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Question 1 C.

Create a WBS
D. Create a scope statement
Question Statement:
Which of the following is a tool Question 4
used to secure expert judgment?
Question Statement:
Choices: What kind of a relationship is
A. Peer review implied when completion of a
B. Delphi technique successor is dependent on
C. Expected value technique initiation of its predecessor?
D. Work Breakdown Structure
(WBS) Choices:
Question 2 B. FF
Question Statement: D. SF
Based on the information provided
below, which project would you Question 5
recommend pursuing?
Question Statement:
Project I, with BCR (Benefit Cost What should a project manager do
ratio) of 1:1.6; or follow to ensure clear
Project II, with NPV of US $ boundaries for project completion?
Project III, with IRR (Internal rate of Choices:
return) of 15% A. Scope verification
Project IV, with opportunity cost of B. Complete a scope statement
US $ 500,000. C. Scope definition
D. Risk management plan
A. Project I Answer 1
B. Project III
C. Either project II or IV Correct Choice:
D. Can not say from the data B Explanation:
provided The ‘Delphi technique’ is a
commonly used tool to secure
Question 3 expert judgment while initiating a
Question Statement:
What should be done by the project ‘Peer review’ is a project selection
manager to ensure that all work in tool, ‘Expected value’ is a method
the project is included? quantitative risk analysis, and
‘WBS’ is a project planning tool.
A. Create a contingency plan Answer 2
B. Create a risk management plan
Correct Choice: dependent on the completion of
B Explanation: predecessor.
Project III has an IRR of 15%, which
means the revenues from the A finish-to-finish (FF) relationship
project equal the cost expended at between two activities implies that
an interest rate of 15%. This is a the completion of successor is
definitive and a favorable dependent on the completion of
parameter, and hence can be predecessor.
recommended for selection.
A start-to-start (SS) relationship
Project I has an unfavorable BCR implies that the initiation of
and hence cannot be successor is dependent on the
recommended. initiation of predecessor.

Information provided on projects II Answer 5

and IV is not definitive, and hence
neither of projects II and IV Correct Choice:
qualifies for a positive B
Answer 3 The project team must complete a
scope statement for developing a
Correct Choice: common understanding of the
C project scope among stakeholders.
This lists project deliverables –
Explanation: summary level sub-products,
A WBS is a deliverable oriented whose full and satisfactory delivery
grouping of project components marks the completion of the
that organizes and defines the total project.
scope of the project.
Scope verification is the process of
Answer 4 securing a formal acceptance of
the project scope by stakeholders.
Correct Choice:
D Scope definition is the process of
subdividing the major project
Explanation: deliverables into smaller, more
A start-to-finish (SF) relationship manageable components.
between two activities implies that
the completion of successor is A risk management plan involves
dependent on the initiation of its setting up processes for identifying
predecessor. and dealing with project risks.

A finish-to-start (FS) relationship Question 6

between two activities implies that
the initiation of successor is
Question Statement: Choices:
An organization is certified to a A. 75.5
stringent environmental standard B. 75.5 +/- 7.09
and uses that as the key C. 75.5 +/- 8.5
differentiator with its competitors. D. 75.5 +/- 2.83
Alternative identification during
scope planning for a particular Question 8
project has thrown up an
expeditious approach to achieve a Question Statement:
project need, but this involves a After a study of the work processes
risk of environmental on a project, a quality audit team
contamination. The team evaluates reports to the project manager that
that the likelihood of the risk is irrelevant quality standards were
very low. What should the project being used by the project, which
team do? might lead to rework. What was the
objective of the project manager in
Choices: initiating this study?
A. Drop the alternative approach
B. Work out a mitigation plan Choices:
C. Procure an insurance against the A. Quality control
risk B. Quality planning
D. Plan all precautions to avoid the C. Checking adherence to
risk processes
D. Quality assurance
Question 7
Question 9
Question Statement:
The following three tasks form the Question Statement:
entire critical path of the project Which of the following provides the
network. The three estimates of foundation for team development?
each of these tasks are tabulated
below. How long would the project Choices:
take to complete expressed with an A. Motivation
accuracy of one standard B. Organizational development
deviation? C. Conflict Management
D. Individual Development
Task Optimistic Most
likely Pessimistic Question 10
A 15 25
47 Question Statement:
B 12 22 Which of the following is NOT an
35 input to project plan execution?
C 16 27
32 Choices:
A. Work authorization system
B. Project plan
C. Corrective action The standard deviations of the
D. Preventive action estimates of the three tasks are
determined as (P-O)/6 = 5.33, 3.83
Answer 6 & 2.67 respectively. The standard
deviation of the total path is
Correct Choice: A Explanation: determined as Sq. root (sum of
The organization’s reputation being variances), where variance =
at stake, the threshold for such a square of standard deviation.
risk would be very low.
Hence, standard deviation of
Mitigation plan against an critical path = Sq. root
environmental contamination (28.44+14.69+7.11) = 7.09.
would mean reducing the impact,
which may not be a plausible Hence choice B is correct while
response. choices A, C and D are incorrect.

Procuring an insurance against the Answer 8

risk would only transfer the
monetary impact of the risk, and Correct Choice: D Explanation:
not the intangible impact like, the Determining validity of quality
reputation of the organization. standards, followed by the project
is a ‘quality assurance’ activity.
Planning precautions against the
occurrence would still leave an Compliance of work results to
opportunity of occurrence. This required specifications is a ‘quality
cannot be completely avoided. control’ activity.

The best option would be to drop Determining quality standards is a

the approach – that is, complete ‘quality planning’ activity.
avoidance of the risk.
‘Checking adherence to processes’
Answer 7 is a quality audit activity to ensure
that standard operating procedures
Correct Choice: B or job instruction documents (SOPs
or JIDs) are being followed for
Explanation: Choice B is the correct producing the deliverables of the
answer. process.

The critical path is the longest Answer 9

duration path through a network
and determines the shortest time Correct Choice: D Explanation:
to complete the project. The PERT Individual development
estimates of the tasks listed are (managerial and technical) is the
27, 22.5 & 26. Therefore, the foundation of a team.
length of the critical path of the
project is 27+22.5+26 = 75.5. Answer 10
Correct Choice: A B. Balanced Matrix organization
C. Projectized organization
Explanation: D. Tight Matrix organization
A Project plan is the basis of project
plan execution and is a primary Question 12
Question Statement:
Work authorization system is a tool The project manager of a large
used for orchestrating execution of multi-location software project
various project tasks. team has 24 members, out of
which 5 are assigned to testing.
Whereas, Corrective and Due to recent recommendations by
Preventive actions are inputs to the an organizational quality audit
project plan execution process team, the project manager is
from various controlling processes. convinced to add a quality
professional to lead the test team
Next 5 Questions at additional cost, to the project.

Answer 7 Table The project manager is aware of

the importance of communication,
Mo for the success of the project and
Opti Pert Std takes this step of introducing
st Pessi Varia
misti Dura Devi additional communication
Lik mistic nce
c tion ation channels, making it more complex,
in order to assure quality levels of
15 25 47 27 5.33 28.44 the project.
Tas How many additional
12 22 35 22.5 3.83 14.69
kB communication channels are
Tas introduced as a result of this
16 27 32 26 2.67 7.11 organizational change in the
Criti project?
75.5 7.09 50.25 Choices:
h A. 25
B. 24
C. 1
Question 11 D. 5
Question Statement: Question 13
A project manager would find team
development the most difficult in Question Statement:
which form of organization? Once the project is complete, the
complete set of project records
Choices: should be put in which of the
A. Weak Matrix organization following?
Choices: In a weak matrix organization, the
A. Project Archives power rests with the functional
B. Database manager.
C. Storage room
D. Project Report In a balanced matrix organization,
the power is shared between the
Question 14 functional manager and the project
manager. A projectized
Question Statement: organization is grouped by projects
Which of the following is a common and the project manager has
format for performance reporting? complete control on the project
and its team.
A. Pareto Diagrams A Tight matrix organization refers
B. Bar charts to co-locating the project team and
C. Responsibility Assignment has nothing to do with a matrix
Matrices organization.
D. Control Charts
Therefore, a project manager
Question 15 would find it difficult to drive team
development in a weak matrix
Question Statement: organization.
If the cost variance is positive and
the schedule variance is also Answer 12
positive, this indicates the:
Correct Choice:
Choices: A Explanation:
A. Project is under budget and Number of communication
behind schedule channels with “n” members = n*(n-
B. Project is over budget and 1)/2
behind schedule
C. Project is under budget and Originally the project has 25
ahead of schedule members (including the project
D. Project is over budget and manager), which makes the total
ahead of schedule communication channels as
25*24/2 = 300.
Answer 11
With the addition of the quality
Correct Choice: professional as a member of the
A Explanation: project team, the communication
In a functional organization, the channels increase to 26*25/2 =
project team members have dual 325.
reporting to two bosses – the
project manager and the functional Therefore, the additional channels
manager. as a result of the change, that is,
325-300 = 25.
Answer 13 Choices:
A. Contingency reserves
Correct Choice: B. Residual risks
A C. Management reserves
D. Secondary risks
Project records should be prepared Question 17
for archiving by the appropriate
parties. Question Statement:
Which one of the following is the
Answer 14 last step of project closing?

Correct Choice: Choices:

B A. Client has accepted the product
B. Archives are complete
Explanation: C. Client appreciates your product
Common formats for Performance D. Lessons learnt are documented
Reports are, bar charts (also called
Gantt Charts), S-curves, histograms Question 18
and tables etc.
Question Statement:
Answer 15 Who should be involved in the
creation of lessons learned, at
Correct Choice: closure of a project?
Explanation: A. Stakeholders
Choice C is the correct answer. B. Project team
C. Management of the performing
Positive Schedule Variance means organization
the project is ahead of schedule; D. Project office
Negative Cost Variance means the
project is over-budget.

Question 16

Question Statement: Question 19

During execution of a project, an
identified risk event occurs that Question Statement:
results in additional cost and time. An organization has recently
The project had provisions for started outsourcing work to a low
contingency and management cost, high value, engineering
reserves. How should these be center located in a different
accounted for? country.
Which of the following should the Reserves are meant for making
project manager provide for the provisions in cost and schedule, to
team as a proactive measure? accommodate for consequences of
risk events.
A. A training course on the laws of Risk events are classified as
the country “unknown unknowns” or “known
B. A course on linguistic differences unknowns”, where “unknown
C. An exposure to the cultural unknowns” are risks that were are
differences not identified and accounted for,
D. A communication management while “known unknowns” are risks
plan that were identified and provisions
were made for them.
Question 20
Provisions for “unknown
Question Statement: unknowns” are in management
While reviewing the progress, the reserves while those for “known
project manager assesses that an unknowns” are accommodated in
activity has been missed out from contingency reserves. Management
the implementation plan. A reserves are at the discretion of
milestone, scheduled to be senior management while the
achieved within another week, contingency reserves are at the
would be missed with the current project manager’s discretion.
implementation plan.
Residual and secondary risks are
Which of the following is the next remaining unmitigated risks and
best action for the project manager resultant risks of mitigation,
in this situation? respectively. These are not
A. Report the error and the In this case, the risk event is one of
expected delay the identified risks and therefore,
B. Omit the status update on the ‘contingency reserve’ is the one
milestone where the cost and schedule
C. Report the error and the planned impact would be accommodated in.
recovery actions
D. Assess alternatives to meet the Answer 17
Correct Choice:
Answer 16 B Explanation:
Archiving is the last step in the
Correct Choice: A Explanation: project closing.
The question is about correct
accounting for risk events that Answer 18
occur and updating the reserves.
Correct Choice: Choice B, that is, ‘ a course on
A Explanation: linguistic differences’ would not
‘Stakeholders’ include everyone serve the purpose of understanding
who are actively involved in the and appreciating cultural
project or whose interests may be differences, for better teaming.
affected as a result of the project
execution or completion. Choice D, that is, ‘a communication
management plan’ is a document
The ‘project team’ creates the that provides data gathering and
lessons learned on the project. dissemination amongst
stakeholders of the project. It is
The role of the ‘project office’ necessary for the project but does
depends on the function defined for not help in bridging communication
it within the performing gaps across different cultures.
organization and it could be either
facilitating best practices for all Answer 20
projects or could constitute the
project team. Correct Choice:
D Explanation: Choice D, that is,
As lessons learned should capture ‘assess alternatives to meet the
all variations and what could have milestone’ indicates confronting
been done better for future the issue with an attempt to
deployment, ‘stakeholders’ should resolve the issue. Hence this would
be involved in creation of lessons be the best approach.
Choices A and C, that is, ‘report the
Answer 19 error and the expected delay’ or
‘report the error and the planned
Correct Choice: recovery actions’ do not attempt to
C Explanation: solve the problem.
Understanding cultural differences
is the first step towards an An attempt to solve the problem is
effective communication amongst the next best thing to do in this
the project team involving situation, before reporting the
outsourced work from a different issue correctly.
country. So, what is needed in this
case is ‘an exposure to the cultural Choice B, that is, ‘omit the status
differences’, which is being update on the milestone’ is
mentioned as choice C. unethical.

Choice A, that is, ‘a training course

on the laws of the country’ is a
subject of legal experts and not of
the project team.

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