Chapter 10. Practice Exam 1

Question 1

During what phase of the lifecycle is the project scope statement created?

  • A. Concept

  • B. Planning

  • C. Requirements definition

  • D. Feasibility study

Question 2

All the following statements about a WBS are true except which one?

  • A. It provides a framework for organizing and ordering a project's activities.

  • B. It breaks down a project into successively greater detail by level and can be similar in appearance to an organizational chart.

  • C. It's one of the methods available to build a project schedule.

  • D. It's a key project planning tool.

Question 3

During which phase of the project lifecycle is there the greatest degree of uncertainty?

  • A. Initiating

  • B. Planning

  • C. Executing

  • D. Controlling

Question 4

Which project-selection technique does not utilize a benefit measurement approach?

  • A. Linear programming

  • B. Murder boards

  • C. Cost-benefit analysis

  • D. Scoring models

Question 5

A consulting company first forms a pursuit team to develop a competitive bid and response to an RFP it received. After learning its response had been selected by the buyer, the company formed a negotiation team to settle on a final price. After the negotiation was complete and the contract was signed, the project manager was assigned to the engagement. The project manager was not part of either team or the process to date, so what should he, as a good project manager, do first?

  • A. Compare the proposal statement of work with the statement of work in the contract.

  • B. Develop a project charter and communications plan.

  • C. Develop an initial WBS.

  • D. Review the constraint and assumptions used in estimating process.

Question 6

In the early days of project management, project managers were typically selected from which organizational area?

  • A. Information Systems

  • B. Mid-level management

  • C. Engineering

  • D. Accounting

Question 7

SMART objectives are ____________________.

  • A. objectives that are easily achievable

  • B. objectives used with the MBO management approach

  • C. objectives aligned with the organization's strategic goals

  • D. objectives that are specific, measurable, assignable, realistic, and time based

Question 8

Of the following conflict management approaches, which is believed to lead to the least-sustaining positive results?

  • A. Avoidance

  • B. Problem solving

  • C. Compromise

  • D. Forcing

Question 9

Complex projects, involving multidisciplinary, multidepartment efforts, are most effectively managed by which of the following?

  • A. A strong matrix organization

  • B. A strong traditional manager

  • C. A functional organization

  • D. Multiple lead project managers

Question 10

Which document describes the business need, the quantifiable criteria that must be met by the project, the key deliverables, and the final product of a project?

  • A. Project charter

  • B. Signed contract

  • C. WBS

  • D. Scope statement

Question 11

All the following statements are false about the scope statement except which one?

  • A. It provides a documented basis for preparing the network diagram.

  • B. It is not the basis for the contract between the buyer and seller.

  • C. It does not include a description of project objectives, such as cost, schedule, and quality measures.

  • D. It is not developed by functional managers during the concept phase of a project.

Question 12

Effective stakeholder management includes all the following project elements except which one?

  • A. Taking key stakeholders to dinner

  • B. Clear requirements definition

  • C. Frequently soliciting stakeholder input and feedback

  • D. Scope change control

Question 13

Two types of network diagrams are precedence diagrams and arrow diagrams. Which statement best describes the primary difference between them?

  • A. The arrow diagram does not indicate the critical path.

  • B. The precedence diagram uses float as part of the activity duration.

  • C. The precedence diagram represents activities on nodes.

  • D. The arrow diagram incorporates PERT in the activity duration.

Question 14

Although several factors should be considered when developing estimates, the primary basis for estimating time and cost for an activity is _______________.

  • A. resource usage and productivity rates

  • B. resource usage and resource availability

  • C. productivity rates and resource availability

  • D. activity risk rating and resource rates

Question 15

Using the following earned value metrics, calculate the SV, CV, and EAC for this project:

PV=$5,000, EV=$5,250, AC=$5,500, BAC=$25,000

  • A. SV= $250, CV=$250, EAC=$26,315

  • B. SV=$250, CV= $500, EAC=$24,038

  • C. SV= $250, CV= $500, EAC=$24,038

  • D. SV=$250, CV= $250, EAC=$26,315

Question 16

When estimating activity durations, what inputs should you consider?

  • A. Management expectations, resource requirements, resource capabilities, and past project files

  • B. Management expectations, budget constraints, resource capabilities, and lessons learned from past projects

  • C. Stakeholder expectations, resource capabilities, project team knowledge, and past project files

  • D. Resource requirements, resource capabilities, project team knowledge, and past project files

Question 17

Due to an ethical violation by the original project manager, you have been handpicked by the Director of Operations to take over the project. In addition to this major project change, you also discover the following on your first day on the project:

  • Your team is distributed across three time zones.

  • No risk response plan exists.

  • The CPI is 0.9.

  • A difficult critical path task is scheduled to start tomorrow.

  • The SPI is 1.05.

Based on this information, what should be your two highest priorities?

  • A. Project team and stakeholders, cost

  • B. Schedule, cost

  • C. Cost, Director of Operations

  • D. Risk management, schedule

Question 18

The following activities are in the network diagram shown here:




Duration (Days)











B, C









E, F


Which statement is true?

  • A. F has a day of slack, and B is on the critical path.

  • B. Both B and E are on the critical path.

  • C. B has two days of slack, and E has one day of slack.

  • D. Both C and E are on the critical path, and B has two days of slack.

Question 19

Lifecycle cost estimates consider which factors?

  • A. Cost of ownership, including the costs of operation and disposal

  • B. Acquisition costs only

  • C. Costs associated with the concept, planning, implementation, and closeout phases

  • D. Expected profits, measured by subtracting total costs from estimated gross revenues

Question 20

Accelerated depreciation allows a company to write off capital expenses from taxes more quickly. Which of the following is a recognized method of accelerated depreciation?

  • A. Double-declining balance

  • B. Straight-line

  • C. Rapid capital deduction

  • D. Benefit cost ratio

Question 21

On a top-secret biotechnology R&D project, the project performance reports indicate a Cost Performance Index (CPI)of 0.81 and a Schedule Performance Index (SPI) of 1.19. What is the most likely explanation for this situation?

  • A. Poor project management and estimating.

  • B. More experienced specialists have been used.

  • C. The project team is working overtime.

  • D. The special resources (equipment, materials) procured cost more than originally projected.

Question 22

All the following statements about analogous estimating are true except which one?

  • A. It has an accuracy rate of ±10% of actual costs.

  • B. It supports top-down estimating and is a form of expert judgment.

  • C. It is used to estimate total project costs when a limited amount of detailed project information is available.

  • D. It involves the use of the cost of previous, similar project(s) as the basis for estimating the cost of the current project.

Question 23

Which of the following estimates would most likely predict the actual cost of a project?

  • A. Definitive

  • B. Budget

  • C. Detailed

  • D. Order of magnitude

Question 24

Considering the project schedule during the cost budgeting process ___________.

  • A. allows costs to be assigned to the time period when they will be incurred

  • B. identifies the project elements so that costs can be allocated

  • C. provides another way to help measure and monitor cost performance

  • D. allows the contingency allowance to be calculated correctly

Question 25

You are taking over a project during the planning phase and discover that four individuals have signed the project charter, including two company officers. Which of the following should most concern you?

  • A. That the charter was created during planning

  • B. Determining the reporting structure for the communications plan

  • C. Getting a single project sponsor

  • D. Determining the reason for the four charter signatures

Question 26

A former-CPA-turned-project-manager is selected to lead a groundbreaking information technology project. Because the project manager has very limited knowledge of this new technology, she decides to manage the project by delegating key planning activities, such as WBS development, schedule development, cost estimating, determination of specific tasks, and task assignments, to individual project team members. She decides it will be best to serve as a coordinator and coach for this initiative. What is the likely outcome of this approach?

  • A. Due to the work environment created by the project manager, a team characterized by moderate productivity levels and high commitment levels.

  • B. A team characterized by poor performance, low morale, high conflict, and high turnover.

  • C. Due to the work environment created by the project manager, a team characterized by high levels of productivity, creativity, and commitment.

  • D. A team destined to experience the normal "storming, norming, forming" phases. In time, however, the team will become highly productive.

Question 27

Which of the following is a chief characteristic of the Delphi technique?

  • A. Bottom-up approach

  • B. Extrapolation from historical records

  • C. Isolated opinion

  • D. Expert opinion

Question 28

To manage a project, a project plan should be realistic and achievable. Which of the following is the best method to achieve a realistic project plan?

  • A. The project manager creates the project plan based on input from the team.

  • B. The project manager creates the project plan based on input from senior management.

  • C. The functional manager creates the project plan based on input from the project manager.

  • D. The project manager creates the project plan based on the scope statement and organizational procedures.

Question 29

The WBS can be used to _________________________.

  • A. show calendar dates for each task

  • B. show the business need for the project

  • C. communicate with the customer

  • D. show the dependencies between work packages

Question 30

A new project manager asks you why he should use a WBS on his project. He does not see the value and feels it will take too much time to develop. What would be an effective response to his question?

  • A. A WBS will ensure that all the work to be done is accounted for.

  • B. A WBS is required if the project involves contracts.

  • C. A WBS is the only way to identify risks.

  • D. He can build a project schedule without a WBS.

Question 31

A new product-development project has five levels in the WBS and has been sequenced using the precedence diagramming method. The activity duration estimates have been received. Which activity would you do next?

  • A. Compress the schedule.

  • B. Finalize the schedule.

  • C. Create an activity list.

  • D. Create a code of accounts.

Question 32

You are now a project manager for a new nanotechnology carbon tube product development project. Most schedule development steps have been completed, including schedule compression. Which activity would you likely perform next?

  • A. Set up schedule change control.

  • B. Finish schedule development and gain approval of the schedule.

  • C. Develop a communications plan.

  • D. Update the project schedule with risk response strategies.

Question 33

A project manager is using weighted average duration estimates to calculate activity duration. What type of mathematical analysis is being used?

  • A. PERT

  • B. GERT

  • C. Monte Carlo

  • D. CPM

Question 34

A team member from the Web Creative Design department tells you that her work is too creative to provide you with a fixed, single estimate for the task. You both decide to use the average time the task has taken for past projects. This is an example of which of the following?

  • A. Parametric estimating

  • B. PERT

  • C. Monte Carlo

  • D. CPM

Question 35

A task has an early start date of day 3, a late start date of day 13, an early finish date of day 9, and a late finish date of day 19. What can be said about this task?

  • A. It's not on the critical path.

  • B. It's on the critical path.

  • C. It has a lag.

  • D. It's progressing well.

Question 36

Rearranging resources so that a constant number of resources are used each month is called what?

  • A. Balancing

  • B. Crashing

  • C. Fast tracking

  • D. Leveling

Question 37

The cost of choosing one project over another is called what?

  • A. Opportunity cost

  • B. Sunk cost

  • C. NPV

  • D. Indirect cost

Question 38

Which of the following is not needed in order to develop a project estimate?

  • A. WBS

  • B. Risks

  • C. Change-control procedure

  • D. Assumptions

Question 39

You have four projects from which to choose. Project 1 is a 5-year project with an NPV of U.S. $750K. Project 2 is a 3-year project with an NPV of U.S. $600K. Project 3 is a 1-year project with an NPV of U.S. $500K. Project 4 is another 3-year project with an NPV of U.S. $650K. Which project is preferred?

  • A. Project 1

  • B. Project 2

  • C. Project 3

  • D. Project 4

Question 40

During project planning, you are discussing estimating techniques with the project sponsor. The sponsor strongly recommends analogous estimating, but you want a form of expert judgment. What is the best thing you can do to resolve this situation?

  • A. Agree to analogous estimating. It's not worth the confrontation at this point in the project.

  • B. Determine why the sponsor wants such an accurate estimate.

  • C. Try to convince the sponsor to allow expert judgment because it is typically more accurate.

  • D. Agree to analogous estimating because it is a form of expert judgment.

Question 41

You've just completed initiating a small project and are preparing to start the planning phase when a project stakeholder asks for the project's budget and cost baseline. What should you tell the project stakeholder?

  • A. The project budget and cost baseline will not be finalized and accepted until the planning phase is completed.

  • B. The project will not have a budget and cost baseline due to its small size.

  • C. The project budget can be found in the project charter because it has just been completed.

  • D. It is impossible to create an estimate before the project plan is created.

Question 42

You are asked to prepare a budget for completing a project that was started last year and then shelved for 7 months after receiving a no-go decision after the design phase tollgate. All the following would be included in your budget except which one?

  • A. Sunk cost

  • B. Variable cost

  • C. Fixed cost

  • D. Direct cost

Question 43

Four projects are presented to the Project Portfolio Management Team. Project A has an IRR of 12%, Project B has a BCR of 2:3, Project C has an opportunity cost of U.S. $75K, and Project D has a payback of 6 months. Which project would you recommend?

  • A. Project A

  • B. Project B

  • C. Project C

  • D. Project D

Question 44

Project XYZ has a scope change probability of 75% and a cost increase change probability of 40%. What is the probability that Project XYZ will have a scope change and not see a cost increase?

  • A. 30%.

  • B. 45%.

  • C. 110%.

  • D. Not enough information is provided.

Question 45

Your project involves specialized equipment with a value of $500,000, and there is a 6% probability that the equipment could be lost. You decide to investigate the possibility of transferring this risk to an insurance company. The cost of the insurance premium is $19,000. Based on this information, what action would you recommend?

  • A. Buy the insurance premium, because the premium cost is less than the probable equipment losses.

  • B. Do not buy the insurance premium, because the premium cost is more than the probable equipment losses.

  • C. You cannot make a determination based on the information provided.

  • D. Develop a contingency plan.

Question 46

What are workarounds in project management?

  • A. Workarounds are alternative strategies.

  • B. Workarounds are the same as contingency plans.

  • C. Workarounds are responses to new risks that were previously not identified or accepted.

  • D. Workarounds are activities performed as part of fallback plans.

Question 47

Which of the following is a valid reason for re-baselining your project plan?

  • A. Cost variances

  • B. Missed target dates

  • C. Scope changes

  • D. Adding additional resources

Question 48

All the following are part of a risk management plan except which one?

  • A. Roles and responsibilities for managing risk

  • B. Individual risks

  • C. Budget for risk management activities

  • D. A description of the general risk management approach to be taken

Question 49

As the project manager for a new automated manufacturing system implementation project, you have contracted with a national robotics firm to develop a custom robotic arm for a critical step in your future design manufacturing process. The contract is fixed price with incentives for meeting targeted milestone dates. The payment schedule and accompanying incentives are as follows:







Signed contract







+10% if 5 days early


Robot design



+5% if 5 days early


Robot delivery



+ 5% if 1 week early, +10% if 2 weeks early


User acceptance



At this point, the robotic arm prototype has not been delivered, and it is now 1.5 weeks past due. The contractor's project manager has just called to request a change in the payment schedule. He wants to see the third payment changed to 30% and the final payment reduced to 15%. During the conversation, you sense the contractor has miscalculated the effort to do this work and may be in some financial trouble.

From the following options, what would be the best thing to do next?

  • A. Request that resolution of this request be delayed until after receipt of the prototype.

  • B. Schedule a risk management meeting with the contractor to better understand all the project risks before making any decision.

  • C. Ask him to provide justification for his demand.

  • D. Counteroffer his proposal of 30% and 15% with 22.5% and 22.5%, respectively.

Question 50

The project team has created a plan describing how it will gather and distribute project information. The plan describes the types of communication mechanisms that will be used and which stakeholders will receive which communications. If anything about this plan changes during the project, which other plan will also be affected?

  • A. Responsibility matrix

  • B. Project plan

  • C. Resource plan

  • D. Staffing management

PMP Exam Cram 2. Project Management Professional
PMP Exam Cram 2. Project Management Professional
Year: 2003
Pages: 169 © 2008-2017.
If you may any questions please contact us: