TEST ON PROJECT MANAGEMENT (Test ID: 08) Date: 5th February 2001 PM (1) A detailed project schedule can

be created only after a. A project plan is created b. A WBS is created c. A budget is created d. A project control plan is created (2) Which of the following is not part of the teams stakeholder management effort? a. Give them extras b. Identify them c. Determine their needs and expectations d. Manage their expectations (3) In a projectized organization, the project team a. Reports to many bosses b. Has loyalty to the project c. Will not always have a home d. B & c (4) When it comes to changes, the project managers attention is best spent on a. Handling changes when they come to light b. Recording changes c. Letting management know about changes d. Preventing unnecessary changes (5) A work authorization system is used to a. Control who does each task b. Control gold platting c. Let management know what tasks are planned d. Let functional managers know what tasks are planned (6) During the execution of a project the project manager determines that a change is needed to material purchased for the project. The project manager calls a meeting of their team to plan how to make the change. This is an example of a. Management by objectives b. Lack of a change control system c. Good team relations d. Lack of a clear WBS (7) You are a new project manager who has never managed a project before and are asked to plan a new project. It would be best in this situation to rely on _______ during planning in order to improve your chance of success? a. Your intuition b. Your training c. Historical records d. Responsibility charts (8) A project manager discovers during planning that part of the scope of work is undefined. They should a. Continue to plan the project because the scope of work is not ready b. Do what they can to get the scope of work defined c. Wait until the scope of work is defined and issue a change to the project d. Complain to the management (9) Linear programming is an example of what type of project selection criteria? a. Constrained optimization ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 1 / 8 Time: 4 to 6

b. c. d.

Comparative approach Benefit measurement Impact analysis

(10) A WBS numbering system should allow project staff to a. Estimate costs of WBS elements b. Provide project justification c. Identify the level at which individual WBS elements are found d. Use it in project management software (11) A chief characteristic of the Delphi technique is a. Extrapolation from historical data b. Intuitive expert opinion c. Analytical hierarchy process d. A guess (12) During a project team meeting a team member suggests an enhancement to the scope of the work that is beyond the scope of the project charter. The project manager points out that the team needs to concentrate on completing all the work and only the work required. This is an example of a. Domineering behavior b. Scope management c. Project charter d. Scope decomposition (13) Management by objectives works only if a. It is supported by management b. The rules are written down c. The project does not impact the objectives d. The project includes the objectives in the charter (14) In order to manage a project effectively, work should be broken down into small pieces. Which of the following does not describe how far each task should be broken down? a. Can be completed in under 80 hours b. Can not be logically subdivided further c. Is done by one person d. Can be realistically estimated (15) _________ Contains detailed descriptions of work packages? a. WBS dictionaries b. Scope of work c. Budget estimates d. Cost estimates (16) Which of the following estimating methods does not use dummies? a. PERT b. CPM c. PDM d. Detailed (17) Which of the following is not TRUE? a. CPM uses most likely time estimate b. PERT is superior to CPM because it requires three time estimates per task c. PERT provides an optimistic, pessimistic and most likely estimate for each task d. PERT Formula for variance of a task is (P-O)/6 (18) A task provides optimistic, pessimistic and most likely estimates as 41, 60 and 89 respectively. The estimated PERT duration, standard deviation and variance of the task are respectively a. 28.166, 5.5, 30.25 b. 61.666, 8, 64 c. 43.833, 1.5, 2.25 ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 2 / 8

d.

36.5, 2.166, 4.693

(19) Under what circumstances, would you want to use a network diagram instead of a bar chart? a. To report to senior management b. To track progress c. To show interdependencies between tasks d. To report to the team (20) Lag means a. Amount of time a task can be delayed without delaying the project b. Amount of time a task can be delayed without delaying the early start date of its successor c. Calculated by making a forward and backward pass d. Waiting time (21) A dependency that requires that design be completed before manufacturing can start is an example of a. Discretionary dependency b. External dependency c. Mandatory dependency d. Scope dependency (22) A milestone has a. An unlimited duration b. A duration less than the activity it represents c. No duration d. A duration greater than the activity it represents (23) During planning you sit down and estimate the time needed for each task and total them to come up with the project estimate. This duration is what you commit to completing the project. What is wrong in this scenario? a. The team did not create the estimate and estimating takes too long using that method b. The team did not create the estimate and a network diagram was not used c. The estimate is too long and should be created by management d. The project estimate should be the same as the customers required completion date (24) What does the standard deviation have to do with risk? a. Nothing b. Standard deviation tells you if the estimate is accurate c. Standard deviation tells you how unsure the estimate is d. Standard deviation tells you if the estimate includes a pad (25) Task slack is determined by a. Performing Monte Carlo analysis b. Determining the waiting time between tasks c. Determining lag d. The amount of time the task can be delayed before it delays the critical path (26) A project has three critical paths. What difference does this make to the project? a. The situation is not possible b. It makes it easier to manage c. It increases the effort required d. It increases the project risk (27) In trying to get the project completed faster, the PM looks at the cost associated with crashing each task. A more complete approach to crashing would be to also look at __________? a. The risk impact of crashing each task b. The customers opinion of what tasks to crash c. The day of the week the task is to take place d. The project phase the task is due to occur ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 3 / 8

(28) The two types of parametric estimates are a. Bottom-up & Top-down b. PERT & CPM c. PDM & Network d. Regression analysis & Learning Curve (29) Budget at Completion is a. Actual cost of work performed b. Budgeted cost for the total job c. Actual cost of work scheduled d. Earned value (30) One common way to compute EAC is to take the BAC and a. Divide by SPI b. Multiply by SPI c. Multiply by CPI d. Divide by CPI (31) You have two projects to choose from Project A with an IRR of 21% or Project B with an IRR of 15%. Which one would you prefer? a. Project A b. Project B c. None d. Both (32) The present value of US $ 300,000 received 5 years from now is US $ a. 204,918 b. 378,210 c. 225,890 d. Not enough Data (33) How close to actual costs would a budget estimate expect to be? a. -75% to +25% b. -10% to +25% c. +10% to 25% d. -5% to +10% (34) If a project A has an NPV of $ 30,000 and project B of $ 50,000, what is the opportunity cost if project B is selected? a. 30,000 b. 50,000 c. 20,000 d. 23,000 (35) The contractor tells you that your activities have resulted in an increase in their costs. What should you do? a. Issue a change to the project costs b. Have a meeting with the management c. Ask the contractor for supporting information d. Deny any wrong doing (36) What does a BCR of 2.5 means? a. The benefits are 2.5 times the costs b. There is no benefits c. The benefits are 2.5 times less d. The range of accuracy is +/- 2.5 (37) 3 Sigma from the mean is equal to a. 68.26% b. 99.73% ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 4 / 8

c. d.

95.46% 99.99%

(38) The concept of optimal quality level is reached at the point where the incremental revenue from product improvement equals the incremental cost to secure it refers to a. Quality control analysis b. Marginal analysis c. Standard quality analysis d. Conformance analysis (39) Which of the following best describes the results of an increase in quality a. Increased productivity, increased cost effectiveness, decreased cost risk b. Increased productivity, decreased cost effectiveness, increased cost risk c. Reduced productivity and no change to cost effectiveness and cost risk d. Reduced productivity and increase in overall product or service cost (40) During a team meeting, the team determines that the customer would benefit from a specific area of extra work and they add it to the project. This is called a. Gold platting b. Extra scope c. An approved change order d. A good work for customer satisfaction (41) Which of the following is an example of the cost of conformance to quality? a. Rework b. Quality training c. Scrap d. Warranty costs (42) A control chart shows seven data points on one side of the mean. What should be done? a. Nothing, this is not a problem b. Tell the customer c. Investigate and find an assignable cause d. This is just the rule of seven and can be ignored (43) What is the inventory on hand in a just in time (JIT) environment? a. 45% b. 10% c. 12% d. 0% (44) If the initial cost of an inventory is $25,000 and the expected value is 3 years, what is the residual value after 3 years under double declining balance method? a. 17,500 b. 16,700 c. 900 d. 5,500 (45) At 75% of completion, a $50,000 project had incurred cost of $39,000. How much is to be spent to complete the project? a. 2,000 b. 11,000 c. 13,000 d. 52,000 (46) All of the following are characteristics of a work package except a. It is a task at the lowest level of any branch of the WBS b. It is a summary task at the top level of the WBS c. It consists of manageable units of work that can be planned, budgeted, scheduled and controlled ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 5 / 8

d.

It usually contains no more than 80 hours to complete

(47) The key inputs into activity definition are a. WBS, project schedule and network diagram b. Project schedule, progress reports and change requests c. Project scope statement, WBS and changes required d. WBS, scope statement and historical information that supports the applicable activity (48) The output from resource planning includes a. Job descriptions b. Salary schedules c. The types of resources required d. Analogous estimating (49) All of the following are functions of cost control except a. Informing the appropriate project stakeholders of authorized changes in the cost baseline b. Monitoring cost performance to detect variances from the cost baseline c. Ensuring that all appropriate changes are recorded accurately in the cost baseline d. Allocating the overall estimates to individual work packages in order to establish a cost baseline (50) Design of experiments is an analytical technique that helps a. Determine how various elements of a system interrelate b. Anticipate what and where quality problems might occur c. Identify which variables have the most influence on the overall income d. Establish a standard by which to measure performance

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Answers TEST ON PROJECT MANAGEMENT (Test ID: 08) Date: 5th February 2001 PM 1. 2. 3. 4. 5. (b) (a) (d) (d) (b) Time: 4 to 6

6. (b)
7. 8. 9. (c) (b) (a)

10. (c) 11. (b) 12. (b) 13. (a) 14. (c) 15. (a) 16. (c) 17. (d) 18. (b) 19. (c) 20. (d) 21. (c) 22. (c) 23. (b) 24. (c) 25. (d) 26. (d) ___________________________________________________________________________________ ___ PMITEST_0502-qns-ans.doc 7 / 8

27. (a) 28. (d) 29. (b) 30. (d) 31. (a) 32. (d) 33. (b) 34. (a) 35. (c) 36. (a) 37. (b) 38. (b) 39. (a) 40. (a) 41. (b) 42. (c) 43. (d) 44. (c) 45. (c) 46. (b) 47. (d) 48. (c) 49. (d) 50. (c)

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