| 1. | Answer D is correct. The project charter formally authorizes the project, assigns the project manager, and gives a high-level definition of the projects and its deliverables; none of the other answers apply to the project chapter definition. |
| 2. | Answer B is correct because projects are seeded from the recognition of a regulatory or business need. However, when it comes to measuring the actual organizational benefit, your client or company needs to make arrangements to secure the capital and reserve assignments. For this type of allocation, the aforementioned models are just a few of the tools at your disposal to find a measure of the enterprise benefit and the cost justification. You could have selected answer A, but it does not express complete reasoning and thorough consideration when selecting, justifying, and launching a project. |
| 3. | Answer D is correct. The project scope is one of those live documents. Why? A project is a temporary endeavor, with a specific product, but external factors like your business strategy can have a material impact of determining where the project might or might not go in the future. You may have thought of selecting answer C, but the project charter is the document that formally launches the project and defines at a high level the project deliverables, the project sponsor, and the project manager. |
| 4. | Answer C is correct. Rare is the occasion that you get to have a project for the sake of spending money. And, because a project is a temporary endeavor, the authority of the project manager is highly dependent on the support of senior management. Answer D is incorrect because the job of the project sponsor is to represent management interest in the project not to lead the execution of the project. |
| 5. | Answer D is correct. The project management plan is the entire framework and processes that will be used to control the entire project effort. Answer A refers more to the mistaken interpretation that the project plan is the Gant chart that people may prepare using products like Visio, Excel, or Project. |
| 6. | Answer D is correct. To have an effective work breakdown structure, you must take time to understand what the project objectives and the risk involved are. When this is accomplished, the next task is to compartmentalize the project into manageable pieces but not to the extreme. Good examples are to stop at a point where a task is down to 5 days in duration or resource utilization can be measured. If you chose option A you might have been thinking of a meeting agenda but not the WBS. If you opted for option B, the project charter does not include or make reference to the WBS, remember that the intent of the project charter is to launch the project, announce the project manager, and present a general overview of the project deliverables. |
| 7. | Answer C is correct. The harsh reality of project management is that no matter how much time you invest in analysis during the execution of the project, you are going to find missing critical elements, external forcers can influence your project, or organizational changes can force a course correction. The project baseline will help you account for all the course corrections you implement during the execution of your project. You might have been tempted to select answer A, but the project baseline is not something that stays fixed; it changes as changes to the project are implemented. |
| 8. | Answer C is correct. Activity H should start on the first day of week 4 because it can't start executing until C (2) and E (1) are complete. |
| 9. | Answer A is correct. Answer A = 17 weeks; Answer B = 13 weeks; Answer C = 4 weeks. In general, the critical path is composed of the activities that form the longest path on a project. |
| 10. | Answer A is correct. The network diagram gives only three paths of execution: Start A D G Finish; Start B F Finish; and Start C E H Finish. Answer A is the only one showing the predecessors in the correct order. |
| 11. | Answer C is correct. Earned value analysis is used during the execution of the project to determine resource consumption versus planned. On the other hand, the WBS, time estimates, and schedules are excellent sources for estimation of rate of consumption, timelines, and overall project resource needs. |
| 12. | Answer C is correct. Cost aggregation builds its cost estimates by adding the tasks outlined in the work breakdown structures, and parametric estimate uses historical data and project-specific characteristics. Cost cancellation techniques, reserve analysis, and funding limit reconciliation are not considered budgeting tools. |
| 13. | Answer B is correct. Within the realm of project management, the project manager has the ultimate responsibility. You might have thought of the quality assurance manager, but quality is something that goes beyond the project and is housed in the organization. The project team and the validation engineer are elements that support both the company quality policies and the processes required during the execution of the project. |
| 14. | Answer D is correct. The human resources planning process is where the core project team and the project manager plan for the request of resources from the functional manager and coordinate how to best approach the project demands versus the normal work duties of the resource. |
| 15. | Answer D is correct. The number of communication channels can be determined using the formula n(n 1)/2, where n is the number of people participating in a project. In our question, the formula will look something like: 30 x (30 1)/2; 30 x (29)/2; 870/2 = 435, which is answer D. |
| 16. | Answer B is correct. For a message to be clearly understood, two things need to happen: The sender has to make sure that the receiver acknowledges the receipt and reading of the message, and the receiver needs to ensure that the sender received the acknowledgement. None of the other options pertains to the message communication process. |
| 17. | Answer D is correct. Risk can be catalogued in qualitative and quantitative terms. The risk management process group serves as the roadmap used to reduce its impact on the project. None of the other answers clearly articulates the scope and importance of the PMI risk management processes. |
| 18. | Answer D is correct. Share is a typical way to deal with positive risk. The other answers are examples of how a project manager might deal with a risk that can have a negative impact on the outcome of the project. |
| 19. | Answer D is correct. All these are examples of contract types that vary in accordance to the risk the buyer and the seller are willing to assume. |
| 20. | Answer C is correct. With the exception of the risk management plan, which identifies how risk will be managed throughout the project, the rest are examples of project plan elements that are used to define the work to be done and the deliverables expected out of the project. |
| 21. | Answer C is correct. The project manager is ultimately responsible for the success of the project. As such, she should execute due diligence with regard to a change request before approving a change. Answers A and B might be actions you will take in the process, but the first priority is to evaluate what impact a change will have on the outcome of the project. |
| 22. | Answer D is correct. The cost performance index is the most encompassing answer as it divides the earned value by the actual cost of the project. For the CPI calculations, a project with a CPI value greater than 1 signifies that your project is running under budget. |
| 23. | Answer D is correct. Quality assurance refers to the process of applying and measuring performance against the enterprise quality policies. Six Sigma and Pareto charts are used to represent the execution trending of a process, while organization quality practices refers to how quality is managed and considered in the enterprise. |
| 24. | Answer E is correct. In the PMI realm, virtual teams and acquisition refer to the action of securing nonlocal resources. Preassignment, negotiation, and contract management are activities the project manager might engage in during the process of securing the resources, but they are subprocesses when securing external resources. |
| 25. | Answer C is correct. With the exception of formal, the rest are known ways to resolve conflict. The orders of magnitude based on their longlasting effects are problem-solving, compromising, and forcing. Withdrawal and smoothing are part of this group, but they do not address the problem. |
| 26. | Answer D is correct. The project manager is the focal point for information for senior management, stakeholders, and the project team. As such, the project manager spends much of his time ensuring that communication occurs and is effective at all levels affected by product of the project. |
| 27. | Answer C is correct. If you stand back and think of what it takes for successful communication, you think of an idea or a concept that needs to be communicated. You must build the entire message (words, syntax, and morphology); then talk to, write, or call the recipient to deliver the message; and wait for confirmation that your message was understood. On the other hand, the individual being communicated with has to do the same process, but in reverse. He needs to receive the message, check if it is in a language or in a frame of reference familiar to him, and then proceed to decipher its meaning. Analog line is a technical term associated with old telephone lines used for modulating and demodulating the messages sent via modem. |
| 28. | Answer B is correct. After you have defined your procurement plan, the equipment or service to be purchased, and how you are going to evaluate any responses, you are ready to request a seller response to your statement of work (SOW). |
| 29. | Answer C is correct. From time to time, external events such as business strategy change or regulatory compliance have a direct impact on the day-to-day execution of the project. Approved corrective actions are recognized changes throughout the entire organization of the project plan. It's ultimately approved and authorized by the project sponsor and the project manager. |
| 30. | Answer C is correct. The Ishikawa (also called the fishbone or cause-and-effect) diagram was first developed by Kaoru Ishikawa in 1969. It is used to identify the root cause of why a process might have gone out of control. Answer A refers to how costs might be managed through the life of the project. Answer B, brainstorming, is an activity with the express purpose of collecting ideas.  |
| 31. | Answer C is correct. Part of the quality plan requires tools that will enable the successful implementation of control programs that provide quality assurance. Quality processes and metrics are used in support of the quality control activities. |
| 32. | Answer C is correct. Budget at completion (BAC) equates to the original cost estimate of the project. |
| 33. | Answer D is correct. Planned value (PV) or budget cost of work schedule (BCWS) equates to the percentage of work that should have been completed according to the plan. In this case, you divide the 16 weeks by the 24 in the original plan; this equals 67%. You then multiply $675,000 (the budget at completion) by 67% and get $452,250. |
| 34. | Answer B is correct. Earned value (EV) or budgeted cost of work performed (BCWP) equals the actual percentage of work performed times the budget at completion (BAC). EV = .25 x $675,000 = $168,750. |
| 35. | Answer D is correct. Cost variance equals earned value minus actual cost. $168,750 $300,000 = $131,250. |
| 36. | Answer C is correct. Schedule variance equals earned value minus planned value. $168,750 $452,250 = $283,500. |
| 37. | Answer A is correct. Estimated at completion equals budget at completion divided into cost performance index (EV/AC). $675,000 ÷ (168750 ÷ 300000) = $675000 ÷ .5625 = $1,200,000 |
| 38. | Answer C is correct. A CPI less than 1.0 suggests that the project is executing at budget risk. |
| 39. | Answer B is correct. Even thought it is a good thing to think of quality as part of your project daily execution, quality it is not part of the triple constraint of execution. |
| 40. | Answer E is correct. As project manager, you need to be aware of what makes employees and team members happy. One way to do this is to apply Dr. Abraham Maslow's hierarchy of needs. This theory postulates that the performance of the individual is predicated by the need of satisfying his personal needs. These range from basic needs (physiological) like a roof over his head and food on his table to self-actualization needs like finding self-fulfillment. You must recognize these as cyclical in the sense that self-actualization is only the destination most individuals tend to treasure the journey as well. |
| 41. | Answer B is correct. MacGregor's Theory X postulates that people must be constantly watched and that they are incapable, avoid responsibility, and avoid work. |
| 42. | Answer D is correct. The forcing conflict resolution technique forces the project manager's opinion(s) on the project team. This can solve the short-term need to make a decision but tends to create discord. |
| 43. | Answer C is correct. Within the context of project communication management, these reports can assist in presenting the project's performance and resource utilization. |
| 44. | Answer C is correct. As the name suggests, contract closure addresses all the processes pertaining to contract closures and administrative deals with the processes internal to the organization. |
| 45. | Answer C is correct. With the growth in the number of corporate standards in recent years, you need to avoid any act that might be construed as a conflict of interest or as unethical. |
| 46. | Answer A is correct. The PMP code of ethics clearly states that it is your responsibility to provide, maintain, and satisfy the scope and objectives of professional services unless otherwise directed by the customer. |
| 47. | Answer D is correct. As a PMP, you are expected to help in the advancement of the project management discipline. |
| 48. | Answer C is correct. You are the project manager and need to move away from making decisions solely based on the corporate environment. Probably the main reason for this international virtual team is to leverage the expertise of internal resources available to your client or employer within the corporate environment. |
| 49. | Answer A is correct. You are ultimately responsible to your project sponsor and the rest of the executives affected by this delay. You need to have a meeting with management to inform them of the new delivery date and offer crashing the schedule as an option. |
| 50. | Answer C is correct. Only good listeners are capable of keeping long-term active communication with all the members of the project team up and down the chain. |
