manager must comply with the requirements to meet stakeholders` needs and aspirations
Choice 2 Applying knowledge, skills, and processes uniformly across various projects in your portfolio
Choice 3 Balancing competing needs of time, cost, and quality
Choice 4 Using a defined approach to adapt the product specifications and plans to meet project and product requirements
Correct Choice : 2
Justification :
For any given project, the project manager, in collaboration with the project team, is always responsible for determining
which processes are appropriate, and the appropriate degree of rigor for each process.
PMstudy.com comments: Knowledge, skills, and processes will not always be applied uniformly on all projects. Since the
projects are of varying complexity levels, the same processes may not be valid for all the four (4) projects. Please note that
options 1, 3, and 4 are requirements for a project to be successful.
Question No : 173
You are creating a project charter to formally authorize the project. A project statement of work will be helpful in creation of
the charter. In this context, which of the following is NOT a part of project statement of work?
Choice 1 Product scope description
Choice 2 Business need
Choice 3 Strategic plan
Choice 4 Project manager name
Correct Choice : 4
Justification :
The project statement of work references product scope description, business need, and strategic plan.
PMstudy.com comments: Although the project manager should be identified as soon as possible (preferably during
Initiating process), this is not mandatory. Also, this information would not be included in the statement of work.
Question No : 174
Project scope management includes the processes required to ensure that the project includes all the work required and
only the work required to complete the project successfully. In this context, the project charter plays a very important role
because it:
Choice 1 Provides a list of project deliverables
Choice 2 Provides high-level project description and product characteristics
Choice 3 Provides deliverable oriented grouping of work components
Choice 4 Describes the project plan parameters, i.e., quantifiable criteria that must be met for the project to be considered
successful
Correct Choice : 2
Justification :
The project charter provides the high-level project description and product characteristics.
PMstudy.com comments: Option 1 refers to benefits of scope statement. Option 3 refers to benefits of work breakdown
structure. Option 4 refers to project plan parameters, which is not defined in the PMBOK® Guide - Fifth Edition.
Question No : 175
In your project, you need to determine how each task is related to other tasks. This will ultimately help you develop the
schedule for the project. In which process will you determine these relationships?
Choice 1 Define Activities
Choice 2 Estimate Activity Durations
Choice 3 Sequence Activities
Choice 4 Develop Schedule
Correct Choice : 3
Justification :
Sequence Activities is the process of identifying and documenting relationships among the project activities.

Question No : 176
Please refer to the following diagram:
What is the Earned Value (EV)?
Choice 1 $5,000
Choice 2 $10,000
Choice 3 $11,000
Choice 4 $12,500
Correct Choice : 4
Justification :
Earned Value (EV)

= The sum of the approved cost estimates for activities completed during a given period
= Estimated cost of work that is completed after day 11
= $5,000 + $5,000 + $5,000 x 0.50 = $12,500 (because Tasks A and B are completed and Task C is 50% complete)
Acronym Term Description Formula

Planned Value
PV Physical work to be scheduled,
including the estimated value of the
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
Physical work actually accomplished,
(Budgeted Costs for including estimated value of this work
(BCWP)
Work Performed)
AC Actual Cost Actual cost of the work completed
Negative SV: Behind Schedule
SV Schedule Variance EV – PV
Positive SV: Ahead of Schedule
Negative CV: Over Budget
CV Cost Variance EV – AC
Positive CV: Under Budget
Cost Performance
CPI Value got for $1 of Actual Cost EV/AC = BAC/EAC
Index
Schedule
SPI Progress as a % of Planned Progress EV/PV
Performance Index

Question No : 177
You are working on a construction project. You gather data regularly on the productivity of several employees and tasks
(e.g., concrete poured per hour, length of electrical wiring done by a person per day, etc.). You compare this with that of
similar projects embodied in your organizational process assets. This is a real life example of:
Choice 1 Force field analysis
Choice 2 Cost of quality
Choice 3 Benchmarking
Choice 4 Design of experiments
Correct Choice : 3
Justification :
Benchmarking involves comparing actual or planned project practices to those of comparable projects to identify best
practices, generate ideas for improvement, and provide a basis for measuring performance.

Question No : 178
In the executing phase of your project, you lose some key resources. Some new people have joined, and you (the project
manager) set up a meeting to get the team together. What should be the most important agenda item for this meeting?
Choice 1 Discussing team building activities
Choice 2 Inviting the team members to share their past project experiences
Choice 3 Reviewing WBS and responsibilities of all team members
Choice 4 Planning risk responses for existing risks
Correct Choice : 3
Justification :
The most important agenda item for the meeting should be reviewing of WBS to ensure that responsibilities are assigned.
Reviewing WBS and responsibilities of all team members helps in establishing clear expectations on acceptable behavior
and roles of all team members.
Early commitment to clear guidelines decreases misunderstandings and increases productivity.

Question No : 179
In your project, you have completed the Identify Risks process to determine which risks may affect the project, and a risk
register has been prepared. What should you do NEXT?
Choice 1 Risk probability and impact assessment
Choice 2 Avoid, transfer or mitigate negative risks
Choice 3 Exploit, share or enhance opportunities
Choice 4 Risk audits
Correct Choice : 1
Justification :
After the Identify Risks process, the next step is the Perform Qualitative Risk Analysis process. Risk probability and impact
assessment is one of the tools and techniques for the Perform Qualitative Risk Analysis process.
Option 2 (Avoiding, transferring or mitigating negative risks) is done during the Plan Risk Responses process, which
happens after the Perform Qualitative Risk Analysis and the Perform Quantitative Risk Analysis processes.
Option 3 (Exploiting, sharing or enhancing opportunities) is done during the Plan Risk Responses process, which happens
after the Perform Qualitative Risk Analysis and the Perform Quantitative Risk Analysis processes.
Option 4 (Risk audits) is a tool for the Control Risks process, which happens after the Perform Qualitative Risk Analysis,
the Perform Quantitative Risk Analysis and the Plan Risk Responses processes.
Question No : 180
The buyer wants to provide a single source contract, but your sponsor tells you that sole source contract would be better
for the company. In this context, how do sole source contracts differ from single source contracts?
Choice 1 Single source contracts are forms of non-competitive procurements, whereas sole source contracts are forms of
competitive procurements.
Choice 2 Single source contracts are forms of competitive procurements, whereas sole source contracts are forms of non-
competitive procurements
Choice 3 In single source contracts, you (buyer) contract a seller because he is your preferred seller, whereas in sole
source contracts, you (buyer) contract a seller because there are no other sellers for your required procurement
item.
Choice 4 Unlike sole source contracts, single source contracts help an organization to save time because they do not
involve procurement process before bids or proposals are received.
Correct Choice : 3
Justification :
Options 1 and 2: Both types are forms of non-competitive procurements.
Option 3: This is the correct answer. The major difference between single source contracts and sole source contracts—
though both are non-competitive forms of procurements— is that in single source contracts, the contract is awarded to a
seller because he is the organization’s preferred seller, whereas in sole source contracts, the contract is awarded to a
seller because there are no other sellers for the organization’s required procurement item.
Option 4: Sole source contracts also help organizations save time.

Question No : 181
You and your sponsor are discussing the financial benefits of selecting between two similar projects - project A and project
B. When evaluating the projects, you realize that project A will cause some amount of short-term environmental damage
but minimal long-term environmental problems. In this context, what will be the best course of action?
Choice 1 Explain to your senior management about the potential environmental damage caused by project A and persuade
them to discard the project.
Choice 2 Select the project A as there is only low probability of causing long-term environmental damage.
Choice 3 Try to find solutions to the environmental damage that may occur in the future because of project A.
Choice 4 Undertake the project A but try to minimize the environmental damage, if any.
Correct Choice : 1
Justification :
Project managers, while making decisions regarding a project, should preferably select a project with no(or minimal)
negative impact on the environment, community and society.

Question No : 182
Which of the following statements relating to product-oriented processes and project management processes is accurate?
Choice 1 Product-oriented processes are defined in the project management life cycle
Choice 2 Product-oriented processes help in creating the project`s product
Choice 3 Project management processes rarely interact with product-oriented processes
Choice 4 Project management processes apply globally but to certain industry groups
Correct Choice : 2
Justification :
Product-oriented processes specify and create the project`s product.
Please note:
a. Option 1: Product-oriented processes are typically defined by the project life cycle (PMBOK® Guide Fifth Edition, page
47).
b. Option 3: Project management processes and product-oriented processes overlap and interact throughout the life of a
project (PMBOK® Guide Fifth Edition, page 48).
c. Option 4: Project management processes apply globally and across industry groups (PMBOK® Guide Fifth Edition, page
48).
Question No : 183
A new project manager has been appointed to manage a project which was terminated six months earlier because of
funding related issues. The project manager wants to find out the exact reasons for the termination of the project. He also
wants to know which deliverables were produced from the terminated project. Which of the following document(s) should
the project manager refer to?
Choice 1 Final product, service, or result transition
Choice 2 Project files
Choice 3 Historical information
Choice 4 Project closure documents
Correct Choice : 4
Justification :
If the project was terminated prior to completion, the formal documentation indicates why the project was terminated and
formalizes the procedures for the transfer of the finished and unfinished deliverables of the cancelled project to others.

Question No : 184
In your project, you are working with your customer to formalize acceptance of the completed project deliverables. This is
done as part of:
Choice 1 Planning
Choice 2 Executing
Choice 3 Monitoring and Controlling
Choice 4 Initiating
Correct Choice : 3
Justification :
Validate Scope is the process of formalizing acceptance of the completed project deliverables. This process belongs to the
Monitoring and Controlling Process Group.
Reference: PMBOK® Guide - Fifth Edition, page 133 and page 61 (table 3-1)
Question No : 185
You are the project manager on a research project. You have received the news that your shipment of supplies will be
delayed by two weeks due to bad weather. What will be your FIRST step?
Choice 1 Fast track the project to ensure that the project schedule is not delayed.
Choice 2 Determine how much float is available in that task.
Choice 3 Try to get additional supplies from an alternate location as soon as possible.
Choice 4 Take corrective action to minimize the impact of delay.
Correct Choice : 2
Justification :
Before you take corrective measures, determine the impact of the delay in shipment. For example, if the task has 3 weeks
float, you need not resort to options 1, 3, or 4.

Question No : 186
What is the status of the project?
Choice 1 Behind schedule, Under budget
Choice 2 Ahead of schedule, Under budget
Choice 3 Ahead of schedule, Over budget
Choice 4 Behind schedule, Over budget
Correct Choice : 3
Justification :
Earned value (EV)
= $5,000 + $5,000 + $5,000 x 0.50 = $12,500 (because Task A, Task B are complete, Task C is 50% complete)
Planned value(PV)
= Planned work to be completed after day 11
= $5,000 + $5,000 + $5,000 x (1/5) (because at end of day 11, according to our plan, Task A, Task B should be complete;
Task C only one day out of 5 days should be complete, i.e., 20% complete ($1,000 of work should be done))
= $11,000
Actual cost (AC)

= Actual Cost of work completed
= $13,000
Schedule variance (SV)

= EV - PV = $12,500 - $11,000 = $1,500
Since SV is positive, we are ahead of schedule.
Cost variance (CV)

= EV - AC = $12,500 - $13,000 = - $500
Since CV is negative, we are over budget.

Planned Value
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
(BCWP)
Work Performed)
Cost Performance
Index
Schedule
Performance Index
Question No : 196
You know that current variances are atypical, i.e., similar variances will not occur in the future. What is the Estimate at
Completion (EAC)?
Choice 1 $15,000
Choice 2 $20,000
Choice 3 $20,500
Choice 4 $22,000
Correct Choice : 3
Justification :
Earned Value (EV)

= $5,000 + $5,000 + $5,000 x 0.50 = $12,500 (because Tasks A and B are complete, Task C is 50% complete)
Actual Cost (AC)

= $13,000
Budget at Completion (BAC)

= Budget for the full project
= $5,000(Task A) + $5,000(Task B) + $5,000(Task C) + $5,000(Task D)
= $20,000
Estimate at completion (EAC) assuming that current variances are atypical

= AC + (BAC - EV)
= $13,000 + ($20,000 - $12,500)
= $13,000 + $7,500
= $20,500

Planned Value
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
(BCWP)
Work Performed)
Cost Performance
Index
Schedule
Performance Index

Question No : 187
You are the project manager of a car manufacturing company. You understand that there are costs associated with
improvement in quality parameters. To justify costs required to improve quality, you find out the incremental increase in
benefits for an incremental improvement in quality. This is an example of :
Choice 1 Parkinson`s law
Choice 2 Learning Curve theory
Choice 3 Marginal analysis
Choice 4 Maslow`s hierarchy of needs
Correct Choice : 3
Justification :
Marginal analysis balances the additional benefits from an action against the additional cost. It is an acknowledgement that
decisions should be made based on the incremental gains and losses that result from a decision.

Question No : 188
While working on the project, you set realistic (and challenging) targets. This is because you know that if extra time is
provided, "Work expands so as to fill the time available for its completion." This is also referred to as:
Choice 1 Herzberg`s Motivation Theory
Choice 2 Learning Curve Theory
Choice 3 Theory Y
Choice 4 Parkinson`s law
Correct Choice : 4
Justification :
Parkinson`s law states that work expands so as to fill the time available for its completion or in brief, "work expands to fill
the time available."

Question No : 189
In your project, you identified disaster situations (e.g. floods, earthquakes, etc.) as potential risks. The project sponsor
suggested that, at the project level, no steps could be taken to deal with such risks and recommended creation of a
contingency reserve (with 5% of the project budget) which could be used in case of disaster situations. This is an example
of:
Choice 1 Risk mitigation
Choice 2 Risk acceptance
Choice 3 Risk avoidance
Choice 4 Bad policy decision
Correct Choice : 2
Justification :
Accept: Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not
take any action unless the risk occurs. This strategy is adopted where it is not possible or cost-effective to address a
specific risk in any other way. This strategy indicates that the project team has decided not to change the project
management plan to deal with a risk, or is unable to identify any other suitable response strategy... The most common
active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle
the risks.

Question No : 190
In your company, you have a practice of preparing your own estimates of the items to be procured or services to be
availed. This helps you conduct procurements to select seller. This can also be referred to as:
Choice 1 Preferred price
Choice 2 Independent Estimate.
Choice 3 Fixed price contract
Choice 4 Careful cost budgeting
Correct Choice : 2
Justification :
Option 2: For many procurement items, the procuring organization may elect to either prepare its own independent
estimate, or have an estimate of costs prepared by an outside professional estimator, to serve as a benchmark on
proposed responses. Significant differences in cost estimates can be an indication that the procurement statement of work
was deficient, ambiguous, and/ or that the prospective sellers either misunderstood or failed to respond fully to the
procurement statement of work.
Options 1 and 4: The answers provided in these options do not refer to the practice of preparing independent estimates of
the items to be procured or services to be availed.
Option 3: Fixed-price contracts involve setting a fixed price for defined product or service to be provided.

Question No : 191
Your company asks you to manage a project of its subsidiary unit in another country. You quickly realize that workers in
the subsidiary unit have poor work ethics as compared with that of your parent company. In this context, which of the
following will be the most appropriate course of action?
Choice 1 Ask your new team to emulate the work ethics of the teams of your parent company.
Choice 2 Take steps to change the work culture of your new team.
Choice 3 Regard your new team as lazy and impose sanctions.
Choice 4 Treat it as cultural differences, and try to determine ways to improve productivity.
Correct Choice : 4
Justification :
The PMI Code of Ethics and Professional Conduct requires a project manager to address things with an open mind and
accept the cultural and ethical diversity that exists between different countries. So, it is not the responsibility of the project
manager to enforce the work-ethics of one`s own country on the people of another country.

Question No : 192
Your construction company recently secured a project to build a new overpass on Interstate 10. You have been appointed
as project manager for the assignment. Your company has successfully executed similar projects in the past, and you
would like to refer to the past project documents. At what stage of the project should this be done FIRST?
Choice 1 Executing
Choice 2 Initiating
Choice 3 Planning
Choice 4 Monitoring and Controlling
Correct Choice : 2
Justification :
Organizational Process Assets is an input to Develop Project Charter (which is in the Initiating Process Group).
PMstudy.com comments: Documentation about previous projects is included in the organizational process assets. In the
Initiating Process Group, documents about similar past projects would help the project team in getting a better
understanding of the project.
Question No : 193
Your project involves creating a launch vehicle for NASA satellites. For successful project implementation, it is important to
coordinate activities with other NASA operational groups and also divide your project into several phases to provide better
management control. To facilitate this, you should (select the BEST answer):
Choice 1 Break the project into several sub-projects.
Choice 2 Use life cycle approach to manage the project.
Choice 3 Develop specific deliverables, which are approved by the sponsor.
Choice 4 Create a very comprehensive project charter.
Correct Choice : 2
Justification :
A project life cycle is the series of phases that a project passes through from its initiation to its closure.
Option 1: There is nothing in the question that suggests that breaking the project into several sub-projects will be required.
Instead, it mentions clearly that the project should be broken into several phases, which can be done by using a life cycle
approach.
Option 3 and Option 4: These are required for any project, but they do not address the specific requirements of the
question (e.g. coordinating different operational activities and dividing the project into several phases).
Question No : 194
You are the project manager of a software company involved in creating an anti-virus software product. You are in the
execution phase of the project when you realize that a requirement was not included in the product. This is due to an
omission in defining the scope baseline of the project. What should you do?
Choice 1 Issue a change request
Choice 2 Take corrective action
Choice 3 Add the requirements to your product and continue with execution
Choice 4 Take defect repair action
Correct Choice : 1
Justification :
Analysis of scope performance can result in a change request to the scope baseline or other components of the project
management plan.
PMstudy.com comments: Since the scope baseline is not fully defined, the requirement has been omitted. To incorporate
the missing requirement, a change request has to be issued.
Question No : 195
A project manager intends to identify and document interactivity dependencies. Which of the following inputs can the
project manager use for this purpose?
A. Project scope statement

B. Activity list
C. Project schedule
D. Activity attributes
Choice 1 B, C and D
Choice 2 A, C and D
Choice 3 A, B and D
Choice 4 A, B and C
Correct Choice : 3
Justification :
Activity list, activity attributes, milestone list, project scope statement are some of the inputs for the Sequence Activities
process.
PMstudy.com comments: Project schedule is an output of the Develop Schedule process.

Question No : 196
You know that current variances are atypical, i.e., similar variances will not occur in the future. What is the Estimate at
Completion (EAC)?
Choice 1 $15,000
Choice 2 $20,000
Choice 3 $20,500
Choice 4 $22,000
Correct Choice : 3
Justification :
Earned Value (EV)

= $5,000 + $5,000 + $5,000 x 0.50 = $12,500 (because Tasks A and B are complete, Task C is 50% complete)
Actual Cost (AC)

= $13,000
Budget at Completion (BAC)

= Budget for the full project
= $5,000(Task A) + $5,000(Task B) + $5,000(Task C) + $5,000(Task D)
= $20,000
Estimate at completion (EAC) assuming that current variances are atypical

= AC + (BAC - EV)
= $13,000 + ($20,000 - $12,500)
= $13,000 + $7,500
= $20,500

Planned Value
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
(BCWP)
Work Performed)
Cost Performance
Index
Schedule
Performance Index

Question No : 197
In your pharmaceutical company, quality is an important criterion to determine project success. Which of the following is
not an example of cost of nonconformance?
Choice 1 Training
Choice 2 Rework
Choice 3 Loss of reputation
Choice 4 Warranty
Correct Choice : 1
Justification :
Cost of quality: A method of determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of
conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to
requirements (i.e., training, QC systems, etc.). Failure costs (cost of nonconformance) include costs to rework products,
components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation.

Question No : 198
You are promoted to a new role in your company to replace someone who recently retired. To be an effective leader, which
of the following should you do FIRST?
Choice 1 Enroll in appropriate training programs
Choice 2 Understand all the leadership theories
Choice 3 Find out your strong and weak areas
Choice 4 Take advice from the person who retired from the company
Correct Choice : 3
Justification :
(Option 3) Finding out your strong and weak areas helps determine how you can do the job better and become an effective
leader. This may also result in identifying the needed training programs. Therefore, option 1(enroll in appropriate training
programs) and option 2 (learning all leadership theories) are not recommended. Option 4 (Taking advice from the person
who retired from the company) is recommended, but this can be done after determining your strong and weak areas.

Question No : 199
While doing a cost-benefit analysis, you determine that a new project has 60% probability of earning a profit of $1,000,000
or 30% probability of incurring a loss of $500,000. What is the expected monetary value of the decision?
Choice 1 $400,000
Choice 2 $600,000
Choice 3 $450,000
Choice 4 $200,000
Correct Choice : 3
Justification :
Expected monetary value (EMV) analysis is a statistical concept that calculates the average outcome when the future
includes scenarios that may or may not happen (i.e. analysis under uncertainty). The EMV of opportunities are generally
expressed as positive values, while those of threats are expressed as negative values... EMV for a project is calculated by
multiplying the value of each possible outcome by its probability of occurrence and adding the products together.
PMstudy.com notes:
Expected Monetary Value (EMV)
= Sum of (Probability x Impact) of individual decisions
= 0.60 x $1,000,000 – 0.30 x $500,000
= $600,000 - $150,000
= $450,000.
Question No : 200
The buyer has clearly specified that only companies that have revenues greater than $300 million and profitability of more
than $30 million over the past 3 years can bid for the contract. This can also be referred to as:
Choice 1 Procurement negotiation
Choice 2 Source selection criteria
Choice 3 Independent estimate
Choice 4 Make or buy analysis
Correct Choice : 2
Justification :
Source Selection Criteria: Selection criteria are often included as a part of the procurement documents. Such criteria are
developed and used to rate or score seller proposals, and can be objective or subjective.

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Question No : 1

Choice 1 Discount Rate

Choice 2 Benefit Cost Ratio

Choice 3 Internal Rate of Return

Choice 4 Net Present Value

Internal Rate of Return (IRR)

Reference: PMstudy.com comments

Choice 1 Perform Quality Assurance and Plan Quality

Choice 2 Plan Quality and Control Quality

Choice 3 Control Quality, Plan Quality, and Perform Quality Assurance

Choice 4 Perform Quality Assurance and Control Quality

Reference: PMBOK® Guide - Fifth Edition, page 232, figure 8-3

Choice 1 Project plan

Choice 2 Project team directory

Choice 3 Performance reports

Choice 4 Responsibility assignment matrix

Reference: PMBOK® Guide - Fifth Edition, page 556

Choice 1 Formal oral

Choice 2 Formal written

Choice 3 Informal written

Choice 4 Informal oral

Reference: PMstudy.com comments

Choice 1 Get a qualitative analysis of the risk.

Choice 2 Determine which risks may have impact on the project.

Reference: PMBOK® Guide - Fifth Edition, page 338

Choice 1 In a fixed-price contract, the product is well defined.

Choice 2 In a cost reimbursable contract, the risk of the seller is low.

Fixed Price Cost Reimbursable Time and Material

Reference: PMstudy.com study notes

Choice 1 Project Documents, Project Management Plan, Enterprise Environmental Factors

Choice 2 Project Documents, Organizational Process Assets, Project Management Plan

Choice 3 Organizational Process Assets, Issue Log, Stakeholder Register

Choice 4 Organizational Process Assets, Stakeholder Management Plan, Issue Log

Reference: PMstudy.com comments

Choice 1 Recall all batteries for repair

Choice 2 Do nothing - there are no reported accidents till now

Choice 4 Ensure that the manufacturing defect is rectified in subsequent production

Reference: PMstudy.com comments

Choice 1 Team members are often co-located.

Choice 3 You have a great deal of authority and independence.

Reference: PMstudy.com comments

Choice 2 Project management plan updates

Choice 3 Product management plan

Choice 4 Change requests

Reference: PMBOK® Guide - Fifth Edition, page 79

Choice 1 Professional and technical associations

Choice 4 Other units within the organization

- Other units within the organization

Reference: PMBOK® Guide Fifth Edition, page 122

PMstudy.com comments: Competitors are not reliable sources of expert judgment.

Choice 4 Cannot be determined with available information

Reference: PMstudy.com study notes

Which of the following projects described below will you select?

Choice 1 Project A with opportunity cost of $100,000 and investment of $1,000,000.

Choice 2 Project B with opportunity cost of $200,000 and investment of $500,000.

Choice 3 Project C with opportunity cost of $300,000 and investment of $3,500,000.

Choice 4 Cannot be determined from the above options.

Reference: PMstudy.com comments

Choice 1 Description of the process and start and end of processes

Choice 3 Process metric to maintain control over status of process

Choice 4 Improvement of process activities

Reference: PMBOK® Guide - Fifth Edition, page 241

Choice 2 Laissez faire