PMI Certkey PMI-001 Exam Preparation · 2013-10-14 · Initiating. The project product comes from Closing. Controlling stakeholders is noise. [01-275-1] QUESTION 7 The Project Manager

PMI Certkey PMI-001 Exam Preparation

Number: PMI-001Passing Score: 132Time Limit: 240 minFile Version: 24.7

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PMI PMI-001 Exam Preparation

Exam Name: Project Management Professional

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QUESTION 1On a large medical billing system project, the team is large and communication has been quite a challenge tocontrol. The Project Expeditor has been used to help with this problem. What is one of the main differencesbetween the Project Expeditor and Project Coordinator?

A. The Project Expeditor is another title for the Project ManagerB. The Project Expeditor is another title for Project CoordinatorC. The Project Expeditor has limited or no decision-making abilityD. The Project Expeditor has decision-making ability

Correct Answer: CSection: (none)Explanation

Explanation/Reference:Explanation : The Project Expeditor and Project Coordinator have similar responsibilities with the differencebeing that the Project Coordinator has some decision-making ability. [01-278-2]

QUESTION 2The data warehouse project is about halfway complete at a major retail client. Your company is doing theimplementation and has twelve team members in various locations across three different buildings.Communication and team-building has been a real challenge. Which of the following would fix or improve thisproblem?

A. Changing the organization to a functional structureB. Co-locationC. Replacing the Project ManagerD. Hiring Project Coordinators

Correct Answer: BSection: (none)Explanation

Explanation/Reference:Explanation : Co-location is the process of putting personnel closer together or in the same room to help withteam-building and project communication. [01-298-1]

QUESTION 3What is the typical role of senior management on a project?

A. Support the projectB. Pays for itC. Supports the project and resolves resource and other conflictD. Resolves resource and other conflicts


Explanation/Reference:Explanation : Senior management is management that is higher than the Project Manager. They support theproject by helping resolve resource issues and other conflicts. The sponsor pays for the project. [01-284-1]

QUESTION 4

Which of the following roles controls resources and manages a business unit?

A. Functional managementB. Senior managementC. SponsorD. Project management

Correct Answer: ASection: (none)Explanation

Explanation/Reference:Explanation : Functional Managers control resources and run business units. Senior management isresponsible for a number of areas on a project. Their main responsibility is to help support the project andresolve resource conflicts as they occur. For situational questions, assume that you are in a balanced matrixenvironment, unless otherwise stated. The Project Manager's responsibility is to drive the completion of projectwork. Typically, the sponsor's responsibility is to pay for the project and own it when it is complete. [01-252-1]

QUESTION 5What is the main deliverable from the Planning phase of a project?


A. CharterB. Work resultsC. Project management planD. A signed contract


Explanation/Reference:Explanation : The main output of Planning is the project management plan. The charter comes from Initiating.Work results come from project execution. A signed contract is noise. [01-224-1]

QUESTION 6What is the main output of Monitoring and Controlling?

A. CharterB. Controlling stakeholdersC. Corrective actionD. Project product


Explanation/Reference:Explanation : Corrective action is the main output of Monitoring and Controlling. The charter comes from

Initiating. The project product comes from Closing. Controlling stakeholders is noise. [01-275-1]

QUESTION 7The Project Manager and Functional Manager are having a disagreement on resource allocation for a newbroadband project. The Functional Manager wants the resource for an operational issue that needs attention,and the Project Manager wants the resource to work on the project so it stays on schedule as planned. Whichof the following roles can help resolve this problem?



Explanation/Reference:Explanation : Senior management is responsible for a number of areas on a project. Their main responsibility isto help support the project and resolve resource conflicts as they occur. For situational questions, assume thatyou are in a balanced matrix environment, unless otherwise stated. This will include Functional Managerscontrolling resources. The Project Manager's responsibility is to drive the completion of project work. Typically,the sponsor's responsibility is to pay for the project and own it when it is complete. [01-239-1]

QUESTION 8The company is implementing a new project management approach. In the past, their projects have beendisorganized, not in alignment with business goals, and not focused on interactivity between the projects whereapplicable. They want to have a better focus on grouping related projects together by business unit and productlines. Which of the following best describe what they are trying to accomplish?

A. Project managementB. Operations managementC. Management by objectivesD. Portfolio management

Correct Answer: DSection: (none)Explanation

Explanation/Reference:Explanation : Portfolio management focuses on aligning projects by business unit or product line where there issome common overlap and subject matter expertise in the area of the projects. Project management involvescreating products via projects. Operations management involves the day-to-day repetitive activities of abusiness. Management by objectives is a goal setting technique. [01-261-2]

QUESTION 9You are the Project Manager on a cellular bluetooth amplifier project and are in the Planning phase. During ateam meeting, a Functional Manager attempts to validate if the project meets company goals. The FunctionalManager will report this finding back to senior management to determine if the project should continue, bemodified or be cancelled. What is this process called?

A. Delphi TechniqueB. Management by objectives (MBO.C. Return on investmentD. Management product analysis


Explanation/Reference:Explanation : Management by objectives (MBO. determines if a project fits in the "big picture" of the planning atthe company. If a project does not support the company's objectives, it is likely to be de-prioritized or cancelled.Delphi Technique is used to obtain expert opinions on the development of a project. Return on investmentcompares the net benefits of a project, versus its total costs. Management product analysis is noise. [01-246-2]

QUESTION 10Which of the following is considered an advantage of a functional organization if you are an accountant?

A. Having a home to go to when the project is completeB. Not having a home when the project is completeC. Having more than one project to work onD. Having more than one boss


Explanation/Reference:Explanation : Having a home when the project is complete is a key advantage of a functional organization.Having more than one boss and more than one project could be characteristics of a matrix organization. [01-229-1]

QUESTION 11On a wireless internet access project, the team is large with 40 people, and controlling communication hasbeen a challenging for the team to make progress. The Project Coordinator has been used to help with thisproblem. What is one of the main differences between the Project Coordinator and the Project Expeditor?

A. The Project Expeditor is another title for the Project ManagerB. The Project Coordinator has decision-making abilityC. The Project Expeditor is another title for Project CoordinatorD. The Project Expeditor has decision-making ability


Explanation/Reference:Explanation : The Project Coordinator and Project Expeditor are similar in responsibility except that the ProjectCoordinator also has decision-making ability. [01-250-2]

QUESTION 12Two people at work are discussing roles and responsibilities as they relate to the company and the projects ithas. They are discussing the role of the Project Manager and the Functional Manager. What is the main role ofthe Functional Manager?

A. To control resourcesB. To manage the project when the Project Manager isn't availableC. To define business processesD. To manage the Project Managers

Correct Answer: A

Section: (none)Explanation

Explanation/Reference:Explanation : The Functional Manager runs the day-to-day business and is responsible for resources. ProjectManagers do not always report to Functional Managers. The Functional Manager runs a department or area ofbusiness, not the Project Manager. Defining business processes is noise. [01-207-1]

QUESTION 13Which of the following is not a regulation?

A. The building code for a cityB. The documented way to dispose of old paintC. The average number of losing lottery tickets in a weekD. The zoning for an industrial area


Explanation/Reference:Explanation : The average number of losing lottery tickets in a week is not a regulation; the other three answersare. The other three answers have defined criteria that they must meet to be acceptable. [01-233-1]

QUESTION 14A Project Manager has completed the Scope Definition process. The customer and sponsor have shortenedthe schedule by four weeks and decided that the work breakdown structure will be excluded. What would be thebest action the Project Manager should take?

A. Begin execution of the projectB. Provide the customer and sponsor an updated schedule and budgetC. Call a meeting and notify the team of the change in scheduleD. Discuss with the customer and sponsor the ramifications of excluding the WBS


Explanation/Reference:Explanation : The Project Manager should discuss with the customer the value of the WBS and that the WBS isthe foundation of the project. Providing the customer and sponsor an updated schedule and budget would notbe a true estimate because the WBS has not been defined. Beginning the execution of the project would be apossible answer, but without the WBS, the Project Manager does not have the work packages. Calling ameeting and notifying the team of the schedule change would be de-motivating factors because the schedulehas been shortened and the team does not know what to develop. [01-263-1]

QUESTION 15The Project Manager is involved in Project Scope Management. She will be involved for the entire projectmanagement life cycle. Which group of processes will she be involved in performing these activities?

A. Initiation, Scope Planning, Scope Definition, Scope Verification, Scope ManagementB. Scope Forecasting, Scope Definition, Scope Verification, Scope ControlC. Scope Planning, Scope Definition, Create WBS, Scope Verification, Scope ControlD. Scope Planning, Scope Description, Scope Verification, Integrated Change Control

Correct Answer: C


Explanation/Reference:Explanation : "Scope Planning, Scope Definition, Create WBS, Scope Verification, Scope Control" are theprocesses that define Project Scope Management. The other answers are noise. [01-251-2]

QUESTION 16The e-commerce project has gone well other than the fact that the sponsor changed three different times. Theproject is in closure. All of the following would be created in closing except?

A. Lessons learnedB. Release of resourcesC. Contract auditD. Project archives


Explanation/Reference:Explanation : Contract audits come from the Contract Closeout process. The other three answers would beexpected from closing the project. [02-211-1]

QUESTION 17The project management plan contains all of the following except?

A. The scheduleB. Team developmentC. The change control systemD. Staffing management plan


Explanation/Reference:Explanation : Team development occurs throughout the project. The schedule is required to complete theproject management plan. The staffing management plan is used to develop the staffing needs of the project.The change control system is usually defined in the plan. [02-287-1]

QUESTION 18All of the following are typically part of the project management plan except?

A. Schedule management planB. Budget management planC. Risk management planD. Scope management plan


Explanation/Reference:Explanation : The budget management plan is noise. The real item associated with cost is called the costmanagement plan. The other three items are typically in the project management plan. [02-332-1]

QUESTION 19Which of the following is an output of a change control system?

A. Change requestsB. Approved changesC. Impact analysisD. Signoff


Explanation/Reference:Explanation : Approved changes are the output of a change control system. These are change requests thathave gone into the system and been approved. Change requests involve a desired change that hasn?t beenapproved yet. Impact analysis involves identifying what impact the change might have on the project orenvironment. Signoff involves receiving approval. In this case, signoff is noise. [02-300-1]

QUESTION 20The company is implementing an enterprise time system across the entire company. This will integrate anumber of business units. As a result, it will be very resource-consuming, change a lot of the businessprocesses and could cause reprioritization of other projects that it will replace or modify. Which of the followingwould concern you most?

A. How many resources you can keepB. How your raise or promotion might be impacted by not being on the projectC. What impact the new project is expected to have on your biggest projectD. How many resources you might lose to the new project


Explanation/Reference:Explanation : How the new initiative impacts your biggest project is a valid concern because it could cause yourproject not to be needed any more. The two options dealing with resources would follow in priority. Your raise orpromotion would follow after that. [02-226-1]

QUESTION 21As a Project Manager you are managing a project that has many requirements. The project is for one of yourhigh profile customers, one who spends more than $5,000,000 a year with your company. To attain customersatisfaction, what must be met?

A. Completing the project with the product having inherent characteristics that fulfill the requirements that itwas to be built around

B. Completing products requirementsC. Completing the project on schedule and on budgetD. Completing the project?s scope


Explanation/Reference:Explanation : Completing products requirements addresses what the customer has requested from the overall

project. Completing the project with conformance to requirements and Fitness for Use addresses only quality.Completing the project?s scope does not address schedule and budget. Completing the project on scheduleand on budget does not address scope. [02-295-2]

QUESTION 22You are the finance controller with your company. Your job is to analyze projects when they close. This could bethe result of when a project is complete or by any other means. When would you expect to close a project?

A. When a project is cancelledB. When a project runs out of moneyC. When a project completes Scope VerificationD. All of the answers


Explanation/Reference:Explanation : Whenever a project ends, closing the project should be completed. This allows the team andorganization to learn from what worked on the project and what did not, and formally closes out the initiative.[02-302-1]

QUESTION 23A marketing campaign is being built to support a new product at a utility company. The company doesn't havedata on what volume to expect from the marketing campaign and the associated advertising. This data isimportant because it will help drive the number of employees needed in the department so customers? needscan be met. The Project Manager remembers that a similar project was by a company his company acquired.He begins to review data from this project. This is a best example of what?

A. Historical informationB. Lessons learnedC. ConstraintsD. Assumptions


Explanation/Reference:Explanation : Historical information contains the results of previous projects and performance. Lessons learnedare the reason behind the corrective action chosen and become historical information. Constraints are factorsthat limit the options available on the project. Assumptions come into play when something on the project is notknown. [02-246-1]

QUESTION 24The project team members have gotten together at the end of the project to review what happened on theproject, discussing what went well and what didn't. They undertake this discussion for the sake of future projectso that they can repeat the things that worked on the project and eliminate repeating the things that didn't workso well. This is known as what?

A. Contract ClosureB. Lessons learnedC. Closing the projectD. Contract audit

Correct Answer: B


Explanation/Reference:Explanation : Lessons learned are valuable tools to learn from success and failure on a project. They cantechnically happen anywhere on the project, but traditionally happen at the end of a phase or project. The otheranswers are all part of the project closure process. [02-321-1]

QUESTION 25You are the Project Manager for a high speed data communications project. You have just finished puttingtogether all the various plans into an integrated document. Which of the following will you do next?

A. Develop Project Management PlanB. Integrated Change ControlC. Direct and Manage Project ExecutionD. Charter Signoff


Explanation/Reference:Explanation : After completing the development of the project management plan, the next step listed in theanswers is to execute the plan, or do the work of the project. Project management plan development is whatthe question is describing so that wouldn?t be an answer. Integrated change control will come as a result ofproject management plan execution. The charter signoff would have been completed before the projectplanning had started. [02-227-1]

QUESTION 26A Project Manager has completed the Scope Planning process. The customer has shortened the schedule bysix weeks and decided that the work breakdown structure (WBS. be modified. The Project Manager informs thecustomer that, by modifying the WBS, the project could be subjected to many problems. Which of the followingwould not be considered a problem of modifying the WBS?

A. There are constant changes to the projectB. Project justification and objectives are not definedC. Budget is not well definedD. Project may be subject to unforeseen delays


Explanation/Reference:Explanation : Project justification and objectives are part of the project scope statement. The scope statementis the output of Scope Planning and would have been defined before entering Scope Definition. Without adefined WBS constant changes to the project, unforeseen project delays, and a poorly defined budget willalways be present because the work has not been broken down into work packages. [02-233-2]

QUESTION 27Your DVD training project is almost complete. You have outsourced the DVD creation to an out-of-statecompany to complete. As the project closes down, what will be completed last?

A. Closing the projectB. Contract ClosureC. Release of resources

D. Assignment of contracts for the next phase


Explanation/Reference:Explanation : Contract Closure occurs after closing the project. Release of resources is part of closing theproject. The other answer is noise. [02-239-2]

QUESTION 28Activity A is worth $300, is 100% complete, and actually cost $350. Activity B is worth $100, is 95% complete,and actually cost $85 so far. Activity C is worth $200, is 75% complete, and has cost $175 so far. Total budgetis $1500. What is the estimate at completion for the activities listed?

A. $1,704.55 USB. $0.88C. $1,685.39 USD. $185.39 US


Explanation/Reference:Explanation : The earned value (EV. and actual cost (AC. must be calculated first. To perform this calculation,multiply the percent complete of each activity by its planned value (PV., thereby providing the EV for eachactivity. Sum the actual cost of each activity to determine the total actual cost. Sum the earned value of eachactivity to determine the total earned value. Then divide the earned value of $545 by the actual cost of $610,thereby providing a CPI of 0.89. Finally, divide the BAC of $1500 by the CPI to produce an estimate atcompletion of $1,685.39. [02-283-3]

QUESTION 29Which of the following would a team create as a result of using a change control system?

A. Change requestsB. Approved changesC. Impact analysisD. Signoff


Explanation/Reference:Explanation : Approved changes are the output of a change control system. These are change requests thathave gone into the system and been approved. Change requests involve a desired change that hasn?t beenapproved yet. Impact analysis involves identifying what impact the change might have on the project orenvironment. Signoff involves receiving approval. In this case, signoff is noise. [02-263-1]

QUESTION 30The project is nearing completion. The team is involved in a lot of different activities to close the project. Theyare in the process of grouping together various documents associated with financial records, contracts, internalproject documentation, and client-related documentation. What are they in the process of creating?

A. Project Closure

B. Contract FileC. Lessons learnedD. Archives


Explanation/Reference:Explanation : Archives are the documents that are created as a result of the project. They can later serve asverification of the details of the project. They happen in closing the project. Lessons learned happen in closingthe project. The contract file is created in the Procurement process. [02-327-1]

QUESTION 31You are managing a contact management software project and senior management has come to you with afast breaking project that could make the company have a significant market share boost. According to yourcurrent project schedule, your current project is on pace to be completed in six weeks. What is the bestresponse you can tell senior management?

A. Managing both projects as requested by senior managementB. Telling senior management that you will consider the project once it has a charterC. Assigning the Functional Manager on the project to finish the current projectD. Implementing crashing and fast tracking to complete your current project ahead of schedule so you can

start immediately on this project


Explanation/Reference:Explanation : As a Project Manager, it is your responsibility to maintain the scope and objectives of your project.A project without a charter is not a project. You could implement crashing and fast tracking to complete yourcurrent project ahead of schedule, but you are increasing risk and cost on the project. You could assign theFunctional Manager on the project to finish the current project, but the Functional Manager has not beeninvolved in the managing of the project, and such an assignment could result in a disaster. [02-259-1]

QUESTION 32The project charter has just been signed off. There were items in the charter that described market conditionswhich could affect the project and also resource limitations on the project. These are examples of what?

A. AssumptionsB. ConstraintsC. Economic consumptionD. Authority level of the Project Manager


Explanation/Reference:Explanation : Constraints are variables that can limit the options the project has. This typically deals withresources, time or money. Assumptions are educated guesses made on the project about items that are notknown. The other two answers are noise. [02-305-1]

QUESTION 33The project planning is progressing on budget. The Project Manager and the team meet regularly and are ready

to begin updating the project planning documents with a major scope change. What input into the planningprocess will help the team the most?

A. WBSB. Project management planC. Risk listD. Network diagram


Explanation/Reference:Explanation : The WBS identifies work that will require time, cost or resource. The network diagram shows theproject?s activities and logical relationships. Project management plan is noise because cost is part of theproject management plan. [03-239-2]

QUESTION 34What is the best reason to create a work breakdown structure?

A. It provides authority for the Project ManagerB. It allows the project budget to be determinedC. It helps attain buy-in from the team doing the workD. It allows the project completion date to be determined


Explanation/Reference:Explanation : The WBS has a number of positives. The best one of the options in the question is to help getbuy-in from the people doing the work. If they aren't involved in the creation of the plan, it's not as easy to getthe buy-in and the planning likely won't be as accurate as it could be when the people doing the work areinvolved. The WBS focuses on the WHAT of the project, so the completion date wouldn't come from the WBS.Authority comes from the charter. Cost estimating and budgeting deals with the project budget. [03-289]

QUESTION 35A Project Manager has completed the Scope Definition process. The customer and sponsor have shortenedthe schedule by four weeks and decided that the work breakdown structure will be excluded. The ProjectManager informs the customer and sponsor that this process creates the work breakdown structure for theirproject. Which answer best explains why the WBS is so important to a project?

A. It provides a hierarchical diagram of the projectB. It is the foundation of the projectC. It provides templates that can be reused on other projectsD. It helps in team commitment to the project


Explanation/Reference:Explanation : The WBS is the foundation of the project. The WBS is used for planning and controlling on theproject. Budgets, staffing, and schedules are derived from the WBS, along with the deliverables. All otheranswers describe benefits of using a WBS. [03-272]

QUESTION 36The internet marketing project is evaluating the size of their market, time limitations for product life cycle,revenue potential, and number of people available for the project. These are examples of what?

A. AssumptionsB. ConstraintsC. Economic consumptionD. Strategic planning


Explanation/Reference:Explanation : Constraints are variables that can limit the options available for the project. Constraints typicallydeal with resources, time, or money. Assumptions are educated guesses made on the project about items thatare not known. The other two answers are noise. [03-240-1]

QUESTION 37The Project Manager is working with the customer to gain formal acceptance on the documentationdeliverables for a software project. The customer is saying that the deliverables are unusable in their presentform as they don?t align with the project requirements. Upon reviewing documentation, the customer tells theProject Manager that the requirements are not accurate, to meet the needs for which the project wasundertaken. Which of the following will help fix this problem?

A. Creating the work breakdown structureB. Scope ControlC. Scope DefinitionD. Scope Verification


Explanation/Reference:Explanation : Scope Control is used to review and approve or reject scope change requests to the project. Thatwould fix the problem in this case. Creating the WBS involves the decomposition of the project resulting in workpackages at the lowest level of decomposition. Scope Definition is used to create the scope statement of theproject. Scope Verification helps validate that the project created what it was to create. That is the process thatdiscovered the problem of the difference in scope planned and created. [03-238]

QUESTION 38The Project Manager is involved in Project Scope Management. She will be involved for the entire projectmanagement life cycle. Which group of processes will she be involved in performing these activities?

A. Initiation, Scope Planning, Scope Definition, Scope Verification, Scope ManagementB. Scope Forecasting, Scope Definition, Scope Verification, Scope ControlC. Scope Planning, Scope Definition, Create WBS, Scope Verification, Scope ControlD. Scope Planning, Scope Description, Scope Verification, Integrated Change Control


Explanation/Reference:Explanation : "Scope Planning, Scope Definition, Create WBS, Scope Verification, Scope Control" are the

processes that define Project Scope Management. The other answers are noise. [03-259-2]

QUESTION 39The sponsor on the airport runway project has just told the Project Manager about a change he wants. He saysthat the change will cost 20% less and should not cause any problems to the existing environment. Which ofthe following should concern the Project Manager the most?

A. Scope impactB. Schedule impactC. Quality impactD. Scope and schedule impact


Explanation/Reference:Explanation : Scope and schedule impact should be the most concerning, assuming the cost impact is true.Quality is noise. [03-237-1]

QUESTION 40There has been a great delay in waiting to get the charter approved. It's finally complete and you are assignedas the Project Manager. Senior management wants you to begin planning as soon as possible. If you are in theprocess of planning the project, what is the best way to schedule Scope Verification?

A. At the end of every phase on the projectB. After the sponsor defines what they want the project to createC. When the project management plan is awaiting signoffD. When the work of the project is done


Explanation/Reference:Explanation : It is better to do Scope Verification more frequently on a project instead of simply waiting until theend. This allows adjustment of work as the project evolves in case something is determined inor insufficientearlier in the project. Scheduling it after the sponsors define what they want the project to create would be tooearly in the project to do Scope Verification. [03-290]

QUESTION 41Which of the following will likely result in the greatest customer satisfaction?

A. Work breakdown structure (WBS.B. Scope VerificationC. A signed contractD. Gold Plating


Explanation/Reference:Explanation : Scope Verification means that the work of the project has been verified to meet the needs of theproject. If this is successful, it should provide customer satisfaction. A WBS is simply part of the planningprocess. Gold Plating is providing the customers something they didn't ask for. A signed contract is noise. [03-

301]

QUESTION 42The Project Manager is working with the sponsor to attain formal acceptance on the infrastructure projectdeliverables. The customer is saying that seven of the deliverables are not meeting project goals, and areunusable in their present form. Upon reviewing documentation, the sponsor explains to the Project Managerthat the requirements are not accurate, to meet the needs for which the project was planned. What part of thePlanning process did this problem occur?

A. Creating the Work Breakdown StructureB. Scope ControlC. Scope DefinitionD. Scope Verification


Explanation/Reference:Explanation : Scope Definition is used to create the scope statement of the project. Scope Verification involvesattaining formal acceptance of the work of the project. Creating the WBS involves the decomposition of theproject resulting in work packages at the lowest level of decomposition. Scope Control is used to review andapprove or reject scope change requests to the project. [03-228-1]

QUESTION 43What is used to define the accounts that the WBS and organizational structures align to for project costtracking?

A. Work packagesB. Chart of accountsC. Cost estimatesD. Cost baseline


Explanation/Reference:Explanation : Chart of accounts is used to align project costs with the WBS and organizational structure on theproject. Work packages are the lowest level of decomposition of the work breakdown structure. [03-273]

QUESTION 44A Project Manager has completed the scope statement of the project. The customer and sponsor haveshortened the schedule by four weeks and decided that the work breakdown structure will be excluded. TheProject Manager informs the customer and sponsor that this process creates the work breakdown structure(WBS. for their project. Which answer best explains why the WBS is so important to a project?

A. It provides a hierarchical diagram of the projectB. It is used for estimating activities, cost, and resourcesC. It provides templates that can be reused on other projectsD. It helps in team commitment to the project


Explanation/Reference:Explanation : The WBS is used to help establish activities, cost and resources for project. The WBS is used forPlanning and Controlling on the project. Budgets, staffing, and schedules are derived from the WBS, along withthe deliverables. All other answers describe benefits of using a WBS. [03-243]

QUESTION 45The project team has just started breaking down the components of the project into smaller pieces that areeasier to maintain and manage. After doing this what level of decomposition will they ultimately stop at?

A. Scope DefinitionB. Scope VerificationC. Creating the WBSD. Activity Definition


Explanation/Reference:Explanation : Creating the WBS involves taking the scope of the project and breaking it down into smallerpieces that are easier to define, estimate, and manage. Scope Verification is comparing the scope of theproject to work results. After that the team will continue decomposing the project work packages, stopping atActivity Definition when they have created activity lists. Scope Definition is used to create the scope statementof the project. [03-314]

QUESTION 46You are the Project Manager on a merger and acquisition project. Activity A (3 days. and activity B (4 days. canstart immediately. Activity C (2 days. can start after A and B are complete. Activity D (5 days. can begin afteractivity B is complete. Activity E (6 days. can begin after activity B is complete. Activity F (4 days. can beginafter activities C and D are complete. Activity G (5 days. can begin after activities D and E are complete. ActivityH (4 days. can begin after activities F and G are complete. If Activity D increases from five to eight days, what isthe critical path, and what is the length?

A. ACFH, 16 daysB. BCFH, 18 daysC. BDFH, 20 daysD. BDGH, 21 days


Explanation/Reference:Explanation : By increasing Activity D from five days to eight days the path BDGH increases to twenty one days.This is the longest of the paths on the network diagram. [04-215]

QUESTION 47Crosswind Custom Homes is building a customer's dream house. However, rain has delayed the finish by twoweeks. The schedule shows that the next activity is to install the roof, then that is followed by the shingles. Thisis an example of what?

A. Mandatory dependenciesB. LagC. Discretionary dependenciesD. Crashing


Explanation/Reference:Explanation : A mandatory dependency is required and internal to the organization. The external dependency isa dependency that is out of the control of the internal organization. Crashing and lag are noise in this question.[04-306]

QUESTION 48A Project Manager has completed the scope statement of the project. The customer and sponsor haveshortened the schedule by four weeks and decided that the work breakdown structure will be excluded. TheProject Manager informs the customer and sponsor that this process creates the work breakdown structure(WBS. for their project. Which answer best explains why the WBS is so important to a project?

A. It provides a hierarchical diagram of the projectB. It is used for estimating activities, cost, and resourcesC. It provides templates that can be reused on other projectsD. It helps in team commitment to the project


Explanation/Reference:Explanation : The WBS is used to help establish activities, cost and resources for project. The WBS is used forplanning and controlling on the project. Budgets, staffing, and schedules are derived from the WBS, along withthe deliverables. All other answers describe benefits of using a WBS. [04-254]

QUESTION 49The customer has requested a five-week delay on the project while the company has winter holiday. This delaywas not planned, but the union forced the issue. The company has limited resources. What is the best way tomake up the five-week slip?

A. Fast trackingB. Integrated change controlC. Put more resources on the projectD. Crashing


Explanation/Reference:Explanation : Fast tracking is the best option listed because it re-sequences activities to attain compression ofthe schedule. Crashing adds resources that aren't an option based on the question. Integrated change controlis noise. [04-238]

QUESTION 50The e-commerce project is six weeks behind schedule with five team members working on it. Three of theseteam members are working on the critical path related items. What is the slack of the critical path?

A. Negative six weeksB. 30C. 0 (Zero.D. Not enough information


Explanation/Reference:Explanation : Technically, a critical path has a slack of zero. If the project is actually behind schedule, and thebaseline date is still being used as the reference, the project could actually have negative Slack on the criticalpath. In this case, the negative slack is six weeks. [04-310]


QUESTION 51The development team is building a new product for their company. This is a new product type at theircompany, and the market for the product is extremely unstable. According to the product manager a key tosuccess will be to have an extremely accurate estimate on the resource needs for the project, since thecompany is resource constrained. Which type of duration estimating approach is the most accurate?

A. Bottom-up estimatingB. Parametric estimatingC. Fast trackingD. Analogous estimating


Explanation/Reference:Explanation : Bottom-up estimating involves creating a very detailed, time consuming and accurate estimate asa result of working at the lowest level of the details of the work to create an estimate and rolling them up into atotal overall estimate. Parametric estimating involves using a parameter such as $5.00 a square yard formaterial. Fast tracking involves re-sequencing already defined activities to compress the overall duration of theschedule. Analogous estimating involves creating a relatively quick, high level estimate. [04-313]

QUESTION 52You are the Project Manager on a merger and acquisition project. Activity A (3 days. and activity B (4 days. canstart immediately. Activity C (2 days. can start after A and B are complete. Activity D (5 days. can begin afteractivity B is complete. Activity E (6 days. can begin after activity B is complete. Activity F (4 days. can beginafter activities C and D are complete. Activity G (5 days. can begin after activities D and E are complete. ActivityH (4 days. can begin after activities F and G are complete. What is the critical path?

A. BCFHB. BDFHC. BEGHD. ACFH


Explanation/Reference:

Explanation : The critical path is the longest in the diagram. Of the five paths BEGH is the longest (19 days..BDGH (18 days., BDFH (17 days., BCFH (14 days., ACFH (13 days.. [04-213]

QUESTION 53The Project Manager is creating an estimate for a housing development. This is something for which he is quiteexperienced. The client needs the estimate in four hours. Which of the following types of estimates make themost sense to use?

A. AnalogousB. Gut feelC. Bottom-upD. Parametric


Explanation/Reference:Explanation : The analogous estimate is also considered a top-down estimate. It can be quickly createdbecause it is based on expert knowledge of an area from previous projects. Parametric is an estimatingtechnique that uses parameters, such as so much time per unit. A bottom-up estimate is created by the teamand can take time to create because of the details. Gut feel is noise. [04-222]

QUESTION 54The software development project is going through planning. In evaluating the triple constraint, which of thefollowing is the highest priority?

A. ScopeB. TimeC. CostD. They are all equal unless otherwise stated in the charter


Explanation/Reference:Explanation : The triple constraint implies that all three components (scope, time, and cost. are equal unlessotherwise defined in the charter. [04-272-1]

QUESTION 55All of the following could be considered functions of the GERT diagramming method except?

A. Some activities may be performed only in partB. Some activities may be fast trackedC. Some activities may be performed more than onceD. Some activities may not be performed


Explanation/Reference:Explanation : Fast tracking is a tool of Schedule Development and is used in duration compression. Fasttracking is not a function of GERT. [04-248]

QUESTION 56The Project Manager is creating an estimate for building a cellular infrastructure base station. It is somethingthat is new to the Project Manager and his team. They decide to create a bottom-up estimate. All of thefollowing are advantages of this type of estimate except?

A. It provides supporting detail of the estimateB. It provides team buy-in when they help create itC. It takes a great amount of time to createD. There is a greater degree of accuracy because of the detail it was created at


Explanation/Reference:Explanation : All of the answers are characteristic of the bottom-up estimate. Taking a great amount of time tocreate is not an advantage of the estimate. [04-223]

QUESTION 57The Project Manager is creating an estimate for building a company WAN (wide area network.. It is somethingthat is new to the Project Manager and his team, and they want to make sure all the work of the project iscovered. They decide to create a bottom-up estimate. All of the following are advantages of this type ofestimate except...

A. It provides supporting detail of the estimateB. It provides team buy-in when they help create itC. It takes a great amount of time to createD. It has a greater degree of accuracy because of the detail at which it was created


Explanation/Reference:Explanation : Taking a great amount of time to create is not an advantage of the estimating. All of the otheranswers are advantages characteristic of the bottom-up estimate. [04-268]

QUESTION 58Calculate the variance for the following: Pessimistic=20, Optimistic=10, Realistic=17.

A. 2.78B. 5C. Not enough informationD. 5.67


Explanation/Reference:Explanation : The formula for variance is Pessimistic-Optimistic divided by 6, squared. The answer is ((20-10./6.^2 = 2.78. [04-281]

QUESTION 59The IT initiative project is on schedule and under budget. The customer is pleased, but would like a scopechange. As a result, a new team is brought in to help the existing team implement this scope change. Before

the team arrives, senior management would like to see where the project stands. Which of the following do youshow them?

A. Milestone chartB. Gantt chartC. Work breakdown structureD. Network diagram


Explanation/Reference:Explanation : The milestone chart is used for executive reporting. It shows the target dates and status of thehigh level milestones. The Gantt chart shows the people doing the work where the project is working to theplan. The network diagram is used to show the sequencing of activities on the project. The work breakdownstructure (WBS. is used to show the work that is in the project. [04-298]

QUESTION 60Project A has a NPV of $275K US over 2.5 years. Project B has an IRR of 3.2%. Project C has a BCR of0.89:1. Project D has four people on it and is encountering scope creep. Which of the following projects wouldstand the greatest chance of getting cancelled?

A. Project AB. Project BC. Project CD. Project D


Explanation/Reference:Explanation : Project C has a negative BCR in that it is creating less revenue than the costs. Projects A and Bhave positive financials. Project D appears to have some issues, but we don't know enough about it todetermine anything else. [05-310]

QUESTION 61You are the Project Manager of an engineering project for a cellular base station with a one-year schedule asdefined by the project management plan. You need a spectrum analyzer. During the procurement process, youhave decided to rent this equipment. The rental cost is $506 per month. What type of cost is this?

A. IndirectB. DirectC. FixedD. Variable


Explanation/Reference:Explanation : Variable costs fluctuate with what is produced or the amount of time something is used. Fixedcosts are costs that are consistent on a project. The $506 per month will not change throughout the year.Indirect costs are costs that are incurred for the benefit of one or more projects or departments. Direct costsare directly attributable to the project and spent only on the project work. [05-240]

QUESTION 62Which of the following is an example of fixed formula status reporting?

A. Getting status updates from the project teamB. PV multiplied by % completeC. The Project Manager updating the status reports quantitativelyD. 0%/100% rule


Explanation/Reference:Explanation : The 0%/100% rule is an example of fixed formula progress reporting. It means that when theactivity starts, it is given 0% complete status and will not receive the 100% until it is complete. PV X % completeis the formula for earned value. The other two answers are noise. [05-224]

QUESTION 63You are in the initial phase of a project and are doing an estimate for a project that requires a MRI lab for ahospital to be built. What is the estimate range you would use for this project?

A. -10% to +25%B. -25% to +75%C. -5% to +10%D. -25% to +85%


Explanation/Reference:Explanation : The range of an order of magnitude (OOM. estimate is -25% to +75% and is used during theInitiating phase of a project. The budget estimate has a range of -10% to +25%. The definitive estimate has arange of -5% to +10%. The -25% to +85% is noise. [05-252]

QUESTION 64Calculate the standard deviation for the following: Pessimistic=50, Optimistic=10, Realistic=24.

A. 26B. Not enough informationC. 5.67D. 6.667


Explanation/Reference:Explanation : The formula for standard deviation is Pessimistic-Optimistic divided by 6. The answer is (50-10./6= 6.667. [05-261]

QUESTION 65The project planning is progressing. The team has involved the accounting department to set up a system ofcodes that the accounting department will use to track work on the project. This is known as what?

A. Accounting codesB. WBS numberingC. Cost budgetingD. Chart of accounts


Explanation/Reference:Explanation : The chart of accounts sets up codes that will be used to track project costs. The other threeanswers are noise. [05-312]

QUESTION 66Activity A is worth $200, is 100% complete, and actually cost $200. Activity B is worth $75, is 90% complete,and actually cost $120 so far. Activity C is worth $200, is 75% complete, and has cost $175 so far. The totalbudget is $1000. What is the estimate at completion for the activities listed?

A. $1100.04B. $690.63C. $1186.24D. $1000


Explanation/Reference:Explanation : To calculate this, the CPI needs to be calculated first. To calculate the CPI, the earned value (EV.and actual cost (AC. need to be calculated first. To do this, multiply the percent complete of each activity by itsplanned value (PV.; that will provide the EV for each activity. Sum the earned value of each activity to determinethe total earned value. Sum the actual cost of each activity to determine the total actual cost. The earned valueof $417.50 is then divided by the actual cost of $495.00. This provides a CPI of 0.843. The BAC of $1000 isthen divided by the CPI to produce an estimate at completion of $1186.24 US. [05-299]

QUESTION 67Which process involves user cost estimates and the schedule to determine when these costs are expected tooccur during the project?

A. Cost BaselineB. Cost BudgetingC. Cost ControlD. Cost Estimating


Explanation/Reference:Explanation : Cost Budgeting involves applying costs to the individual work packages or activities along with theschedule to establish a cost baseline for measuring project performance. The Cost Estimating process involvesgetting a high level cost estimate for the overall project. Cost Control involves managing the costs of theproject. Cost baseline is the output of Cost Budgeting. [05-290]

QUESTION 68Activity A is worth $300, is 100% complete, and actually cost $350. Activity B is worth $100, is 95% complete,

and actually cost $85 so far. Activity C is worth $200, is 75% complete, and has cost $175 so far. The totalbudget is $1500. What is the cost variance for the activities listed?

A. $0.84B. $65.00C. -$65.00D. -$57.50


Explanation/Reference:Explanation : The earned value (EV. and actual Cost (AC. must be calculated first. To perform this calculation,multiply the percent complete of each activity by its planned value (PV., thereby providing the EV for eachactivity. Sum the actual cost of each activity to determine the total actual cost. Sum the earned value of eachactivity to determine the total earned value. Then subtract the actual cost of $610 from the earned value of$545, thereby providing a CV of -$65. This means that the project is $65 over budget. [05-279-2]

QUESTION 69The project is using a new server that cost $25,000 US. The Project Manager is told to set up depreciation forthe server over a five-year schedule, with the server having a value of $0 at the end of five years. Standarddepreciation will be used in the calculation. What is the amount per year the server will depreciate?

A. $5,000 USB. $10,000 USC. $2,500 USD. Not enough information


Explanation/Reference:Explanation : To calculate this, there are a few things to determine. What is the value of the asset at the end ofthe schedule? What is the amount of the asset to begin with? What is the number of years of the depreciationschedule? First, subtract the ending value of the asset from the beginning value of the asset ($25K-$0=$25K..The $25K is then divided by the years (5. of the depreciation schedule. This results in $5K per year ofdepreciation. [05-315]

QUESTION 70A Project Manager was assigned to manage a project to develop pink widgets for the Project Manager?scompany. The project will cost the company $650,000 over the next 12 months. It is projected that the widgetswill earn the company $20,500 per month. How much time will it take to recover the cost for this project?

A. 28 monthsB. 32 monthsC. 36 monthsD. Not enough information


Explanation/Reference:Explanation : The return on investment is $20,500 per month and the cost of the project is $650,000. The

amount of time to recover this investment is ($650,000 / $20,500 = 31.70 months or 32 months.. [05-276]

QUESTION 71Activity A is worth $400, is 95% complete, and actually cost $395. Activity B is worth $350, is 90% complete,and actually cost $330 so far. Activity C is worth $275, is 100% complete, and has cost $310 so far. The totalbudget is $2500. What is the total earned value for the activities listed?

A. $970.00B. -$970.00C. $1025D. $1035.00


Explanation/Reference:Explanation : To calculate the earned value (EV., multiply the percent complete of each activity by its plannedvalue (PV.; that will provide the EV for each activity. The next step is to add the EV for each activity todetermine the total EV for the project. This amount is $970.00 US. [05-222]

QUESTION 72The project planning for the trade show is progressing on schedule. The Project Manager and the team aremeeting to begin cost estimating. The sponsor has said that estimates must be very accurate. Which of thefollowing estimating techniques will provide the most accuracy?

A. Cost estimatingB. Bottom-up estimatingC. Analogous estimatingD. Parametric estimating


Explanation/Reference:Explanation : In bottom-up estimating, the Project Manager and the project team work together to create acomplete estimate from the bottom up. Cost Estimating is the process the Project Manager and team areexecuting. Analogous estimating creates a high level estimate with no significant detail. [05-234]

QUESTION 73A marketing campaign is being built to support a new product at a utility company. The company doesn't havedata on what volume to expect from the marketing campaign and the associated advertising. This data isimportant because it will help drive the number of employees needed in the department so customers? needscan be met. The Project Manager remembers that a similar project was by a company his company acquired.He begins to review data from this project. This is a best example of what?

A. Historical informationB. Lessons learnedC. ConstraintsD. Assumptions


Explanation/Reference:Explanation : Historical information contains the results of previous projects and performance. Lessons learnedare the reason behind the corrective action chosen and become historical information. Constraints are factorsthat limit the options available on the project. Assumptions come into play when something on the project is notknown. [05-256-1]

QUESTION 74Company-wide software licensing fees are an example of what type of project cost?

A. Variable indirectB. VariableC. FixedD. Fixed direct


Explanation/Reference:Explanation : This type of cost would typically increase for every user and will not likely be associated with aproject. Therefore, variable indirect is the best description. Variable is not the best answer. Fixed and fixeddirect cost descriptions don't fit this type of cost. [05-305]

QUESTION 75What are seven consecutive data points on either side of the mean called?

A. Too tight of control limitsB. A violation of the Seven Run RuleC. Too loose of specification limitsD. Acceptable measurements


Explanation/Reference:Explanation : The Seven Run Rule is a situation in which there are at least seven consecutive data points onone side of the mean, implying that the process could have some type of problem. The other three answers arenoise. [06-292]

QUESTION 76The team is involved in defining what is needed to ensure that the quality process will capture the intendedresults of the testing. This is known as what?

A. Quality Management PlanningB. Quality assuranceC. Measuring the output of the projectD. Quality control


Explanation/Reference:Explanation : Quality assurance involves ensuring that the quality plan will achieve the desired results of theproject. Defining the quality rules as they relate to the project is done in quality planning. Measuring the output

of the project is Quality control. [06-257]

QUESTION 77A Project Manager is assigned to a project that is in the construction phase of a video computer board. TheProject Manager is in the process of reviewing deliverables and Work Results to gain formal acceptance. Thisis known as what?

A. Quality assuranceB. Quality controlC. Scope VerificationD. Scope Control


Explanation/Reference:Explanation : Scope Verification is the process of obtaining formal acceptance of the project Scope by theStakeholders. Scope Control ensures that changes are agreed upon, determines if the Scope change hasoccurred, and manages the actual changes. Quality assurance and Quality control are concerned with thecorrectness of the Work Results, not the acceptance of the work results. [06-255]

QUESTION 78You are the Project Manager on the development of a 4-way fully redundant computer system for thegovernment. The government has been very concerned about the correctness and acceptance of the WorkResults. You are not sure what the government is saying so you review your PMBOK Guide. What areas belowwill likely be involved in attaining what the government is concerned about?

A. Scope Control and Scope VerificationB. Administrative Closure and Quality assuranceC. Quality Planning and quality controlD. Scope Verification and quality control


Explanation/Reference:Explanation : Scope Verification is concerned with obtaining formal acceptance of the work, and Quality Controlis concerned with the correctness of the work. Scope Control ensures that changes are agreed upon,determines if the Scope change has occurred, and manages the actual changes. Quality assurance evaluatesoverall project performance. Quality Planning identifies which quality standards are relevant to the project.Administrative Closure documents project results to formalize acceptance of the product of the project. [06-266]

QUESTION 79The team is testing the work of the project and is having issues with a particular requirement showing thedesired data. Which of the following can they use to isolate the problem?

A. Cost-Benefit analysisB. Ishikawa diagramC. FlowchartsD. Design of Experiments


Explanation/Reference:Explanation : Ishikawa diagrams are used in performing quality control to isolate problems. Cost-Benefitanalysis, Flowcharts, and Design of Experiments are tools used in the Quality Planning process according tothe PMBOK Guide 3rd Edition. [06-242]

QUESTION 80As a Project Manager you are managing a project that has many requirements. The project is for one of yourhigh profile customers, one who spends more than $5,000,000 a year with your company. To attain customersatisfaction, what must be met?

A. Completing the project with the product having inherent characteristics that fulfill the requirements that itwas to be built around

B. Completing products requirementsC. Completing the project on schedule and on budgetD. Completing the project?s Scope


Explanation/Reference:Explanation : Completing products requirements addresses what the customer has requested from the overallproject. Completing the project with conformance to requirements and Fitness for Use addresses only quality.Completing the project?s Scope does not address schedule and budget. Completing the project on scheduleand on budget does not address scope. [06-270-2]

QUESTION 81Fishbone diagrams are also known as what?

A. Cause and effect diagramB. Ishikawa diagramC. Pareto diagramD. Cause/Effect diagram AND Ishikawa diagram


Explanation/Reference:Explanation : Fishbone diagrams are known as both Cause/Effect diagrams AND Ishikawa diagrams. Paretodeals with showing frequency of defects. [06-202]

QUESTION 82The Project Manager is reviewing testing output. Generally, the data looks good. He does observe sevenconsecutive data points on one side of the mean in a couple of areas on the control chart. What is this called?

A. A violation of the Seven Run RuleB. Lucky seven gets elevenC. Acceptable measurementsD. Too loose of specification limits


Explanation/Reference:Explanation : The Seven Run Rule is a situation in which there are at least seven consecutive data points onone side of the mean, implying that the process could have some type of problem. The other three answers arenoise. [06-269]

QUESTION 83The printing company is putting a policy in place to use just-in-time manufacturing. It feels this policy will helpminimize excess paper and ink costs and improve efficiency in processing and maximize square footageutilization. The amount of inventory needed for this type of process is what?

A. MinimalB. 25%C. Six SigmaD. Zero


Explanation/Reference:Explanation : The amount of inventory needed for Just in Time (JIT. inventory is zero days. This implies thatinventory arrives when it is needed. [06-219]

QUESTION 84The project is going through Quality control. Which of the following are used to validate that the output is incompliance with the specifications of the work?

A. InspectionB. ChecklistsC. ReworkD. Acceptance decisions


Explanation/Reference:Explanation : Inspection is a key tool in Quality control. It provides validation that the product was built asintended. Checklists help establish process repeatability. Rework comes when products are not built correctly.Acceptance decisions deal with defining what is and isn't acceptable. [06-264]

QUESTION 85The project is going through quality assurance. Which of the following is a key tool that will be utilized in thisprocess?

A. Quality improvementB. Quality auditsC. Quality testingD. Quality management plan


Explanation/Reference:Explanation : The quality audit is used in quality assurance to verify that the Quality Planning will meet the

needs of the project. Quality improvement comes from quality Control. Quality management plan is an output ofQuality Planning. Quality testing is noise. [06-284]

QUESTION 86The project is progressing. As the company starts to release the product of the project to market, the consumerisn't buying it as the company had projected. This appears to be because the company has released a lot ofproducts before that had an excessive number of defects. Who was ultimately responsible for these productsbeing released with the defects?

A. Functional managementB. Project ManagerC. The developerD. Senior management


Explanation/Reference:Explanation : Senior management is responsible for the quality of the company. The developer is responsiblefor his own work. The Project Manager is responsible for the quality on the project. Functional management isnoise. [06-220]

QUESTION 87The pilot for PM Airlines is in the process of flying from Dallas to Los Angeles. Adhering to the required pre-flight process, the pilot follows the procedures to ensure that he has properly selected and adjusted all theneeded items to start up the plane for navigation. Which of the following did he likely use?

A. Process flowchartB. ChecklistC. Cause and Effect diagramD. Company policy


Explanation/Reference:Explanation : The checklist can provide assistance in ensuring that certain steps that need to be completed aredone as planned. The process flowchart shows how activities flow. Cause and Effect diagram is used forproblem planning and solving. Company policy is noise. [06-277]

QUESTION 88Calculate the variance for the following: Pessimistic=50, Optimistic=10, Realistic=24.

A. 44.44B. 55.55C. Not enough informationD. 26


Explanation/Reference:Explanation : The formula for variance is Pessimistic-Optimistic divided by 6, squared. The answer is ((50-

10./6.^2 = 44.44. [06-239]

QUESTION 89The construction engineer is doing questionable work on his activities on the remodeling project. The ProjectManager has spoken to him about it a few times to no resolution. Functional management has been madeaware of this issue as well. Who is responsible for the quality of the work of the construction engineer?

A. Senior managementB. Functional managementC. The construction engineerD. Project Manager


Explanation/Reference:Explanation : The construction engineer is responsible for his own work. Senior management is responsible forthe quality of the company. The Project Manager is responsible for the quality on the project. Functionalmanagement is noise. [06-200]

QUESTION 90Which of the following is not an example of team development?

A. Creating the WBS of the projectB. Attending a sporting event as a groupC. A team lunchD. Performance reviews


Explanation/Reference:Explanation : Performance reviews are not a team-building event. Such a review is the process during which anemployee and supervisor review project performance. Team-building involves the group of people on theproject forming into a cohesive whole. [07-294]

QUESTION 91The electrical engineer has recently been promoted from lead engineer to section manager. In this newposition, he will be responsible for managing projects and project resources. Over the five years he has beenwith the company, he was always ranked as one of the top engineers but has had no formal projectmanagement training. This is an example of what?

A. Halo TheoryB. Reward powerC. Problem solvingD. Equal opportunity employment


Explanation/Reference:Explanation : The Halo Theory implies that because people are good at their current jobs, they would be goodat project management regardless of their background or training. The other three answers are noise. [07-284]

QUESTION 92Which of the following roles controls resources and manages a business unit?



Explanation/Reference:Explanation : Functional Managers control resources and run business units. Senior management isresponsible for a number of areas on a project. Their main responsibility is to help support the project andresolve resource conflicts as they occur. For situational questions, assume that you are in a balanced matrixenvironment, unless otherwise stated. The Project Manager's responsibility is to drive the completion of projectwork. Typically, the sponsor's responsibility is to pay for the project and own it when it is complete. [07-251-1]

QUESTION 93The project is in a projectized environment. There are significant challenges with meeting the tight schedule ofthe project and personnel leaving the company. Project personnel have been complaining to seniormanagement about the environment hoping for a resolution. In this type of environment, who controls theresources?

A. Project ManagerB. Functional ManagerC. Senior managementD. Project Coordinator


Explanation/Reference:Explanation : In a projectized environment, the Project Manager traditionally controls the resources. The ProjectManager has those resources available for project work as necessary. Senior management helps resolveresource conflicts. The Project Coordinator is noise. [07-239-2]

QUESTION 94The project has gone smoothly so far. The team members appear to be working with an end goal in mind andwithout a lot of supervision. They appear highly motivated and enjoying their work. This is an example of what?

A. Reward TheoryB. Theory Y environmentC. Motivation TheoryD. Theory X environment


Explanation/Reference:Explanation : A Theory Y environment usually involves people who are motivated and can work with an endgoal in mind, instead of being told what to do. They also do not require much supervision and tend to enjoy their

work. A Theory X environment is usually the opposite type of environment. Motivation Theory and RewardTheory are noise. [07-288]

QUESTION 95The project is in a balanced matrix environment. There are significant challenges with the schedule andresource constraints of the project. Project personnel have been complaining to the Project Manager about theenvironment. In this type of environment, who controls the resources?

A. Functional ManagerB. Project ManagerC. Project CoordinatorD. Senior management


Explanation/Reference:Explanation : In a matrix environment, the Functional Manager traditionally will control the resources. TheProject Manager will have those resources available for project work as the Functional Manager seesnecessary. Senior management will help resolve resource conflicts. The Project Coordinator is noise. [07-219]

QUESTION 96The project is very challenging and has been very trying on a lot of people. There are some key team membersconsidering leaving the project and going back to their old jobs at the company. Which of the following would bea key motivator to keep them on the project?

A. Fringe benefitsB. PerksC. Theory Y motivation strategyD. Compromise


Explanation/Reference:Explanation : Perks are benefits that are not available to everyone. These are items that might keep people onthis project, because the perks might not be available if they go to another area to work. Fringe benefits arebenefits that everyone gets; therefore, they shouldn't be a motivator. Theory Y and compromise are noise. [07-290]

QUESTION 97An organizational breakdown structure (OBS. is also known as what?

A. Staffing management planB. Organizational chartC. Resource histogramD. Responsibility assignment matrix


Explanation/Reference:Explanation : The organizational breakdown structure (OBS. is also known as an organizational chart. The

staffing management plan defines the staffing rules as it relates to the project. The responsibility assignmentmatrix (RAM. shows who is responsible for what on the project. The resource histogram shows what quantitiesof resources are utilized over time. [07-293]

QUESTION 98The Project Manager tells a team member on the project that she can attend some training for a new computerprogram. He further explains that this new skill will be used by the company in the future. He lets the teammember know that he approved this training because of the good work the team member has done on theproject. This is an example of what type of power?

A. FormalB. RewardC. AwardD. Compromise


Explanation/Reference:Explanation : The reward power comes from the Project Manager's ability to reward an employee for goodwork. Formal is the type of power that is derived from the charter for the Project Manager. Compromise is aconflict resolution that involves everyone giving a little to attain a solution. Award is noise. [07-202]

QUESTION 99The sponsor plays a key role in project success. Which of the following is the best description of the sponsor?

A. Senior managementB. CustomerC. Product ManagerD. CIO


Explanation/Reference:Explanation : The customer is the best description of the sponsor, as they pay for the work of the project andcan own it when it is complete. Senior management, Product Manager and CIO are all names of what could bethe sponsor, but not necessarily on every project. [07-257-1]

QUESTION 100The project is progressing well but has begun to experience resource conflicts with people who are being pulledfrom the project by functional management for other work. What role will typically help resolve these resourceissues?

A. Senior managementB. Functional managementC. Project managementD. Sponsor



Explanation : Typically, most environments are somewhere between functional and projectized. That being thecase, the matrix environments will typically have a Functional Manager controlling resources. This can lead toconflict between the Project Manager and Functional Managers. Senior management is usually the entity thatresolves these conflicts. The sponsor traditionally gets involved when there is money. Functional managementis noise. [07-204]

QUESTION 101What can a responsibility assignment matrix (RAM. eliminate?

A. Confusion on what order activities come inB. Confusion on who is responsible for doing whatC. Confusion on how long the activities areD. Confusion on who is on the team


Explanation/Reference:Explanation : The responsibility assignment matrix (RAM. shows who is responsible for what areas on theproject. The network diagram would provide guidance on what order the activities occur. The organizationalstructure would confirm who is on the team, and what the reporting structure is. The Gantt chart or schedule willshow how long the activities are. [07-282]

QUESTION 102The Project Manager is in the process of planning the project. The company he works for has had issues withprevious projects in which there has been confusion over who is accountable for completion of various activitiesand processes associated with the projects. What document can he include in the project management planthat will help eliminate this problem?

A. Gantt chartB. Staffing planC. Organization chartD. Responsibility assignment matrix


Explanation/Reference:Explanation : The responsibility assignment matrix (RAM. shows who is responsible for what on the project.The Gantt chart shows when activities are done. The staffing plan addresses the staffing related needs of theproject. The organization chart shows how the organization is structured. [07-299]

QUESTION 103The Project Manager has defined the risks for the project, performed probability and impact analysis andassigned risk owners to the risks. As the project management plan evolves where will this information end up?

A. Risk listB. Risk triggerC. Risk registerD. Risk response


Explanation/Reference:Explanation : The risk list and risk triggers are being created in this situation. The risk list and triggers end up inthe Risk Register. Risk responses end up in the risk register after they are created in Risk Response Planning.[09-232]

QUESTION 104Crosswind Custom Homes is building a customer's dream house. However, rain has delayed the finish by twoweeks. The Project Manager is evaluating options to make up the lost time. After discussing the various optionswith senior management, the Project Manager has decided to fast track the project. By doing so, the ProjectManager could be adding what to the project?

A. RiskB. Scope changeC. ResponsibilityD. Time change


Explanation/Reference:Explanation : By executing two or more activities at once, the Project Manager introduces more risk into theproject. Time change is not valid because the Project Manager is trying to recover the rain delay. Scope changeis not valid because the scope never changed. Responsibility is noise because the Project Manager is stillresponsible for this project. [09-237]

QUESTION 105On the electric company project the government implemented a regulatory change associated with theelectricity sub-station upgrade project that required the company to spend an additional $400,000 US on theproject. This type of cost and activity best relates to which of the following?

A. Known unknownsB. Unknown unknownsC. Management reserveD. Risk management


Explanation/Reference:Explanation : Management reserves are created for unknown unknowns. These are things that wouldn't beexpected to happen. Contingency reserves are created for known unknowns. These are things that we knowwill happen, we just don't know how much of it will happen. Risk management is noise. [09-216]

QUESTION 106In defining a risk trigger, which of the following is most accurate?

A. A trigger is an indicator that a risk event will occurB. A trigger is the same as a riskC. A trigger is an indicator that a risk event has occurredD. A trigger is an indicator that a risk event could occur

Correct Answer: DSection: (none)

Explanation

Explanation/Reference:Explanation : A trigger is something that happens that can imply that a risk event could happen. Just because atrigger occurs, it doesn't automatically assume that a risk will happen. [09-276]

QUESTION 107The team has implemented a risk response plan when a vendor was unable to fulfill a contract commitment.The response was to choose another vendor. Because of the short notice, the other vendor cannot fulfill theneed of the team. Which best describes what happened with the different vendor?

A. WorkaroundB. Secondary riskC. Risk response planD. Avoidance


Explanation/Reference:Explanation : Secondary risk is what happens when a risk event happens and creates new risk. Theworkaround is what is done when risk responses do not work as planned. The risk response plan is to definewhat the risk responses will be if the risk events occur. Avoidance is a risk response strategy. [09-288]

QUESTION 108The Project Manager and team are planning the project. They are presently identifying things that could godifferently than planned. They are also trying to identify warning signs that would show that these events couldbe on the verge of occurring. What is the team doing?

A. Risk analysisB. Risk IdentificationC. Conformance to qualityD. Problem solving


Explanation/Reference:Explanation : Risk Identification should produce a list of risks and triggers. Risks are good or bad things that areun-forecasted. Triggers are indicators that a risk event could happen but is not imminent. The other threeanswers are noise. [09-304]

QUESTION 109The advertising agency has been awarded a $54M US, 8-year contract to manage the advertising campaigns ofa fast food chicken restaurant. The company realizes that this work is going to require a specific skill set for 40people. Their current workforce only has 7 people with this skill set. This skill set is somewhat rare andspecialized in the area they are located. They have chosen to buy a company much smaller than they are, butthis company's core focus is this type of skill set. The company employs 50 people with this skill set. This is anexample of what type of risk response strategy?

A. ExploitB. ShareC. MitigateD. Accept


Explanation/Reference:Explanation : Exploiting the risk is to do things to grow or expand the positive aspects of the risk. Sharing therisk is to work with someone else to maximize the risk. Mitigate would attempt to minimize the bad or maximizethe good impact of the risk. Accepting the risk is to tolerate whatever happened. [09-233]

QUESTION 110Your company is evaluating two projects for consideration. Project A has a 40% probability of $69,000 US anda 60% probability of -$10,000 US. Project B has a 60% probability of $56,000 US and a 40% probability of-$15,000 US. Which of the projects would you select based on the greatest expected monetary value?

A. Project AB. Project BC. Project A and B are of even valueD. The expected monetary value is not high enough on either to make a selection


Explanation/Reference:Explanation : To calculate the expected monetary value (EMV. of this question, multiply the probabilities by theirdollar amount and add the product of the multiplication for each project. This results in a value of $21,600 USfor Project A and $27,600 US for Project B. Project B would be selected with the highest expected monetaryvalue (EMV.. [09-297]

QUESTION 111The information technology system for the national power grid has been working well. Today, the main controlprocessor crashed, disabling the west coast delivery of power to four states. Implementation of the riskresponse plan didn't fix the problem. Which of the following steps would they perform first?

A. Determine why the risk response plan failedB. Fix the problemC. Determine why the problem happenedD. Adjust the risk response plan


Explanation/Reference:Explanation : This is a chicken and egg question in that you more than likely will do all the answers, but whichcomes first? The sequence for the other answers would be: Fix the problem, then determine why the riskresponse plan failed, and why the problem happened, then adjust the risk response plan. [09-256]

QUESTION 112Ranking risks is performed in which of the following?

A. WorkaroundsB. Risk triggersC. Qualitative Risk AnalysisD. Expected monetary value (EMV.


Explanation/Reference:Explanation : Qualitative Risk Analysis uses a risk rating matrix to rank risks and create an overall risk rating forthe project. Expected monetary value (EMV. is used in Quantitative Risk Analysis. Workarounds are done whenrisk events don't work. Risk triggers are indicators that a risk event could happen. [09-248]


QUESTION 113The project team is performing risk analysis. They are evaluating a risk that has a very high probability ofoccurring, and if it does it could cause the company to go out of business. Which of the following will the risklikely be analyzed with?

A. Insurable riskB. Qualitative Risk AnalysisC. Pure riskD. Quantitative Risk Analysis


Explanation/Reference:Explanation : Qualitative Risk Analysis helps determine the probability and impact of a risk. This allows the PMto have an understanding of the likelihood and the consequences of the risk. If the risk has a high probabilityand impact of occurring, the risk will likely go through Quantitative Risk Analysis as well. Insurable and pure riskwouldn't fit the question here. [09-214]

QUESTION 114The team on the router and switch upgrade project is involved in planning the project. They are performing RiskResponse Planning. They are assigning risk owners. What is the main responsibility of the risk owner?

A. Watching for additional risks on the projectB. Watching for risk triggers and telling the Project Manager if they happenC. Letting the Project Manager know that the risk has happenedD. Implementing a risk response plan if the risk event occurs


Explanation/Reference:Explanation : Risk owners are responsible for implementing a risk response plan that is assigned to them.Watching for additional risks on the project could fall under the responsibility of a risk owner, but it wouldn't bethe main responsibility. Letting the Project Manager know that a risk event has happened wouldn't be the mainresponsibility of the risk owner. Watching for risk triggers and telling the Project Manager if they happen isn'ttaking a proactive approach to risk or project management. [09-223]

QUESTION 115The Crosswind broadcasting has recently been awarded a large contract to create a new children?s televisionshow. This will require the company to move into a new office complete with production facilities 300% largerthan what it presently has. The schedule is tight for this new project, and there can be no delay. The new facilityis behind schedule with the sets and production facilities on pace to finish two months late. The company istrying to use an incentive fee to motivate the provider of these services to complete the work as quickly aspossible even if it results in a smaller delay. This is an example of what type of risk response?

A. AvoidB. AcceptC. TransferD. Mitigate


Explanation/Reference:Explanation : Risk mitigation is done in an attempt to minimize the bad risk or maximize the good risk. In thiscase, management is attempting to minimize the impact of a schedule delay. Risk acceptance involves simplydealing with the risk if it happens. Risk avoidance involves doing what can be done to eliminate the risk.Transference is done to assign or transfer the risk to someone else. [09-241]

QUESTION 116As the buyer is involved in creating request for proposals (RFP. for an infrastructure project, they will providethese to sellers of services. All of the following are names used for a seller except?

A. ContractorB. Service providerC. SupplierD. Acquiring organization


Explanation/Reference:Explanation : The acquiring organization is a name also for the buyer of services. The other names are allnames for sellers of services. [10-231]

QUESTION 117What type of contract provides the buyer with the most risk and seller the least risk?

A. Fixed-priceB. Time and materialC. Cost-plus-fixed-feeD. Cost-plus-percentage of cost


Explanation/Reference:Explanation : Cost-plus-percentage of cost covers the cost of the seller to build something and pays that sellera percentage of the total costs as a fee. The more that seller spends, the greater the fee. The fixed-price

contract provides the seller with the most risk because the contract limits the amount that the buyer will pay forthe project. Time and materials contracts are typically used for smaller amounts of work and staff augmentationand provide compensation for the labor and materials. [10-288]

QUESTION 118The project will be using a company to provide the technicians for a national network upgrade project.Presently, the team is meeting with potential vendors, showing them more details associated with the work ofthe project, as well as answering any questions they have about the work before their proposals are submitted.What is this called?

A. Request Seller ResponsesB. Bidders conferenceC. Select SellersD. Request for information


Explanation/Reference:Explanation : A bidders conference is used to allow companies that are considering bidding on a project tolearn more about the work of the project and ask any questions. The questions and answers are madeavailable to all considering bidding for the work. Request Seller Responses is a process to find companies thatcan do the work. Request for information is a procurement document. Select Sellers involves making a decisionon who will do the work on the project. [10-315]

QUESTION 119The Project Manager is involved in acquiring the project team on a highway expansion project. She is presentlydiscussing salary, working hours, travel, and benefits. What is the key tool she is utilizing?

A. Staffing management planB. Organizational chartC. Project team directoryD. Negotiations


Explanation/Reference:Explanation : Negotiation is key in acquiring staff for a project. It can include salary, benefits, and jobresponsibilities. A staffing management plan defines the staffing rules for the project. The project team directoryshows who is on the team. The organizational chart shows reporting structures on the project. [10-270]

QUESTION 120The Project Manager is creating an estimate for building a company WAN (wide area network.. As the ProjectManager, you have undertaken the make-or-buy decision and determined that the WAN implementation shouldbe outsourced because your company does not have the expertise. After receiving all the vendor proposals,you find that two of the proposals specify cost-plus-fixed-fee, two other of the vendors specify fixed-price,another two specify cost-plus-incentive-fee, and the last two specify time and material. Which of the proposalswould present the least probability of loss for the company?

A. Proposals that use fixed-priceB. Proposals that use cost-plus-fixed-feeC. Proposals that use time and materialD. Proposals that use cost-plus-incentive-fee


Explanation/Reference:Explanation : Proposals that use fixed-price contain the least amount of risk for the buyer; the seller assumesall the risk. In cost-plus-fixed-fee, the buyer pays all the cost, but the fee is fixed at a specific amount. In cost-plus-incentive-fee, the buyer pays all the cost, but the fee is paid if the incentive was met. In time and material,the buyer pays the cost on a per hour basis plus any material. [10-267]

QUESTION 121The project is in the phase of doing procurement audits. It is important to identify successes and failures of theprocurement process. This identification is important for formal acceptance and closure. What process is theproject in?

A. Quality AssuranceB. ClosingC. Close ProjectD. Contract Closure


Explanation/Reference:Explanation : Contract Closure uses procurement audits to determine the successes and failures of theprocurement process. Closing the project is done in the closing process and is performed when the project orphase stops. Quality Assurance validates the quality standards defined for the project. In Closing, the projectfinishes. [10-284]

QUESTION 122You are the Project Manager for a national satellite rollout project. You are required to purchase and integratereporting software for all the retail stores. As the Project Manager, you want one price from the vendors for thepurchase and implementation of this product. What type of document should be used?

A. Invitation for bidB. Request for quoteC. Request for proposalD. Request for information


Explanation/Reference:Explanation : A Request for proposal (RFP. deals with a detailed, very specific approach to a customizedsolution and a total price. An invitation for bid (IFB. is a sealed bidding process that lists seller's firm price tocomplete the detail work. This is typically used in government bidding. A request for information (RFI. deals withfinding potential vendors for consideration for proposals or quotes. A request for quote (RFQ. involves gettingprices from a company for goods or services. [10-246]

QUESTION 123A project will be using a vendor to purchase infrastructure equipment for a national network upgrade venture forthe U.S. Government. The government has requested a proposal from prospective sellers of the equipment.What type of document is being provided to the sellers?

A. Request for information (RFI.B. Request for proposals (RFP.C. Invitation for bid (IFB.D. Request for quote (RFQ.


Explanation/Reference:Explanation : An invitation for bid (IFB. is similar to the RFP but is typically used in government contracting. Arequest for quotes (RFQ. involves getting prices from a company for goods or services. A request for proposals(RFP. deals with a very detailed and specific approach to a customized solution. A request for information (RFI.deals with finding potential vendors for consideration for proposals or quotes. [10-271]

QUESTION 124The Project Manager is ordering cables for the video board he is developing. He can only order these cablesfrom one company that has a patent on the design. Which of the following describes the type of procurementhe is performing?

A. Sole sourceB. Open sourceC. Source selectionD. Qualified sellers list


Explanation/Reference:Explanation : One type of non-competitive forms of procurement is sole source, in which there is only onesource available. The other form is single source, in which a single company is chosen even though others areavailable. This type of procurement is usually undertaken when the provider possesses a patent or some othertype of ownership associated with intellectual property. The other three answers are noise. [10-255]

QUESTION 125The retail chain will be using a vendor to provide engineers for a security camera network design andimplementation. Presently, the team is determining the details needed for the documentation that will helpselect the company to provide the services. This also includes evaluation criteria for comparing the proposalsreceived. In what process is the team involved?

A. Plan Purchases and AcquisitionsB. Plan ContractingC. Request Sellers ResponsesD. Select Sellers


Explanation/Reference:Explanation : Plan Contracting involves determining the approach to find a company that can do the work.Select Sellers involves choosing the company to do the work. Plan Purchases and Acquisitions involve a make-or-buy analysis to determine if the company itself will do the work or outsource it. Request Sellers Responsesinvolves receiving and reviewing proposals from companies being considered for the work. [10-223]

QUESTION 126You are in the process of purchasing 67 desktop computers, monitors, and a standard desktop softwarepackage for an upcoming project. What type of contract will you likely use?

A. Purchase orderB. Fixed-priceC. Cost-plus-percentage of costD. Net 30


Explanation/Reference:Explanation : The purchase order is a general purchase vehicle for commodity type purchases. It is typically foritems that are standard, non-customized and non-negotiable in price. Fixed-price is typically for a detailed,customized, negotiated solution. Cost-plus-percentage of cost is an outdated contract type, and not good forthe buyer. Net 30 is noise. [10-296]

QUESTION 127All of the following are reasons for outsourcing work except...

A. Your company doesn't have excessive capacity for the workB. Your company doesn't possess the skills needed for the workC. Your company isn't concerned about protecting the information associated with the workD. Labor rates in the foreign countries are comparable to your company's labor rate


Explanation/Reference:Explanation : If the labor rates are the same as your company's labor rate, there is no reason to outsource thework. The other answers are good reasons to outsource the work. [10-268]

QUESTION 128The contract is expected to cost $280K US. Actual costs are $240K US. There is a 50/50% share for any costsavings. What is the total value of the contract?

A. $260K USB. $240K USC. $280K USD. $300K US


Explanation/Reference:Explanation : This is a calculation question. The $280K US is the expected value of the contract. Actual cost ofthe contract is $240K US. This means that there is $40K US saved. The 50/50% share means that $20K US ofthe savings would go to the seller. The actual cost of $240K US and $20K US saving share makes the totalvalue of the contract worth $260K US. [10-201]

QUESTION 129You are a Project Manager at Dewey, Cheatum, and Howe and assigned to a major construction project. The

project is on schedule and under budget, but you are constantly in conflict with a member of your project team.This team member is sabotaging the project. What would be the best solution to resolve this problem?

A. Firing the team member from the project as soon as possibleB. Reporting this to senior managementC. Reporting this problem to senior management with a solution of replacing this team memberD. Holding a team meeting to vote if the team member should be removed


Explanation/Reference:Explanation : Reporting this problem to senior management with a solution of replacing this team member willresolve the problem along with being a proactive solution. Reporting this to senior management is a solution,but a Project Manager should be proactive and provide options to senior management. Firing the team memberas soon as possible is not a solution because a Project Manager does not have the authority. Holding a teammeeting to vote if the team member should be removed will increase the conflict. [11-254]

QUESTION 130As a Project Manager, you are managing a project that has fourteen deliverables from outside vendors. Onevendor has been in negotiations with a partner for more financing that could cause the vendor to stopproduction on one of your deliverables if they don?t reach an agreement. A rumor is out that the vendor's plantwill be shutting down because of this issue. What is the best course of action you should take?

A. Contact the vendor and discuss this problemB. Start contacting other vendors as a backup planC. Change vendors as soon as one is foundD. Initiate the risk response plan created for this vendor


Explanation/Reference:Explanation : Contacting the vendor and discussing this problem is the best course of action. At this point, thisis a rumor and the vendor can give you more information about the negotiations. Initiating the risk responseplan created for this vendor should not be implemented because the risk has not triggered. Starting to contactother vendors as a backup plan could be initiated, but this may not be necessary. Changing vendors as soon asone is found should not be implemented because it would be in violation of the current contract. [11-237]

QUESTION 131A Project Manager has been contracted by a company to manage the development of a software businessapplication. The Project Manager discovers that five of the software developers are contractors and do not havelegal software licenses. What should the Project Manager do in this case?

A. Report this to the company's senior managementB. Report this to PMIC. Call the software vendorD. Fill out a software piracy report



Explanation : It is senior management's responsibility to provide number of software licenses for thecontractors, or require them to have proper licensing. Reporting this to PMI, filling out a software piracy report,and calling the software vendor are noise. [11-224]

QUESTION 132A Project Manager has been assigned to manage a project that requires two development teams. One teamwill create the server software and is local, and the other team will create the client software and resides in aforeign country. For the most recent 10 conference calls with the foreign country, the foreign team isconsistently 15 minutes late to the meeting. How should the Project Manager handle this problem?

A. Report this to senior managementB. Review the customs and traditions of the foreign countryC. Call the development manager of the foreign countryD. Ignore the problem


Explanation/Reference:Explanation : The customs and traditions of the foreign country may show that meetings do not start on time,but around 15 minutes late. By understanding this, you can adjust your schedule accordingly. Ignoring theproblem is a possible solution, but it does not help understand the problem. You could have seniormanagement contact the company's senior management to the problem, but the foreign country's seniormanagement may not see the tardiness as a problem. Calling the development manager of the foreign countrywould have the same effect as reporting this to senior management. [11-249]

QUESTION 133The database project is approximately 85% complete. The project has had its challenges. As of the last statusreport, the project appears to be on track regarding cost, schedule and scope. Senior management lets youknow that the sponsor has some very serious concerns about the project. You don't understand why, based onthe last status report. What would be the best action to take first?

A. Ignore senior management because the project is in good shapeB. Meet with the sponsor to determine the sponsor?s concernsC. Tell senior management that the project is in good shapeD. Evaluate the schedule and budget to verify the triple constraint health of the project


Explanation/Reference:Explanation : Meeting with the sponsor to determine their concerns is the best solution because it is the mostproactive action to take and can provide either an immediate fix or the clearest information you can use toidentify a concern or problem. The answers involving senior management are noise because they don't dealwith addressing the problem. The triple constraint answer is also noise. [11-253-1]

QUESTION 134A Project Manager is in the execution phase of a highly visible project and a major milestone is due in threeweeks. The Project Manager has discovered that a vendor's deliverable for this milestone will be five weekslate. What should the Project Manager do?

A. Do not report this problem in the status meetingB. Meet with the team and brainstorm how to create a workaround for this problemC. Halt all payments to the vendor until the deliverable is received

D. Report the status of the missed milestone


Explanation/Reference:Explanation : Meeting with the team and brainstorming how to create a workaround for this problem would bethe first step the Project Manager should try. Reporting the status of the missed milestone would be the secondoption. Failure to report this problem in the status meeting violates professional and social responsibility onreporting accurate information. Halting all payments to the vendor would put your company in default of asigned contract. [11-202]

QUESTION 135A Project Manager is in the execution phase of a highly visible project and a major milestone is due in oneweek. The Project Manager has discovered that a vendor's deliverable for this milestone will be two weeks late.What should the Project Manager do?

A. Do not report this problem in the status meetingB. Meet with the team and brainstorm how to create a workaround for this problemC. Halt all payments to the vendor until the deliverable is receivedD. Report the status of the missed milestone


Explanation/Reference:Explanation : Meeting with the team and brainstorming how to create a workaround for this problem would bethe first step the Project Manager should try. Reporting the status of the missed milestone would be the secondoption. Failure to report this problem in the status meeting violates professional and social responsibility onreporting accurate information. Halting all payments to the vendor would put your company in default of asigned contract. [11-258]

QUESTION 136A Project Manager has been working on quality process of a project at a major electronics manufacturer. Thismanufacturer is involved with various government and defense contracts as well. The Project Managerdiscovers that an employee has been reselling some repair material that he has declared as scrap materialbecause they were discontinued, at a small profit on the internet. The item is very costly. What should theProject Manager do?

A. Report this to the companyB. Report this to Homeland SecurityC. Report this to General Accounting Office (GAO.D. Report the employee to the local authority


Explanation/Reference:Explanation : The company will be responsible for resolving this issue. Reporting the employee to the localauthority would be the option of the company. Reporting this to General Accounting Office (GAO. and toHomeland Security is noise. [11-207]

QUESTION 137You are a Project Manager managing the building of a housing development. As the plumbing is being installed,

you cannot find a building permit. As the Project Manager, to whom do you report this violation?

A. The construction companyB. The local city authorityC. The local county authorityD. The state authority


Explanation/Reference:Explanation : Most city governments are responsible for issuing building permits. The local county and stateauthorities handle issues for different jurisdictions. The construction company has no jurisdiction over buildingpermits. [11-220]

QUESTION 138You are a Project Manager who is involved in the procurement of $2,000,000 of infrastructure equipment. Asnegotiations begin between your company and the vendor, you realize that your brother works for this companybut in a different department. What is your professional and social responsibility?

A. Because he works in a different department, you can remain on the projectB. Remain on the project, but remove yourself from the negotiationsC. Remove yourself from the projectD. Remain on the project, but help another Project Manager negotiate the contract


Explanation/Reference:Explanation : Remove yourself from the project. The Code of Conduct specifies that you must disclosecircumstances that could be construed as a conflict of interest or an appearance of impropriety. Remaining onthe project because he works in a different department, remaining on the project but removing yourself from thenegotiations, and remaining on the project but helping another Project Manager negotiate the contract all givethe appearance of impropriety. [11-268]

QUESTION 139You are managing a project and the sponsor has removed the previous Project Manager on the projectbecause they could not keep the project on budget. According to your current project budget, this project is overbudget by $245,000. As the current Project Manager, you are afraid you will also be removed if you report thisstatus. What is the best response you can tell senior management?

A. Report the delay to senior management and the reasonsB. Tell senior management the project is over budget by $245,000 with a plan to recoverC. The schedule is only two weeks behind so you don't report the delayD. Don't report the delay and begin looking for a new job


Explanation/Reference:Explanation : You tell senior management that the project is over budget by $245,000 and you present acontingency plan to bring it back on track. You are required to report timely and accurate status and facts aboutthe project. A contingency plan provides senior management with an alternate plan. Report the delay to senior

management, and the reasons will justify the delay, but as a Project Manager, you are required to be proactivewith a solution. The other answers do not follow the professional and social responsibility code of conduct. [11-234]

QUESTION 140As a Project Manager you have a professional and social responsibility to encourage the growth of projectmanagement at your company or industry. To help with this growth, you could do all of the following except?

A. Mentor others who want to learn more about project managementB. Create white papers on project managementC. Provide senior management with information how outsourcing helps their companiesD. Train people on project management


Explanation/Reference:Explanation : Providing senior management with information on how outsourcing helps their companies hasnothing to do with professional and social responsibility. Training people on project management, mentoringothers who want to learn more about project management, and creating white papers on project managementare all elements of growing project management as a profession. [11-279]

QUESTION 141A Project Manager has been working on quality process of a project at a major defense contractor. The ProjectManager discovers that an employee has been reselling some repair material that he has declared as scrapmaterial at a small profit. The item is very costly. What should the Project Manager do?

A. Report this to the companyB. Report this to Homeland SecurityC. Report this to General Accounting Office (GAO.D. Report the employee to the local authority


Explanation/Reference:Explanation : The company will be responsible for resolving this issue. Reporting the employee to the localauthority would be the option of the company. Reporting this to General Accounting Office (GAO. and toHomeland Security is noise. [11-263]

QUESTION 142You are the Project Manager on a project where $4M US will be spent on procuring telecom equipment. Asnegotiations begin between your company and the vendor, you are approached by the vendor's salesrepresentative who offers you a trip to Las Vegas if you can "help" the process along by ensuring that thecontract has accelerated payment terms compared to typical contracts. What is your professional and socialresponsibility?

A. Decline the trip until after the contract has been signedB. The work you have put in on the project has been demanding and you deserve the tripC. Decline the trip and have it offered to your managerD. Decline the trip because it is not in the best interest of the company

Correct Answer: DSection: (none)

Explanation

Explanation/Reference:Explanation : According to professional and social responsibility, a Project Manager must refrain from offeringor accepting inappropriate payments, gifts, or other forms of compensation. Both accepting the trip anddeclining the trip until after the contract has been signed break the PMI Code of Conduct. Declining the trip andhaving it offered to your manager creates a conflict of interest for your manager. [11-200]

QUESTION 143The sponsor is conducting a meeting and a Project Manager is reporting that his project is behind schedule bythree weeks and under budget by $80K US. You discover from the PMO that the project is behind schedule byeight weeks and is over budget. What should you do?

A. Notify senior managementB. Report the Project Manager to PMIC. Ask the PMO to investigate the project statusD. Review with the Project Manager how this status was produced


Explanation/Reference:Explanation : As a Project Manager, you should review this information with the other Project Manager withregard to accuracy. Asking the PMO to investigate the project status would be the next step followed bynotifying senior management. Reporting the Project Manager to PMI would be out of the scope of PMI as it isgenerally outside of their scope of work, as this relates to company policy primarily. [11-231]

QUESTION 144You are a Project Manager managing the building of a restaurant. As the electrical wiring is being installed, youcannot find a building permit. As the Project Manager, to whom do you report this violation?

A. The construction companyB. The local city authorityC. The local county authorityD. The state authority


Explanation/Reference:Explanation : Most city governments are responsible for issuing building permits. The local county and stateauthorities handle issues for different jurisdictions. The construction company has no jurisdiction over buildingpermits. [11-276]

QUESTION 145A Project Manager has been assigned to manage a project to develop a reduced price desktop computer for acompany that does not have this expertise. The project is three weeks behind schedule and under budget. Aftercalculating the estimate at completion (EAC., the Project Manager finds that project will be $34,589 underbudget, but is expected to take four weeks longer than expected. What should the Project Manager do?

A. Implement Gold Plating to make up for the differenceB. Bill for customer the total approved contracted amountC. Report the current baseline project status and budget to the customerD. Report the project status and budget to the customer


Explanation/Reference:Explanation : Professional and social responsibility requires that a Project Manager report accurate and truthfulinformation for services provided. "Bill for customer the total approved contracted amount" and "Report thecurrent baseline project status and budget to the customer" do not report honest information about the project.Implementing Gold Plating to make up for the difference is not part of the scope and should not be added. [08-238]

QUESTION 146The Project Manager has weekly scheduled status meetings with the team. The meetings have beenunorganized, chaotic, and lacking direction. Which of the following would improve the meetings?

A. Determine who is in charge of the meetingB. Send the team to communication trainingC. Create and publish an agenda, and establish the leader of the meetingD. Create and publish an agenda


Explanation/Reference:Explanation : Creating and publishing an agenda, and knowing who is in charge of a meeting are two ways tohave a highly organized effective meeting. [08-269]

QUESTION 147A risk register that is part of the project management plan on a project would be viewed as what type ofcommunication?

A. Formal writtenB. FormalC. VerbalD. Contract


Explanation/Reference:Explanation : Any documentation associated with the contract or project management documentation would beconsidered formal written. [08-240]

QUESTION 148The project has eight people on it. Two more are added. What is the total number of communication channelsadded to the project?

A. 45 ChannelsB. 17 ChannelsC. 28 ChannelsD. 10 Channels

Correct Answer: B


Explanation/Reference:Explanation : To calculate this, you need to calculate the number of communication channels with eight people.The formula is N*(N-1./2. This means that with eight people, there are 28 channels of communication. Next,add the two additional people for a total of ten people and use the communication channel formula. This showsthat there are 45 communication channels with ten people on the project. Subtract 28 from 45 for a difference,and the answer of 17 communication channels. [08-279]

QUESTION 149Which of the following is not a component of the Communication Model?

A. SenderB. ReceiverC. LanguageD. Message


Explanation/Reference:Explanation : The Communication Model includes the sender to deliver the message, the receiver to get themessage, and the message as the information being exchanged. [08-256]

QUESTION 150The project team is working together on the toll way repaving project. The Project Manager has delivered areport that describes how much work should have been accomplished, how much work is actuallyaccomplished, and the actual cost to complete the work. What type of report is this?

A. Earned value reportB. Status reportC. Variance reportD. Progress report


Explanation/Reference:Explanation : The earned value report focuses on earned value measurement. It focuses on actual cost (AC.,earned value (EV., planned value (PV., and a number of measurements that can come from that. The progressreport shows what has been done in a certain time period on the project. The status report shows what hasbeen completed to date on the project. The variance report shows the difference between what is happening onthe project and what should have happened. [08-245]

QUESTION 151The Project Manager spends a lot of time replying to email and meeting with stakeholders about the executionof the project. How much of a Project Manager's job is spent communicating?

A. 40 hours a weekB. Approximately 90%C. 100%D. 60+ hours a week


Explanation/Reference:Explanation : Approximately 90% of a Project Manager's time is spent communicating. This could be via email,meetings, listening, speaking, web conference, etc. [08-218]

QUESTION 152In reporting variance on the project, the Project Manager needs which of the following?

A. Status reportsB. Baseline measurementsC. Project archivesD. Change request


Explanation/Reference:Explanation : Baseline measurements allow the Project Manager to report performance by comparing workresults to the baseline on the project. Status reports are generally an output of this area. Status reports canlead to change requests. Status reports typically end up in the project archives. [08-249]

QUESTION 153You are the Project Manager on a defense project. You have been analyzing project data from the last eightreporting periods. The main data you have been looking at is the earned value, actual cost and planned value.Which of the following will represent this data graphically?

A. Bar chartB. S curveC. Pareto diagramD. Scatter diagram


Explanation/Reference:Explanation : The S curve will show the actual cost, earned value and planned value data over time, andvariance will be able to be observed rather easily. The bar chart, is also known as a control chart, and showsoutput over time. This is typically a quality chart. The Pareto diagram shows defect by count. The scatterdiagram displays (if applicable. a relationship between two variables. [08-274]

QUESTION 154In reporting performance on the project, the Project Manager needs which of the following?

A. Status reportsB. Work resultsC. Project archivesD. Change request


Explanation/Reference:Explanation : Work results allow the Project Manager to report performance on the project. Status reports aregenerally an output of this area. Status reports can lead to change requests. Status reports typically will end upin the project archives. [08-268]

QUESTION 155The project team is working together on the airport runway addition project. The Project Manager has delivereda report that describes how much work should have been accomplished, how much work is actuallyaccomplished, and the actual cost to complete the work. The Project Manager plans to use this report to showthe state of the schedule and budget. What type of report is this?



Explanation/Reference:Explanation : The earned value report focuses on earned value measurement. It focuses on actual cost (AC.,earned value (EV., planned value (PV., and a number of measurements that can come from that. The progressreport shows what has been done in a certain time period on the project. The status report shows what hasbeen completed to date on the project. The variance report shows the difference between what is happening onthe project and what should have happened. [08-233]

QUESTION 156All of the following would be good reasons to cancel a meeting except?

A. The agenda wasn't published until right before the meetingB. A key team member had to attend a different meetingC. A Functional Manager wanted to meet with the Project Manager at the same timeD. The topic partially changed and the presentation material wasn't complete yet


Explanation/Reference:Explanation : The Functional Manager wanting to meet with the Project Manager at the same time as anexisting team meeting wouldn't be a good reason to cancel a meeting. The Project Manager should offer toschedule a meeting for a different time with the Functional Manager. [08-201]

QUESTION 157What type of report shows what has been complete to what should have been completed on the project?



Explanation/Reference:Explanation : The variance report shows the difference between what is happening on the project and whatshould have happened. The status report shows what has been completed to date on the project. The earnedvalue report focuses on earned value measurement. The progress report shows what has been done in acertain time period on the project. [08-258]


Documents

PMI Certkey PMI-001 Exam Preparation · 2013-10-14 · Initiating. The project product comes from Closing. Controlling stakeholders is noise. [01-275-1] QUESTION 7 The Project Manager