Answer B is correct. The scope statement is an output of scope planning (5.2 PMBOK), which is part of the overall Planning phase. Answer A is incorrect because concept is another term for initiation. Answers C and D are incorrect because they are not official names of project phases.
Answer C is correct. A WBS is not a project scheduling method.
Answer A is correct. As a project progresses through the lifecycle, the degree of uncertainty decreases. Also, Initiating is the first phase.
Answer A is correct. Linear programming is an example of a constrained optimization project selection method. The other three answers are benefit-measurement methods of project selection and are therefore incorrect.
Answer D is correct. For planning, a project manager must understand the constraints and assumptions that underlined the effort estimates developed to date. Answers B and C provide the steps that would follow next. Answer A may not be relevant because negotiations often alter the statement of work originally.
Answer C is correct. This is a fine example of an "out-of-the-blue" type question that PMI occasionally includes on the exam.
Answer D is correct. Although this topic is not covered in the PMBOK, it will serve you well in the real world.
Answer A is correct. The avoidance approach does not resolve the main source of the original conflict. Answers B and C are incorrect because both address the central conflict and should result in longer-lasting solutions. Although answer D is generally not desirable either, due to the incentives/penalties involved, it should impact the conflict issue for a longer period of time compared to just avoiding it. Therefore, answer D is incorrect.
Answer A is correct. A strong matrix organization provides the appropriate support and accountability structures to successfully accomplish projects of this type. A strong traditional manager and a functional organization are not regarded as effective in environments where strong cooperation, negotiation, communication, and compromise are needed. Therefore, answers B and C are incorrect. Although answer D may have been somewhat tempting, you generally want one lead project manager (or program manager) to oversee a team of project leads who represent the many disciplines and departments involved in the project. Therefore, answer D is incorrect.
Answer D is correct. The tempting response is answer A. However, there is no mention of authorization, and a project charter does not have to list the quantifiable project objectives. Therefore, answer A is incorrect. Answer B is incorrect because a contract may not address the entire scope of the project and usually does not describe the business need of the project. Answer C is incorrect because a WBS does not describe the business need or the quantifiable criteria of the project.
Answer D is correct. Functional managers do often develop the scope statement during a project's conceptual phase. Answer A is incorrect because it is the WBS and activity list that serve as the basis for the network diagram. Answers B and C are incorrect because the opposite of each statement is true about a scope statement.
Answer A is correct. Answers B, C, and D are all "musts" for effective stakeholder management. Answer A "may" be an effective technique, but it depends on the code of conduct parameters that each party must abide by and the purpose of the dinner meeting.
Answer C is correct. An arrow diagram represents activities on the arrow (and not the node). Answer A is incorrect because both types can represent the critical path. Answer B is incorrect because both types can use float. Answer D is incorrect because PERT is a scheduling technique that could use either network diagram type as input.
Answer A is correct. The duration and cost estimate of an activity is chiefly a result of the number of resources needed, the quality/productivity of those anticipated resources, and the cost rates of those resources. Because answer A provides two of these factors, it is the best response, making answers B, C, and D all incorrect.
Answer D is correct. Here's the breakdown:
SV (schedule variance) = EV (earned value) planned value (PV) = $5,250 $5,000 = $250
CV (cost variance) = EV (earned value) actual costs (AC) = $5,250 $5,500 = $250
EAC (estimate at completion) = BAC (budgeted at completion) / CPI (cost performance index)
CPI = EV / AC = $5,250 / $5,500 = .95
EAC = BAC / CPI = $25,000/.95 = $26,315
Answer D is correct. Estimating activity durations should be focused on getting the best information on what the actual work effort is. Answers A, B, and C all included an external "expectation" influence that should not be a part of this schedule development process step.
Answer A is correct. This question has several reasonable options listed; however, the best response is answer A. Due to the sudden change in project leadership, it will be most important that you establish yourself as the leader with your project team and the project stakeholders. In addition, the CPI of 0.9 (less than 1) indicates the project's current course will result in an over-budget condition. Answer B is incorrect because the SPI (Schedule Performance Index) is favorable (greater than 1). Answer C is incorrect because the cost performance issue is not the most critical item, and the Director of Operations is only one of the stakeholders you need to concentrate on. Answer D is incorrect because the lack of risk management is not as critical as the other items mentioned, and schedule performance is favorable.
Answer D is correct. The critical path is A-C-D-E-G and is noted in red (bold) in the figure.
Answer A is correct. Answers B and C are incorrect because they do not account for costs of operation and disposal. Answer D is incorrect because lifecycle cost estimates are not concerned with profitability measures.
Answer A is correct. Double-declining balance is the only accelerated depreciation method listed. Therefore, answers B, C, and D are all incorrect.
Answer B is correct. This is the best response because the use of more experienced specialists could translate into "higher resource costs" than originally estimated, but "more productive" than originally planned. Answer A is incorrect because all the performance indicators are not negative. Answer C is incorrect because earned value analysis accounts for each effort hour, so the SPI would not increase due to overtime. Answer D is very tempting, but it's not the best response. The higher equipment and materials costs explain the CPI rating, but not the SPI rating. If answer D stated that the special equipment resulted in faster work processes, then this could have explained the situation. Therefore, answer D is incorrect.
Answer A is correct. The accuracy rate of analogous estimating is regarded to be in the 25% to +75% range. The other responses are all accurate descriptions of analogous estimating, thus making answers B, C, D incorrect.
Answer A is correct. Definitive estimates are completed before project implementation and based on the project's design solution; they have an accuracy rate of 5% to +10%. Answers B and D are incorrect because these estimate types are not as accurate as definitive estimates. Answer C is not an official estimating accuracy type and is therefore incorrect.
Answer A is correct. The cost budget is defined as the allocation of project costs to the proper time periods. Answer B is incorrect because the WBS and the resource plan identify the project elements for costing. Answer C is incorrect because the cost baseline is used to measure and monitor cost performance. Answer D is incorrect because the contingency allowance is figured as a result of risk management.
Answer C is correct. It is imperative that the project have a single project sponsor. Answer A is not a concern at all, and answer B is a secondary concern compared to the alternatives listed. Therefore, answers A and B are incorrect. Answer D is tempting, and you should understand the background and reason for this situation, but it is not your most important concern. Therefore, answer D is incorrect.
Answer B is correct. Without a defined and recognized "leader," it is unlikely that high productivity rates and team cohesion will occur. In addition, because the project manager has delegated all the individual planning parts, it is unlikely that any one person has all the information needed to complete his or her task properly. If the question would have mentioned a "team approach" to these planning tasks, the situation may be different. Answers A, C, and D are all incorrect in this case.
Answer D is correct. The main characteristic of the Delphi technique is the use of "expert opinion." Although answer C may have been tempting, because the technique encourages isolating the identified experts from each other, this is not the chief characteristic. Therefore, answer C is incorrect. Answers A and B are incorrect because these are not characteristics of the Delphi technique.
Answer A is correct. A strong point of emphasis from PMI is that the project team should be involved in the development of the project schedule and project plan. Answers B, C, and D are all incorrect in this case.
Answer C is correct. The WBS is an effective stakeholder communication tool. Answer A is incorrect because there are no calendar dates on the WBS. Calendar dates are on the project schedule. Answer B is incorrect because the business justification is not part of the WBS. Answer D is incorrect because dependencies are shown on the network diagram and project schedule, not the WBS.
Answer A is correct. A WBS is critical in making sure all the project work has been identified and that nothing slips through the cracks. Answer B is incorrect because all projects need a WBS, not just ones that involve contracts. Answer C is incorrect because analysis of the WBS is not the only way to identify risks. Answer D is tempting, but it's not the best response. It would be a secondary reason, because the project manager first needs to have all the project work identified to build a realistic project schedule. Therefore, answer D is incorrect.
Answer A is correct. The next step would be to build the schedule, but because that is not listed, you should go to the next step in the schedule development process compressing the schedule. Answer B is incorrect because you would not finalize the schedule until the compression activity has occurred. Answer C is incorrect because this is already done. The activity list would have served as input of the activity duration estimating step. Answer D is incorrect because this would have been done when the WBS was developed.
Answer B is correct. The final schedule development step is schedule approval. Answer A is not correct because this occurs after schedule development and is not complete yet. Answer C is not correct because you need to complete schedule development first, and the communications planning should have occurred already because this work needs to be in the WBS. Likewise, answer D is incorrect. The initial pass at risk analysis should be complete before the schedule is compressed.
Answer A is correct. PERT is the only mathematical analysis technique listed that uses a weighted average approach. Therefore, answers B, C, and D are all incorrect.
Answer A is correct. Parametric estimating involves using past history to develop the task estimate. Answers B and D are incorrect because they are not the best descriptions of what is occurring. Answer C is not correct because Monte Carlo is a project schedule simulation technique and not an activity duration estimating technique.
Answer A is correct. The task has slack because the early and late start dates are not the same, and slack tasks are not usually on the critical path. Therefore, answer B is incorrect. Answers C and D are incorrect because there is not enough information in the question to determine either of these.
Answer D is correct. This is the definition of resource leveling. Answer A is incorrect because it is not the best response. Answers B and C are incorrect because they are schedule-compression techniques.
Answer A is correct. This is the definition of opportunity cost, which is the only option that deals directly with comparing one project to another. Answer C is tempting, because NPV is often used to compare potential projects, but NPV is focused on the "value" of the project.
Answer C is correct. A change-control procedure is part of project controlling and is, therefore, not involved with the project time and estimating process. Answers A, B, and D are incorrect because these items are all needed for an overall project estimate.
Answer A is correct. Net present value (NPV) already incorporates the number of years, so you just select the project with the highest NPV, which in this case is Project 1, with an NPV of U.S. $750K. Therefore, answers B, C, and D are all incorrect.
Answer D is correct. This is a bit of a tricky question if you are not clear on the definition of analogous estimating. Because analogous estimating is a form of expert judgment, answer D is the best response. Therefore, answers A, B, and C are all incorrect.
Answer A is correct. The project budget and cost baseline are finalized and accepted during the planning phase. Answer B is incorrect because the project size would not dictate the development of a project budget and cost baseline. Answer C is incorrect because the project charter does not contain the project budget. Answer D is incorrect because it is possible to offer a preliminary cost estimate before the project plan is created. This is often a part of the project initiation process.
Answer A is correct. Your budget would account for all cost elements to complete the project (variable, fixed, direct, indirect), but it would not account for money already invested into the project (sunk costs).
Answer A is correct. Project A is the only one with a clear positive investment outlook. Answer B is incorrect because Project B is unfavorable, with a benefit cost ratio (BCR) of less than 1. The information presented for Projects C and D is not adequate to determine whether they would be good investments. Therefore, answers C and D are incorrect.
Answer B is correct. A scope change of 75% times a 60% no cost increase equals .45 (or 45%), which makes answers A, C, and D all incorrect.
Answer A is correct. The cost of probable loss is $500,000 times 6%, which equals $30,000. The cost of the insurance premium is $19,000. Therefore, answers A, C, and D are all incorrect.
Answer C is correct. Workarounds involve unplanned work that is a response to a new, emerging risk not previously identified or accepted. Therefore, answers A, B, and C are all incorrect.
Answer C is correct. Scope changes, properly tracked with a change-control system, are a valid reason to re-baseline the project plan. The other three options describe variances, which need to be tracked, but they are not reasons to re-baseline. Therefore, answers A, B, and D are incorrect.
Answer B is correct. Individual risks and their planned responses would be documented in the risk response plan. Answers A, C, and D are all valid elements of a risk management plan and are therefore incorrect.
Answer B is correct. This proactive approach will help identify any risks and issues that the contractor is experiencing. With better identification of risks and better information, the best response strategy can be developed. Answer A is incorrect because it further delays an understanding of what problems the contractor is having. Answer C is incorrect because it would be a part of the risk management meeting. Answer D is incorrect because it does not get to the root cause of the payment schedule change request.
Answer B is correct. The question partially describes the communications management plan, and this plan is part of the project plan.