PMstudy Exam 1

Question No : 1
You are working as a project manager in ABC company. Your company decides to select a vendor for a specific
requirement and invites bids from vendors. After the bidders conference, one of the vendors gifts you a watch stating that it
is his country`s culture to offer a gift to new acquaintances. In this context, what should you do?
Choice 1 Accept the gift regardless of your company`s policy.
Choice 2 Act as per the norms of your company regarding accepting gifts.
Choice 3 Reject the gift.
Choice 4 Accept the gift and inform your senior management.
Correct Choice : 2
Justification :
The PMI Code of Ethic and Professional Conduct requires a project management professional to respect different cultures
and customs, yet it mandates one to follow the policies of one`s company at all costs. So, respecting the culture of another
country must not supersede the policies of one`s organization.
Reference: PMstudy.com comments

Question No : 2
As a project manager, you understand the importance of identifying and documenting project risks. In this context, which of
the following statements is true?
Choice 1 Risk identification occurs during the Planning of the project
Choice 2 Risk identification occurs during Monitoring and Controlling of the project
Choice 3 Risk identification occurs during Execution of the project
Choice 4 Risk identification occurs during different project stages depending on the type of the project
Correct Choice : 1
Justification :
Risk identification is done as part of the Planning Process Group.
Reference: PMBOK® Guide - Fifth Edition, page 61 (table 3-1)

Question No : 3
Your customer wants some change to be effected in the project scope. You determine that the change in scope will not
impact the project schedules but will cost the project an additional $50,000. What should you do FIRST?
Choice 1 Try crashing or fast tracking the project.
Choice 2 Do not allow the customer to change the project scope.
Choice 3 Let the customer know about the impact of the change in project scope and ask for additional funding.
Choice 4 Discuss with your project sponsor.
Correct Choice : 4
Justification :
The different steps that should be followed when a change is requested are as follows:
a) Evaluate the impact of the change within the team.
b) Be proactive. If the change can have negative impact on the project, try to influence the factors that cause change, so
that only approved changes are implemented.
c) Communicate the impact of the change to the project sponsor and the customer.
d) Take the project through the change control process by getting approval from the project customer, project sponsor, and
other stakeholders. Also, please note that additional funding is always provided by the project sponsor (not the project
customer), and that changes are usually approved or rejected by the change control board.
e) Get adequate resources required to implement the change.
f) Implement the changes.
Please note that you have completed the first step, i.e. you have evaluated the impact of the change.
Option 1: Crashing or fast tracking is not recommended, because the project schedule is not impacted by the change.
Crashing or fast tracking may decrease the project schedule but increase costs, which is not desirable.
Option 2: The project manager cannot stop the customer from requesting changes.
Option 3: You should inform the customer about the changes but cannot ask for additional funding, because funding is
always provided by the sponsor.
Option 4 is the best choice in the given situation.
Question No : 4
In your project, the process of monitoring the status of the project and product scope and managing changes to the scope
baseline is referred to as:
Choice 1 Validate Scope
Choice 2 Control Scope
Choice 3 Define Scope
Choice 4 Collect Requirements
Correct Choice : 2
Justification :
Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope
baseline.
Reference: PMBOK® Guide - Fifth Edition, page 136

Question No : 5
In your project, you wish to include certain significant events in the milestone list for the project based on historical
information. Such milestones are:
Choice 1 Optional
Choice 2 Mandatory
Choice 3 Statutory
Choice 4 Authorized
Correct Choice : 1
Justification :
A milestone list identifies all milestones and indicates whether the milestone is mandatory, such as those specified by
contract, or optional, such as those based upon historical information.

Question No : 6
Please refer to the following diagram:
You know that current variances are atypical, i.e., similar variances will not occur in future. What is the cost performance
index (CPI) for the project?
Choice 1 0.96
Choice 2 1.04
Choice 3 1.00
Choice 4 1.20
Correct Choice : 1
Justification :
Earned value (EV)

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

= actual cost of work completed
= $13,000
Cost performance index (CPI)

= EV / AC
= $12,500 / $13,000
= 0.96
Acronym Term Description Formula

Planned Value
PV Physical work to be scheduled,
including the estimated value of the
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
Physical work actually accomplished,
(Budgeted Costs for including estimated value of this work
(BCWP)
Work Performed)
AC Actual Cost Actual cost of the work completed
Negative SV: Behind Schedule
SV Schedule Variance EV – PV
Positive SV: Ahead of Schedule
Negative CV: Over Budget
CV Cost Variance EV – AC
Positive CV: Under Budget
Cost Performance
CPI Value got for $1 of Actual Cost EV/AC = BAC/EAC
Index
Schedule
SPI Progress as a % of Planned Progress EV/PV
Performance Index
Question No : 7
You are working as a project manager in an IT company. Your project is facing major difficulties in the quality of its
deliverables and you are getting recurring problems. The project sponsor has insisted that no compromise can be made in
the quality of the deliverables. In this context, if the problem persists, the BEST option you would choose as a project
manager to remedy the problem is to:
Choice 1 Allow increase in cost of quality but ensure that the root cause of the problem is fixed
Choice 2 Reduce the project scope to increase project quality
Choice 3 Fix a problem as soon as it occurs
Choice 4 Prevent change requests to ensure quality
Correct Choice : 1
Justification :
Cost of Quality includes all costs incurred over the life of the product by investment in preventing non-conformance to
requirements, appraising the product or service for conformance to requirements, and failing to meet requirements
(rework). Here, cost of quality is increased and measures are taken to control the recurrence of the problem.

Question No : 8
Motivating your team members is important for the success of the project. You understand from the HR manager that
employees are motivated by self-esteem, recognition, and self-actualization. To which theory is the HR manager referring?
Choice 1 Theory Y
Choice 2 Learning curve theory
Choice 3 Herzberg`s theory
Choice 4 Maslow`s theory
Correct Choice : 4
Justification :
Abraham Maslow`s hierarchy of needs states that different people are at different levels in the need hierarchy. Usually
people start out looking for physiological needs and then progressively move up the needs hierarchy.
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 195 and 196
Question No : 9
You work for a company which executes heavy engineering contracts. While performing risk response planning for your
project, you determine a risk that there is a "Possibility of getting new orders in the future which are beyond the current
capacity of our production facilities." What should you do?
Choice 1 Classify this as a threat and create workaround plans.
Choice 2 Classify this as strength and create a fallback plan.
Choice 3 Classify this as a weakness and transfer it to another company.
Choice 4 Classify this as an opportunity and exploit the opportunity.
Correct Choice : 4
Justification :
Strategies for positive risks or opportunities are... exploit, share, enhance, and accept.
PMstudy.com comments: “Possibility of getting new orders in the future” refers to a positive event: so, this is a positive risk.
This can also be called an opportunity because the projects are not internal to the company but got from other providers.
So, option 4 is the best choice which talks about classifying this as an opportunity and exploiting it.
Question No : 10
Your company (buyer) has entered into a few contracts recently that have not been successfully implemented. Your
sponsor calls for a meeting to determine what should be the overall goal while you negotiate contracts. In this context, what
should be the most important objective of a contract?
Choice 1 Protect the interests of the project
Choice 2 Ensure that negotiation is conducted as per legal statutes
Choice 3 Negotiate for the best price and protect interests of the buyer
Choice 4 Objective could vary depending on the type of contract
Correct Choice : 1
Justification :
It is the project management team`s responsibility to make certain that all procurements meet the specific needs of the
project while adhering to organizational procurement policies.

Question No : 11
You have been asked by your company to manage a project in a foreign country. You must obtain a license for starting
your project, but realize that acquiring this license will take two weeks - this may lead to unnecessary delays and cost
overruns. One of your team members informs that she can get the license in two days by paying an additional fee of $ 100.
In this context, you should:
Choice 1 Ask your team member to get the license as early as possible by paying an additional fee.
Choice 2 Wind up the project and move to another country.
Choice 3 Obtain the license through the normal path without paying additional fee, and inform your senior management
about the impending delay.
Choice 4 Proceed with the project work without the required license.
Correct Choice : 1
Justification :
Fees are ethical and can be paid if required.

Question No : 12
Which of the following statements about stakeholders are correct?
A. Project manager must try to satisfy even the implicit requirements of stakeholders.
B. Only those stakeholders who are project team members should be involved in the creation of project plan.
C. Both stated and unstated needs of stakeholders should be properly identified.
D. Some stakeholders may provide conflicting requirements.
Choice 1 B, C and D
Choice 2 A, C and D
Choice 3 Only C
Choice 4 Only D
Correct Choice : 2
Justification :
The project team seeks input and encourages involvement from all stakeholders when planning the project and developing
the project management plan and project documents.
Reference: PMBOK® Guide Fifth Edition, page 56
PMstudy.com comments: Please note:
Option 1: The project manager must try to satisfy both the explicit and the implicit needs of the stakeholders.
Option 3: Stakeholders may have unstated needs, which should also be properly identified by the project manager.
Option 4: Stakeholders may have conflicting needs and hence provide conflicting requirements.
Question No : 13
The project charter has been developed, and the project has been formally authorized. A full-time project manager is
appointed for the project. There is clarity about the business needs, high-level project description, and product
requirements that the project is to address. A summary budget has also been approved. Given this information, what
activity should the project manager perform FIRST from the available options?
Choice 1 Lead and perform the work defined in the project management plan and implement approved changes to achieve
the project`s objectives.
Choice 2 Define, prepare, and coordinate all subsidiary plans and integrate them into a comprehensive project
management plan.
Choice 3 Track, review, and report the progress to meet the performance objectives defined in the project management
plan.
Choice 4 Review all change requests, approve changes, and manage changes to the deliverables, organizational process
assets, project documents, and the project management plan and communicating their disposition.
Correct Choice : 2
Justification :
The question states that the project charter has been created.
This should be followed by Develop Project Management Plan process as defined in option 2.
Reference: PMBOK® Guide - Fifth Edition, page 65 (figure 4-1), and page 72.
PMstudy.com comments: Option 1, option 3, and option 4 refer to the Direct and Manage Project Work, Monitor and
Control Project Work, and Perform Integrated Change Control processes, respectively. These are taken up after Develop
Project Management Plan process is completed. Identify stakeholders would be the next immediate step but given that we
have to select the best of the given options, option 2 would be the most appropriate.{Refer PMBOK® Guide - Fifth Edition,
page 65 (Figure 4-1)}.
Question No : 14
Which of the following is not an accepted form for the WBS structure?
Choice 1 Using phases of the project life cycle as the second level of decomposition, with the product and project
deliverables inserted at the third level.
Choice 2 Using major deliverables as the second level of decomposition.
Choice 3 Using work packages as the first level of decomposition.
Choice 4 Incorporating subcomponents which may be developed by organizations outside the project team, such as
contracted work.
Correct Choice : 3
Justification :
The WBS structure can be represented in a number of forms, such as: using phases of the project life cycle as the second
level of decomposition, with the product and project deliverables inserted at the third level, using major deliverables as the
second level of decomposition, and incorporating subcomponents which may be developed by organizations outside the
project team, such as contracted work.

Question No : 15
In the Control Schedule process, changes to project schedule can result in change requests to:
Choice 1 Schedule baseline
Choice 2 Components of project plan
Choice 3 Activity attributes
Choice 4 Schedule baseline and/or components of project plan
Correct Choice : 4
Justification :
Schedule variance analysis along with review of progress reports, results of performance measures and modifications to
the project scope or project schedule may result in change requests to the schedule baseline, and/or to other components
of the project plan.

Question No : 16
In your project, you estimate the cost of individual activities or work packages, and then roll up the individual estimates for
subsequent reporting and tracking purposes. This can be done using:
Choice 1 Bottom-up estimating
Choice 2 Analogous estimating
Choice 3 Parametric modeling
Choice 4 Top-down estimating
Correct Choice : 1
Justification :
Bottom-up estimating is a method of estimating a component of work. The cost of individual work packages or activities is
estimated to the greatest level of specified detail. The detailed cost is then summarized or "rolled up" to higher levels for
subsequent reporting and tracking purposes.

Question No : 17
From a project management perspective, which of the following BEST describes quality attributes?
Choice 1 They are the quality criteria that are to be met mandatorily.
Choice 2 They provide a basis for judging a project`s success or failure.
Choice 3 They provide a basis for determining how effectively performing organization supports the project.
Choice 4 They are the specific characteristics for which a project`s product is designed and tested.
Correct Choice : 4
Justification :
Quality is "the degree to which a set of inherent characteristics fulfil requirements".
PMstudy.com comments: Quality attributes refer to all those specific characteristics for which a project`s product is
designed and tested.
Question No : 18
As a project manager, you are aware that the best way to resolve conflicts is to face the conflict directly. This involves a
problem solving approach, whereby affected parties work through their disagreements. In this context, the sources of
conflict with the least intensity are:
Choice 1 Schedule, priorities, and manpower
Choice 2 Cost, personality conflict, and administration
Choice 3 Technical issues, administration, and manpower
Choice 4 Cost, schedules, and priority
Correct Choice : 2
Justification :
The sources of conflicts and their intensity can be shown by the following diagram:
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, page 302
Question No : 19
Being a diligent project manager, you understand the importance of identifying all project risks which can then be prioritized
using the Perform Qualitative and Quantitative Risk Analysis. In this context, which of the following tools and techniques
can be used for the Identify Risks process?
Choice 1 Documentation reviews, brainstorming, root cause analysis, and checklist analysis
Choice 2 Assumptions analysis, risk probability and impact assessment, interviewing, and Delphi technique
Choice 3 Expected monetary value, root cause analysis, influence diagrams, and documentation reviews
Choice 4 Contingent response strategies, assumptions analysis, influence diagrams, and Delphi technique
Correct Choice : 1
Justification :
Option 1: This is the correct answer as it has all the tools and techniques which are used for the Identify Risks process.
Option 2: Risk probability and impact assessment – this is used for the Perform Qualitative Risk Analysis process.
Option 3: Expected monetary value – this is used for the Perform Quantitative Risk Analysis process.
Option 4: Contingent response strategies – this is used in the Plan Risk Responses process.
Reference: PMBOK® Guide - Fifth Edition, page 312 (figure 11-1)

Question No : 20
Which of the following activities would you not perform during the Close Procurements process?
Choice 1 Perform a structured review of processes from plan purchases and acquisitions through contract closure.
Choice 2 Perform procurement performance reviews to determine seller`s progress to deliver project scope and quality,
within cost and on schedule, as compared to the contract.
Choice 3 Identify successes and failures that warrant recognition to prepare or administer procurement contracts in the
future.
Choice 4 Use procurement audits as a technique.
Correct Choice : 2
Justification :
Option 2: Procurement performance reviews are conducted in the Control Procurements process.
PMstudy.com comments: Options 1, 3, and 4 are performed as part of Close Procurements process.
Question No : 21
While managing a crucial project for your company, your sponsor reprimands you for not including an additional feature,
beyond the project scope, which could have provided "customer delight". In this context, you should:
Choice 1 Resign from the project.
Choice 2 Give precedence to project and organizational objectives.
Choice 3 Complain against the sponsor to the customer.
Choice 4 Add the new feature to the product as requested by the sponsor.
Correct Choice : 2
Justification :
The PMI code of ethics and professional conduct mandates a project manager to maintain her professional demeanor at all
times. Also, the project manager should always try to uphold project and organizational objectives.
Option 1 and Option 3 are extreme measures, which can be taken at a later point of time, if the situation cannot be
remedied.
Option 4 is "gold plating" which is not recommended by PMI.

Question No : 22
Which of the following statements about stakeholders is INCORRECT?
Choice 1 Stakeholders may exert influence over the project.
Choice 2 Stakeholders` responsibilities remain stable throughout the project life cycle.
Choice 3 Some stakeholders benefit from a successful project.
Choice 4 Identifying stakeholders can be difficult.
Correct Choice : 2
Justification :
Stakeholders have varying levels of responsibility and authority when participating on a project. This level can change over
the course of the project`s life cycle.

Question No : 23
While managing a project for a manufacturing company, you receive a change request from the customer for a minor
alteration to the product configuration. In this context, which of the following is NOT a step you would take next?
Choice 1 Evaluate the impact of the change
Choice 2 Examine other options
Choice 3 Seek approval from change control board
Choice 4 Reject the change request as this would change the product configuration
Correct Choice : 4
Justification :
Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually
mandated and can include corrective action, preventive action, defect repair, and updates.
PMstudy.com comments: While managing projects, the project manager is bound to receive change requests from the
customers. The project manager should consider the changes proposed on merit and take further steps. She should not
reject any change request outright for any reason.
Question No : 24
A baseline is the approved time-phased plan (for a project, a WBS, a work package, or a schedule activity), plus or minus
approved changes. In this context, any modifications to the agreed project scope baseline are due to:
Choice 1 Change requests
Choice 2 Performance reports
Choice 3 Project management plan updates
Choice 4 Project document updates
Correct Choice : 1
Justification :
Analysis of scope performance can result in a change request to the scope baseline or other components of the project
management plan.

Question No : 25
You are the project manager overseeing construction of a resort on prime oceanfront property in New York. When you
estimate costs for your project, you should also closely coordinate that with:
Choice 1 Define Activities
Choice 2 Estimate Activity Durations
Choice 3 Estimate Activity Resources
Choice 4 Sequence Activities
Correct Choice : 3
Justification :
The Estimate Activity Resource process is closely coordinated with the Estimate Costs process.

Question No : 26
In your project, you use a hierarchical structure of resources by resource category and resource type to develop resource-
limited schedules. This hierarchical structure is also called as:
Choice 1 Project hierarchy
Choice 2 Organization hierarchy
Choice 3 Resource breakdown structure
Choice 4 Project breakdown structure
Correct Choice : 3
Justification :
Resource Breakdown Structure (RBS) is a hierarchical representation of resources by category and type.

Question No : 27
You have successfully completed a project and the customer is happy with the product. From a project management
perspective, when a service or a product meets customer expectations, it means that:
Choice 1 Cost of quality is low
Choice 2 Project is on budget
Choice 3 Cost of quality is high
Choice 4 Quality is achieved
Correct Choice : 4
Justification :
Quality refers to "the degree to which a set of inherent characteristics fulfill requirements."
PMstudy.com comments: When the customer requirements or expectations are met, quality is achieved.
Question No : 28
As individuals and/or organizations get more experienced at a task, they usually become more efficient at it. The more
times a task has been performed, the less time will be required for subsequent iterations. This is an example of:
Choice 1 Theory X
Choice 2 Organizational process assets
Choice 3 Learning curve
Choice 4 Economics of scale
Correct Choice : 3
Justification :
Learning curve theory states that as individuals and/or organizations get more experienced at a task, they usually become
more efficient at it. The more times a task is performed, the less time will be required for subsequent iterations.

Question No : 29
Careful and explicit risk management planning ensures possibility of success of the other risk management processes. In
this context, you use sensitivity analysis to:
Choice 1 Determine which risks may affect the project
Choice 2 Determine which risks have the most potential impact on the project
Choice 3 Define how risk management processes will be performed
Choice 4 Define how to conduct risk management activities for a project
Correct Choice : 2
Justification :
Sensitivity analysis helps to determine which risks have the most potential impact on the project.
PMstudy.com comments: Sensitivity analysis is a tool and technique for the Perform Quantitative Risk Analysis
Question No : 30
In the Close Procurements process, you are responsible to complete each project procurement to support the Close
Project or Phase process. In this context, the final equitable settlement of all outstanding issues, claims, and disputes by
negotiation is done through:
Choice 1 Procurement Negotiations
Choice 2 Procurement audits
Choice 3 Litigation
Choice 4 Negotiated settlement
Correct Choice : 4
Justification :
Option 4: `Negotiated settlement` is a process of reaching final equitable settlement of all outstanding issues, claims, and
disputes through negotiation.
Option 1: Procurement Negotiations clarify the structure, requirements, and other terms of the purchase so that mutual
agreement can be reached prior to signing the contract. Procurement Negotiations is a tool and technique for the Conduct
Procurement process.
Option 2: Procurements audit is a structured review of the procurement process originating from the Plan Procurement
Management process through the Control Procurements.
Option 3: Litigation in the courts is the least desirable option.
Reference: PMBOK® Guide - Fifth Edition, pages 377, 388 and 547
Question No : 31
Your company has awarded a contract to a vendor. After some time, you realize that the vendor representative is your old
buddy from school. You inform this to your senior management, but they insist that you continue to administer the contract.
So, to avoid any accusations of bias in this conflict of interest situation, you should:
Choice 1 Document all the decisions taken by you on the activities performed by the vendor.
Choice 2 Refrain from administering the contract.
Choice 3 Resign from the project.
Choice 4 Remind your senior management of conflict of interest.
Correct Choice : 1
Justification :
In case of conflict of interest situations, the project manager should inform senior management, and distance oneself from
the conflict of interest situation, if possible. However, in this context, as the senior management insists and the project
manager has to continue in the current position, appropriate documentation can help in preventing any accusation of bias
in conflict of interest situations.
Option 2 and Option 4 are not relevant - you had already mentioned about the conflict of interest situation to the senior
management and got approval to continue with the project.
Option 3 is an extreme step which need not be taken at this time.

Question No : 32
Project initiation consists of processes that facilitate the formal authorization to start a new project or a project phase. In
this context, which of the following is not performed during project initiation?
Choice 1 Create the project charter
Choice 2 Divide large or complex projects into phases
Choice 3 Involve customers and stakeholders
Choice 4 Create project scope statement
Correct Choice : 4
Justification :
Project Scope Statement is created after project initiation.
Reference: PMBOK® Guide Fifth Edition, pages 61 (table 3-1) and 430 (figure A1-11)
PMstudy.com comments: Please note:
Option 1: Project Charter is developed/created during the project initiating stage.

Option 2: As part of the initiating process group, many large or complex projects may be divided into separate phases
Option 3: Involving the customers and other stakeholders during the initiating stage generally improves the probability of
shared ownership, deliverable acceptance, and customer and other stakeholder satisfaction.
Question No : 33
As a project manager, what should be your objective while managing change requests?
Choice 1 Maintenance of an issue log for change requests
Choice 2 Ignoring change requests from external stakeholders
Choice 3 Prevention of unnecessary changes
Choice 4 Keeping the sponsors informed of all the change requests
Correct Choice : 3
Justification :
The Monitoring and Controlling Process Group also involves...: Influencing the factors that could circumvent integrated
change control or configuration management so only approved changes are implemented.
PMstudy.com comments: Prevention of unnecessary changes is important while managing change requests as these
unnecessary changes could negatively affect the scope, time and cost baselines without adding any significant benefit.
Option 1: Issue Log is not used for change requests. It is used to document and monitor elements under discussion or in
dispute between project stakeholders.
Option 2: Ignoring change requests from external stakeholders is not recommended.
Option 4: Keeping the sponsors informed of "all" change requests is not correct.
Question No : 34
The project scope statement consists of the product scope description and project deliverables. It also defines the:
Choice 1 Scope Baseline
Choice 2 WBS
Choice 3 Product acceptance criteria
Choice 4 WBS dictionary
Correct Choice : 3
Justification :
The detailed project scope statement, either directly, or by reference to other documents, includes the following: product
scope description, acceptance criteria, deliverables, project exclusions, constraints and assumptions.
Reference: PMBOK® Guide - Fifth Edition, pages 123 and 124
PMstudy.com comments: Option 1 (Scope Baseline), Option 2 (WBS) and Option 4 (WBS Dictionary) are outputs of the
Create WBS process. Hence, they are not included in the Scope Statement, which is output of the Define Scope process.
Question No : 35
As the project manager of a project intended to mask stench from a gas pipeline, you create the following Network
Schedule Diagram (duration in weeks):
What is the effect on the project if the duration of task J is increased to 9 weeks?
Choice 1 No effect since task J is not on the critical path
Choice 2 Risk of the project will further increase
Choice 3 The overall time-frame required to complete the project will increase by 1 week
Choice 4 Project has to be fast tracked or crashed to prevent delay
Correct Choice : 2
Justification :
Please refer to the following diagram and calculation:
If the duration of task J is increased by 1 week, Start→ G→ I→ J→ End = 23 weeks; this also lies on the critical path (23
weeks).
Since there are 3 critical paths now, a delay in any of the critical paths will delay the overall project; this increases the
overall risk to the project.
Reference: PMstudy.com study notes

Question No : 36
Which of the following may not be included in the organizational process assets that influence the Estimate Costs process?
Choice 1 Historical information
Choice 2 Government regulations
Choice 3 Lessons learned
Choice 4 Cost estimating policies
Correct Choice : 2
Justification :
The organizational process assets that influence the Estimate Costs process include, but are not limited to:
 Cost estimating policies

 Cost estimating templates
 Historical information, and
 Lessons learned.
PMstudy.com comments: Please note - Government regulations are part of enterprise environmental factors
Question No : 37
As a project manager, you use fishbone diagram to analyze the root cause of a problem. This is performed in which of the
following process?
Choice 1 Plan Quality Management
Choice 2 Verify Scope
Choice 3 Control Quality
Choice 4 Perform Quality Assurance
Correct Choice : 3
Justification :
Control Quality is the process of monitoring and recording results of executing the quality activities to assess performance
and recommend necessary changes. A fishbone diagram or Ishikawa diagram, generally known as Cause and Effect
diagram, is one of the tools and techniques of Control Quality process. It illustrates how various factors might be linked to
potential problems or effects.
Reference: PMBOK® Guide - Fifth Edition, pages 236 and 249 (figure 8-11)
Question No : 38
Which of the following is not a conflict resolution mode you can use to resolve conflicts in your project?
Choice 1 Collaborate or Problem Solve
Choice 2 Smooth or Accommodate
Choice 3 Withdraw or Avoid
Choice 4 Force or Direct
Correct Choice : 4
Justification :
Conflict Resolution Modes
Conflict Mode Description

 Usually, the best way to resolve conflicts is to face the conflict directly with a
cooperative attitude and an open dialogue to work through disagreements resulting in
Collaborate or consensus and commitment.
Problem Solve
 Results in a Win-Win outcome
 At times, there is bargaining and searching for solutions that bring some partial or
temporary degree of satisfaction to parties in a dispute with a “give and take” attitude.
Compromise or
Reconcile
 Results in a Lose-Lose outcome
Smooth or  Sometimes you may de-emphasize or avoid areas of difference and emphasize areas of
Accommodate agreement in order to maintain relationships.
 Results in a L se-Yield outcome
 If you have the authority and have to settle conflicts quickly, you can also exert your
viewpoint at the expense of the viewpoints of others.
Force or Direct
 Results in a Win-Lose outcome
 At times, when you do not have all the information or when things are getting out of
hand, you may retreat or withdraw from a potential disagreement.
Withdraw or
Avoid
 Results in a Lose-Leave outcome
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 304- 306
Question No : 39
Which of the following is used to classify critical stakeholders on a project as a “manage closely” approach?
Choice 1 Identify Stakeholders
Choice 2 Plan Stakeholder Management
Choice 3 Stakeholder Analysis
Choice 4 Plan Communications Management
Correct Choice : 3
Justification :
During the Identify Stakeholders process, stakeholder analysis is a technique used to gather and analyze information to
determine the project stakeholders. This technique includes the classification of stakeholders. The Power/Interest Grid is
one model which can be used for this purpose.
Stakeholders who have a high level of authority (power) and high level of concern (interest) regarding the project
outcomes, fall into the “Manage Closely” quadrant of the Power/Interest Grid (please refer PMBOK® Guide Fifth Edition,
page 397, figure 13-4).

Question No : 40
In your project, you use a specific set of processes and automation tools to manage contract and procurement
documentation. This is referred to as:
Choice 1 Claims administration
Choice 2 Project documents
Choice 3 Records management system
Choice 4 Procurement document package
Correct Choice : 3
Justification :
Option 3: This is the correct answer. Records management technique is a technique used in the Control Procurements and
the Close Procurements processes.
Options 1 and 4: These are irrelevant to the context stated in the question.
Option 2: Project documents contain complete supporting records for administration of the procurement processes.

Question No : 41
You have received a lucrative offer (with double the salary) to manage a project involving construction of a bridge. But you
realize that this assignment is much more complex compared to other projects you have managed in the past and you
believe that you may not be able to complete this project successfully. In this context, you should:
Choice 1 Decline the offer.
Choice 2 Accept the offer and carry out the project to the best of your abilities.
Choice 3 Explain the situation to the project sponsor and ask her to provide you with training to take up PMP certification.
Choice 4 Ask the sponsor to assign a project lead to help you, who is an expert in managing complex bridge projects and
can be accountable for the tasks.
Correct Choice : 1
Justification :
As per the PMI code of ethics and professional conduct, a project manager should always be truthful while reporting about
his qualifications, experience, past performance, etc. to his potential employers, customers, etc.
Option 1: The project manager should not take up assignments if he is not competent enough to complete them
successfully
Option 2: This may be unethical because the question states that the project manager believes that he cannot complete
the project successfully.
Option 3: Training may help but this option does not show that the project manager will be successful in handling the
project after the training.
Option 4: This is unethical. The project manager should be accountable and should not shift responsibility of the project to
another person.

Question No : 42
The project manager of a critical project in your company has to go on leave and you have to take up his responsibility. In
the project briefing, the outgoing project manager tells you that the scope statement for the project has been documented,
WBS has been created by subdividing the major project deliverables into smaller, more manageable components and an
activity list has been prepared. What should you do NEXT?
Choice 1 Create Schedule Network Diagrams
Choice 2 Identify important project stakeholders
Choice 3 Create the project management plan
Choice 4 Create the project deliverables
Correct Choice : 1
Justification :
Project Schedule Network Diagrams are graphical representation of the logical relationships among the project schedule
activities. This is done after the activity list is created.
Reference: PMBOK® Guide Fifth Edition, page 435 (figure A1-18)
PMstudy.com comments:
Please note:
a. Option 2: Identification of project stakeholders takes place at the project initiating stage.
b. Option 3: Project management plan is created earlier at the project planning stage.
c. Option 4: Project deliverables are created much later at the project executing stage, after the project planning is
completed.
Question No : 43
As a project manager, your key responsibility is to:
Choice 1 Prevent changes in the project
Choice 2 Manage project core teams` appraisal
Choice 3 Perform project integration and uphold the project`s interest
Choice 4 Maintain good relationship with vendors
Correct Choice : 3
Justification :
In the project management context, integration includes characteristics of unification, consolidation, communication, and
integrative actions that are crucial to controlled project execution through completion, successfully managing stakeholder
expectations, and meeting requirements.

Question No : 44
In your project, you are creating documents that will define the product or report status on product completion. These can
also be referred to as:
Choice 1 Project documents
Choice 2 Project management plan
Choice 3 Scope baseline
Choice 4 Scope management plan
Correct Choice : 1
Justification :
Project documents that may be updated as a result of the Validate Scope process include any documents that define the
product or report status on product completion.

Question No : 45
You are a project manager working on a $3 billion plan to revitalize unused parts of a city. You are in charge of building an
Observation deck/Topiary garden. You have created the following diagram (duration in weeks):
What is the slack of task G?
Choice 1 0 weeks
Choice 2 1 week
Choice 3 -1 week
Choice 4 Cannot be determined
Correct Choice : 1
Justification :
Please refer to the following diagram and calculation that follows it:
START→ G→ I→ C→ D→ END: 23 weeks lies on the critical path.
So, slack of task G = 0

Question No : 46
You note that the ability to influence the cost of a project is:
Choice 1 Greatest at the early stages of the project
Choice 2 Greatest at the middle of the project
Choice 3 Greatest at the project closure stage
Choice 4 Constant throughout the project
Correct Choice : 1
Justification :
The ability to influence cost is greatest at the early stages of the project, making early scope definition critical.

Question No : 47
You are a project manager. During the quality audit, you find out that the team members have committed a number of
minor mistakes. To determine whether the process is in control, the most helpful tool you use is:
Choice 1 Ishikawa diagram
Choice 2 Pareto chart
Choice 3 Bar chart
Choice 4 Control chart
Correct Choice : 4
Justification :
Control chart is the BEST tool here as, in this process, the appropriate data is collected and analyzed to indicate the quality
status of project processes and products. Control charts illustrate how a process behaves overtime and when a process is
subject to special cause variation, resulting in an out-of-control condition.

Question No : 48
According to Maslow`s hierarchy of needs, economic security is a:
Choice 1 Physiological need
Choice 2 Safety need
Choice 3 Social need
Choice 4 Self-esteem need
Correct Choice : 2
Justification :
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 195 and 196
Question No : 49
As a project manager, you would identify risks in which of the following processes?
Choice 1 Identify Risks
Choice 2 Plan Risk Management and Identify Risks
Choice 3 Identify Risks and Control Risks
Choice 4 Perform Qualitative Risk Analysis and Control Risks
Correct Choice : 3
Justification :
Identify Risks is the process of determining which risks may affect the project and documenting their characteristics.
Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks,
identifying new risks, and evaluating risk process effectiveness throughout the project.

Question No : 50
At times, a contract can be terminated early (before contract completion). Which of the following cases can lead to contract
termination?
A. Mutual agreement of both parties

B. Default of one party
C. Convenience of the seller, if they cannot deliver as per the contract statement of work
D. Convenience of the buyer, if provided for in the contract
Choice 1 A, B and C
Choice 2 Only A and B
Choice 3 A, B and D
Choice 4 All of the Above
Correct Choice : 3
Justification :
Early termination of contract is a special case of procurement closure that can result from mutual agreement by both
parties, from the default of one party, or for convenience of the buyer if provided for in the contract.
PMstudy.com comments: Early termination of contract cannot take place for convenience of the seller or if they cannot
deliver as per the contract statement of work.
Question No : 51
You have recently taken over a project from another project manager, who left the company. You realize that the project is
behind schedule and over budget, but the senior management is unaware of this fact. In this context, what should you do
FIRST?
Choice 1 Do not continue to manage the project.
Choice 2 Update the management with the status of the project.
Choice 3 Bring the project on schedule and then inform the management about the status of the project.
Choice 4 Do crashing and fast-tracking of the project.
Correct Choice : 2
Justification :
As per the PMI Code of Ethics and Professional Conduct, a project manager should always provide true account of
information in an appropriate manner at appropriate times.
Option 1: This is an extreme step and should not be taken now

Option 2: This is the correct answer, the management should be informed about the project status.
Option 3: This is unethical - you should not withhold information from appropriate stakeholders.
Option 4: Crashing would further increase costs and fast-tracking may increase risks : this may adversely impact the
project status, and should be done only after informing the management.

Question No : 52
A project team member informs you that a particular task is taking much more time than what was budgeted. You are
surprised because you, as a project manager, had not anticipated this delay, and you ask for status reports and forecasts
from all project team members. Which process group are you in?
Choice 1 Initiating
Choice 2 Executing
Choice 3 Monitoring and Controlling
Choice 4 Planning
Correct Choice : 3
Justification :
•Control Communications is the process of monitoring and controlling communications throughout the entire project life
cycle to ensure the information needs of the project stakeholders are met.
PMstudy.com comments: Control Communications is a part of Monitoring and Controlling Process Group (PMBOK®
GuideFifth Edition, page 61, table 3-1).
Question No : 53
Develop Project Charter is the process of developing a document that formally authorizes a project or a phase and
documenting initial project requirements. In this context, which of the following statements relating to Business Need and
Business Case for a project is correct?
Choice 1 Business Case is referenced in the statement of work
Choice 2 Business Case usually includes the cost benefit analysis for the project
Choice 3 Business Need is an output of the Create Project Charter process
Choice 4 Business Need arises only because of market demand or technology changes
Correct Choice : 2
Justification :
Typically, the business need and the cost-benefit analysis are contained in the business case to justify the project.

Question No : 54
In your project, you are now interested in determining the cause of variance relative to the scope baseline and deciding
whether corrective action is required. You should use:
Choice 1 Configuration management system
Choice 2 Variance analysis
Choice 3 Re-planning
Choice 4 Earned value spreadsheets
Correct Choice : 2
Justification :
Variance analysis is a technique for determining the cause and degree of difference between the baseline and actual
performance.

Question No : 55
You are a principal at an architecture firm which has made you the Project Manager in charge of building four new
apartment and office towers on a larger waterfront construction. The project has a critical path of twenty-three weeks. What
is the impact on the duration of the critical path if the management wants you to complete the project in twenty weeks?
Choice 1 Increases by three weeks.
Choice 2 Decreases by three weeks.
Choice 3 Remains the same.
Choice 4 Cannot be determined.
Correct Choice : 3
Justification :
Duration of critical path = 23 weeks
If the management wants to complete the project in twenty weeks, then the project float will be: 20 - 23 = -3 weeks The
project float compares the critical path with an externally imposed date and may be negative. You may be forced to fast
track or perform crashing to ensure that the project is completed on time as required by the management.
There will be no change to the critical path.

Question No : 56
In your project, you want to define variance thresholds at the designated time points over the duration of a project. So, you
should use:
Choice 1 Units of measure
Choice 2 Precision level
Choice 3 Organizational procedure links
Choice 4 Control thresholds
Correct Choice : 4
Justification :
Control thresholds: Variance thresholds for monitoring cost performance may be specified to indicate an agreed-upon
amount of variation to be allowed before some action needs to be taken. Thresholds are typically expressed as percentage
deviations from the baseline plan.

Question No : 57
The explicit and implicit customer requirements that should be captured as part of your project can be referred to as:
Choice 1 Quality
Choice 2 Activity
Choice 3 Voice of the customer
Choice 4 Quality attributes
Correct Choice : 3
Justification :
Voice of the Customer. A planning technique used to provide products, services, and results that truly reflect customer
requirements by translating those customer requirements into the appropriate technical requirements for each phase of
project product development.
PMstudy.com comments: Voice of the customer refers to explicit and implicit customer requirements that should be
captured as part of the project.
Question No : 58
Frequent heated discussions with your colleague over an issue are creating a hostile environment. To ease this situation,
you agree with your colleague`s point of view. The conflict resolution mode that you are using is:
Correct Choice : 2
Justification :

Problem Solve
Compromise or
Reconcile
 Results in a Lose-Yield outcome
Force or Direct
Withdraw or
Avoid
Question No : 59
You are the project manager for a new software development project. A previously unidentified risk is discovered when the
project is nearing completion. You realize that this risk may adversely impact the project`s overall ability to deliver. As a
project manager, what step do you take FIRST?
1 Perform Quantitative Risk Analysis
2 Inform the project sponsor and the stakeholders about the potential impact of the risk on the project
3 Perform Qualitative Risk Analysis
4 Mitigate the risk to reduce its impact
Correct Choice : 3
Justification :
Perform Qualitative Risk Analysis is the process of priortizing risks for further analysis or action by assessing and
combining their probability of occurrence and impact. The key benefit of this process is that it enables project managers to
reduce the level of uncertainty and to focus on high-priority risks.
Reference: PMBOKÂ® Guide - Fifth Edition, page 328
PMstudy.com comments: Since this risk "may" adversely impact the project`s overall ability to deliver, you should perform
Project Qualitative Risk Analysis to determine the probability and impact of the risk.
Question No : 60
Your contract is nearing completion when the buyer mentions that there are some outstanding issues - this can be a
potential dispute or conflict situation. In this context, what is the best way to deal with a dispute in a contract?
Choice 1 Negotiation
Choice 2 Change request
Choice 3 Arbitration including mediation or alternative dispute resolution methods
Choice 4 Litigation in courts
Correct Choice : 1
Justification :
In all procurement relationships, the final equitable settlement of all outstanding issues, claims, and disputes by negotiation
is a primary goal. Whenever settlement cannot be achieved through direct negotiation, some form of alternative dispute
resolution (ADR) including mediation or arbitration may be explored. When all else fails, litigation in the courts is the least
desirable option.

Question No : 61
In your project, there is a necessity to use a certain technology that will save you time and money, but the required
technology is patented. After extensive research, you determine that use of any other technology is not feasible. In this
context, you should:
Choice 1 Use the required technology and pay the royalties later.
Choice 2 Try to develop another technology in-house through extensive research.
Choice 3 Pay the royalty and obtain written permission of the owner to use the technology.
Choice 4 Use the technology with little modifications to avoid patent related issues.
Correct Choice : 3
Justification :
Patented technology can be used only after obtaining written permission of the owner, and after payment of appropriate
royalties.

Question No : 62
What are the basic types of phase-to-phase relationships?
Choice 1 Sequential and concurrent
Choice 2 Iterative and sequential
Choice 3 Sequential and overlapping
Choice 4 Overlapping and iterative
Correct Choice : 3
Justification :
There are two basic types of phase-to-phase relationships. They are sequential relationships and overlapping
relationships.
Reference: PMBOK® Guide Fifth Edition, pages 42 and 43

Question No : 63
For a new project manager, who has never managed a project before, it is BEST to rely on which of the following to
improve chances of project success?
Choice 1 Advice from the outgoing project manager
Choice 2 Your project management training
Choice 4 Intuition
Correct Choice : 3
Justification :
Historical information and lessons learned information are transferred to the lessons learned knowledge base for use by
future projects or phases. This can include information on issues and risks as well as techniques that worked well that can
be applied to future projects. The outgoing manager may or may not have the complete information but all relevant
information is stored as part of the historical documents

Question No : 64
You would like to use decomposition for dividing and subdividing the project scope and project deliverables into smaller,
more manageable parts. Which of the following statements about decomposition is incorrect?
Choice 1 All deliverables have similar levels of decomposition.
Choice 2 The project team needs to seek a balance between too little and too much in the level of WBS planning detail.
Choice 3 The decomposition of the upper level WBS components requires subdividing the work for each of the deliverables
or subprojects into its fundamental components.
Choice 4 Decomposition is done as part of Create WBS process.
Correct Choice : 1
Justification :
Different deliverables can have different levels of decomposition.
PMstudy.com comments: Options 2 and 3 are details that explain the decomposition technique used in the Create WBS
process. Option 4 is correct i.e. Decomposition is a tool for the Create WBS process.
Question No : 65
You are a Project Manager in charge of building a school that will open next month in the middle of a state-funded housing
project. In your project, you are reviewing and maintaining realistic start and finish dates for project activities. This should
be done as part of:
Choice 1 Sequence Activities
Choice 2 Estimate Activity Durations
Choice 3 Develop Schedule
Correct Choice : 3
Justification :
Developing an acceptable project schedule is often an iterative process. It determines the planned start and finish dates for
project activities and milestones. Schedule development can require the review and revision of the duration estimates and
resource estimates to create an approved project schedule that can serve as a baseline to track progress.

Question No : 66
In your project, if the benefit cost ratio is greater than 1, it means that
Choice 1 The ratio of profits to cost is greater than 1.
Choice 2 The ratio of revenue to cost is greater than 1.
Choice 3 You should select this project from all other competing alternatives.
Choice 4 You should not select this project from all other competing alternatives.
Correct Choice : 2
Justification :
 Benefit Cost Ratio (BCR) = Benefits (or Payback or Revenue)/ Costs
 Project Selection Criterion: Select project with higher BCR
 BCR > 1 means that benefits (i.e. expected revenue) is greater than the cost. Hence, it is beneficial to do the
project.
Example: There are 2 projects. Project A has an investment of $500,000 and a BCR of 2.5. Project B has an investment of
$300,000 and a BCR of 1.5. Using Benefit Cost Ratio criterion, which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller investment than project A will not impact the
selection.
Please note that option 3 and 4 are not valid, because you do not know about other competing alternatives. The competing
alternatives may have a greater benefit cost ratio than this project.

Question No : 67
Recently, there have been quality related problems in your project and your sponsor has asked you to work on improving
the quality parameters. In this context, which of the following statements about quality parameters is correct?
A. Customer satisfaction refers to understanding and managing expectations so that customer requirements are met.
B. Customer satisfaction is a combination of conformance to requirements and fitness for use.
C. Quality should be planned and built in - not inspected in.
D. Cost of preventing mistakes is generally higher than cost of correcting them.
Choice 1 A and C
Choice 2 B and C
Choice 3 Only C
Choice 4 A, B and C
Correct Choice : 4
Justification :
One of the fundamental tenets of modern quality management states that quality is planned, designed, and built in - not
inspected in. The cost of preventing mistakes is generally much lower than the cost of correcting them when they are found
during inspection.

Question No : 68
A conflict resolution technique that emphasizes areas of agreement is also called:
Choice 3 Compromise or Reconcile
Correct Choice : 4
Justification :

Problem Solve
Compromise or
Reconcile
Force or Direct
Withdraw or
Avoid
Question No : 69
You are the project manager for the construction of a shopping mall. As the location is prone to earthquakes, you plan to
construct a building that is resistant to earthquakes. This is an example of:
Choice 1 Risk mitigation
Choice 2 Risk transfer
Choice 3 Risk avoidance
Choice 4 Risk acceptance
Correct Choice : 1
Justification :
Risk mitigation implies a reduction in the probability and/or impact of an adverse risk to be within acceptable threshold
limits.
PMstudy.com comments: Just as prevention is better than cure, early action is more effective than trying to repair the
damage after the risk has occurred.
Question No : 70
You are the buyer for a procurement contract and your team is receiving bids or proposals for evaluation. These will be
evaluated during:
Choice 1 Conduct Procurements process
Choice 2 Plan Procurement Management process
Choice 3 Control Procurements process
Choice 4 Select Sellers process
Correct Choice : 1
Justification :
Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. In this
process, the team will receive bids or proposals and will apply previously defined selection criteria to select one or more
sellers who are qualified to perform the work and acceptable as a seller.

Question No : 71
You have been working on a project for the last six months. Your management lets you know that you will receive an
incentive of $ 5,000, if you complete the project one month ahead of schedule. When closing the project ahead of
schedule, your team informs you that the product contains a minor flaw and may not fully satisfy the customer`s needs.
However, rectification of the minor flaw will require a lot of changes and take 2 more months. In this context, you will:
Choice 1 Close out the project.
Choice 2 Review the situation with your customer and sponsor.
Choice 3 Rectify the flaw and then close out the project.
Choice 4 Close the project and then inform the sponsor about the flaw.
Correct Choice : 2
Justification :
Option 2: Since this is a "minor flaw," but rectification of that flaw would take a long time, it is better to discuss with the
sponsor and customer and get their inputs
Option 1 and Option 4: This is unethical - the project manager should definitely complete the project as per the
specifications before closing the project.
Option 3: Rectification of a minor flaw can lead to delay of 2 months in the project: so, the project manager should first
inform the sponsor and customer before rectification of the flaw.

Question No : 72
You are in the process of developing the project charter. Which of the following forms the basis for the Develop Project
Charter process?
Choice 1 Project Charter
Choice 2 Project Statement of Work
Choice 3 Deliverables
Choice 4 Project Management Plan
Correct Choice : 2
Justification :
Project Statement of Work is a narrative description of products, services, or results to be delivered by the project. It is an
input to Develop Project Charter process.
Reference: PMBOK® Guide Fifth Edition, pages 564 (Definition of Statement of Work) and 426 (figure A1-5).
a. Option 1: Project Charter is an output from the Develop Project Charter process.
b. Option 3: Deliverables are outputs from the Direct and Manage Project Work process.
c. Option 4: Project Management Plan is an output from the Develop Project Management Plan process.
Question No : 73
A project management plan should be realistic so that it can be used to manage a project successfully. Which of the
following is the BEST method to prepare a realistic project management plan?
Choice 1 Project manager creates the project management plan based on inputs from the sponsor and the functional
manager.
Choice 2 Sponsor creates the project management plan based on inputs from the project manager and the functional
manager.
Choice 3 Project manager creates the project management plan based on inputs from the team.
Choice 4 Sponsor creates the project management plan based on inputs from all the stakeholders.
Correct Choice : 3
Justification :
The project management plan is prepared by the project manager based on the inputs from the team and all the
appropriate stakeholders.

Question No : 74
As a project manager, which tool will you use to bring together prequalified stakeholders and subject matter experts in
order to know about their expectations and attitudes about a proposed product?
Choice 1 Facilitated workshops
Choice 2 Focus Groups
Choice 3 Group creativity techniques
Choice 4 Group decision making techniques
Correct Choice : 2
Justification :
Focus groups bring together prequalified stakeholders and subject matter experts to learn about their expectations and
attitudes about a proposed product, service, or result.

Question No : 75
You are the managing a complicated ERP implementation project. The following provides information about one activity:
deployment in your project:
Early Start (ES): 25 days

Late Start (LS): 30 days
Early Finish (EF): 50 days
Late Finish (LF): 55 days
Based on this information, you can deduce that:
Choice 1 The task is on the critical path.
Choice 2 The project may get delayed.
Choice 3 The project float is 5 days.
Choice 4 The task is not on the critical path.
Correct Choice : 4
Justification :
Option 4: This is the correct option, as the task is not on the critical path.
Option 1: Since LS - ES = LF - EF = 5 days, the task has a slack of 5 days; hence this task cannot be on the critical path
Option 2: There is no information in the question that suggests that the project may get delayed,
Option 3: The project float is the amount of time a project can be delayed without delaying the externally imposed date.
Since the externally imposed date is not mentioned, we cannot determine the project float.
Question No : 76
In your project, you use the Earned Value Management (EVM) to measure:
Choice 1 Work performance and magnitude of variation
Choice 2 Work schedule
Choice 3 Risk responses
Choice 4 Activity duration
Correct Choice : 1
Justification :
Earned Value Management (EVM) is a methodology that combines scope, schedule and resource measurements to
assess project performance and progress. It is commonly used method of performance measurement for projects.

Question No : 77
In your project, you conduct extensive testing to ensure that quality problems in the final product are minimized. The costs
incurred on extensive testing are known as:
Choice 1 Costs of non-conformance
Choice 2 Appraisal costs
Choice 3 Failure costs
Choice 4 Prevention costs
Correct Choice : 2
Justification :
Reference: PMBOK® Guide - Fifth Edition, page 235 (figure 8-5).
PMstudy.com comments: Appraisal costs are costs incurred by an organization to assess the quality of the products and
services in order to avoid failures. They include cost of testing, cost of destructive testing loss, cost of inspections, etc.
Question No : 78
When your objective is to get a lasting win-win solution to a problem, which conflict resolution technique should you use?
Correct Choice : 1
Justification :

Problem Solve
Compromise or
Reconcile
Force or Direct
Withdraw or
Avoid
Question No : 79
You are a project manager and have just discovered a risk in your project that requires an immediate corrective action.
During which Project Risk Management Process is this action performed?
Choice 1 Plan Risk Management
Choice 3 Perform Qualitative Risk Analysis
Choice 4 Control Risks
Correct Choice : 4
Justification :
Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks,
identifying new risks, and evaluating risk process effectiveness throughout the project.
PMstudy.com comments: This process helps in meeting the unexpected risks which require immediate corrective action.
Question No : 80
In your project, you are documenting project purchasing decisions, specifying the approach, and identifying potential
sellers. In this context, which tool would you not use?
Choice 1 Make-or-buy analysis
Choice 2 Bidder conferences
Choice 3 Expert judgment
Choice 4 Contract types
Correct Choice : 2
Justification :
Option 2: This is the correct answer. Documenting project purchasing decisions, specifying the approach and identifying
potential sellers are performed as part of the Plan Procurement Management process. `Bidder conferences` is a technique
used in Conduct Procurements process.
Make-or buy-analysis, expert judgment, and contract types specified in the options 1, 3, and 4 respectively are some of the
tools and techniques used in Plan Procurement Management process.

Question No : 81
In your project, the project manager believes in the superiority of his own race or ethnic background. This is an example of:
Choice 1 Monochronic
Choice 2 Polychronic
Choice 3 Ethnocentric
Choice 4 Egalitarian
Correct Choice : 3
Justification :
Some important definitions:
a) Monochronic: Doing one thing at a time
b) Polychronic: Doing many things at once
c) Ethnocentric: Belief in the superiority of one`s own race or ethnic background
d) Egalitarian: Treating all the project team members equally
e) Culture shock: Homesickness (in foreign assignments)

Question No : 82
In your project, you are formalizing acceptance of the completed project deliverables. This is done during:
Choice 1 Perform Integrated Change Control
Choice 4 Control Communications
Correct Choice : 2
Justification :
Validate Scope is the process of formalizing acceptance of the completed project deliverables.

Question No : 83
As a project manager, you use work authorization system to assign and allocate work to your team members. In this
context, the primary purpose of the work authorization system is to:
Choice 1 Prevent team members from starting the work without your permission
Choice 2 Prevent scope creep
Choice 3 Prevent unnecessary changes to project scope
Choice 4 Clarify and initiate the work for each work package
Correct Choice : 4
Justification :
Work authorization system: A subsystem of the overall project management system. It is a collection of formal documented
procedures that defines how project work will be authorized (committed) to ensure that the work is done by the identified
organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking system, and defined
approval levels needed to issue work authorizations.

Question No : 84
You have recently joined as a project manager of an equipment manufacturing company. Your project sponsor stresses
the importance of obtaining stakeholders` formal acceptance of completed deliverables. This should be done:
Choice 1 At the end of the project
Choice 2 At the end of each project phase
Choice 3 After deliverables are completed and ready for review
Choice 4 After project milestones are defined
Correct Choice : 3
Justification :
Validate Scope is the process of formalizing acceptance of the completed project deliverables. The verified deliverables
obtained from the Control Quality process are reviewed with the customer or sponsor to ensure that they are completed
satisfactorily and have received formal acceptance of the deliverables by the customer or sponsor.

Question No : 85
You are a project manager in a construction company specializing in fabrication of steel parts for bridges. One of your
tasks includes "building the steel deck," for which some standardized partially completed schedule network diagram
documents are available. These documents provide a detailed structure helping in the creation of project network diagrams
and are examples of:
Choice 1 Conditional diagramming method
Choice 2 PERT
Choice 3 System dynamics
Choice 4 Templates
Correct Choice : 4
Justification :
Templates are a partially complete document in a predefined format that provides a defined structure for collecting,
organizing, and presenting information and data.

Question No : 86
A project was expected to cost $6 million for three months. At the end of one month, you use earned value management as
a performance management technique and get the following information:
Earned value (EV) = $1.5 million

Planned value (PV) = $2.5 million
Actual cost (AC) = $2.2 million
In this context, what would be the schedule variance?
Choice 1 - $0.3 million
Choice 2 - $1 million
Choice 3 $1 million
Choice 4 $0.7 million
Correct Choice : 2
Justification :
Schedule variance
= Earned value (EV) - Planned Value (PV)
= $1.5 million - $2.5 million
= - $1 million
Negative schedule variance means that the project is behind schedule.

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

Question No : 87
Your project is facing attrition of project resources, and you would like to document processes carefully to ensure business
continuity. Certain costs have to be incurred for this purpose. These costs are known as:
Choice 1 Costs of nonconformance
Choice 2 Appraisal costs
Choice 3 Failure costs
Choice 4 Prevention costs
Correct Choice : 4
Justification :
Cost of quality includes all costs incurred over the life of the product by investment in preventing nonconformance to
requirements, appraising the product or service for conformance to requirements, and failing to meet requirements
(rework).
Reference: PMBOK® Guide - Fifth Edition, page 235, figure 8-5.
PMstudy.com comments:‘Prevention costs’ are costs incurred by an organization to create high quality products in order to
avoid failures. They include cost of training, cost of documenting processes, cost of equipment, etc.
Question No : 88
The project manager is trying to manage conflicting stakeholder requirements. The IT manager wants a new management
information system. To lower costs, the system architect emphasizes technical excellence, and the programming
contractor wants to maximize profits. To balance the needs of several stakeholders and achieve lasting resolution of
conflicts, the most desirable conflict resolution technique is:
Correct Choice : 1
Justification :

Problem Solve
Compromise or
Reconcile
Force or Direct
Withdraw or
Avoid
Question No : 89
You are the project manager in an IT consultancy firm which does projects for other companies. Based on your interaction
with senior management of other companies, you classify your clients into categories like Risk Averse, Risk Neutral and
Risk Seeking. You are using:
Choice 1 Risk Management Planning
Choice 2 Utility theory
Choice 3 Risk identification
Choice 4 Risk categorization
Correct Choice : 2
Justification :
Utility Function (Utility Theory): This is used to measure stakeholder risk tolerance and defines the level or willingness to
accept a risk. The three categories of utility theory are Risk Averse, Risk Neutral, and Risk Seeking.

Question No : 90
You are in the process of procuring nuts and bolts for a car manufacturing company. This is a readily available product for
which there are several acceptable sellers. In this context, which of the following would serve as the most important
selection criterion/criteria?
Choice 1 Technical capability and references
Choice 2 Overall or life-cycle cost
Choice 3 Production capacity and interest
Choice 4 Purchase price
Correct Choice : 4
Justification :
Option 4: This is the correct answer. If the procurement item is readily available from a number of acceptable sellers, then
the selection criterion to be used is `purchase price`. Purchase price includes both the cost of the item and all ancillary
expenses such as delivery.
Option 1: Technical capability is the selection criterion that is used when the project demands a high degree of technical
expertise on the part of the seller. It is used to select a seller with the best technical skills and knowledge from among the
potential sellers. `References’ is used as a selection criterion when the project is of utmost importance and requires the
seller to possess impeccable track record of successfully completing similar projects.
Option 2: Overall life-cycle cost is the selection criterion that is used when the project requires selection of a seller who
produces the lowest total cost of ownership.
Option 3: `Production capability and interest` is the selection criterion that is used when the project requires selection of a
seller who has the capability and interest to meet the potential future requirements.

Question No : 91
You are in the planning phase of your project and your project is 5 days behind schedule. The customer has asked you not
to create a Communications Management Plan because it is not required for your project. What should you do?
Choice 1 Do not create the Communications Management Plan as per the customer request
Choice 2 Ask for inputs from the sponsor about whether you should create the Communications Management Plan.
Choice 3 Create a Communications Management Plan even though it might mean going against customer wishes.
Choice 4 Use the Communications Management Plan from a previous project so that there are no further delays in the
planning process
Correct Choice : 3
Justification :
The project manager should follow all the project management processes, even if it might be more time consuming and
difficult at times. At times, this may mean disagreeing with the sponsor or customer.
Please note that the Communications Management Plan is an important document and should definitely be created for
every project.

Question No : 92
You are a project manager with NASA and are involved in designing satellite systems. In this context, who among the
following cannot initiate your new project?
Choice 1 Government
Choice 2 Project Team
Choice 3 Portfolio Organization of NASA
Choice 4 Company in England, which wants a particular type of satellite to be developed by NASA
Correct Choice : 2
Justification :
Projects are initiated by an entity external to the project such as a sponsor, PMO staff person, or a portfolio governing body
chairperson or authorized representative.
PMstudy.com comments: A project team cannot initiate the project it is involved in.
Question No : 93
You are nearing project completion and want to get feedback about the overall project performance. From project
management perspective, a project is considered to be successful when:
Choice 1 The project manager announces the completion of the project.
Choice 2 The project is completed within the constrains approved between the project managers and senior management
and meets the stated project objectives.
Choice 3 The sponsor announces the completion of the project.
Choice 4 The customer is happy because you provided additional features which she had not expected.
Correct Choice : 2
Justification :
Since projects are temporary in nature, the success of the project should be measured in terms of completing the project
within the constraints of scope, time, cost, quality, resources, and risk as approved between the project managers and
senior management.
PMstudy.com comments: A project is undertaken in order to meet a set of objectives. A project is said to be successful
when it meets those objectives. The project manager is responsible for the success of the project.
Please note that option 4 (providing additional features) is called "gold plating" and is not recommended by PMI.
Question No : 94
Which of the following statements related to Validate Scope and Control Quality is correct?
Choice 1 Control Quality deals with acceptance of products.
Choice 2 Validate Scope may be performed in parallel with Control Quality.
Choice 3 Validate Scope should not be done if the project is terminated.
Choice 4 Validate Scope and Control Quality are very similar processes.
Correct Choice : 2
Justification :
The Validate Scope process differs from the Control Quality process in that the former is primarily concerned with
acceptance of the deliverables, while quality control is primarily concerned with correctness of the deliverables and
meeting the quality requirements specified for the deliverables. Control Quality is generally performed before Validate
Scope, although the two processes may be performed in parallel.

Question No : 95
You are managing the construction project of a highway overpass. The project is critical, and must stay on schedule in
order to not cause delays in subsequent projects being planned. Your sponsor has placed a lot of pressure on you to
ensure that you do a good job of planning the schedule for this project so it can be submitted to the project managers of
those subsequent projects to be taken into account during their planning processes. You would like to use the best
practices in the road construction industry to help you in your project. Which of the following tools of Sequence Activities
process are based on these best practices?
Choice 1 Mandatory dependencies
Choice 2 Discretionary dependencies
Choice 3 Industry norms
Choice 4 Best Practice standards for ISO 9001 certification
Correct Choice : 2
Justification :
Discretionary dependencies are established based on the knowledge of best practices within a particular application area
or some unusual aspect of the project where a specific sequence is desired, even though there may be other acceptable
sequences. Discretionary dependencies should be fully documented, since they can create arbitrary total float values and
can limit later scheduling options.

Question No : 96
While performing variance analysis for your project, you refer to your status reports which show the following information:
Planned value = $100,000

Actual cost = $125,000
Earned value = $90,000
In this context, which of the following is incorrect?
Choice 1 Schedule variance is - $10,000 and you are behind schedule
Choice 2 Cost variance is - $35,000 and you are over-budget
Choice 3 CPI is 0.5 and you are over-budget
Choice 4 SPI is 0.9 and you are behind schedule
Correct Choice : 4
Justification :
CV (Cost Variance)
= EV - AC
= $90,000 - $125,000
= - $35,000 (since this is negative, you are over-budget)
CPI (Cost Performance Index)

= EV/AC
= $90,000 / $125,000
= 0.72 (since this is <1, you are over-budget)
SV (Schedule Variance)
= EV - PV
= $90,000 - $100,000
= - $10,000 (since this is negative, you are behind schedule)
SPI (Schedule Performance Index)

= EV/ PV
= $90,000 / $100,000
= 0.9 (since this is <1, you are behind schedule)
The above calculations show that all options except option 3 are correct . Hence, option 3 is the right answer.
Also, please refer to PMBOK® Guide - Fifth Edition, pages 218 and 219
Question No : 97
In your project, you are creating a component-specific structured tool to verify that a set of required steps has been
performed. This tool is called:
Choice 1 Quality metric
Choice 2 Quality checklist
Choice 3 Work authorization system
Correct Choice : 2
Justification :
Quality checklist is a structured tool, usually component-specific, used to verify that a set of required steps has been
performed.

Question No : 98
There have been too many disagreements within two team-members in your project over the design of a particular product.
You would like to incorporate the best features of the two designs. You also want to create an environment that avoids
conflicts and emphasizes similarities. The conflict handling mode you would like to implement is:
Correct Choice : 1
Justification :

Problem Solve
Compromise or
Reconcile
Force or Direct
Withdraw or
Avoid
Question No : 99
In the Plan Risk Management process, you define how to conduct risk management activities for a project because careful
and explicit planning enhances the probability of success for the subsequent risk management processes. In this context,
what will you NOT do when you Plan Risk Management?
Choice 2 Establish an agreed-upon basis for evaluating risk
Choice 3 Ensure that the degree, type, and visibility of risk management are commensurate with both the risks and the
importance of the project
Choice 4 Provide sufficient resources and time for risk management activities
Correct Choice : 1
Justification :
The key benefit of the Plan Risk Management process is it ensures that the degree, type, and visibility of risk management
are commensurate with both the risks and the importance of the project to the organization...Planning is also important to
provide sufficient resources and time for risk management activities, and to establish an agreed-upon basis for evaluating
risks.
PMstudy.com comments: Risk identification (the Identify Risk process) is not done during the Plan Risk Management
process.
Question No : 100
You are in the process of obtaining seller responses to select a seller. In this context, you conduct a bidder conference,
where your primary objective is to:
Choice 1 Ensure that sellers have a clear understanding of the proposal
Choice 2 Determine who would be qualified sellers for bidding
Choice 3 Evaluate the interest level of sellers
Choice 4 Use evaluation criteria to select sellers
Correct Choice : 1
Justification :
Bidder conferences are meetings between the buyer and all prospective sellers prior to submittal of a bid or proposal. They
are used to ensure that all prospective sellers have a clear and common understanding of the procurement requirements,
and that no bidders receive preferential treatment.

Question No : 101
In your project, you notice that one of the team members is not following a company policy about reporting daily status in
the company Project Management Information System. You also realize that by not following this policy, the team member
is able to be more productive since he spends the extra time working on project deliverables. What will you do in this
situation?
Choice 1 Do nothing since the team member is more productive
Choice 2 Ask the team member to follow the company policies and report daily status(even if it means lower productivity).
Choice 3 Modify the company policy to the requirements of the project.
Choice 4 Escalate this issue to senior management.
Correct Choice : 2
Justification :
Project Managers should ensure that team members adhere to the company policies at all times.
Reference:PMstudy.com comments
Question No : 102
You have acquired a team and assigned tasks for the selected team members of your project. This activity is performed
during:
Choice 1 Planning
Choice 3 Executing
Choice 4 Closing
Correct Choice : 3
Justification :
Acquire Project Team is the process of confirming human resource availability and obtaining the team necessary to
complete project activities. Project staff assignments is an output of Acquire Project Team process, which is a part of
Executing Process Group.
Reference: PMBOK® Guide Fifth Edition, pages 447 (figure A1-35) and 61 (table 3-1)
Question No : 103
The project management plan is the most important planning document produced with inputs from several project team
members. In which of the following processes will the project management plan NOT be updated?
Choice 1 Monitor and Control Project Work
Choice 2 Develop Project Charter
Choice 4 Direct and Manage Project Work
Correct Choice : 2
Justification :
Develop Project Management Plan is the process of defining, preparing, and coordinating all subsidiary plans and
integrating them into a comprehensive project management plan. Project management plan is the only output of this
process.
PMstudy.com comments: Project management plan will be updated in the processes stated in options 1, 3, and 4.
However, it is not created/updated when we create the project charter (option 2).
Question No : 104
While performing Scope Control process, you ensure that all requested changes and recommended corrective actions are
processed through the Perform Integrated Change Control process. In this context, if a change is requested, what should
the project manager do FIRST?
Choice 1 Discuss the change in the next status review meeting
Choice 2 Try to find out the financial implication of the change
Choice 3 Evaluate the change and try to prevent unwarranted changes
Choice 4 Involve the change control board
Correct Choice : 3
Justification :
The project manager should always try to first evaluate the change and try to prevent unwarranted changes, which can
adversely impact the project scope.
Option 1: We do not know when the next status review meeting will be conducted, and it may not be the correct forum to
discuss all proposed changes.
Option 2 and Option 4 should be done only after changes are evaluated.
Reference: PMstudy.com study notes

Question No : 105
In your project, your team is identifying which dependencies are discretionary during the process of sequencing the
activities. Discretionary dependencies are sometimes referred to as:
Choice 1 Soft logic
Choice 2 Hard logic
Choice 3 Mandatory logic
Choice 4 Optional dependency
Correct Choice : 1
Justification :
Discretionary dependencies are sometimes referred to as preferred logic, preferential logic, or soft logic.

Question No : 106
You are the project manager for a construction company tasked with constructing an office building. The office building will
be 10 stories high and will have 200,000 sq. ft. of working area. Your company has expertise in constructing similar
buildings. You are asked to submit a high level estimate for the building within 4 days. Which of the following is the most
appropriate?
Choice 1 Parametric estimating: Work with a construction engineer who has expertise in similar buildings, find out the rate
per sq. ft. of construction and multiply with the total sq. feet of the building to get an estimate.
Choice 2 Bottom-up estimating: Ask the individual project team members to create a WBS and determine the costs of
activities - use that as a basis for calculating the estimate for the whole building.
Choice 3 Vendor bid analysis: Submit a bid to some companies and use their estimates as a basis for getting an estimate
for your project.
Choice 4 Let your sponsor know that it would not be possible to get any reasonable estimate within such a short time
period.
Correct Choice : 1
Justification :
Parametric estimating uses a statistical relationship between relevant historical data and other variables (e.g., square
footage in construction) to calculate a cost estimate for project work. This technique can produce higher levels of accuracy
depending upon the sophistication and underlying data built into the model.
Option 2 (Bottom-up estimating) is very accurate but will take much longer.
Option 3 (Vendor bid analysis) will take long and procurement details are not stated in the question, so this is not a valid
option.
Option 4 is also not correct, because we can get a high level estimate using parametric estimating technique.
Question No : 107
In your project, you are doing a structured review to determine whether product activities comply with organizational and
project policies. This is conducted as part of (a) ________________, and is performed during the (b) _____________
process.
Choice 1 (a) Quality audit (b) Quality Assurance
Choice 2 (a) Quality audit (b) Control Quality
Choice 3 (a) Process analysis (b) Quality Assurance
Choice 4 (a) Process analysis (b) Control Quality
Correct Choice : 1
Justification :
Quality audit is a structured, independent review performed to determine whether product activities comply with
organizational and project policies, processes, and procedures. `Quality audits` is a technique used in the Perform Quality
Assurance process.

Question No : 108
Managing conflicts is essential for successful implementation of a project. The conflict resolution techniques that are most
frequently used in project management practice are:
Choice 1 Withdraw, Force, Compromise
Choice 2 Withdraw, Authoritative, Force
Choice 3 Withdraw, Authoritative, Compromise
Choice 4 Withdraw, Collaborate, Accommodate
Correct Choice : 1
Justification :

Problem Solve
Compromise or
Reconcile
Force or Direct
Withdraw or
Avoid
Question No : 109
When talking to the stakeholders to identify risk, you usually start with general or high level questions and then get into
specific or particular questions. This is also called:
Choice 1 Risk categorization
Choice 2 Nominal group technique
Choice 3 Delphi technique
Choice 4 Funnel analysis
Correct Choice : 4
Justification :
Funnel Analysis: A type of interviewing technique by which we start with general or high level questions and then get into
specific or particular questions.

Question No : 110
In Conduct Procurements process, you award a contract to the selected seller. In this context, which of the following does
not describe a contract?
Choice 1 Simple or complex
Choice 2 Formal or informal
Choice 3 Cost Reimbursable, Time and Material or Fixed Price
Choice 4 Signed off by the buyer and the seller
Correct Choice : 2
Justification :
The contract can be in the form of simple purchase order or a complex document. Regardless of the document’s
complexity, a contract is a mutually binding legal agreement that obligates the seller to provide the specified products,
services, or result, and obligates the buyer to compensate the seller. A contract is a legal relationship subject to remedy in
the courts. Since it is a legal document, it is formal in nature.

Question No : 111
You have been assigned to manage a project for the subsidiary unit of your organization in a foreign country. In this
context, which of the following will aid you in managing the project better?
Choice 1 Awareness of the political history of the country.
Choice 2 Information about the country`s demography and social structure.
Choice 3 Awareness of culture and customs in the country
Choice 4 Information about previous projects done in the country by your competitors.
Correct Choice : 3
Justification :
PMI emphasizes multiculturalism as an important aspect of modern day project management. So it is always helpful to
possess knowledge of culture and systems in a country where a project will be done.

Question No : 112
You have created a risk management plan to decide how to approach, plan, and execute the risk management activities for
your project. Thereafter, you are involved with Identify Risks process to determine which risks might affect your project.
What should you do NEXT?
Choice 1 Plan Quality
Choice 2 Plan Risk Responses
Choice 3 Perform Qualitative Risk Analysis
Correct Choice : 3
Justification :
Perform Qualitative Risk Analysis follows Identify Risks. This is a process of prioritizing risks for further analysis or action
by assessing and combining their probability of occurrence and impact.
Reference: PMBOK® Guide Fifth Edition, page 61 (table 3-1)
PMstudy.com comments: Option 1 (Plan Quality) and Option 4 (Define Activities) are not dependent on risk identification
(they can be done in parallel with Identify Risks). Option 2 (Plan Risk Responses) will be done after Perform Qualitative
Risk Analysis and Perform Quantitative Risk Analysis. Please refer to PMBOK® Guide Fifth Edition, page 428 (figure A1-
7).
Question No : 113
Patrick, a senior member of your team, brought to your notice a flaw in one of the project`s deliverables. The team is now
engaged in repairing it. In which of the following project management processes would this be performed?
Choice 1 Direct and Manage Project Work
Choice 3 Close Project or Phase
Choice 4 Monitor and Control Project Work
Correct Choice : 1
Justification :
Direct and Manage Project Work also requires review of the impact of all the project changes and the implementation of
approved changes ...An intentional activity to modify a nonconfirming product or product component.

Question No : 114
Your project is being carried out under a contract. There have been some changes in the project scope and you want to
determine the cause of variance with respect to the scope baseline. This will help you decide whether corrective action is
required. This should be done as part of:
Choice 1 Define Scope
Correct Choice : 4
Justification :
During the Control Scope process, we use the technique called variance analysis. In variance analysis, project
performance measurements are used to assess the magnitude of variation from the original scope baseline. Important
aspects of project scope control include determining the cause and degree of variance relative to the scope baseline and
deciding whether corrective or preventive action is required.

Question No : 115
During the Sequence Activities process, you realize that several tasks have conditional branches (e.g., a design update is
only needed if the inspection detects errors). For this purpose, you may use Precedence diagramming method (PDM),
which is also referred to as:
Choice 1 GERT
Choice 2 AOA
Choice 3 AON
Choice 4 Conditional diagramming methods
Correct Choice : 3
Justification :
Precedence diagramming method is also called Activity-On-Node (AON).

Question No : 116
You are working on a 12 month assignment to build a website with 4,000 pages for $1,000,000. You are supposed to
spend $250,000 every 3 months. After 6 months, you determine that only $400,000 of work is completed and cost incurred
is $800,000. What is the ETC?
Choice 1 $2,000,000
Choice 2 $1,500,000
Choice 3 $1,000,000
Choice 4 $1,200,000
Correct Choice : 4
Justification :
The default value of EAC (assuming current variances are typical) is calculated as below:
CPI = EV/AC
CPI = $400,000 / $800,000
CPI = 0.5
EAC = BAC/CPI
EAC = $1,000,000/0.5
EAC = $2,000,000
So, ETC = EAC – AC = $2,000,000 – $800,000 = $1,200,000

Question No : 117
Your company manufactures bearings for the automobile industry. Control charts are used to determine whether or not a
process is stable or has predictable performance. Specification limits indicate:
Choice 1 If process is within control limits
Choice 2 Whether the product would be successful in the market
Choice 3 Maximum and minimum values allowed
Choice 4 Process improvement opportunities
Correct Choice : 3
Justification :
Control charts are used to determine whether or not a process is stable or has predictable performance. Upper and lower
specification limits are based on requirements of the contract. They reflect the maximum and minimum values allowed.
PMstudy.com comments
Option 1: Control limits are set by the project manager and appropriate stakeholders. They are different from specification
limits that are provided by the customer or contract.
Option 2: Whether a product will be successful in the market or not depends on several additional factors like business
needs, competitor analysis, pricing, etc.
Option 4: Although control charts may be used to help in process improvements, specification limits determine only the
maximum and minimum values allowed.
Question No : 118
Implementation of which one of the following techniques results in a lose-lose situation?
Correct Choice : 3
Justification :

Problem Solve
Compromise or
Reconcile
 Results in a Lose-Yield ou come
Force or Direct
Withdraw or
Avoid
Question No : 119
In your project, you want to determine which risks have the most potential impact on the project. So, you examine the
extent to which the uncertainty of each project element affects the objective being examined when all other uncertain
elements are held at their baseline values. This is an example of:
Choice 1 Risk response planning
Choice 2 Expected monetary value analysis
Choice 3 Sensitivity analysis
Choice 4 Simulation
Correct Choice : 3
Justification :
Sensitivity analysis helps to determine which risks have the most potential impact on the project. It helps to understand
how the variations in project`s objectives correlate with variations in different uncertainties. Conversely, it examines the
extent to which the uncertainty of each project element affects the objective being studied when all other uncertain
elements are held at their baseline values.

Question No : 120
Which of the following should you (the buyer) pay attention to when you Conduct Procurements?
Choice 1 Ensure that contractual obligations are met.
Choice 2 Apply appropriate project management processes to the contractual relationship and integrate the outputs from
these processes to the overall management of the project.
Choice 3 Monitor payments to the seller.
Choice 4 Perform regular procurement audits.
Correct Choice : 4
Justification :
A procurement audit is a structured review of the procurement process originating from Plan Procurement Management
process through Conduct Procurements process. This is one of the tools and techniques used in Close Procurements
process.

Question No : 121
Your project is complete and you are performing project closure activities. In this context, what should you do LAST?
Choice 1 Creating final product, service, or result transition
Choice 2 Releasing project resources working on the project
Choice 3 Updating organizational process assets
Choice 4 Accepting deliverables
Correct Choice : 2
Justification :
Final product, service, or result transition, organizational process assets updates are outputs of the Close Project or Phase
and accepted deliverables are its inputs. However, even the Close Project will need resources (e.g. people, equipment,
etc.). Hence, releasing of project resources should happen at the very end of the Close Project or Phase.

Question No : 122
In your company, you use Microsoft project as a project management information system (PMIS) - this facilitates
automation and easier project management. Which of the following statements about PMIS is incorrect?
Choice 1 PMIS is used during Direct and Manage Project Execution
Choice 2 PMIS is part of organizational process assets
Choice 3 PMIS includes scheduling software and configuration management system
Choice 4 PMIS can be used for information collection and dissemination
Correct Choice : 2
Justification :
The PMIS, which is part of the environmental factors, provides access to tools, such as a scheduling software tool, a work
authorization system, a configuration management system, an information collection and distribution system, or interfaces
to other online automated systems. Automated gathering and reporting on key performance indicators (KPI) can be part of
this system.

Question No : 123
Your project has limited budget and you would like to determine how to complete the project at lower costs. This can be
done using:
Choice 1 Earned value management analysis
Choice 2 Fishbone diagram
Choice 3 Value analysis
Choice 4 Stakeholder analysis
Correct Choice : 3
Justification :
Value analysis or value engineering helps determine how to complete the project at a lower budget without any changes to
the project scope.

Question No : 124
While preparing the schedule for the project activities, you find that there is very limited information on activity durations; so
you wish to use the actual duration of a previous, similar activity as a basis for estimating future activity. Which estimating
tool do you use?
Choice 1 Three-point estimates
Choice 2 Parametric estimating
Choice 3 Quantitative estimating
Choice 4 Analogous estimating
Correct Choice : 4
Justification :
Analogous estimating uses parameters such as duration, budget, size, weight, and complexity, from a previous, similar
project, as the basis for estimating the same parameter or measure for a future project. Analogous duration estimating is
frequently used to estimate project duration when there is a limited amount of detailed information about the project, for
example, in the early phases of a project. Analogous estimating uses historical information and expert judgment.

Question No : 125
Please refer to the diagram given below.
At time x, the project is :
Choice 1 Behind schedule, Over-budget
Choice 2 Ahead of schedule, Over-budget
Choice 3 Behind schedule, Under-budget
Choice 4 Ahead of schedule, Under-budget
Correct Choice : 3
Justification :
The diagram shows that at time x, SPI < 1 (i.e., behind schedule) and CPI > 1 (i.e., under-budget).
Please note that in earned value management calculations, ratios > 1 is desirable.
Question No : 126
In your project, you use control charts to monitor cost and schedule variances. In this context, you would call the process
“out of control” in which of the following cases:
A. Seven consecutive plot points are above the mean.

B. Point below lower control limits
C. Point exactly on the mean
D. Seven consecutive plot points are below the mean.
Choice 1 A, B and C
Choice 2 Only A and B
Choice 3 A, B and D
Choice 4 Only B
Correct Choice : 3
Justification :
A process is considered out of control when: (1) a data point exceeds a control limit; (2) seven consecutive plot points are
above the mean; or (3) seven consecutive plot points are below the mean.
PMstudy.com study notes: When a point is on mean, then it is within the control limits, which in turn means that the
process is in control. In all other situations, the process is "out of control".
Question No : 127
In your project, you want to use organization charts to document team member roles and responsibilities. This will ensure
that each work package or activity has an unambiguous owner and that all team members have a clear understanding of
their roles and responsibilities. In this context, which of the following is incorrect?
Choice 1 Hierarchical charts include OBS (organization breakdown structure) and RBS (resource breakdown structure).
Choice 2 Matrix based charts can also be called RACI or RAM charts.
Choice 3 Organization breakdown structure is arranged according to an organization`s departments, units, or teams with
the project activities or work packages listed under each department.
Choice 4 RAM charts show how project roles and responsibilities are linked to project schedule.
Correct Choice : 4
Justification :
A responsibility assignment matrix (RAM) is used to illustrate the connections between work packages or activities and
project team members. The Matrix format shows all activities associated with one person and all persons associated with
one activity.
PMstudy.com comments: RAM charts do not show any link to the project schedule.
Question No : 128
You are a retail company which routinely buys goods from foreign countries. Since currency fluctuation is an important risk,
you keep all other factors constant and try to find out how much your project will be impacted if the currency rate fluctuates
by 5%, 10%, 20% or 25%. This helps you determine appropriate risk response. This can also be effectively shown using:
Choice 1 Beta probability distributions
Choice 2 Expected monetary value analysis
Choice 3 Tornado diagram
Choice 4 Simulation
Correct Choice : 3
Justification :
Sensitivity analysis helps to determine which risks have the most potential impact on the project. It helps to understand
how the variations in project`s objectives correlate with variations in different uncertainties. Conversely, it examines the
extent to which the uncertainty of each project element affects the objective being studied when all other uncertain
elements are held at their baseline values. One typical display of sensitivity analysis is the tornado diagram, which is useful
for comparing relative importance and impact of variables that have a high degree of uncertainty to those that are more
stable.
PMstudy.com comments: Since all other factors are kept at baseline values and only one element (i.e. currency rate) is
changed, we are using Sensitivity Analysis. This can be shown using a Tornado diagram.
Question No : 129
In your contract, you can make pre-defined final adjustments to the contract price due to changed conditions like inflation,
foreign exchange value fluctuations, and input cost variations. This provision is built into which of the following types of
contracts?
Choice 1 Cost Reimbursable contracts with escalation clauses
Choice 2 Fixed Price with Economic Price Adjustment contracts
Choice 3 Fixed Price Incentive Fee contracts
Choice 4 Cost Plus Award Fee contracts
Correct Choice : 2
Justification :
Fixed Price with Economic Price Adjustment contract (FP-EPA) is a contract type which is used whenever the seller’s
performance period spans a considerable number of years as is desired with many long-term relationships. It is a fixed-
price contract, but with a special provision allowing for pre-defined final adjustments to the contract price due to changed
conditions, such as inflation changes, or cost increases (or decreases) for specific commodities.

Question No : 130
You have created the Work Breakdown Structure (WBS) for your project. Major project deliverables have been divided into
smaller more manageable components. What should you do NEXT?
Choice 1 Prepare a detailed project scope statement
Choice 2 Aggregate estimated costs of individual activities or work packages to establish an authorized cost baseline
Choice 3 Develop project schedule
Choice 4 Identify and document specific actions that need to be performed to produce project deliverables
Correct Choice : 4
Justification :
Define Activities is the process of identifying and documenting the specific actions to be performed to produce the project
deliverables. This is done after Create WBS process. Once the WBS is created, the next logical step is to define each of
these activities.
Reference: PMBOK® Guide - Fifth Edition, pages 432 and 61 (table 3-1).
--> Option 1: This refers to project scope statement that is created in Define Scope process. Create WBS process follows
Define Scope process.
--> Option 2: Estimate budget can be done only after Define Activities (option 4) and Estimate Activity Durations.
--> Option 3: Develop Schedule happens much later, i.e., after Define Activities, Estimate Activity Durations, and Sequence
Activities.
Question No : 131
To define how the project work will be authorized (committed) so that it is performed by the designated person at the
appropriate time, a project manager can use:
Choice 1 Work breakdown structure
Choice 2 Work authorization system
Choice 3 WBS dictionary
Choice 4 Project schedule
Correct Choice : 2
Justification :
Work authorization system is a collection of formal documented procedures that defines how project work will be
authorized (committed) to ensure that the work is done by the identified organization, at the right time, and in the proper
sequence.

Question No : 132
In your project, you are defining and documenting stakeholders` needs to meet the project objectives. You know that this is
very important as the project`s success is directly influenced by the care taken during this process. In this context, you
should be very diligent when you:
Choice 3 Create Project Charter
Choice 4 Create Project Management Plan
Correct Choice : 2
Justification :
Collect Requirements is the process of determining, documenting, and managing stakeholder needs and requirements to
meet project objectives. The project`s success is directly influenced by active stakeholder involvement in the discovery and
decomposition of needs into requirements and by the care taken in determining, documenting, and managing the
requirements of the product, service, or result of the project. Requirements include the quantified and documented needs
and expectations of the sponsor, customer, and other stakeholders.

Question No : 133
Your current project has very limited information on activity durations. You wish to use the actual duration of a previous,
similar activity as a basis for estimating the current activity duration. Once you have estimated the durations for the
activities on the project, what would be your next step?
Choice 1 Create an activity list.
Choice 2 Calculate early and late start and finish dates for the unfinished project activities.
Choice 3 Conduct performance reviews to determine variances.
Choice 4 Subdivide project work packages into smaller more manageable components for better management control.
Correct Choice : 2
Justification :
If you are working on a project, which has very limited information, then when estimating durations you should use the
actual duration of previous, similar projects as the basis for estimating the duration of the current project. This is done as
part of Estimate Activity Durations. Once we estimate the duration of the project, we should calculate the early and late
start and finish dates.
Estimate Activity Durations process will be followed by Develop Schedule process, wherein one of the tools and techniques
used is schedule network analysis (which employs various analytical techniques to calculate early and late start and finish
dates for the uncompleted portion of project activities). The correct answer is option 2.
Please note option 1 refers to Define Activities process which has been performed earlier. Option 3 refers to Control
Schedule process which is done during Monitoring and Controlling process. Option 4 refers to Create WBS process which
has been done earlier.

Question No : 134
Your project sponsor has asked you for a status report of your project, you are required to include the Estimate at
Completion information in the report based on the following data. What would be the EAC?
Actual cost of the project = $350,000

Budget at completion of the project = $500,000
Earned value= $250,000
Choice 1 $516,000
Choice 2 $155,000
Choice 3 $700,000
Choice 4 $850,000
Correct Choice : 3
Justification :
Cost Performance Index (CPI)

= EV/AC
= $250,000/$350,000
= 0.7142857
Estimate at Completion (EAC)

= BAC/CPI
= 500,000/0.7142857
= 700,000
Question No : 135
If you compare your project within the same application area as a basis for measuring performance, then it is also called:
Choice 1 Design of experiments
Choice 2 Benchmarking
Choice 4 Functional organization comparison
Correct Choice : 2
Justification :
Benchmarking involves comparing actual or planned project practices to those of comparable projects to identify best
practices, generate ideas for improvement, and provide a basis for measuring performance. These other projects can be
within the performing organization or outside of it and can be within the same or in another application area.

Question No : 136
Your sponsor believes in "SMART" goals for evaluating the objectives or goals for your project. Which of the following is
NOT included in "SMART" goals?
Choice 1 Significant
Choice 2 Measurable
Choice 3 Relevant
Choice 4 Attainable
Correct Choice : 1
Justification :
SMART Goals: The performance goals should be SMART - Specific, Measurable, Achievable/Attainable, Relevant and
Time-specific.

Question No : 137
You are the project manager at an aircraft manufacturing company, where you use a wind tunnel to test how changes in
different parameters like wind speed, temperature, humidity, etc. will impact the flight parameters of a prototype aeroplane.
So, the project model is computed many times (iterated), with the input values chosen at random for each iteration from the
probability distributions of these variables. The technique used is:
Choice 1 Monte Carlo simulation
Choice 2 Expected monetary value
Choice 3 Sensitivity analysis
Choice 4 Probability distributions
Correct Choice : 1
Justification :
A project simulation uses a model that translates the specified detailed uncertainties of the project into their potential
impact on project objectives. Simulations are typically performed using the Monte Carlo technique. In a simulation, the
project model is computed many times (iterated), with the input values (e.g., cost estimates or activity durations) chosen at
random for each iteration from the probability distributions of these variables.

Question No : 138
You have reached the end of your project, but you are worried that the fee that will be paid to you will be based on the
subjective determination of your performance by the buyer. Moreover, the contract clause does not allow for appeals in
courts of law based on performance. This is a feature of:
Choice 1 Cost Plus Award Fee contract
Choice 2 Cost Plus Fixed Fee contract
Choice 3 Fixed Price with Economic Price Adjustment contract
Choice 4 Illegal contract type because all contract terms can be litigated in courts
Correct Choice : 1
Justification :
In Cost Plus Award Fee contracts (CPAF), the seller is reimbursed for all legitimate costs, but the majority of the fee is
earned only based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the
contract. The determination of fee is based solely on the subjective determination of seller performance by the buyer, and
is generally, not subject to appeals.

Question No : 139
Improving competencies and interaction of team members helps in improving project performance. This activity is
performed as part of which project Process Group?
Choice 1 Planning
Choice 2 Executing
Choice 4 Initiating
Correct Choice : 2
Justification :
Develop Project Team is the process of improving competencies, team member interaction, and overall team environment
to enhance project performance. Develop Project Team happens in the Executing Process Group.
Reference: PMBOK® Guide - Fifth Edition, pages 447 and 61 (table 3-1)
Question No : 140
An intentional activity that ensures the future performance of the project work is aligned with the project management plan
is called:
Choice 1 Corrective action
Choice 2 Preventive action
Choice 3 Defect repair
Choice 4 Risk mitigation
Correct Choice : 2
Justification :
Preventive action: An intentional activity that ensures the future performance of the project work is aligned with the project
management plan.

Question No : 141
In your project, you want to ensure that each requirement adds business value by linking it to the business and project
objectives. This also provides a means to track requirements throughout the project life cycle, helping to ensure that
requirements approved in the requirements documentation are delivered at the end of the project. A tool that you can use
is:
Choice 1 Requirements documentation
Choice 2 Brainstorming
Choice 3 Requirements management plan
Choice 4 Requirements traceability matrix
Correct Choice : 4
Justification :
The requirements traceability matrix is a grid that links product requirements from their origin to the deliverables that satisfy
them. The implementation of a requirements traceability matrix helps ensure that each requirement adds business value by
linking it to the business and project objectives. It provides a means to track requirements throughout the project life cycle,
helping to ensure that requirements approved in the requirements documentation are delivered at the end of the project.

Question No : 142
Your bank is launching an advertisement campaign for a new product. You have been instructed by the project sponsor to
complete some milestones with the available skilled resources. From a project management perspective, this is:
Choice 1 Constraint
Choice 2 Assumption
Choice 3 Discretionary dependency
Choice 4 Mandatory dependency
Correct Choice : 1
Justification :
Examples of constraints include, but are not limited to: available skilled resources, and contract terms and requirements.

Question No : 143
While walking down the hallway, you meet your project sponsor who wants to know the status and percent complete of
your project. What would be the percent complete in your project from the following data?
Earned Value of the project = $3,000

Cost performance of the project = 1.2
Choice 1 71%
Choice 2 60%
Choice 3 71.4%
Choice 4 60.3%
Correct Choice : 2
Justification :
Percent Complete
= EV/BAC x 100
= 3000/5000 x 100
= 60%

Question No : 144
You are monitoring the technical performance of your website. Past data on the number of users and their experience
helps you forecast how your website would perform if the number of users increases in the future. This is an example of:
Choice 1 Design of experiments
Choice 4 Trend analysis
Correct Choice : 4
Justification :
Trend Analysis. An analytical technique that uses mathematical models to forecast future outcomes based on historical
results. It is a method of determining the variance from a baseline of a budget, cost, schedule, or scope parameter by using
prior progress reporting periods’ data and projecting how much that parameter’s variance from baseline might be at some
future point in the project if no changes are made in executing the project.

Question No : 145
All the project managers should be good at delegation because this helps them concentrate on leadership activities and
delegate routine activities. In this context, which, out of the following, can a project manager delegate to her subordinates?
Choice 1 Long-range planning
Choice 2 Performance appraisals
Choice 3 Project monitoring and controlling
Choice 4 Personal matters
Correct Choice : 3
Justification :
A manager should not delegate long-range planning, performance appraisals, personal matters, or leadership activities to
her subordinates. She can, however, delegate routine project monitoring and controlling activities.

Question No : 146
In your project, you want to extend the project schedule to reduce the threat that your project may not get the resources in
time to complete the project. This is an example of:
Choice 1 Develop Schedule
Choice 2 Avoid risk
Choice 3 Mitigate risk
Choice 4 Secondary risk
Correct Choice : 2
Justification :
Avoid. Risk avoidance involves changing the project management plan to eliminate the threat entirely. The project
manager may also isolate the project objectives from the risk’s impact or change the objective that is in jeopardy.
Examples of this include extending the schedule, changing the strategy, or reducing scope.

Question No : 147
Your project is being carried out under contract and the buyer is conducting process reviews to determine how well you
(seller) are doing with the contract. This review will not help to:
Choice 1 Establish corrective actions, if required
Choice 2 Measure the competency of seller to perform similar work in the future
Choice 3 Evaluate proposals from multiple sellers
Choice 4 Determine if some contractual obligations are not being met
Correct Choice : 3
Justification :
Evaluations are carried out when it is necessary to confirm whether the seller is meeting the contractual obligations, and
when the buyer contemplates corrective actions.

Question No : 148
You are a project manager. During which process will you obtain seller responses, select a seller, and award a contract?
Choice 1 Manage Stakeholder Engagement
Choice 2 Plan Procurement Management
Choice 3 Conduct Procurements
Choice 4 Control Procurements
Correct Choice : 3
Justification :
Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract.

Question No : 149
You are in the Close Project or Phase process of the project. You finalize all activities across all the project management
process groups to formally complete the phase or project. You also review prior phase, customer acceptance, and project
transfer documentation. These documents are also referred to as:
Choice 1 Project or phase closure documents
Choice 2 Project plan
Choice 4 Project records
Correct Choice : 1
Justification :
Project or phase closure documents, consisting of formal documentation that indicates completion of the project or phase
and the transfer of the completed project or phase deliverables to others, such as an operations group or to the next
phase.

Question No : 150
In a project status meeting, team members do not agree on the way in which certain requirements should be implemented.
So, you decide to take a vote, where the largest block in a group would decide, even if a majority is not achieved. This is
an example of:
Choice 1 Unanimity
Choice 2 Majority
Choice 3 Plurality
Choice 4 Dictatorship
Correct Choice : 3
Justification :
There are various methods of reaching a group decision, such as:
 Unanimity: A decision that is reached whereby everyone agrees on a single course of action.
 Majority: A decision that is reached with support obtained from more than 50% of the members of the group.
 Plurality: A decision that is reached whereby the largest block in a group decides, even if a majority is not achieved.
 Dictatorship: In this method, one individual makes the decision for the group.

Question No : 151
You are defining a distribution of possible activity durations for each schedule activity and calculating a distribution of
possible outcomes for the total project. This technique is known as
Choice 1 Resource leveling
Choice 2 Monte Carlo Analysis
Choice 3 Critical chain method
Choice 4 Critical path method
Correct Choice : 2
Justification :
Monte Carlo Analysis is a technique in which a distribution of possible activity durations is defined for each activity and
used to calculate distribution of possible outcomes for the total project.

Question No : 152
As a project manager, you are required to produce project performance reports on a regular basis, your project`s budget at
completion is $750,000, planned value is $100,000, schedule variance is $30,000, and cost variance is $50,000. What is
the percent complete and estimate at completion in your project?
Choice 1 18.00%, $500,000
Choice 2 17.33%, $461,538
Choice 3 17.80%, $437,500
Choice 4 18.00%, $437,500
Correct Choice : 2
Justification :
SV = EV – PV
EV = SV + PV = $30,000 + $100,000 = $130,000
CV = EV – AC
AC = EV- CV = $130,000 – $50,000 = $80,000
CPI
=$130,000 / $80,000
=1.625
Percent Complete
= EV/BAC x 100
= $130,000 / $750,000 x 100
= 17.33%
Estimate at Complete (EAC)
= BAC/CPI
= $750,000/1.625
= $461,538

Question No : 153
In a scatter diagram, if points are close to the diagonal line, it indicates that:
Choice 1 Scatter diagram has some erroneous data
Choice 2 Three variables are closely correlated
Choice 3 Independent and dependent variables are related
Choice 4 No inference can be made from the analysis
Correct Choice : 3
Justification :
A scatter diagram shows the relationship between two variables. This tool allows the quality team to study and identify the
possible relationship between changes observed in two variables. Dependent variables versus independent variables are
plotted. The closer the points are to a diagonal line, the more closely they are related.

Question No : 154
Your company focuses on increasing employee loyalty toward the company by providing a job for life with a strong focus
on the well-being of the employees. The organization theory your company believes in is:
Choice 1 Maslow`s hierarchy of needs
Choice 2 Theory X
Choice 3 Theory Z
Choice 4 David McClelland theory
Correct Choice : 3
Justification :
Theory Z focuses on increasing employee loyalty toward the company by providing a job for life with a strong focus on the
well-being of the employee, both on and off the job. Theory Z was developed by Ouchi.

Question No : 155
When doing risk response planning, you have come to know that the project involves use of new technology which is not
tested properly. The risk is so high that your sponsor decides to terminate the project. This management decision to
terminate the project is an example of:
Choice 1 Terminate risk
Choice 2 Avoid risk
Choice 3 Mitigate risk
Choice 4 Close Project
Correct Choice : 2
Justification :
Avoid. Risk avoidance involves changing the project management plan to eliminate the threat entirely… The most radical
avoidance strategy is to shut down the project entirely.

Question No : 156
Which of the following is not true about conducting procurement negotiations?
Choice 1 The project manager should be the lead negotiator.
Choice 2 Subjects covered may include responsibilities, authority to make changes, applicable terms, and governing law.
Choice 3 For complex procurement items, contract negotiations can be an independent process with inputs and outputs of
its own.
Choice 4 Negotiations should clarify the structure, requirements, and other terms of the purchases.
Correct Choice : 1
Justification :
The project manager may not be the lead negotiator on procurements. The project manager and other members of the
project management team may be present during negotiations to provide assistance, and if needed to add clarification on
the project’s technical, quality, and management requirements.

Question No : 157
Which of the following processes occurs in the Planning Process Group?
Choice 2 Manage Stakeholders Engagement
Choice 3 Acquire Project Team
Correct Choice : 1
Justification :
Identify Risks happens during Planning Process Group.
Reference: PMBOK® Guide Fifth Edition, page 61, table 3-1
Option 2 (Manage Stakeholders Engagement) relates to Executing Process Group

Option 3 (Acquire Project Team) relates to Executing Process Group
Option 4 (Identify Stakeholders) relates to Initiating Process Group
Question No : 158
Your project is terminated early. To investigate and document the reasons for the early termination of the project, you
follow certain procedures. This is performed during:
Choice 1 Validate Scope process
Choice 2 Close Procurements process
Choice 3 Close Project or Phase process
Choice 4 Control Quality process
Correct Choice : 3
Justification :
Close Project or Phase is the process of finalizing all activities across all of the Project Management Process Groups to
formally complete the project or phase....The Close Project or Phase process also establishes the procedures to
investigate and document the reasons for actions taken if a project is terminated before completion.

Question No : 159
Your company is in the process of developing a new product line, and you have been tasked with managing the project to
design and develop one of those new products. This will be the first of the new products to be developed, and you want to
ensure that the requirements are well defined, and captured. For this purpose, you want to bring key cross-functional
stakeholders together to define product requirements. The well-facilitated sessions can build trust, foster relationships, and
improve communication among the participants which can lead to increased stakeholder consensus. This is an example of:
Choice 1 Focus groups
Choice 2 Facilitated workshops
Choice 3 Group creativity techniques
Choice 4 Group decision making techniques
Correct Choice : 2
Justification :
Facilitated workshops are focused sessions that bring key stakeholders together to define product requirements.
Workshops are considered a primary technique for quickly defining cross-functional requirements and reconciling
stakeholder differences. Because of their interactive group nature, well-facilitated sessions can build trust, foster
relationships, and improve communication among the participants, which can lead to increased stakeholder consensus. In
addition, issues can be discovered earlier and resolved more quickly than in individual sessions.

Question No : 160
In your project, you have found that a deviation from the schedule baseline has occurred. You want to determine the
reason and level of variance relative to the schedule baseline so that corrective action can be taken. Which of the following
tools would you use for this purpose?
Choice 1 Scheduling tool
Choice 2 Performance reviews
Choice 3 What-If Scenario analysis
Choice 4 Project Management Software
Correct Choice : 4
Justification :
Project management software for scheduling provides the ability to track planned dates versus actual dates, to report
variances to and progress made against the baseline, and to forecast the effects of changes to the project schedule model.

Question No : 161
The actual cost of your project is $200,000, budget at completion is $325,000, and the cost variance is -$25,000. From the
data above calculate the To-complete performance index of your project, given that, senior management did not agree to
revise the estimate at completion based on current performance.
AC = $200,000
BAC = $325,000
CV = -$25,000
Choice 1 0.7
Choice 2 1.2
Choice 3 0.8
Choice 4 1.0
Correct Choice : 2
Justification :
CV = EV - AC
EV = AC + CV = $200,000 + (-$25,000) = $175,000
CPI = EV/AC = $175,000/$200,000 = 0.875
To-complete performance index (TCPI)

= (BAC - EV) / (BAC - AC)
= ($325,000 - $175,000) / ($325,000 - $200,000)
= $150,000 / $125,000
= 1.2
Question No : 162
In your project, you examine the work products to determine whether they conform to documented standards. This includes
measurements conducted at various levels to determine the quality of the product. In this context, the appropriate tool to
use is:
Choice 1 Inspection
Choice 3 Run chart
Choice 4 Histogram
Correct Choice : 1
Justification :
An inspection is the examination of a work product to determine whether it conforms to documented standards. The results
of an inspection generally include measurements and may be conducted at any level. For example, the results of a single
activity can be inspected, or the final product of the project can be inspected.

Question No : 163
In the Executing phase of a project, a project manager should ideally be:
Choice 1 Coaching
Choice 2 Directing
Choice 3 Authoritarian
Choice 4 Supportive
Correct Choice : 1
Justification :
Given below are the different leadership styles adopted by the project manager during various phases of the project:
During Initiating phase of the project, the leadership style will be Directing.
During Planning, Executing, Monitoring and Controlling phases of the project, the leadership style will be Facilitating and
Coaching.
During Closing phase, the leadership style will be Supportive.

Question No : 164
When your company buys computers from Dell, you also pay extra for a three year warranty which ensures that any
manufacturing defects will be taken care of by Dell. The risk response strategy used is:
Choice 1 Exploit
Choice 2 Avoid
Choice 3 Mitigate
Choice 4 Transfer
Correct Choice : 4
Justification :
Transfer. Risk transference is a risk response strategy whereby the project team shifts the impact of a threat to a third
party, together with ownership of the response… Transference tools can be quite diverse and include, but are not limited
to, the use of insurance, performance bonds, warranties, guarantees, etc.

Question No : 165
In your project, you are creating documents which will be used to solicit proposals from prospective sellers. These can also
be referred to as:
Choice 1 Procurement management plan
Choice 2 Procurement documents
Choice 3 Contract
Choice 4 Procurement statement of work
Correct Choice : 2
Justification :
`Procurement documents` are used to solicit proposals from prospective sellers and is one of the outputs of the Plan
Procurement Management process.

Question No : 166
In which Process Group will work defined be completed and all the specifications of your project be satisfied?
Choice 1 Planning Process Group
Choice 2 Executing Process Group
Choice 3 Monitoring and Controlling Process Group
Choice 4 Closing Process Group
Correct Choice : 2
Justification :
The Executing Process Group consists of those processes performed to complete the work defined in the project
management plan to satisfy the project specifications.

Question No : 167
You create a project charter that formally authorizes a project or a phase, and documents initial requirements that satisfy
the stakeholder`s needs and expectations. In this context, which of the following will not be included in the project charter?
Choice 1 Assumptions and Constraints
Choice 2 High level requirements
Choice 3 Assigned project manager, responsibility and authority level
Choice 4 Measurable project objectives and related success criteria
Correct Choice : 1
Justification :
Please refer to table 5-1, page 124, PMBOK® Guide Fifth Edition.
Reference: PMBOK® Guide - Fifth Edition, page 124 (table 5-1)
PMstudy.com comments: Please note that assumptions and constraints are defined in the scope statement (and not in the
project charter).
Question No : 168
Validate Scope is the process of formalizing acceptance of the completed project deliverables. In this context, which
statement related to Validate Scope process is correct?
Choice 1 Validate Scope process is similar to Control Quality process.
Choice 2 Validate Scope process is normally performed after Control Quality process, but these two processes may also be
performed in parallel.
Choice 3 Validate Scope process indicates the end of a project.
Choice 4 Validate Scope process is the final sign-off from the sponsor and customer.
Correct Choice : 2
Justification :
Control Quality is generally performed before Validate Scope, although the two processes may be performed in parallel.

Question No : 169
Which of the following items is not included in schedule data?
Choice 1 Order and delivery schedules
Choice 2 Cash-flow projections
Choice 3 Resource histograms
Choice 4 Cost baseline
Correct Choice : 4
Justification :
Schedule data could include such items as resource histograms, cash-flow projections, and order and delivery schedules.
PMstudy.com comments: Cost baseline is an output of Estimate Budget process

Question No : 170
For your project, find the To-complete performance index (TCPI) based on the given data:

Cost variance of the project = $25,000
Earned value of the project = $200,000
Estimate to Complete has now been revised to $425,000
Choice 1 0.9
Choice 2 1.176
Choice 3 1.5
Choice 4 -1.5
Correct Choice : 2
Justification :
CV = EV - AC
AC = EV - CV = $200,000 - $25,000 = $175,000
EAC = AC + ETC = $175000 + $425000 = $600,000
To-complete performance index (TCPI)

= (BAC - EV) / (EAC - AC)
= ($700,000 - $200,000) / ($600,000 - $175,000)
= $500,000 / $425000
= 1.176
Question No : 171
Which of the following statements related to precision and accuracy is correct?
Choice 1 Precise measurements are always accurate
Choice 2 Accurate measurements are always precise
Choice 3 High precision measurements have little scatter
Choice 4 Accuracy means that measurements are clustered
Correct Choice : 3
Justification :
Precision is a measure of exactness... Accuracy is an assessment of correctness...Precise measurements are not
necessarily accurate measurements, and accurate measurements are not necessarily precise measurements.

Question No : 172
You are a project manager in an IT consultancy firm, where you notice that data expands to fill the space available for
storage. You have to constantly keep upgrading your data storage capacity and processor speed. This is an example of:
Choice 1 McClelland`s theory
Choice 2 Parkinson`s law
Choice 3 Intel`s law
Choice 4 Law of diminishing returns
Correct Choice : 2
Justification :
Parkinson`s Law: Work expands so as to fill the time available for its completion. Some variations of this theory are "Data
expands to fill the space available for storage" and "Expenditure rises to meet income."

Question No : 173
Your project team has decided not to change the project management plan to deal with a risk. This is an example of:
Choice 1 Contingent response
Choice 2 Avoid
Choice 3 Fallback plan
Choice 4 Accept
Correct Choice : 4
Justification :
Accept. Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not
take any action unless the risk occurs...This strategy indicates that the project team has decided not to change the project
management plan to deal with a risk, or is unable to identify any other suitable response strategy.

Question No : 174
You are planning to award a contract and are evaluating sellers, using criteria like management approach, technical
approach, life-cycle cost, and production capacity and interest. These criteria are called:
Choice 1 Screening criteria
Choice 2 Source selection criteria
Choice 3 Evaluation criteria
Choice 4 Contract selection methods
Correct Choice : 2
Justification :
Source selection criteria are often included as part of the procurement solicitation documents. Such criteria are developed
and used to rate or score seller proposals, and can be objective or subjective. Other selection criteria can be identified and
documented to support an assessment for more complex products, services, or results. Some examples are:
understanding of need, overall or life-cycle cost, technical capability, risk, management approach, technical approach, etc.

Question No : 175
You are a project manager. You have completed the project. While reviewing the costs, you observed that most of the
project`s budget was utilized for activities performed in processes relating to one particular process group. This Process
Group is:
Choice 1 Planning Process Group
Choice 2 Executing Process Group
Choice 3 Monitoring and Controlling Process Group
Choice 4 Closing Process Group
Correct Choice : 2
Justification :
A large portion of the project`s budget will be expended in performing the Executing Process Group processes.

Question No : 176
You are monitoring and controlling your project, when your team members ask for some corrective action and preventive
actions for errors. Some defects should also be handled through defect repair. You will include all this as part of:
Choice 1 Work Performance Information
Choice 2 Work Performance Measurements
Choice 3 Change Requests
Choice 4 Organizational Process Assets
Correct Choice : 3
Justification :
Change requests may include corrective action, preventive action, and defect repairs.

Question No : 177
When you started creating a work breakdown structure for your project, you realized that it was too complicated to be done
on a single piece of paper. You then started using a work breakdown structure numbering system to:
Choice 1 Determine the complexity of the project
Choice 2 Determine the level at which individual WBS elements are found
Choice 3 Help in automating the WBS using appropriate software
Choice 4 Present justification for the project
Correct Choice : 2
Justification :
The WBS is finalized by assigning each work package to a control account and establishing a unique identifier for that work
package from a code of accounts. These identifiers provide a structure for hierarchical summation of costs, schedule, and
resource information.
PMstudy.com comments: The items at the lowest level of the WBS may be referred to as work packages, especially in
organizations that follow earned value management practices. These work packages may, in turn, be further decomposed
in a subproject work breakdown structure. WBS numbering system determines the level at which individual WBS elements
are found.
Question No : 178
A major difference between decomposition in the context of Define Activities process as compared to decomposition in the
context of Create WBS process is that:
Choice 1 The final output of Define Activities process using decomposition is defined as work packages and the final output
of Create WBS process using decomposition is defined as deliverables
Choice 2 The final output of Define Activities process using decomposition is defined as activities, and the final output of
Create WBS process using decomposition is defined as control accounts
Choice 3 The final output of Define Activities process using decomposition is defined as deliverables and the final output of
Create WBS process using decomposition is defined as activities
Choice 4 The final output of Define Activities process using decomposition is defined as activities, and the final output of
Create WBS process using decomposition is defined as deliverables
Correct Choice : 4
Justification :
The Define Activities process defines the final outputs as activities rather than deliverables, as done in the Create WBS
process.
PMstudy.com comments: Option 4: The statement is true - the activity list is got through decomposition of work packages.
Question No : 179
In your project you had planned to have Tasks A, B & C completed already, however tasks A, B, C, and D are 100%, 80%,
0%, and 0% complete respectively. The value of each day of work is $100. Using the 0-100 Rule and the information given
below, calculate the SPI:
Task Duration % Complete

A 3 Days 100%
B 5 Days 80%
C 4 Days 0%
D 3 Days 0%
Choice 1 0.25
Choice 2 1.00
Choice 3 0.50
Choice 4 0.75
Correct Choice : 1
Justification :
To calculate SPI, you just use the equation SPI = EV/PV. In this case EV = 3 days.
Since, we are applying the 0-100 rule, we can only say that Task A counts towards earned value (value of work
completed). We say that Task A has 100% of its value of 3 days (or $300), and Task B only counts as 0% (even though it
is currently at 80% completion, but, because of the 0-100 rule we assume 0 for EV for this task).
PV would be 12 days (or $1200) because we planned to have Tasks A, B & C done by this point.
Therefore, SPI = 3/12 = 0.25. We are behind schedule.
Note: This logic would also work if $ values are given instead of durations.
Question No : 180
The concepts of "Zero Defects" and "Right First Time" were formulated by:
Choice 1 Genichi
Choice 2 Deming
Choice 3 Crosby
Choice 4 Juran
Correct Choice : 3
Justification :
Philip Crosby defined quality as "Zero Defects" and "Right First Time".

Question No : 181
You are the project manager of a project team that includes several new recruits. You notice that most of the team
members possess "I am right mentality" and put forth their own ideas for consideration. In this context, your team is in
which of the following stages of group development?
Choice 1 Forming
Choice 2 Storming
Choice 3 Conflicting
Choice 4 Performing
Correct Choice : 2
Justification :
Tuckman described five stages of team development. Teams usually go through the stages in order, but it is possible for
teams to skip a stage or get stuck in, or revert to a previous stage.
1. Forming – Team meets, learns their roles and responsibilities and agree on goals; individuality is at its highest
during this phase
2. Storming – Team starts working on the project; competition may result from different individual ideas; “I am right”
mentality
3. Norming – Team members adjust their behavior to work as a team; learn to trust each other; “We can work
together” mentality
4. Performing – Teams are able to function as an organized and interdependent unit as they find ways to get the job
done smoothly and effectively
5. Adjourning – Completing the task and moving on from the project as staff are released during project or phase
closure
Reference: Tuckman, Bruce (1965). Developmental sequence in small groups. Psychological Bulletin 63 (6): 384–99.
Question No : 182
If you create a contingency reserve to manage risks in your project, this can be referred to as:
Choice 1 Avoidance
Choice 2 Passive acceptance
Choice 3 Active acceptance
Choice 4 Mitigation
Correct Choice : 3
Justification :
Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risks as
they occur, and to periodically review the threat to ensure that it does not change significantly. The most common active
acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the
risks.

Question No : 183
Contracts are formal legal documents and can be amended at any time prior to contract closure by mutual consent, in
accordance with the change control terms of the contract. In this context, you should be aware that:
Choice 1 Contract administration is usually an integral part of project organization
Choice 2 Contract administration is usually an administrative function separate from the project organization
Choice 3 Contract administration is usually outsourced to an external agency or company
Choice 4 Contract administration is always done alike in all organizations
Correct Choice : 2
Justification :
Due to varying organizational structures, many organizations treat contract administration as an administrative function
separate from the project organization.

Question No : 184
Your project team had a meeting with the customer (during Validate Scope process) for getting formal acceptance of the
project deliverables. This activity is a part of which Process Group?
Choice 1 Closing
Choice 2 Executing
Choice 3 Planning
Correct Choice : 4
Justification :
Validate Scope is done as part of Monitoring and Controlling Process Group.
Reference: PMBOK® Guide Fifth Edition, page 61, table 3-1

Question No : 185
While developing the Scope Management Plan, it is important to consider the following environmental factors:
Choice 1 Organization culture, marketplace conditions, and company infrastructure
Choice 2 Organizational policies and procedures
Choice 3 Lessons learned and historical information
Choice 4 Scope Management Plan template
Correct Choice : 1
Justification :
Enterprise environmental factors are conditions, not under the immediate control of the team, that influence, constrain, or
direct the project, program, or portfolio.
The enterprise environmental factors that can influence the Plan Scope Management process include, but are not limited
to: organization’s culture, infrastructure, personnel administration, and marketplace conditions.
PMstudy.com comments: Options 2, 3, and 4 are examples of organizational process assets, not enterprise environmental
factors.
Question No : 186
Which of the following statements about the activity list produced as an output from the Define Activities process is
incorrect?
Choice 1 The activity list must include all activities that will be performed on the project
Choice 2 The activity list should include descriptions of major activities in sufficient detail
Choice 3 The activity list should include activity duration estimates and scope of work description for each activity
Choice 4 The activity list is obtained through decomposition of work packages.
Correct Choice : 3
Justification :
The activity list is a comprehensive list that includes all schedule activities required on the project. The activity list also
includes the activity identifier and a scope of work description for each activity in sufficient detail.
PMstudy.com comments: Option 3: Activity duration estimates are prepared later on in the Estimate Activity Durations
process.
Question No : 187
As a project sponsor you are expecting a return of $5,500 in 3 years. Assuming the current interest rate is 20%, what`s the
current value of your expected return?
Choice 1 $3,183
Choice 2 $4,267
Choice 3 $5,500
Choice 4 $3,819
Correct Choice : 1
Justification :
PV = FV / [(1 + r)n] where FV is the Future Value (amount of money you are getting in the future; in this case FV is
$5,500), r is the discount/interest rate (in this case r is 20%), n is the time period (in this case n is 3 years)
PV = $5,500 / [(1 + .20) 3]
PV = $3,182.87 (rounded to $3,183)

Question No : 188
In your project, you are managing the construction of a $100 million hospital. You wish to use rank-ordering to determine
the causes for defects in Construction. In this context, the appropriate tool to use is:
Choice 1 Pareto chart
Choice 3 Run chart
Choice 4 Histogram
Correct Choice : 1
Justification :
A Pareto chart, also referred to as Pareto diagram, is a specific type of histogram, ordered by frequency of occurrence. It
shows how many defects are generated by type or category of identified cause. Rank ordering is used to focus corrective
action.

Question No : 189
According to McClelland`s theory, managers are not motivated by:
Choice 1 Need for achievement
Choice 2 Need for power
Choice 3 Need for affiliation
Choice 4 Need for recognition
Correct Choice : 4
Justification :
According to David McClelland`s theory (also called Achievement Motivation Theory), managers are motivated by:
- Need for achievement
- Need for power
- Need for affiliation

Question No : 190
As a project manager, you are in the process of creating, collecting, distributing, storing, retrieving, and the ultimate
disposition of project information in accordance with the communications management plan. Which of the following tools
should you use?
Choice 1 Stakeholder analysis
Choice 2 Communication methods
Choice 3 Expert judgement
Choice 4 Communication requirement analysis
Correct Choice : 2
Justification :
Manage Communications is the process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition
of project information in accordance with the communications management plan. Communication methods is one of the
tools and techniques used for this process.
Reference: PMBOK® Guide - Fifth Edition, page 297, figure 10-5

Question No : 191
Kelly, a new project manager in your organization, is ready to enter into a contract with a buyer for supply of ball bearings,
but is unsure of the type of contract she should select. Which type of contract represents the highest risk to the seller?
Choice 1 Cost reimbursable plus incentive
Choice 2 Fixed-price
Choice 3 Fixed price plus incentive
Choice 4 Cost-reimbursable
Correct Choice : 2
Justification :
Sellers under fixed-price contracts are legally obligated to complete such contracts, with possible financial damages, if they
do not.

Question No : 192
Which project document is used for documenting and monitoring elements under discussion or in dispute between project
stakeholders?
Choice 1 Dispute log
Choice 2 Issue log
Choice 3 Change log
Choice 4 Problem log
Correct Choice : 2
Justification :
Issue log: A project document used to document and monitor elements under discussion or in dispute between project
stakeholders.

Question No : 193
Which of the following is important to consider when creating the Requirements Management Plan due to its influence on
how requirements will be managed throughout the project life cycle?
Choice 1 Project team members
Choice 2 Scope Management Plan
Choice 3 Phase-to-phase relationship of the project
Choice 4 Project manager
Correct Choice : 3
Justification :
The phase-to-phase relationship (i.e., sequential or overlapping) is an important consideration when creating the
Requirements Management Plan since it influences how requirements will be managed throughout the project life cycle.
Many of the components of the Requirements Management Plan are based on the phase-to-phase relationship the project
manager chooses as most effective for managing the project.

Question No : 194
Assuming that the critical path of your project has duration of ten days, which of the following cannot affect the project
timelines?
Choice 1 If the project has one critical path and you are able to decrease the duration of the critical path by one day by
using a new tool.
Choice 2 If the project has one critical path and you have to increase the duration of the critical path by one day due to
delays.
Choice 3 If the project has two critical paths and you are able to decrease the duration of one critical path by one day by
using a new tool.
Choice 4 If the project has two critical paths and you have to increase the duration of one critical path by one day due to
delays.
Correct Choice : 3
Justification :
Option 1: This will decrease the duration of the project by 1 day because the critical path decreases by 1 day.
Option 2: This will increase the duration of the project by 1 day, because the critical path increases by 1 day.
Option 3: This will not decrease the duration of the project. This is because even if one critical path is decreased by one
day, the other critical path retains the same duration of 5 days; so the overall duration of the project remains at 5 days.
Option 4: This will increase the duration of the project by one day, because the critical path increases by 1 day.

Question No : 195
In your construction project, the CPI is 1.30 and SPI is 0.85. What could be the possible reason?
Choice 1 A critical resource went on sick leave for a long period of time, which had not been anticipated earlier
Choice 2 The cost of raw materials required for construction increased by 10%.
Choice 3 You had not taken into account the inflation rate.
Choice 4 There was four days waiting time in the curing of concrete, and work could not be done during that time.
Correct Choice : 1
Justification :
Options 2 and 3 increase the costs. Since the project cost is not a problem (i.e., CPI is > 1), we can ignore these options.
Option 4 is a known factor and a provision should have been made in the project schedule for it. Option 1 is the only
alternative that could have increased the schedule time and made SPI < 1.

Planned Value
(Budgeted Costs for
(BCWS) work
Work Scheduled)
Earned Value
EV
(BCWP)
Work Performed)
Cost Performance
Index
Schedule
Performance Index
Reference: PMstudy.com comments and PMBOK® Guide - Fifth Edition, page 219
Question No : 196
You are involved in manufacturing ball bearings using lathe machines. The ball bearings should have a diameter of 5.0
cms - allowable control limits are 4.95 cms to 5.05 cms. Measurements made after the end of the process for the bearings
produced are: 4.96, 4.98, 5.01, 5.03, 5.02, 5.01, 5.03, 5.04, 5.02, 4.96, 4.98, 5.00.
What is your conclusion about the process?
Choice 1 Process is out of control and needs to be investigated
Choice 2 Process is in control and adjustments are not required
Choice 3 The tool needs to be changed or re-calibrated
Choice 4 Process should be further measured using a run chart
Correct Choice : 1
Justification :
A process is considered out of control when a data point exceeds a control limit or if seven consecutive points are above or
below the mean.
PMstudy.com comments: Since we have seven consecutive points above the mean (5.00), this indicates that the process
is out of control and needs to be further investigated.
Question No : 197
You are an excellent technical architect. Your project sponsor believes that you can be an effective project manager. This
is an example of:
Choice 1 Halo effect
Choice 2 Pygmalion effect
Choice 3 Galatea effect
Choice 4 Expert concept
Correct Choice : 1
Justification :
Halo effect: Perception of a particular outstanding trait influences the overall perception of a person.

Question No : 198
In your project, you implemented a risk response and hired an additional skilled technical resource that can help in testing
your application. However, you are worried that the technical resource may leave - this new risk can also be called:
Choice 1 Secondary risk
Choice 2 Acceptance risk
Choice 3 Fallback Plan
Choice 4 Workaround
Correct Choice : 1
Justification :
Secondary Risk. A risk that arises as a direct result of implementing a risk response.
PMstudy.com comments: After implementing your risk response (i.e. hiring an additional resource), a new risk arises (i.e.
the hired resource may leave). This is an example of Secondary risk.
Question No : 199
You are a project manager in charge of developing a new fuel efficient car and have decided to procure the multi-point fuel
injection system from an external vendor. You are now evaluating proposals from prospective sellers. During which of the
following project management processes does this activity take place?
Choice 1 Plan Procurements
Choice 2 Administer Procurements
Choice 3 Close Procurements
Choice 4 Conduct Procurements
Correct Choice : 4
Justification :
Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract.

Question No : 200
Who should be in charge of the project during the Close Project process?
Choice 1 Sponsor
Choice 2 Project manager
Choice 3 Customer
Choice 4 Project closing functional expert
Correct Choice : 2
Justification :
A project manager is identified and assigned as early in the project as is feasible, preferably while the project charter is
being developed and always prior to the start of planning.
PMstudy.com comments: The project manager is responsible for the whole project from initiation through closure.

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Question No : 1

Choice 1 Accept the gift regardless of your company`s policy.

Choice 3 Reject the gift.

Choice 4 Accept the gift and inform your senior management.

Reference: PMstudy.com comments

Choice 1 Risk identification occurs during the Planning of the project

Choice 3 Risk identification occurs during Execution of the project

Reference: PMBOK® Guide - Fifth Edition, page 61 (table 3-1)

Choice 1 Try crashing or fast tracking the project.

Choice 2 Do not allow the customer to change the project scope.

Choice 4 Discuss with your project sponsor.

Choice 1 Validate Scope

Choice 2 Control Scope

Choice 3 Define Scope

Choice 4 Collect Requirements

Reference: PMBOK® Guide - Fifth Edition, page 136

Reference: PMBOK® Guide - Fifth Edition, page 153

Please refer to the following diagram:

Earned value (EV)

Actual cost (AC)

Cost performance index (CPI)

Acronym Term Description Formula

Choice 2 Reduce the project scope to increase project quality

Choice 3 Fix a problem as soon as it occurs

Choice 4 Prevent change requests to ensure quality

Reference: PMBOK® Guide - Fifth Edition, page 235

Choice 2 Learning curve theory

Choice 3 Herzberg`s theory

Choice 4 Maslow`s theory

Choice 1 Classify this as a threat and create workaround plans.

Choice 2 Classify this as strength and create a fallback plan.

Choice 3 Classify this as a weakness and transfer it to another company.

Choice 4 Classify this as an opportunity and exploit the opportunity.

Reference: PMBOK® Guide - Fifth Edition, page 345

Choice 1 Protect the interests of the project

Choice 2 Ensure that negotiation is conducted as per legal statutes

Choice 4 Objective could vary depending on the type of contract

Reference: PMBOK® Guide - Fifth Edition, page 357

Choice 2 Wind up the project and move to another country.

Reference: PMstudy.com comments

Which of the following statements about stakeholders are correct?

Reference: PMBOK® Guide Fifth Edition, page 56

PMstudy.com comments: Please note:

Choice 2 Using major deliverables as the second level of decomposition.

Choice 3 Using work packages as the first level of decomposition.

Reference: PMBOK® Guide - Fifth Edition, page 129

Choice 1 Schedule baseline

Choice 2 Components of project plan

Choice 3 Activity attributes

Choice 4 Schedule baseline and/or components of project plan

Reference: PMBOK® Guide - Fifth Edition, page 191

Choice 1 Bottom-up estimating

Choice 2 Analogous estimating

Choice 3 Parametric modeling

Choice 4 Top-down estimating

Reference: PMBOK® Guide - Fifth Edition, page 205

Choice 2 They provide a basis for judging a project`s success or failure.

Reference: PMBOK® Guide - Fifth Edition, page 228

Choice 1 Schedule, priorities, and manpower

Choice 2 Cost, personality conflict, and administration

Choice 3 Technical issues, administration, and manpower

Choice 4 Cost, schedules, and priority

Reference: PMBOK® Guide - Fifth Edition, page 312 (figure 11-1)

Choice 4 Use procurement audits as a technique.