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PMP Sample Questions

Question - 1

Your company has been hired to configure software in 500


computers. All computers need equal time to configure. You
calculate the time to configure each computer as 5 hours. The
cost for labour is calculated at $500 each computer. Your
Project Sponsor disagrees with your labour estimate. Why is
so?
1.You haven't completed one computer yet, so you don't know how
long the work will actually take.
2.You have not factored in all of the effort applied to the work.
3.You have not considered the law of diminishing returns.
4.You have not considered the learning curve.

Correct Answers are : 4


Explanation : D is the best choice. As the project team completes
more and more units, the time to configure a computer should take
less and less time.

Question - 2

Which of the following statement is true about Work


Breakdown Structure (WBS)?
1.It identifies the project elements that require resources.
2.It is used to organize the cost estimates and to ensure that the
cost of all identified work has been estimated.
3.It provides the relationship among all the components of the
project and the project deliverables.
4.All of the above

Correct Answers are : 4


Explanation : Work breakdown structure (WBS): It identifies the
project elements that require resources, used to organize the cost
estimates and to ensure that the cost of all identified work has
been estimated, and provides the relationship among all the
components of the project and the project deliverables.
Question - 3

Templates and forms which are available in the organization


and are part of organization's ________ project plan
development.
1.Assumptions
2.Constraints
3.Software
4.Methodology

Correct Answers are : 1


Explanation : Templates and forms which are available in the
organization are reusable components. Any resource that can be
reused as a useful tool is part of the total methodology of project
planning.

Question - 4

You are a project manager of a project. Customer has


requested a change which will increase the project risk. What
is your NEXT step?
1.Analyze the impact of the change.
2.Report to Senior Management.
3.Report to Sponsor.
4.Change the Risk Management Plan.

Correct Answers are : 1


Explanation : Your first task is to analyze the impact of the change.

Question - 5

Which of the following is part of the Perform Quality


Assurance process?
1.Benchmarking
2.Cost of Quality
3.Design of experiments
4.Quality audits

Correct Answers are : 4


Explanation : Quality audits are part of the Perform Quality
Assurance process.
Question - 6

You are a project manager and you are currently finalizing


requirements with two stakeholders BUT both stakeholder
have different views on requirements for the same project.
How can you resolve the issue ?
1.look at why there is different view on requirements and discuss
with both of them
2.look at why there is different view on requirements and finalize
which looks good to you
3.ask your manager to deal with this
4.finalize requirement which looks good to you

Correct Answers are : 1


Explanation : Best is "look at why there is different view on
requirements and discuss with both of them and try to resolve the
issue". Option is C is an example of avoidance. Option B and D is
example of forcing.

Question - 7

You are managing a project. This project must satisfy


industry standards in order to be accepted by the customer.
You and your team have studied the requirements and have
created a plan to implement the deliverables with the level of
quality. This process is called ________.
1.Quality Control
2.Quality assurance
3.Plan Quality
4.All of the above

Correct Answers are : 3


Explanation : Plan Quality: Identifying the quality standards that
are relevant to the project and determining how to meet them.
Question - 8

____________ is the process of predicting future project


performance based on the actual performance to date.
1.Variance Analysis
2.Issue Analysis
3.Pareto Analysis
4.Forecasting

Correct Answers are : 4


Explanation : Forecasting is the process of predicting future project
performance based on the actual performance to date, PMBOK
page no 300.

Question - 9

The first way to solve a conflict between team members is:


1.Let them resolve it
2.Sponsor resolves it
3.Project Manager resolves it
4.Top Management resolves it

Correct Answers are : 1


Explanation : A is the correct answer. Let the people involved in
the conflict work it out first.

Question - 10

The RFP (Request for proposal) is done in the_______.


1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 1


Explanation : RFP(Request for proposal) is done in Plan
Procurements process,
Question - 11

Your project has a budget of $240,000 and is expect to last for


1 year, with the work and budget spread evenly across all
months. The project is now in the fourth month, the work is
on schedule, but you have already spent $120,000 of the
project budget. What is your COST Variance in this case?
1.-$40,000
2.$40,000
3.$240,000
4.$2300

Correct Answers are : 1


Explanation : Cost Variance = Earn Value - Actual Cost Earn Value
= (Total Cost/total project months) * total months completed =
($240,000 / 12)*4=$80,000 CV = $80,000 - $120,000 = -$40,000

Question - 12

Procurements audits is done in _______ .


1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 4


Explanation : Procurements audits are done in Close
Procurements. PMBOK page no 345.

Question - 13

An activity which is in critical path is delayed. What should


you do ?
1.Compress the schedule
2.Scope cut
3.Inform customer about delay
4.Deliver uncompleted activity

Correct Answers are : 1


Explanation : A is the correct answer. Compress the schedule is
the best option.
Question - 14

Given the following estimates: Optimistic 3 days, Pessimistic


9 days, and most likely 6 days. What is the PERT weighted
average?
1.6
2.4
3.6.3
4.6.1

Correct Answers are : 1


Explanation : Optimistic = Co, most likely = Cm, Pessimistic = Cp.
PERT weighted average = (Co + 4Cm + Cp)/6 = (3+4*6+9)/6 =
36/6 = 6

Question - 15

Which plan describes when and how human resources will be


brought onto, and taken off of, the project team?
1.Scope management plan
2.Risk management plan
3.Staffing Management Plan
4.All of the above

Correct Answers are : 3


Explanation : C is the correct answer. Staffing Management Plan -
Describes when and how human resources will be brought onto,
and taken off of, the project team.

Question - 16

You are project manager of a software project. Your team


member want to technical change to a activity which will add
more time to that activity. What should you do ?
1.Check the activity is in critical path
2.Allow team member to change the activity
3.Report to senior management
4.Ignore change in activities.
Correct Answers are : 1
Explanation : A is the correct answer. Check the activity is in
critical path is the best option.

Question - 17

As a project manager of a project , you have just completed


Schedule network diagram. What should you do NEXT time
management activity?
1.Estimate Activity Resources
2.Sequence Activities
3.Estimate Activity Durations
4.Develop Schedule

Correct Answers are : 1


Explanation : A is the correct answer. Schedule network diagram is
an output of Sequence Activities, NEXT process is Estimate
Activity Resources.

Question - 18

Your project activity float is negetive 10. What is your course


of action ?
1.add more resources
2.ask more time to complete the project
3.use less experienced team members
4.Ignore It.

Correct Answers are : 1


Explanation : A is the correct answer. Negetive activity float means
your project is behind. Add more resource is best option.

Question - 19

Identifying the quality standards that are relevant to the


project and determining how to meet them is called
_________.
1.Quality Control
2.Quality Assurance
3.Plan Quality
4.All of the above

Correct Answers are : 3


Explanation : Plan Quality: Identifying the quality standards that
are relevant to the project and determining how to meet them.

Question - 20

A data point in a control chart that requires investigation is


called:
1.a special cause
2.a quality fault
3.a rule of seven
4.a rule of five

Correct Answers are : 1


Explanation : A data point in a control chart that requires
investigation is called a special cause.

Question - 21

Which one of the following best describes the analogous


estimating?
1.Less accurate
2.Reserve analysis
3.Bottom up estimating
4.Three-points estimates

Correct Answers are : 1


Explanation : Analogous estimating is less accurate than other
estimating methods.

Question - 22

__________includes all activities designed to enhance the


skills, knowledge, and capabilities of the project team.
1.Training
2.Ground Rule
3.Reward and Recognition System
4.Recognition System
Correct Answers are : 1
Explanation : A is the correct answer. Training: Includes all
activities designed to enhance the skills, knowledge, and
capabilities of the project team. Ground Rules: Ground rules
establish clear expectations regarding acceptable behavior by
project team members.

Question - 23

Some risks that are output of ________ will be the candidates


for further study.
1.Perform qualitative risk analysis
2.Perform quantitative risk analysis
3.Plan Risk Management
4.Identify Risks

Correct Answers are : 1


Explanation : Some risks that are output of Qualitative Risk
Analysis will be the candidates for further study during the
Quantitative Risk Analysis.

Question - 24

Which of the following is NOT the input of Direct and Manage


Project Execution process?
1.Project Management Plan
2.Approved Change Requests
3.Enterprise Environmental Factors
4.Project Charter

Correct Answers are : 4


Explanation : Project Charter is not an input of Direct and Manage
Project Execution process. Inputs of Direct and Manage Project
Execution process are: Project Management Plan, Enterprise
Environmental Factors, Approved Change Requests, and
Organizational Process Assets (PMBOK Page no, 104)

Question - 25
You are project manager of a project and you have decided to
CRASH the project. Which of the following is the most likely
outcome of this ?
1.increased cost
2.added risk
3.increased project time
4.doing activities in parallel

Correct Answers are : 1


Explanation : A is the correct answer. CRASHING is reducing
project time by expending additional resources. Therefore option A
is true.

Question - 26

Changing the project plan to eliminate the risk and protect the
project objectives is called ____________.
1.Avoidance
2.Transference
3.Mitigation
4.Share

Correct Answers are : 1


Explanation : Changing the project plan to eliminate the risk and
protect the project objectives is called Avoidance.

Question - 27

Make-or-Buy Analysis is done in the_______.


1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 1


Explanation : Make-or-Buy Analysis is done in the Plan
Procurements process.

Question - 28
Which of the following helps to determine the probability of
completing the project?
1.Monte Carlo Analysis
2.Impact Analysis
3.Qualitative Risk Analysis
4.Quantitative Risk Analysis

Correct Answers are : 1


Explanation : Monte Carlo Analysis: A schedule risk assessment
technique that performs a project simulation many times in order to
calculate a distribution of likely results.

Question - 29

You have an urgent requirement on your project and you hire


a vendor to start the work immediately. What contract is
needed now?
1.Letter contract
2.Fixed fee
3.Incentive contract
4.Fixed Budget

Correct Answers are : 1


Explanation : For an immediate work, a letter contract may be
sufficient.

Question - 30

Work Performance Information is output of________.


1.Define Scope
2.Perform Integrated Change Control
3.Direct and Manage Project Execution
4.Monitor and Control Project Work

Correct Answers are : 3


Explanation : Work Performance Information is output of Direct
and Manage Project Execution. (PMBOK page no, 115)

Question - 31
_________are simillar to control chart without displayed
limits.
1.Run charts
2.Pareto charts
3.Ishikawa diagrams
4.Histograms

Correct Answers are : 1


Explanation : Run chart is simillar to control chart without displayed
limits. PMBOK Page no 242.

Question - 32

SWOT analysis is done in _________.


1.Perform Qualitative Risk Analysis
2.Identify Risks
3.Plan Risk Responses
4.Plan Risk Management

Correct Answers are : 2


Explanation : SWOT analysis is done in Identify Risks process.
(PMBOK page no 305.)

Question - 33

Which of the following is NOT Tools and Techniques in


Quantitative Risk Analysis?
1.Expected Monetary Value Analysis
2.Decision Tree Analysis
3.Sensitivity Analysis
4.Influence Diagram

Correct Answers are : 4


Explanation : Influence Diagram is a technique to identify risks.

Question - 34

Which estimating technique is most accurate?


1.Bottom-up estimating
2.Analogous estimating
3.Parametric modelling
4.None of the above

Correct Answers are : 1


Explanation : Bottom-up estimating: Estimating the cost of
individual work items and then rolling up the costs to arrive at a
project total is more accurate.

Question - 35

Performance appraisal, recruitment, retention, regulatory


issues, and labor relations are generally used in the________
area.
1.General management
2.Administrative
3.Project Management
4.Accounting

Correct Answers are : 1


Explanation : Skills such as performance appraisal, recruitment,
retention, regulatory issues and labor relations are generally
considered more administrative than management oriented.

Question - 36

Probabilistic Analysis of a project, probability of achieving


cost and time objectives and trends in Quantitative Risk
Analysis results are done during _______.
1.Perform Qualitative Risk Analysis
2.Perform Quantitative Risk Analysis
3.Plan Risk Management
4.Identify Risks

Correct Answers are : 2


Explanation : Probabilistic analysis of a project, probability of
achieving cost and time objectives and trends in Quantitative Risk
Analysis results are done during Quantitative Risk Analysis.

Question - 37
You are the project manager for the large Project. You are
currently busy with approximating number of work periods
required to complete individual activities with estimated
resources. Which of the following inputs you need for this ?
1.Activity List
2.Activity resource requirements
3.Resource Calendars
4.All of the above

Correct Answers are : 3


Explanation : C is the correct answer. Approximating number of
work periods required to complete individual activities with
estimated resources is done in Estimate Activity Duration process.
Activity List,Activity resource requirements and Resource
Calendars are inputs of Estimate Activity Duration process.
PMBOK Page no 177.

Question - 38

You are newly appointed as a project manager of an ongoing


project. You want to see the role, authority, responsibility and
competencies of all the resources working in the project.
Which of the following document lists all the above
information?
1.Scope statement
2.Project Charter
3.Human Resource Plan
4.WBS

Correct Answers are : 3


Explanation : C is the correct answer. Human Resource Plan lists
role, authority, responsibility and competencies of all the resources
working in the project. PMBOK Page no 253.

Question - 39

One activity will be delay three weeks and that will affect the
project completion date. Who will approve the change ?
1.Change control board
2.project manager
3.Senior management
4.Team member

Correct Answers are : 1


Explanation : A is the correct answer. Change control board
approve the change.

Question - 40

Cost benefit analysis is done in the ___________process:


1.Plan Quality
2.Perform Quality Assurance
3.Perform Quality Control
4.All of the above

Correct Answers are : 1


Explanation : Cost benefit analysis is done in the Plan Quality
process.

Question - 41

Which of the following are output of the Collect Requirements


Process?
1.Requirements Documentation
2.Requirements Management Plan
3.Requirements Tractability Matrix
4.All of the above

Correct Answers are : 4


Explanation : The output of Collect Requirements Process are:
requirements documentation (stakeholders needs), the
requirements management plan (how the requirements will be
analyzed and documents), and the requirements traceability matrix
(tracking of requirements throughout the project).

Question - 42

In which of the quality management process, cause and effect


diagram is used to illustrate how various factors might be
linked to potential problems or effects?
1.Plan Quality
2.Perform Quality Assurance
3.Perform Quality Control
4.Quality

Correct Answers are : 3


Explanation : The cause and effect diagram is a tool and technique
to perform Quality Control . PMBOK Page no 222.

Question - 43

You are a project manager of a large project and you are


identifying some alternative techniques to generate different
approaches to execute and perform the work of a project. You
are doing it as a part of:
1.Collect Requirements
2.Control Scope
3.Verify Scope
4.Define Scope

Correct Answers are : 4


Explanation : This is call an Alternative Identification in the Define
Scope process.

Question - 44

At what part of the Procurement Management process does


procurement negotiations happen?
1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 2


Explanation : The negotiations happen at the Conduct
Procurements of the Procurement process.

Question - 45

Which type of contract has the highest risk for the seller?
1.Reimbursed time
2.Time and materials
3.Fixed price
4.Reimbursed cost

Correct Answers are : 3


Explanation : In Fixed price contract, the seller assumes the
greatest risk because the price is fixed and not going to change.
Fixed price- A fixed total price for a well-defined product may
include incentives for meeting or exceeding selected project
objectives.

Question - 46

Which of the following is NOT part of the Perform Quality


Control process?
1.fishbone diagram
2.Quality audits
3.Pareto Diagram
4.Histogram

Correct Answers are : 2


Explanation : Quality audits are part of the Perform Quality
Assurance process.

Question - 47

Who should be consulted when establishing communication


requirements in addition to stakeholders?
1.The customer
2.The project manager
3.The sponsor
4.Management

Correct Answers are : 2


Explanation : The project manager should be consulted when
establishing communication requirements in addition to
stakeholders because project manager has very important role in
establishing communication requirements.

Question - 48
You are a project manager of a company and you are
assigned to a project that has already decided to be
outsourced. As a project manager, you need to organize a
formal bid process and select the vendor for this project. You
own stock in one of the vendor companies who also
participated in the bidding process. What is the BEST course
of action for you?
1.Get the vendor company selected for the project.
2.Keep the information to yourself.
3.Tell your manager and remove yourself from the vendor
selection committee.
4.Ask other members of the selection committee to select your
vendor company.

Correct Answers are : 3


Explanation : The best option is to tell your manager and remove
yourself from the vendor selection committee.

Question - 49

Which of the following communication method is widely used


to explain complex problems?
1.Written
2.Verbal
3.Formal
4.Non formal

Correct Answers are : 1


Explanation : Written is the best option.

Question - 50

You are the project manager and you have to choose the best
project from available choices. Which of the folowing is the
BEST choice?
1.Benefit cost ratio (BCR) of project A is 2.5
2.Benefit cost ratio (BCR) of project B is 2.1
3.Benefit cost ratio (BCR) of project C is 0.6
4.Benefit cost ratio (BCR) of project D is 1.5
Correct Answers are : 1
Explanation : Benefit cost ratio (BCR) : A ratio describing the
relationship between the cost and benefits of a proposed project. A
BCR less than 1 is unfavorable; the higher the BCR, the better.

Question - 51

You are project manager and need as many as inputs is


possible in the initiation phase. Which of the following is the
best source of information for your project?
1.Historical Information
2.WBS
3.Business Plans
4.Project Closure Document

Correct Answers are : 1


Explanation : Historical information is the best input for the
initiation phase. WBS is incorrect as the WBS would not be ready.
Business is incorrect as business plans are not a likely input to the
initiation process.

Question - 52

In which of the following contract types the seller's profit is


limited?
1.Cost-plus-percentage-cost contract
2.Cost-plus-fixed-fee contract
3.Firm Fixed price contract
4.Fixed-price-incentive fee contract

Correct Answers are : 2


Explanation : Cost-plus-fixed-fee contract and Cost-plus-incentive-
fee contract where seller's profit is limited

Question - 53

You have elected to use parametric modelling in your


Estimate Costs for the project. Which one of the following is
an example of parametric modelling?
1.$120 per kg
2.Historical information from a similar project
3.Estimates built from bottom-up based on the WBS
4.Estimates based on top-down budgeting

Correct Answers are : 1


Explanation : A is correct; $120 per ton is an example of
parametric modelling. Parametric modelling: Using project
characteristics (or parameters) in a mathematical model to predict
costs (e.g., price per square foot). B is incorrect, as historical
information is analogous, not parametric. C is incorrect; bottom-up
estimating is not a parametric modelling. D is incorrect, top-down
budgeting is related to analogous estimating .

Question - 54

When the performing organization lacks in-house staff to


complete a project, the required services can be acquired
from outside. This is called ________.
1.Virtual Teams
2.Acquisition
3.Pre-Assignment
4.All of the above

Correct Answers are : 2


Explanation : B is the correct answer. Acquisition: When the
performing organization lacks the in house staff needed to
complete the project, the required services can be acquired from
outside sources.

Question - 55

A project manager determines the number and types of tests


and their impact on cost of quality. This task belongs to ___
process.
1.Plan Quality
2.Perform Quality Control
3.Perform Quality Assurance
4.Identify risk

Correct Answers are : 1


Explanation : Determining the number and types of tests and their
impact on cost of quality is called Design of experiments which is
done in Plan Quality process. PMBOK page no 228.

Question - 56

Control chart helps:


1.determine if the process is "in control"
2.how various elements of a system are interrelated
3.show trends in a process over time
4.shows the pattern of a relationship between two variables

Correct Answers are : 1


Explanation : Control Charts: Control charts are graphic display of
the results over a time of a process. They are used to determine if
the process is "in control".

Question - 57

You are a project manager for a project. While reviewing the


cost estimates for the project, you notice that one of the cost
estimates for an element in the WBS is 20% higher than the
previous project for a very similar work. What should you do
next?
1.Accept the estimate.
2.Ask the person responsible about the difference.
3.Ignore it.
4.Reduce the estimate.

Correct Answers are : 2


Explanation :
Best option is to ask the person responsible about the difference
and create the most accurate estimate that is practical.

Question - 58

Which of the following is a common problem in administrative


closure?
1.Completing a project charter
2.Retaining resources to complete the project
3.Completing a project plan
4.Completing a QA plan

Correct Answers are : 2


Explanation : The biggest problem is retaining team members until
closure of the project.

Question - 59

A unilateral contract under which the seller is paid a preset


amount per unit of service is called __________
1.A cost reimbursable contract
2.A lump sum contract
3.A time and material contract
4.A fixed price contract

Correct Answers are : 3


Explanation : A unilateral contract under which the seller is paid a
preset amount per unit of service is called time and material
contract.

Question - 60

Your project has a budget of $10,000 and is expect to last for


1 year, with the work and budget spread evenly across all
months. Right now CPI is 0.8. What is Variance at Completion
in this case?
1.-$2,500
2.$10,000
3.$12,500
4.$12,000

Correct Answers are : 1


Explanation : Variance at Completion = BAC - EAC Estimate at
Completion (EAC) = BAC / CPI = $10,000 / .8 = $12,500 Variance
at Completion = $10,000 - $12,500 = -$2,500

Question - 61

You are the project manager of a project which is scheduled


to last for 18 months. You have elected to rent a piece of
equipment for the duration of a project, even though you will
need the equipment only for 6 months. The costs of the
equipment rental per month are $120. This is an example of
___________.
1.Fixed Costs
2.Parametric Costs
3.Variable Costs
4.Parametric Budget

Correct Answers are : 1


Explanation : This is an example of Fixed Costs because $120 per
month is fixed.

Question - 62

Three estimates are : Pessimistic (P) : 30 Most Likely (M) : 25


Optimistic (O) : 14 What is activity duration (PERT) ?
1.24
2.20
3.18
4.32

Correct Answers are : 1


Explanation : A is the correct answer. Activity duration (PERT)= (P
+ 4M + O) / 6 then (30+4*25+14)/6 = 144/6 = 24

Question - 63

If you are the project manager of a project and you changed


the scope of a project by dropping some parts, you have
______________ the project.
1.Rewritten
2.Truncated
3.De scoped
4.Deleted

Correct Answers are : 3


Explanation : When you change the project plan by removing parts
of the final deliverable, you have descoped the project.
Question - 64

What is the present value if the organization expects to make


$500,000 three years from now and the annual interest rate is
4 percent?
1.$4000
2.$5000
3.$25000
4.$4500

Correct Answers are : 1


Explanation : Present Value = FV/(1+R)n. FV is the future value, R
is the interest rate, and n is the number of time periods. 500000/
(5*5*5) = 4000.

Question - 65

___________ is the process of performing the work defined in


the project management plan to achieve the project's
objectives.
1.Define Scope
2.Perform Integrated Change Control
3.Direct and Manage Project Execution
4.Monitor and Control Project Work

Correct Answers are : 3


Explanation : Direct and Manage Project Execution is the process
of performing the work defined in the project management plan to
achieve the project's objectives. (PMBOK page no, 114)

Question - 66

You are the project manager for the large Project. You are
identifying external dependencies for the activities with
management team. Identifying external dependencies are
done in ______?
1.Define Activities
2.Sequence Activities
3.Develop Schedule
4.Control Schedule
Correct Answers are : 2
Explanation : B is the correct answer. Identifying external
dependencies are done in Sequence Activities.

Question - 67

You are the project manager and decided to outsource a part


of the project to a vendor. You have offered a bonus to the
vendor if the work is completed in two months. This is an
example of _____________.
1.project incentive
2.project goal
3.fixed price contract
4.fixed budget

Correct Answers are : 1


Explanation : This is an example of project incentive.

Question - 68

Development activities of a software projects is depends on


the third party vendor, who provides hardware for this
activity. Is called ______.
1.external dependencies
2.internal dependencies
3.Discretionary dependencies
4.All of the above

Correct Answers are : 1


Explanation : A is the correct answer. external dependencies are
usually outside of project team control. PMPBOK Page no 171.

Question - 69

You are the project manager of the MKTG Project. This project
will last for 1 year and it has many stakeholders. How often
should Identify Risks take place?
1.Once at the beginning of the project
2.Throughout the execution processes
3.Throughout the QA processes
4.Throughout the project

Correct Answers are : 4


Explanation : Identify Risks is an iterative process that should
happen throughout the project life. Identify Risks is an iterative
process, involving the project team, management team,
stakeholders and subject matter experts.

Question - 70

Overtime associated with the execution effort of a project is


estimated at 120 hours with probability 0.5, 250 hours with
probability 0.6, and 300 hours with probability 0.3. What is the
monetary value of the amount of overtime?
1.300 hours
2.670 hours
3.250 hours
4.100 hours

Correct Answers are : 1


Explanation : The Monetary Value of the amount of overtime is
(120 x 0.5) + (250 x 0.6) + (300 x 0.3) = 300 hours.

Question - 71

If you are the project manager of a project and you break


down the WBS into smaller _______ to get detail so that you
can construct a schedule.
1.Work packages
2.Section
3.Issues
4.Time

Correct Answers are : 1


Explanation : A is the correct answer. The work packages give you
the detail you need to construct a schedule.

Question - 72

Which of the following tools are used in the quality plan?


1.Quality Checklists
2.Quality audits
3.Histogram
4.Process Analysis

Correct Answers are : 1


Explanation : Quality Checklists are used in the quality plan.

Question - 73

You are a project manager of a construction company. You


want to know with whom you will be communicating during
the project. Which of the below document you should refer
to?
1.Project Plan
2.Scope Statement
3.Statement of Work
4.Project Charter

Correct Answers are : 2


Explanation : The project plan say what, when, and how much you
will communicate. It also says with whom you will communicate
during the project.

Question - 74

You are the project manager for a project to create a new


product for the marketing industry. You recently came to
know that a competitor is also working on a similar project
with an additional web-based tool, which your project does
not offer. You initiate a change request to update your project.
This is an example of:
1.A change due to an external event
2.A change due to an error and omission in the initiation phase
3.A change due to an error or omission in the planning phase
4.A change due to a legal issue

Correct Answers are : 1


Explanation : The change is requested to remain competitive with
the competition an external event.
Question - 75

A project team member, on his own initiative, added a new


tool which was not part of the project plan. However, the team
member decided that the tool was necessary to increase
productivity. The project team's experts were in agreement
with the decision. This is an example of _________?
1.Ineffective change control
2.Control Costs
3.Self led teams
4.Value added change

Correct Answers are : 1


Explanation : The project team member did not follow the change
management plan's method of incorporating changes into the
scope. This is an example of Ineffective change control.

Question - 76

You are the project manager for the large Project. You have
identified and documented relationship among the project
activities and created project schedule network diagram.
What is your NEXT step ?
1.Define Activities
2.Sequence Activities
3.Develop Schedule
4.Control Schedule

Correct Answers are : 3


Explanation : C is the correct answer. project schedule network
diagram is input of Develop Schedule. PMBOK Page no 168.

Question - 77

You are a project manager and the project is to install ACs


into hotel rooms. You did project cost and time estimates and
informed the customer that the project estimates will be
accurate if the requirements such as wooden coating are met.
This is an example of which of the following?
1.Risk
2.Assumption
3.Constraint
4.Budget analysis

Correct Answers are : 2


Explanation : This is an example of assumption because estimates
provided will be accurate if the rooms meet the requirements like
(wooden coated). A and C are incorrect because the scenario did
not describe a risk or constraint.

Question - 78

Change Request is an input of _________.


1.Define Scope
2.Perform Integrated Change Control
3.Direct and Manage Project Execution
4.Monitor and Control Project Work

Correct Answers are : 2


Explanation : Change Request is an input of Perform Integrated
Change Control. (PMBOK page no, 104)

Question - 79

If the project is terminated early, then the level and extent of


completion should be documented. This is done as a part of:
1.Collect Requirements
2.Control Scope
3.Verify Scope
4.Define Scope

Correct Answers are : 3


Explanation : Verify Scope

Question - 80

You are the project manager and have been assigned a new
project. You have a good relation with the sponsor and senior
management. Your senior management and sponsor forcing
you to start the project imediately. What is your response ?
1.Start project imediately because your senior management is
asking the same.
2.Require a project charter be written and signed off on by all
stakeholders before proceeding.
3.Suggest that a scope statement be written.
4.Suggest that a project plan should be written.

Correct Answers are : 2


Explanation : The project should be start with a project charter that
authorizes the project to begin, assigns the project manager, and
describes the project objectives and business need for the project.

Question - 81

Estimating the number of work periods likely to be needed to


complete each activity is called :
1.Estimate Activity Resources
2.Sequence Activities
3.Estimate Activity Durations
4.Define Activities

Correct Answers are : 3


Explanation : C is the correct answer. Estimating the number of
work periods likely to be needed to complete each activity is called
Estimate Activity Durations .

Question - 82

Which of the following is NOT Tools and Techniques in


Monitor and Control Risks?
1.Risk Audits
2.Reserve Analysis
3.Sensitivity Analysis
4.Risk Reassessment

Correct Answers are : 3


Explanation : Sensitivity analysis is NOT Tools and Techniques in
Monitor and Control Risks .
Question - 83

Starting a new task before finish the old one is an example of


a __________ dependency.
1.Start-to-finish
2.Finish-to-start
3.Start-to-start
4.Finish-to-Finish

Correct Answers are : 1


Explanation : A is the correct answer. Start-to-finish An activity
must start before the next activity can finish.

Question - 84

This project was originally scheduled for completion in 1 year


but 2 years have already passed and even now the project is
in execution phase. Which statement is TRUE about the
project?
1.It is a temporary project
2.The requirements were added later, hence the delay
3.A key resource has left the organization, hence the delay
4.The company has a limited development license environment,
hence the delay

Correct Answers are : 1


Explanation : Project is continuing to expand means it is temporary
project. Other options can be achievable to complete the project if
it is important for organization.

Question - 85

You are the project manager for the large Project. You are
identifying and documenting relationship among the project
activities. This process is called ______?
1.Define Activities
2.Sequence Activities
3.Develop Schedule
4.Control Schedule

Correct Answers are : 2


Explanation : B is the correct answer. Sequence Activities -
identifying and documenting relationship among the project
activities. PMBOK Page no 167.

Question - 86

You are a project manager and now you are comparing


proposals received from sellers. Comparing proposals
received from sellers is done in _______ .
1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 2


Explanation : Comparing proposals received from sellers done in
the Conduct Procurements.

Question - 87

During the project execution phase, one of the team member


asked about his or her work. Which of the following document
you will ask the person to refer?
1.Work Breakdown Structure (WBS) dictionary
2.Scope Statement
3.Activity List
4.Project Charter

Correct Answers are : 1


Explanation : The WBS dictionary defines each element in the
WBS. Therefore, descriptions of the work packages are in the
WBS dictionary.

Question - 88

Who is primarily responsible for creating design and test


specifications?
1.Quality Control
2.Engineering
3.Support
4.Management

Correct Answers are : 2


Explanation : Engineering is primarily responsible for creating
design and test specifications.

Question - 89

Project Management Plan is an input to all of the following


processes EXCEPT_________.
1.Direct and Manage Project Execution process
2.Perform Integrated Change Control
3.Close Project or Phase
4.Develop Project Charter

Correct Answers are : 4


Explanation : Project Management Plan is NOT an input to
Develop Project Charter. (PMBOK page no, 104)

Question - 90

The market conditions are a part of the________.


1.Enterprise environmental factors
2.Project management concerns
3.Organizational process assets
4.Project Charter

Correct Answers are : 1


Explanation : The market conditions will influence all factors of
procurement.

Question - 91

You are a project manager of a project. Till today you have


actually completed $34,000 of work, but based on the cost
plan it should be $50,000. What is percentage Schedule
Variance (SV) in this case?
1.-32%
2.-16%
3.32%
4.10%

Correct Answers are : 4


Explanation : Schedule Variance (SV): Any difference between the
scheduled completion of an activity and the actual completion of
that activity. SV % = (EV - PV) / PV SV % = ($34,000 - $50,000) /
$50,000 = -32%

Question - 92

Which is the least risky phase of a project?


1.Planning
2.Closing
3.Execution
4.Control

Correct Answers are : 1


Explanation : The Planning phase is the phase with the least risk
attached because you have not committed the major part of your
project.

Question - 93

Which of the following project management process gets


MOST of a project's budget expended?
1.Project Executing
2.Project Planning
3.Project Closing
4.Project Monitoring

Correct Answers are : 1


Explanation : Most of the resources are involved in the project
executing process, therefore most of a project's budget are
expended on this process.

Question - 94

In which of the following situation network diagram is better


than bar chart ?
1.to show inter dependecies between activities
2.analysis of schedule progress
3.analysis of WBS
4.analysis of project plan

Correct Answers are : 1


Explanation : A is the correct answer. network diagram is best to
show Interdependencies between activities.

Question - 95

You are a project manager of a company. You have been


assigned as the project manager in the middle of the project.
The customer is not happy with the performance of the
project. What is the FIRST thing you should do?
1.Talk to customer about the concerns.
2.Try to achieve the performance.
3.Ignore the customer.
4.Leave the project and ask your manager to assign another
project.

Correct Answers are : 1


Explanation : The best option is to talk to the customer about the
concerns.

Question - 96

The purpose of a contract is to distribute a reasonable


amount of ____________between the buyer and seller.
1.Risk
2.Responsibility
3.Reward
4.Quality

Correct Answers are : 1


Explanation : A fair contract shares a reasonable amount of risk
between the buyer and the seller.

Question - 97

If there are two people in the communication system, then


how many communication channels will there be?
1.1
2.5
3.8
4.4

Correct Answers are : 1


Explanation : Number of communication channel will be calculated
using formula n*(n-1)/2 where n is the number of people involved
in the communication. Then Number of communication channel =
2(2-1)/2=2*1/2=1

Question - 98

A project manager has created a document and wants some


of the team member should have read access and some of
them should have write access also. The project manager
should create __________.
1.Configuration Management System
2.Project Management Information System
3.Project Management System
4.Control Management System

Correct Answers are : 1


Explanation : Configuration Management System addresses
controlling documents.

Question - 99

Teamwork is a critical factor for project success. Who is


responsible to create an environment that facilitates
teamwork?
1.Team lead
2.Team members
3.Project Manager
4.Sponsor

Correct Answers are : 3


Explanation : C is the correct answer. Project Manager is
responsible to create an environment that facilitates teamwork.
PMBOK Page no 260.
Question - 100

In the quality management process, which of the following is


not an attribute of the cost of non-conformance?
1.Rework
2.Safety measures
3.Downtime
4.Uptime

Correct Answers are : 2


Explanation : Safety measures are not an attribute of the cost of
nonconformance.

Question - 101

You are the project manager for the Project. You are updating
the WBS during Define Activities, are often called ________?
1.Refinements
2.Updates
3.Activities
4.Supporting detail

Correct Answers are : 1


Explanation : A is the correct answer. updating the WBS during
Define Activities, are often called Refinements. It occurs with
riskier projects.

Question - 102

You are the project manager of a marketing project. You want


a vendor to offer you one price to do all the detailed work.
Which type of document are you looking for?
1.IFB
2.Proposal
3.RFI
4.RFP

Correct Answers are : 1


Explanation : An IFB is a sealed document that lists the seller's
price to complete the detailed work.

Question - 103

Which of the following document justify the project - whether


the project is worth or not?
1.Business Case
2.Project Charter
3.Project Management plan
4.Scope statement

Correct Answers are : 1


Explanation : Business Case contains business need and cost-
benefit analysis. Business Case document justify the project -
whether the project is worth or not. PMBOK page no , 106

Question - 104

If project manager can approve the changes, this is still part


of the ___________.
1.Project Plan
2.Change Control System
3.Charter
4.Scope Statement

Correct Answers are : 2


Explanation : Any change requests must go through review
process, and so need to be part of Change Control System.

Question - 105

A project team with members located in the India, the US, and
the UK would be called a ___________. They don't spent time
meeting face to face.
1.Virtual team
2.Scattered team
3.Universal team
4.None of the above
Correct Answers are : 1
Explanation : A is the correct answer. Virtual Teams: Virtual teams
can be defined as groups of people with a shared goal, who fulfill
their roles with little or no time spent meeting face to face.

Question - 106

You are a project manager of MKTG project. The customers of


the project have requested additions to the project scope.
You have to do additional risk planning and need to add it to
the project schedule. Why is so?
1.Risk planning should always occur whenever the scope is
adjusted.
2.Risk planning should only occur at the project manager's
discretion.
3.Risk planning does not need to happen at every change in the
project.
4.All of the above

Correct Answers are : 1


Explanation : Risk Planning should always occur whenever the
scope is change and adjusted.

Question - 107

You are a project manager of a company and your project is


currently in execution phase. The customer has requested
you for additional work. This work will affect the budget, but
not the schedule of the project. What should you do next?
1.Add the additional requirements to the project plan.
2.Ignore the request.
3.Explain the change procedure and ask to submit a request for
change.
4.Discuss with the project team about the change.

Correct Answers are : 3


Explanation :
Explain the change procedure and ask to submit a request for
change is the best choice.
Question - 108

Comparing target dates with the actual or forecast start and


finish dates is called :
1.Variance Analysis
2.Earned Value
3.Progress Reporting
4.Crashing

Correct Answers are : 1


Explanation : A is the correct answer. Variance Analysis :
Comparing target dates with the actual or forecast start and finish
dates.

Question - 109

You are the project manager and are considering


recommending a project that costs $210,000; expected
inflows are $5,000 per month for the first three years and then
$6,000 per month thereafter. What is the payback period?
1.41 months
2.36 months
3.45 months
4.21 months

Correct Answers are : 1


Explanation : Payback period : The number of time periods
required until inflows equal, or exceed, costs. Total inflows for first
three years is 36 months * $5000 = $180,000. Money left =
$210,000 - $180,000 = $30,000. Months need for $30,000 is
($30,000/$6,000)=5 months Total payback period = 36 + 5 = 41
months.

Question - 110

A risk is ____________ occurrence that has a positive or a


negative effect on a project .
1.Known
2.Uncertain
3.Known
4.Potential
Correct Answers are : 2
Explanation : Risks are not planned, they are left to chance.

Question - 111

The OBS (Organization Breakdown Structure), WBS, and RBS


(Resource Breakdown Structure) are all examples of
________.
1.Control charts
2.Hierarchical charts
3.Project standard
4.Run chart

Correct Answers are : 2


Explanation : B is the correct answer. The OBS (Organization
Breakdown Structure), WBS, and RBS (Resource Breakdown
Structure) are all examples of Hierarchical charts.

Question - 112

Project Performance Appraisal is part of the:


1.Acquire Project Team
2.Develop Project Team
3.Develop Human Resource Plan
4.Manage Project Team

Correct Answers are : 4


Explanation : D is the correct answer. Project Performance
Appraisal is part of the Manage Project Team.

Question - 113

A project has three critical path. How this affects the project ?
1.It increased project risk.
2.It need more resources.
3.It need more time.
4.It costs more.
Correct Answers are : 1
Explanation : A is the correct answer. It increased project risk.

Question - 114

What is the purpose of a status meeting?


1.Exchange information about the project.
2.Get the status from each team member
3.Review of the activities
4.Create status report

Correct Answers are : 1


Explanation : Best option is exchange information about the
project.

Question - 115

Your company policy allow to gift exchange with customer


within certain limit. By mistake, you have given a gift to the
customer's representative already which is beyond the limit
mentioned in your company policy. What should you do?
1.Forget it and don't tell anyone.
2.Contact your company's senior management and ask for
assistance.
3.Ask your customer to return the gift.
4.Ask your customer to give you a gift which has the same cost

Correct Answers are : 2


Explanation :
Best option is to contact your company's senior management and
ask for assistance.

Question - 116

You are a project manager of a project and want to report the


actual project result and the planned status. You should use?
1.Forecasting report
2.Trend reports
3.Status report
4.Variance report
Correct Answers are : 4
Explanation : variance report: An actual project result and planned
status of a project.

Question - 117

Which of the following is NOT the activity in Define


Activities ?
1.Decomposition
2.An activity list from a previous project
3.Progressive elaboration planning
4.Create project charter

Correct Answers are : 4


Explanation : D is the correct answer. Create project charter is
activity in initiation phase.

Question - 118

Make-or-buy decisions measure the cost of both options.


What are these two options?
1.Direct, Indirect
2.Tactical, Strategic
3.Management, Project
4.Direct,Management

Correct Answers are : 1


Explanation : Make-or-buy decisions measure the cost of both
options. When doing this analysis, it should include both direct and
indirect costs so that the final decision is based on comparisons
that are equal.

Question - 119

An organization's quality policy should come from


the_________.
1.Project manager
2.Top management
3.Customers
4.All of the above

Correct Answers are : 2


Explanation : An organization's quality policy should come from the
top management.

Question - 120

You are project manager of a software project. You have just


analyzed activity sequences, durations, resource
requirements , schedule constraints and created project
schedule. The above task belongs to which process?
1.Define Activities
2.Sequence Activities
3.Develop Schedule
4.Control Schedule

Correct Answers are : 3


Explanation : C is the correct answer. analyzing activity
sequences, durations, resource requirements , schedule
constraints and created project schedule is belongs to Develop
Schedule process.

Question - 121

All of the following are inputs of Perform Qualitative Risk


Analysis EXCEPT ________.
1.Risk Register
2.Project Scope Statement
3.Risk Management Plan
4.Stakeholder Register

Correct Answers are : 4


Explanation : Stakeholder Register is input of Identify Risks.

Question - 122

You were the project manager of X company for a long time,


and had done lots of project management practices. Recently,
you have joined another company Y and assigned to a
project. You should _________.
1.Use the forms of company Y
2.Use the forms of company X and instruct about the good project
management practices
3.Talk to change control board
4.Use the forms of company Y and instruct about the good project
management practices

Correct Answers are : 4


Explanation : The best option is to use the forms of company Y
and instruct about the good project management practices.

Question - 123

If a project has an 80% chance of activity will take 2 weeks or


less. what is the probability of the event?
1.75%
2.65%
3.50%
4.20%

Correct Answers are : 4


Explanation : 20% probability of exceeding 2 weeks - 80% chance
of activity will take 2 weeks or less

Question - 124

Risk Probability and Impact Assessment, and Risk


Categorization are done during ________.
1.Perform Qualitative Risk Analysis
2.Perform Quantitative Risk Analysis
3.Plan Risk Management
4.Identify Risks

Correct Answers are : 1


Explanation : Risk Probability and Impact Assessment, and Risk
Categorization are done during Qualitative Risk Analysis.

Question - 125
The ___________ shows departments or units of the
organization and is not organized the deliverables.
1.OBS
2.WBS
3.RBS
4.Scope statement

Correct Answers are : 1


Explanation : A is the correct answer. OBS(Organization
Breakdown Structure) shows departments or units of the
organization and is not organized the deliverables.
OBS(Organization Breakdown Structure) shows the organization's
units and departments as a top-down graph.

Question - 126

The buyer and seller are bound by a________.


1.Contract
2.Responsibilities
3.WBS
4.Identification

Correct Answers are : 1


Explanation : The buyer and seller are bound by a contract.

Question - 127

The Scope Statement does not provide___________?


1.Project Justification
2.Project Product
3.Project Manager Authority
4.Project Objective

Correct Answers are : 3


Explanation : The project charter provides the project manager
with authority.

Question - 128

You are a project manager of a company and you have been


assigned to a project. You are now comparing actual project
performance against project management plan. This belongs
to which process?
1.Define Scope
2.Perform Integrated Change Control
3.Direct and Manage Project Execution
4.Monitor and Control Project Work

Correct Answers are : 4


Explanation : Comparing actual project performance against
project management plan belongs to Monitor and Control Project
Work process.

Question - 129

As a project manager of a project , you have just completed


Schedule network diagram. Which of the following time
management activity you have completed?
1.Estimate Activity Resources
2.Sequence Activities
3.Estimate Activity Durations
4.Develop Schedule

Correct Answers are : 2


Explanation : B is the correct answer. Schedule network diagram is
an output of Sequence Activities.

Question - 130

Comparing your project with actual or planned project


practices to generate ideas for improvement is called:
1.Benchmarking
2.Benefit/Cost analysis
3.Quality audits
4.Process Analysis

Correct Answers are : 1


Explanation : Comparing your project with actual or planned
project practices to generate ideas for improvement is called
Benchmarking.
Question - 131

You are a project manager of a pharmaceutical company. A


new pharmaceutical regulation is passed that changes your
project scope. For the project to be in accordance with the
new regulation, what should be your next action?
1.Present the change to the Change Control Board (CCB)
2.Notify Management
3.Prepare a new baseline to reflect the changes
4.No need to do anything

Correct Answers are : 1


Explanation : You must present the change to the Change Control
Board (CCB) for new changes.

Question - 132

A project manager has created a document and wants to track


the changes made in the document. The project manager
should create _______.
1.Configuration Management System
2.Project Management Information System
3.Project Management System
4.Control Management System

Correct Answers are : 4


Explanation : Control Management System tracks the changes.

Question - 133

Your project has a budget of $10,000 and is expect to last for


1 year, with the work and budget spread evenly across all
months. Right now CPI is 0.8. What is Estimate at Completion
(EAC) in this case?
1.$12,500
2.$10,000
3.2.5
4.3.0
Correct Answers are : 1
Explanation : Estimate at Completion (EAC) = BAC / CPI =
$10,000 / .8 = $12,500

Question - 134

You are a project manager of a Project. Which of the following


techniques will you use to create the Risk Management Plan?
1.Planning Meetings
2.Status Meetings
3.Variance Meetings
4.Risk Tolerance

Correct Answers are : 1


Explanation : Planning meetings are used to create the Risk
Management plan. Planning Meetings and Analysis: Attendees are
the PM, leadership team, key stakeholders and those in the
organization responsible to manage project risks.

Question - 135

The Pareto chart helps:


1.Focus on critical issues to improve quality.
2.Determine how various factors are linked to potential problems
3.Determine whether or not process is stable and within set limits.
4.Focus on root cause analysis

Correct Answers are : 1


Explanation : Pareto chart: Focus on critical issues to improve
quality Fishbone diagram/Ishikawa: Determines how various
factors linked to potential problems or effects, root cause Control
chart: Determines whether or not process is stable and within set
limits .

Question - 136

You are a project manager of a company. You are taking over


a project during the planning process, and you discovered
that many individuals have signed the project charter. Which
of the following should be areas of concern for you?
1.Who will be a member of the change control board?
2.Who are the stakeholders for the project?
3.Need to spend more time on configuration management.
4.Determining the reporting structure.

Correct Answers are : 3


Explanation : Because of many individual signed in the project
charter, areas concerned with this project are many. You should
be concern with communications requirements, competing needs
and requirements impacting your efforts on configuration
management.

Question - 137

If a customer requests for additional work that is not in the


contract, then what type of communication the customer
should use?
1.Formal Written
2.Verbal
3.Informal Verbal
4.Noise

Correct Answers are : 1


Explanation : The formal written is the best for this type of request.

Question - 138

You are the project manager of a new project and you have
collected the necessary input information and delivered the
project charter to the stakeholders. What should you do next?
1.Get the project charter signed.
2.Start the initial project planning process.
3.Develop the project scope statement.
4.Start to create project plan

Correct Answers are : 1


Explanation : After delivered the project charter to the
stakeholders, First thing you have to do get the project charter
signed.. Project charter is the only authorized document to start
project.
Question - 139

3 sigma is equal to ______ percentage of fall between two


control limits.
1.99.99%
2.99.73%
3.95.46%
4.68.26%

Correct Answers are : 2


Explanation : memorize 3 sigma = 95.73% 1 sigma = 68.26% 2
sigma = 95.46% 6 sigma = 99.99%

Question - 140

The project quality policy should be written by ________.


1.Project team
2.Customer
3.Management
4.Accounting

Correct Answers are : 1


Explanation : The project team, led by the project manager, must
write the quality policy for each project.

Question - 141

All of the following are examples of Acquire Project Team


EXCEPT:
1.Negotiations
2.Acquisition
3.Pre-assignments
4.Training

Correct Answers are : 4


Explanation : D is the correct answer. Training is part of Develop
Project Team, others are part of Acquire Project Team. PMBOK
Page no 248.
Question - 142

Which of the following chart shows position and relationships


in top-down format?
1.Hierarchical-type chart
2.Matrix-based charts
3.Text-Oriented format
4.All of the above

Correct Answers are : 1


Explanation : A is the correct answer. Hierarchical-type chart
shows position and relationships in top-down format. PMBOK
Page no 253.

Question - 143

Which of the following document can be used to guide all the


work in both project executing and project monitoring and
controlling phase of a project?
1.Project Management Plan
2.Project Risk Plan
3.Project QA Plan
4.Project Charter

Correct Answers are : 1


Explanation : Project Management plan can be used to guide all
the work in both project executing and project monitoring and
controlling phase of a project.

Question - 144

Which of the following is NOT an example of Cost of


Conformance?
1.Rework
2.Testing
3.Equipment
4.Training

Correct Answers are : 1


Explanation : Rework is part of Cost of Nonconformance. Others
are part of Cost of Conformance. PMBOK Page no 226.

Question - 145

Budget forecasts are inputs of ___________.


1.Identify Stakeholders
2.Plan communications
3.Manage stakeholder expectations
4.Reports performance

Correct Answers are : 4


Explanation : Budget forecasts are inputs of Reports performance.
PMBOK page no 275.

Question - 146

You are a project manager of a construction company. You


want to manage the variance between what was planned and
what actually occurred. Which of the following methodology
you should use?
1.Earned Value Management (EVM)
2.Earned Value (EV)
3.Planned Value
4.Accounting

Correct Answers are : 1


Explanation : There could be confusion between Option A and
Option B. Earned Value Management (EVM) is the methodology
and Earned Value (EV) is the technique. And so Option A is true.

Question - 147

You are a project manager of a company and you are


assigned to a project that has already been decided to out
source. As a project manager, you need to organize a formal
bid process and select the vendor for this project. Your senior
management is forcing you to select a vendor which has good
relation with your senior management. What is the BEST
course of action for you?
1.Follow the formal bid process, and show the senior management
about why the favoured vendor is or is not the best choice.
2.Report to legal department of your company.
3.Report to your Manager about this.
4.Get a written permission from your senior management to
bypass the formal bid process.

Correct Answers are : 1


Explanation : The best option is to follow the formal bid process,
and show the senior management about why the favoured vendor
is or is not the best choice.

Question - 148

What is the purpose of fishbone diagram?


1.To illustrate how various factors might be linked to potential
problems or effects
2.Are used to determine if the process are in control
3.Show trends in a process over time
4.Shows the pattern of relationship between two variables

Correct Answers are : 1


Explanation : Fishbone diagram : To illustrate how various factors
might be linked to potential problems or effects.

Question - 149

Which of the following tool help you determine the most


common cause of problems in a process by number ?
1.Status Reports
2.Pareto Charts
3.Ishikawa Diagrams
4.Histogram

Correct Answers are : 4


Explanation : Histogram: ordered by frequency of occurrence, that
shows how many results were generated by type or category of
identified cause. PMBOK Page no 241.

Question - 150
As a project manager it is important to collect project records
at the end of the project. What is the use of "collect project
records"?
1.Recall what happened on the project, good or bad.
2.Recall decisions made on the project.
3.To see cost decisions.
4.To support the risks on the project.

Correct Answers are : 1


Explanation : The best use of "collect project records" is to recall
what happened on the project, good or bad.

Question - 151

You are the project manager of a large project. Your project


sponsor and management want portions of the project to be
outsourced and you have been given the responsibility to
outsource. The project sponsor and management have
approved you to outsource portions of the project. Who must
ensure that all of the project work is authorized, contracted
properly, and funded?
1.Project sponsor
2.Management
3.Vendor
4.Project Manager

Correct Answers are : 4


Explanation : Project manager has the responsibility to ensure that
the project work is authorized, contracted, and funded.

Question - 152

You area project manager of a project and have done risk


response plan. What should you do NEXT?
1.Update Project Management Plan
2.Update Risk Identification Check list
3.Root causes of risks
4.Corrective action

Correct Answers are : 1


Explanation : Update Project Management Plan is an output of risk
response plan.

Question - 153

Performance Report is input of the:


1.Acquire Project Team
2.Develop Project Team
3.Develop Human Resource Plan
4.Manage Project Team

Correct Answers are : 4


Explanation : D is the correct answer. Performance Report is input
of the Manage Project Team.

Question - 154

You are a project manager of a company and you have been


assigned to take over managing a project that should have
been 60 percent complete according to the schedule. After
evaluation, you discover that the project is running far behind
schedule, and that the project will probably take double the
time originally estimated by the previous project manager.
However, the sponsor has been told that the project is on
schedule. What is the BEST course of action you will take?
1.Add new resource to the project and complete the project on
schedule.
2.Show your evaluation to sponsor.
3.Ask your senior manager to deal with this.
4.Turn the project back to the previous project manager.

Correct Answers are : 2


Explanation : You can't turn the project back to the previous project
manager because he or she may be busy with other project. The
best option is to show your evaluation to sponsor.

Question - 155

The Create Procurement document is done in the_______.


1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 1


Explanation : The Create Procurement document is done in the
Plan Procurements process.

Question - 156

The ___________ is used to document changes that occur


during a project?
1.Issue Log
2.Change Log
3.Project Management Plan
4.Scope statement

Correct Answers are : 2


Explanation : The Change Log is used to document changes that
occur during a project. PMBOK page no 294.

Question - 157

Finding out all people or organizations impacted by the


project is called_________.
1.Identify Stakeholders
2.Plan communications
3.Manage stakeholder expectations
4.Reports performance

Correct Answers are : 1


Explanation : Finding out all people or organizations impacted by
the project is called Identify Stakeholders. PMBOK page no 277.

Question - 158

You are the project manager of a company and currently


doing strategic planning with senior management. What is the
best reason for doing strategic planning?
1.To determine which projects will be sponsored in order to
achieve the organizational goals
2.To determine the project resources
3.To determine the project deliverables
4.To determine the functional activities

Correct Answers are : 1


Explanation : The strategic planning conducted by an
organization's management determines which projects will be
sponsored in order to achieve the organizational goals.

Question - 159

You are the project manager of a Project. Your project will


cost your organization $50,000 to complete over the next 3
months. Once the project is completed, the deliverables will
let the company earn $5000 per month. What is the time to
recover the costs of the project?
1.10 Months
2.1 Year
3.2 Years
4.3 Years

Correct Answers are : 1


Explanation : This is calculated by dividing the ROI of $5000 per
month into the project cost. 50000/5000 = 10 months

Question - 160

The line in the middle of a control chart is called:


1.mean
2.rule of seven
3.rule of five
4.specification limit

Correct Answers are : 1


Explanation : The line in the middle of a control chart is called
mean.

Question - 161
You are a project manager of a project. How you determine
whether it is better to make a product or buy a product?
1.Decision Tree Analysis
2.ROI Analysis
3.Ishikawa Diagram
4.None of the above

Correct Answers are : 1


Explanation : A Decision Tree model can separate the pros and
cons of buying product versus building product. Ishikawa Diagram
shows cause and effect, not pros and cons.

Question - 162

You are a project manager and you are working for a large
project with more than hundreds of stakeholders.Which of the
following is the BEST course of action you are going to take ?
1.Consider needs of all stakeholders.
2.Consider needs of important stakeholders.
3.Eliminate some of them.
4.Ask your manager to manage the stakeholders.

Correct Answers are : 1


Explanation : Consider needs of all stakeholders is the best
choice.

Question - 163

You are working in an organization where all the employees


are divided into groups by specialty such as sales, support
and engineering. In which type of organization you are
working in ?
1.Functional
2.Strong matrix
3.Weak matrix
4.Tight Matrix

Correct Answers are : 1


Explanation : In a functional organization, all employees are
divided into groups such as sales, support and engineering.
Projects in a functional organization generally only involve one
department.

Question - 164

Which of the following is a part of the Project Scope


Management?
1.Verify Scope
2.Collect Requirements
3.Control Scope
4.All of the above

Correct Answers are : 4


Explanation : Verify Scope, Collect Requirements and Control
Scope are all part of the Project Scope Management.

Question - 165

___________ is a group of process required to purchase or


acquire products, services, or results needed from outside
the project team to perform the work.
1.Procurement Management
2.Planning Management
3.Scope Management
4.Control Management

Correct Answers are : 1


Explanation : Procurement Management is a groups of processes
required to to purchase or acquire the products, services, or
results needed from outside the project team to perform the work.

Question - 166

You have just started a project. The project team member


reported that 20 percent of the project is done. You agree with
their completion status, but do not change any of the
progress in your report to the customer. This is an example of
which one of the following?
1.0/100 Rule
2.50/50 Rule
3.Percent Complete Rule
4.20/20 rule

Correct Answers are : 1


Explanation : The 0/100 Rule allows for zero percent credit on an
activity until it is 100 percent complete. B is wrong (50/50 rule): 50
percent completion when the work begins and 50 percent when
the work is completed.

Question - 167

During the project execution phase, a risk is found which was


not included in the Risk Register. What should you do?
1.Ask senior management to deal with this.
2.Keep with yourself.
3.Find workaround.
4.Re-evaluate Risk Management process.

Correct Answers are : 3


Explanation : The best option is to find a workaround and solve the
issue.

Question - 168

You are the project manager of a global project having team


members in the US and India. The client has a budget not
exceeding $12 million. Due to global concerns, the final
budget must be in the U.S. dollars. This is an example of
which of the following?
1.Internationalization
2.Budget constraint
3.Management constraint
4.Technical constraint

Correct Answers are : 2


Explanation : This is an example of a budget constraint. The
budget must not exceed $12 million.

Question - 169
Your company has been hired to configure software in 500
computers. All computers need equal time to configure. The
contract for the project is set at a fixed cost, and the incentive
based on how fast the project work is going to be completed.
Management has requested that you study the work method
to determine a faster, less costly, and a better method to
complete the project. This scenario is an example of
_________.
1.Time Constraint
2.Schedule Constraint
3.Value Analysis
4.Learning Curve

Correct Answers are : 3


Explanation : Value Analysis is a systematic approach to find less
costly ways to complete the same work. A and B are incorrect, as
this situation does not describe a specific time or cost constraint. D
is incorrect: the learning curve happens as the project team
completes the work.

Question - 170

A Heuristics is best described as :


1.thumb rule.
2.activity diagram.
3.workaround.
4.control tool.

Correct Answers are : 1


Explanation : A is the correct answer. Heuristics is thumb rule.
Examples are cost per square feet etc.

Question - 171

Project X has a payback period of 26 months. Project Y has a


cost of $500,000, with expected cash inflows of $200,000 the
first year and $50,000 per quarter after that. Which project
should you recommend?
1.Project X because of lower payback period.
2.Project Y because of higher payback period.
3.Project Y because of payback period 25.
4.Project Y because of payback period 30.

Correct Answers are : 1


Explanation : Project Y has a cost of $500,000. After 1 year
remaining cost is $500,000 - $200,000 = $300,000. period for
remaining cost is $300,000 / $50,000 = 6 quarter = 6*3 months =
18 months. Total payback period for project Y = 1 year + 18
months = 30 months The lower the payback period, the better.

Question - 172

Project X will take 3 years to complete and has NPV value


$70,000 and Project Y will take 5 years to complete and has
NPV value $60,000. What is the opportunity cost of selecting
Project X ?
1.$35,000
2.$60,000
3.$30,000
4.$130,000

Correct Answers are : 2


Explanation : opportunity cost of selecting Project X is simply the
value of the project you did not select. Based on the NPV you have
selected project X. Therefore value of the project Y is the
opportunity cost.

Question - 173

During the planning phase of a project, your team members


find another way to complete a portion of the project. This
method is safer for the project team but the cost may go up.
This is an example of _____?
1.Alternative Identification
2.Risk Assessment
3.Alternative Selection
4.Product Analysis

Correct Answers are : 1


Explanation : Alternative identification is a planning process to find
alternatives to complete the project scope.
Question - 174

You are the project manager and you meet with your project
team to ensure the project is completed with no deviations
from the project requirements.This is part of?
1.Quality Control
2.Quality assurance
3.Plan Quality
4.All of the above

Correct Answers are : 3


Explanation : Plan Quality should be completed prior to the work
beginning and revisited as needed. Plan Quality: Identifying the
quality standards that are relevant to the project and determining
how to meet them.

Question - 175

Disciplinary actions should be taken based on


the___________ policy.
1.Government
2.Organizational
3.Project team
4.Sponsor

Correct Answers are : 2


Explanation : B is the correct answer. Disciplinary actions should
be taken based on the Organizational policy.

Question - 176

If you want to print more than 25000 workbooks, printing of


workbooks may be go up to 50000 workbooks . For every
5000 workbooks created, the cost is reduced a percentage of
the original printing cost. The workbook expense is an
example of which one of the following?
1.Fixed Costs
2.Parametric Costs
3.Variable Costs
4.Parametric Budget

Correct Answers are : 3


Explanation : This is an example of Variable Costs.

Question - 177

______ is an after the fact look at caused a difference between


the baseline and actual performance .
1.Variance Analysis
2.Issue Analysis
3.Simulation
4.Forecasting

Correct Answers are : 1


Explanation : Variance Analysis is an after the fact look at caused
a difference between the baseline and actual performance.
PMBOK page no 268.

Question - 178

If you are the project manager for a project. The customer has
requested that you factor after-project costs, such as
maintenance and service. This is an example of which one of
the following?
1.Life Cycle costs
2.Scope Creep
3.Project Spin off
4.Operations

Correct Answers are : 1


Explanation : The after-project costs are known as Life Cycle
costs.

Question - 179

Which of the following is an example of the Perform Quality


Assurance process?
1.Pareto chart
2.Quality Audits
3.Inspection
4.Cost of quality

Correct Answers are : 2


Explanation : Quality Audits are part of Perform Quality Assurance
process. PMBOK page no 222. The cost of quality is part of Plan
Quality Pareto chart and Inspection are part of Perform Quality
Control.

Question - 180

You are project manager of a project. In the user testing


phase the primary customer of a project has requested a
change. What will be your NEXT action?
1.Create a formal change request
2.Ignore it
3.Create a risk plan and show it to the customer
4.Inform the project sponsor about the changes to scope

Correct Answers are : 1


Explanation : Best option is create formal change request.

Question - 181

Why should quality be planned and not inspected every time?


1.To improve quality with less cost
2.To improve quality with more cost
3.To reduce quality with less cost
4.To reduce quality with more cost

Correct Answers are : 1


Explanation : Best option is to improve quality with less cost.

Question - 182

Leading, communicating, negotiating and problem solving are


examples of the _________ management skills.
1.Project
2.Senior
3.General
4.HR

Correct Answers are : 3


Explanation : C is the correct answer. General skills that any type
of manager will need to use in order to perform successfully for the
organization. Leading, communicating, negotiating and problem
solving are examples of the General management skills.

Question - 183

Make payment to seller is done in _______ .


1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 3


Explanation : Make payment to seller is done in the Administer
Procurements.

Question - 184

Phone call and Video Conferencing are examples of


_______________.
1.Interactive Communications
2.Pull Communication
3.Push Communication
4.Noise

Correct Answers are : 1


Explanation : Video Conferencing, phone calls, etc. are examples
of Interactive Communications. Letter, memos, fax , email, etc. are
examples of Push Communication. Internet site, e-learning, etc.
are examples of Pull communication. PMBOK page no 287.

Question - 185

The formal management actions that promote or reinforce


desired behavior is called _________.
1.Training
2.Ground Rules
3.Reward and Recognition System
4.All of the above

Correct Answers are : 3


Explanation : C is the correct answer. Reward and recognition
systems : Formal management actions that promote or reinforce
desired behavior. Training : Includes all activities designed to
enhance the skills, knowledge, and capabilities of the project team.
Ground Rules: Ground rules establish clear expectations regarding
acceptable behavior by project team members.

Question - 186

The 2 years project has 200 work packages and a $20,000


budget. After one year, 100 work packages are completed and
$10,000 has been spent. Which of the following is TRUE?
1.The project need 50 work package to be completed in 6 months.
2.Not enough information available.
3.The project need 50 work package to be completed in 3 months.
4.The project is on schedule and on budget.

Correct Answers are : 2


Explanation : There is Not enough information available about the
project. What was planned? Is the work packages are same?
Therefore Option B is TRUE.

Question - 187

Having a project team in a single location where they can


work in a face-to-face environment is called _______.
1.Collocation
2.Location construction
3.Team structure
4.All of the above

Correct Answers are : 1


Explanation : A is the correct answer. Co-Location: Co-location
involves placing many or all of the most active project team
members in the same physical location to enhance their ability to
perform as a team.
Question - 188

Which of the following statement is TRUE about Expected


Monetary Value (EMV)?
1.Risks have the most potential impact on the project.
2.A statistical concept that calculates the average outcome when
the future includes scenarios that may or may not happen.
3.Describes a situation under consideration, and the implications
of each of the available choices and possible scenarios.
4.Quantify the probability and impact of risks on project objectives.

Correct Answers are : 2


Explanation : Expected Monetary Value (EMV) analysis is a
statistical concept that calculates the average outcome when the
future includes scenarios that may or may not happen.

Question - 189

Which hierarchical chart shows resources?


1.RBS
2.OBS
3.WBS
4.Scope statement

Correct Answers are : 1


Explanation : A is the correct answer. The Resource Breakdown
Structure shows various resources, both human and mechanical
needed for project.

Question - 190

As a project manager you are creating a table that map


requirements to their origin and traces them throughout the
project life cycle. You are doing it as a part of:
1.Collect Requirements
2.Control Scope
3.Verify Scope
4.Define Scope
Correct Answers are : 1
Explanation : Creating a table that map requirements to their origin
and traces them throughout the project life cycle is called the
Requirement tractability matrix, which is an output of Collect
Requirements process. PMBOK Page no, 142.

Question - 191

Complete final contract performance reporting and verify


product is done in _______.
1.Plan Procurements
2.Conduct Procurements
3.Administer Procurements
4.Close Procurements

Correct Answers are : 4


Explanation : Complete final contract performance reporting and
verify product is done in Close Procurements.

Question - 192

The Work Breakdown Structure is an example of a _________.


1.Hierarchical chart
2.Control charts
3.Pie chart
4.Run chart

Correct Answers are : 1


Explanation : A is the correct answer. The Work Breakdown
Structure is an example of a hierarchical chart. It shows
relationships of the various tasks and people in a top-down,
graphic format.

Question - 193

All of the following are examples of Develop Project Team


EXCEPT:
1.Negotiations
2.Reorganization and rewards
3.Team building activities
4.Training

Correct Answers are : 1


Explanation : A is the correct answer. Negotiations is part of
Acquire Project Team, Others are parts of Develop Project Team.
PMBOK Page no 248.

Question - 194

Your project has a budget of $240,000 and is expect to last for


1 year, with the work and budget spread evenly across all
months. The project is now in the fourth month, the work is
on schedule, but you have spent $120,000 of the project
budget. What is your COST Variance percentage in this case?
1.-50%
2.50%
3.40%
4.20%

Correct Answers are : 1


Explanation : Cost Variance = Earn Value - Actual Cost Earn Value
= (Total Cost/total project months) * total months completed =
($240,000 / 12) * 4 = $80,000 CV = $80,000 - $120,000 = -$40,000
CV % = CV / EV = -$40,000/$80,000 = -50%

Question - 195

You have a piece of equipment that was purchased for your


project recently for $5,000 and is expected to last 5 years in
production. At the end of the five years, the expected worth of
the equipment is $2,000. Using the straight-line deprecation,
what is the amount that can be written off each year?
1.$600
2.$1200
3.$3000
4.$2000

Correct Answers are : 1


Explanation : The straight-line depreciation takes the purchase
value of the item, minus the salvage price of the item, divided by
the number of time periods. Calculation is (5000-2000)/5 = $600.
Question - 196

A process with lack of consistency and predictability is


called:
1.in control
2.out of control
3.bad quality
4.quality noised

Correct Answers are : 2


Explanation : A process with lack of consistency and predictability
is called out of control.

Question - 197

Some of your team members want to work on a flexible


schedule and others want all team members should reach on
fixed time. What should you do?
1.Allow them for flexible time schedules.
2.Allow them for fixed time schedules.
3.Arrange a meeting and allow them to decide.
4.Ask your senior management to decide.

Correct Answers are : 3


Explanation : The best option is to arrange a meeting and allow
them to decide.

Question - 198

80% of problems due to 20% of causes, related to:


1.Status Reports
2.Pareto Charts
3.Ishikawa Diagrams
4.Histogram

Correct Answers are : 2


Explanation : Pareto's Law - A relatively small number of causes
will typically produce a large majority of the problems or defects
(80 / 20 rule). Pareto Charts are conceptually related to Pareto's
Law. PMBOK Page no 242.

Question - 199

The purpose of a quality audit is:


1.To identify inefficient and ineffective policies
2.To identify project quality for customer
3.Study organizational behavior
4.Prepare a report for the quality team

Correct Answers are : 1


Explanation : Purpose of quality audit is to identify inefficient and
ineffective policies.

Question - 200

All of the following are inputs of Perform Quantitative Risk


Analysis EXCEPT ______________.
1.Cost Management Plan
2.Risk Register
3.Risk Management Plan
4.Stakeholder Register

Correct Answers are : 4


Explanation : Stakeholder Register is an input of Identify Risks.
(PMBOK page no 305.)

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