PMP Certification Latest Fall 2022 Exam Bank_ answers correct & explained.

Document Content and Description Below

PMP Certification Latest Fall 2022 Exam Bank_ answers correct & explained. A project team is in the process of estimating the types and quantities of resources required to perform each activity. Wh... ich of the following activities will NOT be done by the team during this process? A. Estimate the type and quantity of resource required to perform each activity B. Go through the past data and lessons learned from previous projects C. Study the organization policies and procedures regarding staffing D. Identify and show network dependency in the project activities - Correct Option: D EXPLANATION The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities process. During the initiating stage, which of the following elements will be identified to meet the project goals? A. Key deliverable B. Stakeholders C. Quality D. Vendors - Correct Option: A EXPLANATION Even though the identification of stakeholders and potential sellers happens as part of initiating phase through the "identify stakeholders" process, this will not help to meet the project goals. Key deliverables help in meeting the project goals. Quality identification happens during planning. A car manufacturing company conceptualized a new car that will be more fuel efficient, ergonomically designed, and that satisfies the latest safety regulations. This car was recently launched and has now moved into full-fledged production. This is an example of: A. Operation, as the company is into car manufacturing, which is an ongoing process B. Project, as this car was conceptualized, designed, and has now been launched C. Project, as it has clear scope and requirements in terms of safety compliance, fuel efficiency, etc. D. Operation, as this activity didn't create a unique product - Correct Option: B EXPLANATION This is a typical scenario where project intersects with operation during product life cycle. Notice the word launched. All the activities before launch of the vehicle are part of a project, which is a temporary activity with a well-defined unique output. Once the car moves to production, it becomes an ongoing operation for the company. When is the cost highest in the project life cycle? A. At the initiating phase B. During planning C. Midway during the project D. During closure - Correct Option: C EXPLANATION Project cost peaks in the middle of the project as maximum resources are utilized during this phase. Project cost is low at the beginning, peaks midway, and drops rapidly as the project draws to an end. Initiating, planning, and closing are not part of the project life cycle and are process groups. As a part of Stakeholder Management, a Project Manager can follow all of these management practices, EXCEPT: A. Identify all the stakeholders and capture them in the project team directory B. Ensure that stakeholders' expectations are met and gain support for the project C. Give preference to stakeholders over customers in case of conflict of interest D. Communicate all relevant information about the project to stakeholders - Correct Option: C EXPLANATION In case of conflict of interest, it should generally be resolved in favor of the customer or organization who would use the project's product or service. After a high-level management meeting, the manager chairing the meeting asks the Project Manager to document and communicate the action items to all the stakeholders. The Project Manager is part of a ______________ organization structure. A. Balanced Matrix B. Weak Matrix C. Strong Matrix D. Tight Matrix - Correct Option: B EXPLANATION The Project Manager is part of a weak matrix organization and is playing the role of project expeditor. The project expeditor acts primarily as staff assistant and communication coordinator. The expeditor personally cannot make or enforce decisions. Which of the following activities is part of the initiating phase? A. Develop stakeholder management plan B. Conduct benefit analysis with stakeholders to validate project alignment with organizational strategy and expected business value C. Validate Scope D. Conduct kick-off meeting - Correct Option: B EXPLANATION This task has newly been added to the examination content outline. Options (A) and (D) are part of planning. Option (C) is part of Monitoring and Controlling. A Project Manager has just been assigned to a project. He is involved in creating a document that would formally authorize the project and capture initial requirements of the stakeholders. What is the output of this process? A. Project Management Plan B. Project Statement of work C. Project Charter D. Business case - Correct Option: C EXPLANATION The Project Charter formally authorizes the project and provides the Project Manager with the authority to apply resources to project activities. Although the project sponsor may create the project charter, it is recommended that the Project Manager participate in the development of the project charter. Options (b) and (d) are inputs to the process of developing the project charter. Please refer to sPMBOK® Guide - Sixth Edition: Project Integration Management page 75. Which of the following statements DOES NOT describe the essence of Integration Management in the context of Project Management? A. Balancing of competing objectives and the exploration of alternative actions B. The processes and activities needed to identify, define, combine, unify, and coordinate process and project management activities within the Project Management Process Group C. Integrating different components from the development cycle to create the final deliverable D. Managing interdependencies among Project Management knowledge areas - Correct Option: C EXPLANATION Integrating different components from a development cycle to create a final deliverable is an example of Software integration management used in software development projects. During this software integration phase, components from different development modules are integrated into one product and tested. However, integration management involves making choices about resource allocation, trade-offs among competing objectives, and managing interdependencies among project management knowledge areas, i.e., options (a), (b) and (d). Please refer PMBOK® Guide - Sixth Edition Project Integration Management, page 69. A Project Manager is going through the Project Statement of Work provided by the project sponsor. Which of the following will NOT be a part of this document? A. Business Need B. Product Scope Description C. Strategic Plan D. Performance Measurement Baseline - Correct Option: D EXPLANATION Performance Measurement Baseline is a part of the project management plan. Refer PMBOK® Guide - Sixth Edition Project Integration Management, page 88, Project Procurement Management, page 477. You are the Project Manager of a project for which a prototype was recently delivered. The sponsor of the project calls you and gives you an overall estimate for the project. This form of estimate is known as ____ A. Analogous Estimate B. Parametric Estimate C. Heuristic Estimate D. Three Point Estimate - Correct Option: A EXPLANATION Analogous Estimate (also called Top down approach) is a form of Expert Judgment. It uses estimations from previous similar activities to estimate future durations. The accuracy of estimates derived using this method depends on the correctness of historical information, similarity of the historical projects (here a prototype project), and expert judgment. A Project Manager who has just been assigned to a new project has been asked by his sponsor to come up with an initial cost estimate called a Rough Order of Magnitude (ROM). This would typically fall in which range? A. -50% to +100% B. -25% to +75% C. -10% to +15% D. -100% to +50% - Correct Option: B EXPLANATION The Rough Order of Magnitude estimate (ROM) is usually done in the initial stages of the project, when limited information is available. The budgeted estimate will be in the range of -10% to +25%, and the definitive estimate will be in the range of -5% to +10%. In a meeting, the Sponsor has discussed three projects with you: Project A with Net Present Value of $55,000 and a payback period of 5 years; Project B with Net Present Value of $95,000; and Project C with payback period of 10 years. He provides you with additional information about the projects and intends to assign you as the Project Manager for the selected project. As a Project Manager, you are NOT expected to: A. Conduct project selection methods to select one of the three projects discussed with you by the sponsor to evaluate feasibility of new products and services B. Proceed to select the project with higher NPV C. Engage in deceitful practices D. Participate in the project selection method - Correct Option: C EXPLANATION Per the new examination content outline, the project manager participates in the development of the project charter. There are three projects A, B, and C. NPV for projects A, B , and C are $50,000, $ 80,000, and $ 40,000 respectively. In a meeting, the management unanimously has chosen projects A and C. What is the opportunity cost of the project? A. 80000 B. 130000 C. 90000 D. 0 - Correct Option: A EXPLANATION Opportunity cost is the cost of giving up the opportunity by selecting a project(s) over another. Here, Project B is not selected. A project is in the initiating stage, and the Project Manager is identifying project communication constraints. Which of the following could be a valid constraint? A. The project could face high attrition rate B. Management and customer expect detailed formal status reports on the project C. Project team members would be required to work from different geographical locations D. Many stakeholders of the project would not be able to attend the planned project kick-off meeting - Correct Option: C EXPLANATION Constraints always limit project team options. Option (a) is a known risk, and (b) and (d) can be addressed under stakeholder management by drawing consensus on the report format and rescheduling the meeting date. A Project Manager is responding to a business proposal from an overseas company. Which of the following should he refer to as a guide to understand the business practice(s) that are allowed and discouraged? A. Procurement documents, including contract statement of work B. Organization policies and procedures C. Project Charter D. PMI code of Professional Conduct - Correct Option: B EXPLANATION A Project Manager is an expert in control. Legal (as well as Purchasing) experts will provide guidance about business decisions one would make in a foreign country. The PMI® Code of Ethics (1.1.3) states, ®We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.®. Option (b) is better. Which of the following is NOT a project? A. Campaigning for an election B. Family Weekend drives to sea coast C. Writing an autobiography about project management experience D. Preparing for PMP® examinations - Correct Option: B EXPLANATION A project is a temporary endeavor undertaken to create a unique product, service, or result. Family weekend drive is an ongoing activity and is not a project. You have been assigned to a large construction project, and you are in the "Initiating" process group. You have identified the project stakeholders using a stakeholder analysis tool and defined the high-level scope of the project. During these activities, you have identified a key project limitation regarding the project location. What is the BEST option for you in this situation? A. Document the project limitation as a project constraint B. Discuss the project constraint with the project sponsor and the customer C. Document the project limitation as a project constraint and propose an implementation approach to the sponsor and customer, if required D. Ignore the project constraint and work toward getting approval for the project charter - Correct Option: C EXPLANATION The PMI® Code of Ethics (1.1.3) states, ®We provide accurate information in a timely manner.® The project is not yet approved, and this limitation could keep it from being approved. You could select (b), which allows you to just provide information and reports, but active management of the project requires you to confront the limitation and facilitate its resolution quickly. The Project Manager is participating in the development of a project charter by gathering and analyzing the stakeholders' requirements and ensuring that the project scope, milestones, and deliverables are documented correctly. Which of the following is NOT achieved by the sponsor's approval of the project charter? A. Formalizing the authority assigned to the Project Manager B. Gaining commitment of the stakeholders C. Gaining acceptance for the project by the stakeholders D. Ensuring formal acceptance of the deliverables by the customer - Correct Option: D EXPLANATION The Project Charter is approved by the sponsor and the customer (if required). It formalizes the authority assigned to the Project Manager and helps the Project Manager gain commitment and acceptance for the project. Option (d) is correct in this scenario as formal acceptance of the project deliverables is part of the 'Validate Scope' process and is performed during the Monitoring and Controlling process group. Which of the following is NOT an input to the "Plan Stakeholder Management" Process? A. Project Management Plan B. Stakeholder Register C. Stakeholder Management Plan D. Enterprise Environmental Factors - Correct Option: C EXPLANATION Stakeholder management plan is an OUTPUT, not an input to the process. John has been assigned to a project recently, and he is in the process of documenting the project charter with the project sponsor. Which of the following MUST he include in the Project Charter? A. Project purpose or justification B. Positive risks C. Budget estimates D. Risk analysis - Correct Option: A EXPLANATION According to PMBOK® Guide - Sixth Edition, Sec 4.1.3.1 Page 81, the project description must be included in the project charter. Options C and D, budget estimates and risk analysis may be included in some project charters, if required. As a Project Manager of a large project with hundreds of stakeholders, which of the following is the BEST course of action? A. Incorporate needs of only important stakeholders B. Incorporate needs of all stakeholders C. Ask your manager to manage the stakeholders D. Eliminate some of the stakeholders - Correct Option: B EXPLANATION The Project Manager is required to identify all the stakeholders and incorporate the requirements of every stakeholder. As part of Stakeholder Analysis, it is important to prioritize the needs of key stakeholders to ensure efficient use of effort to communicate with them and manage their expectations. Which of the following is NOT a classification model? A. Power/Influence grid B. Power/Impact grid C. Power/Interest grid D. Influence/Impact grid - Correct Option: B EXPLANATION All of the other options are classification models used to prioritize stakeholders' needs. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the multiple classification models. You are the Project Manager of a software telecom development project. You and your team are working together to create a billing software. Which quadrant of the Power/Influence Grid will the person(s) be responsible for sign-off of the deliverables? A. Keep Informed B. Monitor C. Manage Closely D. Keep Satisfied - Correct Option: C EXPLANATION Since the person responsible for sign-off will have a lot of power and his interest in the project will be high, he will fall in the 'Manage Closely' quadrant, that is, High Power High Interest grid. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the Power/Influence Grid. You are the Project Manager of a project in which team members have dual reporting structure. In addition to reporting to you, they also report to their functional manager. Also, the team members are expected to do the project work along with department work. You are working in which form of organization? A. Functional B. Projectized C. Tight Matrix D. Matrix - Correct Option: D EXPLANATION These are the characteristics of a matrix organization where team members have dual reporting structure, and the teams work in their respective functional areas while performing project work. Tight matrix has nothing to do with organization structure. It simply denotes keeping the project team in the vicinity. Please refer to PMBOK® Guide - Sixth Edition, page 47. You are a Project Manager of an ambitious project in an organization. Although you have successfully managed many critical projects before, this is a new organization and you are working on this technology for the first time. However, you hear that the company has proven expertise on the technology and has also done a similar project in the past. In this situation, what is the BEST option available to you? A. Approach the Project Manager from the earlier project and take his inputs B. Obtain historical records and guidance from the Project Management Office (PMO) C. Involve Stakeholders and take their opinion and expertise on the project D. Continue to manage the project by your instincts until there is a major issue - Correct Option: B EXPLANATION Obtain historical records and guidance from the PMO. Though all the options except (d) reflect proactive nature of the Project Manager and is appropriate, the best option is to go through historical records from the PMO. It will help you to get an objective and systematic assessment of past projects in the organization. Remember, a project management office plays a critical role by providing centralized management of the projects and access to policies, templates, lessons learned, and historical records of projects. You are managing a large and complex project which is in the planning stage. After assessing the detailed project requirements with the stakeholders, you ask the team to create a Work Breakdown Structure (WBS). However, since most of the team is new, you decide to brief them on some rules of creating a WBS. Which of the following statements is INCORRECT about a Work Breakdown Structure? A. WBS is a list of specific activities used to accomplish the deliverables B. WBS includes only work needed to create deliverables. Hence, work not in WBS is not part of the project C. Lower-level WBS components are a decomposed result of the upper-level WBS components D. WBS allows better estimation of cost, risk, and time - Correct Option: A EXPLANATION WBS is a list of specific activities used to accomplish the deliverables. Work Breakdown Structure (WBS) is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope. Hence, it is NOT a list of specific activities used to accomplish the deliverables. How the work is completed (activities) can vary and change throughout the project, but deliverables cannot change without a change request. For more information on Work Breakdown Structure (WBS), please refer to PMBOK® Guide - Sixth Edition Project Scope Management, page 156. You are a Project Manager for an infrastructure development project, and the project involves building a multi-storey building. You have submitted your project estimates for cost and duration to the client. You also inform the buyer that the estimates would be true provided there is an 8ft foundation built on the site already. What does this statement describe in your project? A. Risk B. Constraint C. Assumption D. Mandatory Dependency - Correct Option: C EXPLANATION This is an assumption you have made about the usability of existing foundation to derive the project estimates. An assumption, by definition, is a statement that is assumed to be true and from which a conclusion can be drawn. There may be external circumstances or events that must occur for the project to be successful. These are categorized under project assumptions. This is not a risk as there is no element of uncertainty involved. Risk, by definition, is an event which may or may not occur in the future. If it occurs, it can positively or negatively affect the project. There is also no justification to believe that this is a project constraint, as constraints usually limit project options and are outside the control of the project team. Pre-existence of a foundation for building a multi-storey building is also not an example of Mandatory Dependency (option d). You are the Project Manager of a large and complex project. Your project team has finished creating a Work Breakdown Structure for the project. However, some of the team members are still not sure of the kind of work included in each of their work packages. Which of the following documents would you suggest they go through? A. Project scope statement B. Project Management Plan C. Work Break Structure (WBS) Dictionary D. The Product Scope document - Correct Option: C EXPLANATION A Work Break Structure (WBS) Dictionary accompanies a Work Breakdown Structure and provides a description of the work to be done for each WBS package. It provides more detailed descriptions of the WBS components, such as work description, schedule milestones, schedule activities, resources required, cost estimates, quality requirements, acceptance criteria, etc. The project scope statement contains details about the scope of the project, but it is at a much higher level and will not be helpful in this situation. You are a Project Manager. In the process of sequencing activities for your project, you create a schedule network diagram that uses boxes called nodes to represent activities and connects them with arrows to represent logical relationships between them. What is this popular scheduling diagram known as? A. Precedence Diagramming Method (PDM) B. Arrow Diagramming Method (ADM) C. Program Evaluation and Review technique (PERT) D. Graphical Evaluation and Review Technique (GERT) - Correct Option: A EXPLANATION The Precedence Diagram Method, also known as Activity-On-Node, is a tool for scheduling activities in a project plan and constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent activities and connects them with arrows that show the dependencies. As a Project Manager, you are in the process of identifying and documenting relationships among project activities. You are using the Precedence Diagramming Method (PDM). Which of the following relationships are you UNLIKELY to use for this purpose? A. Finish to Start (FS) B. Finish to Finish (FF) C. Start to Start (SS) D. Start to Finish (SF) - Correct Option: D EXPLANATION You are in the process of documenting Sequence Activities, which define four kinds of dependencies or logical relationships between project activities. Start to finish (SF) relationship, which denotes completion of successor activity, depends on initiation of predecessor activity. For example, activity A may have a start-to-finish relationship with activity B; this implies that B doesn't finish before A starts. This relationship is rarely used and uncommonly found in real life situations. An example could be a call center environment where the previous shift doesn't finish until the next one starts. As a Project Manager, you are estimating the duration of your project activities using PERT (Program Evaluation and Review Technique). For a particular project activity, your Optimistic estimate is 14 days, Pessimistic estimate is 47 days, and Most Likely estimate is 27 days. What should be the expected duration of this activity? A. 28.17 B. 31 C. 43 D. 36 - Correct Option: A EXPLANATION PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely. The expected duration is calculated using the equation: Expected Duration = [P + 4(ML) + O]/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the correct answer comes out to be 28.167 days or 28.17 days. Sub network or fragment network templates are most useful when the project has MANY: A. Mandatory Dependencies B. Discretionary Dependencies C. Undefined Variables D. Identical or nearly identical deliverables - Correct Option: D EXPLANATION Sub network or fragment network templates are part of project schedule network template. It can be used to expedite the preparation of networks of project activities, especially when a project includes several identical deliverables. As a Project Manager, you have created a Resource Breakdown Structure (RBS) for your project. Which of the following statements is NOT TRUE about Resource Breakdown Structure (RBS)? A. It is a hierarchical structure of resources B. It is used for estimating resource utilization C. It is used for organizing and reporting project schedule D. It has resources grouped by category and type - Correct Option: B EXPLANATION Resource Calendars, not RBS, are used for Resource Utilization. Resource Breakdown Structure (RBS) is focused on creating a hierarchical list of the resources, both significant and seemingly redundant, that are involved in the project. Every hierarchical level lists a number of resources that are needed for carrying out various kinds of project-related activities. Every kind of resource is further divided into a number of categories or resource-types to help classify them. A Project Manager is managing a project that has constraints on the availability of required resources throughout the project. He needs to rearrange the schedule in such a way that a constant number of resources are used each month. Which of the following techniques should the Project Manager use to achieve this? A. Fast Tracking B. Crashing C. Leveling D. Lagging - Correct Option: C EXPLANATION Resource leveling is a technique that allows one to adjust the start and end dates to accommodate the demand and supply of resources. Refer Page 211, PMBOK® Guide - Sixth Edition. A project team is in the process of estimating the types and quantities of resources required to perform each activity. Which of the following activities will NOT be done by the team during this process? A. Estimate the type and quantity of resource required to perform each activity B. Go through the past data and lessons learned from previous projects C. Study the organization policies and procedures regarding staffing D. Identify and show network dependency in the project activities - Correct Option: D EXPLANATION The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities process. Which estimate technique does the Program Evaluation and Review Technique (PERT) use to define the approximate range of activity costs? A. Earned Value Technique B. Parametric Estimation Technique C. Three Point Estimate Technique D. Historical Information - Correct Option: C EXPLANATION Program Evaluation and Review Technique (PERT) calculates an expected activity cost using the weighted average of the three estimates, that is, (Most Likely+ Optimistic+ Pessimistic)/3. Most likely is the approximate realistic scenario, that is, the cost of the activity given the resources likely to be assigned, their productivity, and realistic expectations of availability. Optimistic is the best-case scenario, that is, the activity duration is based on a best-case scenario of what is described in the most likely estimate. Pessimistic is the worst-case scenario, that is, the activity duration is based on a worst-case scenario of what is described in the most likely estimate. Your project team is involved in estimating the cost of the project as a part of project cost management. Which of the following tools and techniques will NOT be applicable for this purpose? A. Cost Benefit Analysis B. Reserve Analysis C. Cost of Quality D. Alternatives Analysis - Correct Option: A EXPLANATION Reserve Analysis, option (B), is an analytical technique to determine a reserve for budget, estimated costs and funds for the project. It is an important technique in the process of estimating costs. Option (C), Cost of Quality is the sum of all costs a company invests into the release of a quality product and can be used to prepare cost estimates. Option (D), Alternatives Analysis can also be used as a technique to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project. However, Cost Benefit Analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of doing the action. It is a popular technique for selecting projects but will not be useful during cost estimation at the activity level. Please refer to PMBOK® Guide - Sixth Edition Project Cost Management, page 245 for more details. The common term for an authorized time-phased budget, which includes the Budget at Completion (BAC), used to measure cost performance, and displayed in the form of an S-curve is: A. Earned Value B. Cost Performance Index C. Cost Baseline D. Project Budget - Correct Option: C EXPLANATION Cost Baseline provides a yardstick against which you can measure cost performance. Please refer PMBOK® Guide - Sixth Edition, Cost Baseline page 254 for the definition of cost baseline. A project team is in the process of identifying quality requirements and standards for the project. It is documenting how the project will demonstrate compliance. The team has referred to organizational process assets and is using tools like statistical sampling and control charts. Which process of Quality Management is the project team performing? A. Plan Quality Management B. Perform Quality Assurance C. Perform Quality Control D. Manage Project Team - Correct Option: A EXPLANATION Notice the words "identifying quality requirements and standards." This is a part of quality planning. So, the project is in Plan Quality Management process in the planning phase. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management page 277. Which of the following is true with respect to Plan Cost Management? A. Develop the high-level budget B. Develop the cost management plan C. Develop the budget plan D. Develop both budget plan and cost management plan - Correct Option: B EXPLANATION In the latest examination content outline, budget plan is replaced with cost management plan. Option (a) is part of Initiating. Which of the following is an example of external failure cost? A. Cost of testing B. Cost of training C. Cost of documentation D. Warranty cost - Correct Option: D EXPLANATION Warranty cost is the only cost which belongs to the category of external failure cost. Training and documentation are prevention costs. Testing is appraisal cost. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management, Cost of Quality page 282. A project team is ahead of its schedule, and its SPI and CPI are currently 1.4 and 1.2 respectively. The Project Manager and the team are brainstorming about the scope of the next milestone delivery. They have found that including an additional feature would enhance the usability of the product and can be compressed in the current schedule. What should the project team do next? A. Add this feature in the next release as long as it doesn't affect the delivery date B. Go through the change management and analyze the impact of this additional feature C. Discuss it with the project sponsor D. Drop this feature as it is gold plating and the customer does not need it - Correct Option: D EXPLANATION PMI® does not recommend gold plating, and this additional feature is definitely not part of the requirement in the contract. Though it does not affect delivery, it may involve costs or additional risk, so option (a) is not justified. The best option would be to first evaluate the impact of this additional feature and then discuss it with the customer. Since that is not a choice, (d) is the best answer. You are the Project Manager of a large team with people from diversified locations. There are many groups within a project, such as architects, human resources, legal, quality engineers, etc., with their own hierarchy and reporting structure. In order to ensure that each team member has clarity on their own and other members' reporting structure, you decide to capture all of this information graphically. Which of the following documents will you be using for this purpose? A. Project Organization Chart B. Resource Breakdown Structure C. Organization Breakdown Structure D. Resource Assignment Matrix - Correct Option: A EXPLANATION A project organization chart is part of the human resource plan and displays project team members and their reporting structure. Depending on the project requirements, team size, and their reporting hierarchy, this chart could be highly detailed or broadly framed. Please refer PMBOK® Guide - Sixth Edition page 319. A Project Manager wants to capture information related to staff acquisition and release, training needs, resource calendar, recognition, and rewards. Which of the following documents would be most appropriate? A. Project Management Plan B. Resource Management Plan C. Project Team Assignments D. Issue Log - Correct Option: B EXPLANATION A resource management plan that is a part of the resource plan describes when and how the resource requirements will be met. A project management plan, option (a), may or may not contain a resource management plan; hence, (b) is a better option. Option (c) Project team assignments is an output of the 'acquire resources' and can include project team directories, memos to team members, etc. Option (d) Issue log is used for capturing project issues and is not the correct answer. You are a Project Manager in an organization with a functional structure; hence, it is important that you negotiate suitable resources for your project from the functional manager. Which of the following tools could be a valuable asset to prove your project resource requirements to the functional manager? A. Staffing Management Plan B. Network Diagram and Project Schedule C. Resource Assignment Matrix D. Project organization chart - Correct Option: B EXPLANATION Project schedule, along with network diagram (that graphically represents the project schedule), provides the most convincing visual proof of the resource requirements in the project and can be used during resource negotiation by the Project Manager. A project schedule is derived from a WBS, an effort estimate for each task, and a resource list with availability for each resource, so it is granular and most accurate. A staffing management plan provides guidelines on how human resources should be defined, staffed, managed, and controlled. Options (c ) and (d) capture the reporting structure and the roles and responsibilities of the team members; therefore, they are not the best choices. In a project kick-off meeting, there is utter chaos, with all the attendees talking simultaneously. The Project Manager is not able to present his report due to the commotion, and the stakeholders feel that their expectations are not being met properly. Also, many of the invited attendees are not present. What must have the Project Manager done to avoid this situation? A. Communicate the agenda of the meeting clearly to all the Stakeholders B. Postpone the meeting to ensure availability of all the Stakeholders C. Conduct a brainstorming session to reach a consensus with Stakeholders D. Establish ground rules for the meeting and communicate the rules to all the attendees - Correct Option: D EXPLANATION This is a question where you need to concentrate on the root cause of the situation. There is no evidence to believe that option (a) was not done. Option (b) may not always be feasible. Also, option (c) may not be required once the Project Manager is able to present his point of view and order is restored. The most important thing in this situation is to establish clear expectations regarding acceptable behavior by project team members. Discussing ground rules also allows team members to discover values that are important to one another and to improve productivity. You have been assigned as a Project Manager of a newly initiated project and have 5 team members. There is a project sponsor (Mr. Smith) and a technical architect who will be involved only during the planning stage. This project is for an external customer. How many communication channels are possible in your project? A. 36 B. 72 C. 28 D. Cannot be determined since project is in the initiating stage - Correct Option: A EXPLANATION This is based on the formula n*(n-1)/2. If n is the number of stakeholders in the project, the total possible communication channels = n*(n-1)/2. The project has five team members: a sponsor, a technical architect, an external customer, and the Project Manager himself. Thus, there are 9 people and 36 possible communication channels. Risk Breakdown Structure is an example of: A. Text-oriented format B. Functional chart C. Hierarchical representation of risks according to risk categories D. Matrix-based organization chart - Correct Option: C EXPLANATION As part of risk breakdown structure, all risks are placed in a hierarchical structure as they are identified, which makes your risk planning more efficient. Which of the following elements are to be considered while developing the project schedule? Pick the best answer. A. Project deliverables B. Project timeline C. Quality D. Cost - Correct Option: A EXPLANATION The project schedule is developed from activities, which are decomposed from the Scope Baseline (the Deliverable). The Timeline is a result of sequencing activities and estimating resources and durations. The Schedule itself will describe the timeline. Completion of project phase is also referred to as: A. Gold Plating B. Kill Point C. Scope Creep D. Metrics - Correct Option: B EXPLANATION Completion of project phase is also referred as kill point. A summary activity in a network logic diagram is often referred to as a: A. Hammock Activity B. Dangler C. Milestone D. Subtask - Correct Option: A EXPLANATION A summary activity in a network logic diagram is often referred to as a Hammock activity. In making an investment in a project, investors require compensation for: A. The risk-free rate of return plus a risk premium plus a premium for inflation B. Sacrifice of immediate use of cash for consumption or other investments and possibility of inflation and risk C. Payback period in years x investment x (1 + discount rate)periods D. Inflation and depreciation - Correct Option: B EXPLANATION Sacrifice of immediate use of cash for consumption or other investments, possibility of inflation and risk. Which of the following is NOT true with regard to ROI (Return on Investment)? A. It defines the cumulated net income from an investment at a given point in time or during a defined period. B. It includes investment and direct and indirect costs and may include allowances for capital cost, depreciation, risk of loss, and/or inflation C. It is generally stated in currency units, as a percentage, or as an index figure. D. It is the time when cumulated net income is equal to the investment. - Correct Option: D EXPLANATION It is the time when cumulated net income is equal to the investment. Which of the following statements describes the relationship between project phases and the project life cycle? A. The project lifecycle contains the iterative incremental elements of a project phase B. Collectively, the project phases are known as the project life cycle C. The project lifecycle is regarded as a sequence of project activities, while phases are defined to control the overlapping of activities D. The project lifecycle contains the repetitive elements inside a project phase - Correct Option: B EXPLANATION Collectively, the project phases are known as the project life cycle. During the closing, final acceptance of the deliverables is one of the important activities. Who is supposed to give final acceptance? Choose the best answer. A. Customer B. Sponsor C. Relevant stakeholders D. Operation team - Correct Option: C EXPLANATION According to the new examination content outline, relevant stakeholders give final acceptance. Earlier, the sponsor and or the customer gave the acceptance. Skills such as Performance appraisal, recruitment, retention, regulatory issues, and labor relations are considered under _______ area. A. Administrative B. Project Management C. Accounting D. General Management - Correct Option: A EXPLANATION Skills such as performance appraisal, recruitment, retention, regulatory issues, and labor relations fall under administration rather than management. 3 sigma is equal to: A. 99.73% B. 99.99% C. 95.46% D. 68.26% - Correct Option: A EXPLANATION 3 Sigma is equal to 99.73%. Voice mail and e-mail are examples of: A. Interactive communication B. Pull communication C. Push communication D. Push Pull communication - Correct Option: C EXPLANATION Letters, memos, faxes, e-mails, and voice mails are examples of Push communication. Halo Effect refers to ____. A. The assumption that a person who is good at technology will also be a good Project Manager B. Hiring the best C. Recruiting the best in management D. Promoting from within - Correct Option: A EXPLANATION The assumption that a person who is good at technology will also be a good Project Manager is an example of Halo effect. A heuristic is a ____. A. Scheduling method B. Controlling Tool C. Planning Tool D. Rule of Thumb - Correct Option: D EXPLANATION A heuristic is also referred to as a Rule of Thumb. Which of the following is NOT an example of contributing to the project management knowledge base? A. Writing an article of project management best practices B. Writing a book on your experiences as a Project Manager and lessons learned C. Giving a session on Risk Management methodologies to fellow Project Managers D. Briefing a friend, an aspiring Project Manager about PMP® exam merits and PMI® organization - Correct Option: D EXPLANATION Option (D) is helpful but does not contribute to project management knowledge base like all the other activities. Which of the following factors is MOST critical to achieving customer satisfaction? A. Ensure that the project satisfies all the quality-related metrics B. Ensure that the project is completed within the scheduled timelines C. Ensure that the project is completed within the allotted budget D. Ensure that the project satisfies all the requirements given by the customer - Correct Option: D EXPLANATION While the options (a), (b), and (c) are desirable in fulfilling all the customer requirements for the project, option (d) is most critical. A large project with a team of 150 people is in the planning stage. It will span over a duration of 3 years and is under strict budget. A Project Manager is using the project charter to assess the detailed project requirements in consultation with the stakeholders and to establish the key project deliverables. He sets his project quality objective based on the organization capability baseline set by the quality policy. However, one of the stakeholders refuses to accept this and asks him to reduce the quality objective as it will help cut down cost of quality of the project. He also refuses to approve the project if the Project Manager does not agree to his suggestion. What should the Project Manager do? A. Explain to the stakeholder that Cost of Quality is less than cost of project B. Explain to the stakeholder that if Quality objectives are set lower than expected, they will be highlighted during Quality Audit C. Explain to the stakeholder that the quality policy is used to set quality objectives for all the projects in the organization and they need to abide by it D. Agree to the stakeholder's suggestion and reduce the metric as he will not approve the project otherwise - Correct Option: C EXPLANATION Option (c) is correct because quality policy is set by the management in the organization and not by the Project Manager, but he needs to abide by it. Option (b) though correct, is wrong in essence. The project should follow the right process by choice, and not due to fear of being caught during audits. After a project management plan is prepared and approved, a project stakeholder asks the Project Manager to correct some syntax and grammatical errors in the project document as they could be misleading. What should the Project Manager do? A. Refuse as these are trivial changes and can be ignored B. Refuse as the project management plan has already been discussed and approved C. Refuse and ask the stakeholder to meet the project sponsor D. Refuse and ask the stakeholder to raise a change request that can be considered by the change control board - Correct Option: D EXPLANATION All changes in the project should be documented through change requests and should go through proper change management process. Option (a) is wrong because the question says the grammatical errors could be misleading and are not trivial. You are a Project Manager, and your project sponsor has asked you to come up with the total funding requirements of the project. What will be the total funding requirements for your project? A. The total approved budget by time period B. The total project budget plus anticipated liabilities C. The total funds, including the cost baseline and any management reserves D. The total individual cost estimates - Correct Option: C EXPLANATION The total funds include cost baseline plus management reserves, if any. Cost baseline includes contingency reserves for the risk remaining after risk response planning. A management reserve is an extra amount of funds to be set aside to cover unforeseen risks or changes in the project, and total fund requirement for the project would include management reserves. Option (a) and option (b) describe cost baseline, and option (d) refers to cost budgeting. A project has a project manager, a sponsor, a human resource specialist, a quality analyst, and seven team members. How many communication channels are possible in the project? A. 50 B. 110 C. 55 D. 115 - Correct Option: C EXPLANATION The number of communication channels possible can be deduced using the formula n*(n-1)/2. In this case, (11*10)/2 = 55. How is the role of project expeditor different from project coordinator? A. Project coordinator has some power to make decisions B. Project coordinator acts primarily as Staff assistant C. Project coordinator acts as a communication coordinator D. Project coordinator can control project budget - Correct Option: A EXPLANATION A project coordinator has some power to make decisions. The only difference between the role of coordinator and expeditor is that the former has some power to make decisions and may report to high level management, while the latter acts as a communication coordinator, that is, he or she monitors and reports the status of the project to the senior management. Option (b) and (c) are true for both the roles of coordinator and project expeditor, and option (d) is a false statement. You are working on a critical project for a large enterprise. The project has a major milestone delivery next week and is in the final testing phase. The project team is working on two critical showstopper bugs that are affecting the project. One of the senior members of the project has resigned, and the outsourced component that was scheduled for delivery next week may be delayed. Additionally, the current performance indices are 1.09 (CPI) and 1.90 (SPI). What is the MOST critical issue faced by the project? A. Cost and Schedule B. Delay in third party component C. Resource movement D. Testing defects - Correct Option: D EXPLANATION This question exemplifies a typical scenario when a Project Manager needs to integrate information and make a decision from many choices. Since both CPI and SPI are more than one, cost and schedule are in control. Delay in third-party components is a risk that may or may not occur. Furthermore, there is no information to suggest that it will delay the milestone release. The Project Manager can plan for knowledge transfer to minimize the effect of senior member's resignation. The showstopper bugs need to be resolved before delivery, and that is the most critical issue faced by the project. Which of the following is NOT an enterprise or environmental factor that can influence, direct, and manage project work? A. Stakeholder risk tolerance B. Organizational culture and structure C. Project Management Information System (PMIS) D. Standardized guidelines and work instructions - Correct Option: D EXPLANATION Standardized guidelines and work instructions' is a part of Organizational Process Assets. Refer to PMBOK® Guide - Sixth Edition 'Project Integration Management' page 93. A work authorization system is a: A.Part of change control system in a project B. A privately created software tool to submit and track changes and monitor and control project activities from project initiation to closure C. Tool used to notify team or contractors that they may begin work on a project or work package D. Tool that helps the team create a Work Breakdown Structure - Correct Option: C EXPLANATION Work authorization system is a subsystem of the overall project management system. It is a collection of formal documented procedures that define how project work will be authorized to ensure that the work is done by the identified organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking system, and defined approval levels needed to issue work authorizations. Option (b) is a description for another important tool that helps project management, i.e., Project Management Information System (PMIS). Which of the following processes does not have defect repair as one of the outputs? A. Perform Integrated Change Control Process B. Control Procurements C. Monitor and Control D. Control Schedule - Correct Option: A EXPLANATION Defect repair can be a component of a change request. Change requests are the input for ®perform integrated change control® process and can be the output for the remaining options. You are a Project Manager of a software project that is in a critical phase of testing and bug fixing. An enthusiastic test engineer working on the project tells you that he found a major bug the previous night during testing. He assures you that there is nothing to worry about as he has 'patched' the code and it is working fine now. What should be your main concern about this incident? A. There is nothing to be concerned about; the incident shows the proactive approach of the team member, and he should be appreciated B. It can be a case of scope creep C. It shows disrespect to the project management authority as the team member didn't ask his opinion D. The patch or bug fix may not work correctly in all scenarios. - You are a Project Manager in an oil company and have joined a project midway. You want to understand how requirement activities and configuration management activities such as changes to the product requirement will be initiated. You want to know how impacts will be analyzed, tracked, and reported. You also want to know the authorization levels required to approve these changes. Which of the following documents will provide this information? A. Requirements Management Plan B. Integrated Change Control C. Project Charter D. Project Scope Statement - Correct Option: A EXPLANATION Requirements management plan documents how requirements will be analyzed, documented, and measured in the project. It also includes configuration management activities such as how changes to the product requirement will be initiated, how impact will be analyzed, tracked and reported, and who will authorize these changes. Option (b), Integrated Change Control, is a process required for effective and efficient change management. Refer to PMBOK® Guide - Sixth Edition Project Scope Management, page 137. To acquire and manage the project team, which of the following plan or documents should be referred to? A. Human Resource management plan B. Procurement management plan C. Project charter D. Human Resource management plan and Procurement management plan - Correct Option: D EXPLANATION According to the new examination content outline, a human resource management plan should be considered in addition to the procurement management plan. An instrument that has a screw of 15 mm diameter gives the following readings: 16.001 mm, 16.00015 mm, 16.0003 mm, and 15.900 mm. Assuming that the instrument is capable of measuring up to the third place decimal, what BEST can be concluded about the performance of the instrument? A. The instrument is accurate and precise B. The instrument is not accurate but is precise C. The instrument is accurate but is not precise D. The instrument is neither accurate nor precise - Correct Option: B EXPLANATION The instrument is not accurate but is precise. Precision means that the values of repeated measurements are clustered and have little scatter. As the name suggests, accuracy refers to how close the measured values are to the actual value. The measurements, though precise, are not accurate. You are a Project Manager in a leading manufacturing company, and you are managing a critical project for the company. Your project is facing severe cost constraints, and you cannot delay the delivery date of the product. After consulting stakeholders and the customers, you decide to lower both the quality and grade of the product. The decision to lower the quality and grade of the product is _______. A. Wrong, as grade and quality should never be compromised in a product. B. Wrong, as grade can be compromised but not quality C. Wrong, as quality can be compromised but not grade D. Correct, as both grade and quality can be compromised according to project need - Correct Option: D EXPLANATION Recall triple constraints and real life project constraints. Though it is not advised to compromise on quality and grade, the Project Manager and team are responsible for managing the tradeoff in quality and grade of the delivered product in specific scenarios. This should be approved by the customer and stakeholders. A project is in the execution stage. The customer comes back with an additional feature to be added in the forthcoming milestone delivery. The project team has assessed the impact of the change by performing Integrated Change Control. The Project Manager should: A. Hold a meeting with the customer to explain why it is not a good option to incorporate change requests during project execution B. Create a change request and proceed for review by the Change Control Board C. Review Quality Management Plan and evaluate the effect of the additional feature on quality D. Notify stakeholders affected by change - Correct Option: C EXPLANATION Review Quality Management Plan and evaluate the effect of the additional feature on quality. Quality needs to be considered whenever there is a change in a triple constraint. If you choose option (d), you are quite close. The stakeholders should be informed as part of change management. Option (b) would have been completed by the project team as part of Integrated Change Control. According to Maslow's hierarchy of needs, what comes at the BOTTOM of the pyramid? A. Physiological B. Social C. Esteem D. Self Actualization - Correct Option: A EXPLANATION Maslow and other theorists might be referenced on the PMP exam and it is important to get familiar with them. Maslow's hierarchy of needs is displayed as a pyramid and displays the five levels of human need from bottom to top. These needs include Physiological, Safety, Social, Esteem, and Self Actualization. A project is in the final testing stage and is approaching a critical deadline. Two senior members of the team who have already had disagreements throughout project execution are caught up in a deadlock. The Project Manager has earlier tried his best to sort out their differences but it hasn't worked. What is the BEST the Project Manager can do in this situation? A. Talk to the project sponsor since they are senior members of the project B. Give them a final warning and make it clear that such behavior is not encouraged C. Talk face-to-face with each of them individually to sort out their differences D. Use an Autocratic approach and make a decision that is best for the project - Correct Option: D EXPLANATION The Project Manager is responsible for the project's success. This project is approaching a critical deadline, and these two members have always been a problem. Telling your sponsor about this issue is definitely not an option, as a Project Manager should be able to handle conflicts within the team. Option (B) and (C) may not work as the Project Manager has tried earlier to resolve their differences amicably. The only option is to make a decision that is in the best interest of the project, including expulsion of one resource if required. Which of the following is the MOST COMMON reason for conflict? A. Schedules B. Personalities C. Technical Beliefs D. Administrative policies and procedures - Correct Option: A EXPLANATION The most widely accepted common reasons for conflict in a team are Schedules, Priorities, Resources, Technical beliefs, Administrative policies and procedures, and project costs and Personalities (they are in order of most common to least common). In order to achieve the project deliverables, the project manager has to manage task execution based on project management plan. In doing so, which of the following elements should be considered? A. Budget and schedule B. Leading and developing the project team C. Quality and cost D. Acquiring the team - Correct Option: B EXPLANATION According to the new examination content outline, it is by leading and developing the project team. Earlier, it was based on budget and schedule. You are managing a large diversified project team. In the initial days of the project, the team members behaved like independent individuals and seemed reserved, learning about their roles and responsibilities. Then, as the team began to work on the project and participate in technical decisions, their trust level grew. The team members now support each other's needs and work together. According to you, which stage of team development is the team in? A. Norming B. Performing C. Forming D. Adjourning - Correct Option: A EXPLANATION The stage at which team members begin to work together and adjust work habits and behavior to support the team and develop trust is the Norming stage. There are five stages of team development: Forming, Storming, Norming, Performing, and Adjourning. Please refer to PMBOK® Guide - Sixth Edition Project Resource Management, page 338. Which of the following is NOT a technique used in "develop project team" process? A. Training B. Interpersonal Skills C. Co-Location D. Observation and Conversation - Correct Option: D EXPLANATION All the other options, like training to enhance team members' skill, teaching interpersonal Skills or soft skills to improve understanding and increase co-operation, and placing team members physically close to each other (co-location), help in developing the team. Observation and Conversation are techniques used in "manage team" process. Please refer to PMBOK® Guide - Sixth Edition Project Resource Management, page 345. You have delivered many complex and technically challenging projects in the past and have won respect and appreciation for your work from the customers and senior managers in the organization. Which form of power are you using? A. Formal (Legitimate) B. Reward C. Expert D. Referent - Correct Option: D EXPLANATION This an example of Referent power derived from respect and appreciation. A leader may use several types of power. Formal authority (legitimate power) is the ability to influence through the authority to direct, based upon position in the hierarchy of the organizational structure or the perception of official empowerment to issue orders. Reward power is the ability to influence based upon direct or indirect control over positive consequences one desires to gain, such as raises in compensation, bonuses, promotions, choice assignments, or other perks. Penalty (coercive) power is the ability to influence based upon direct or indirect control over negative consequences one desires to avoid, such as the lack of raises in compensation, bonuses, promotions, choice assignments, or other perks. Expert power is the ability to influence based upon expertise or special knowledge considered important to the work at hand. Referent power is the ability to influence based upon respect, loyalty, admiration, affection, or a desire to gain approval. A new Project Manager takes over a project during the execution phase. One of the main issues faced by the project is that the customer complains of poor visibility on the project. What should be his first step toward resolving the issue? A. Have a discussion with the customer to understand why he feels the project lacks visibility B. Have a discussion with the team members who have been in the project since the beginning to understand customer-specific communication needs C. Go through the communication management plan to understand customer communication requirements and assess whether they are being addressed properly D. The Project Manager should first understand the project and go through project management plan to understand the project properly - Correct Option: C EXPLANATION Since the communication management plan details the communication requirements of all the stakeholders, the project manager should first ensure that the plan is being properly followed. Option (a) and (b) can follow later. Option (d), though true, is not relevant to the situation. Refer to PMBOK® Guide - Sixth Edition, Project Communication Management, page 377. You are managing a large project that has many stakeholders across various departments in the organization. During the planning stage, you created a communication management plan based on the project organization structure and external stakeholder requirements in order to manage the flow of project information. During project execution, one of the stakeholders contacts you and informs you that his expectations have not been completely accounted for in the project. What should be your BEST response to the situation? A. Understand his expectations and update project documents accordingly, starting with stakeholder register B. Since the stakeholder analysis has already been completed and all the other stakeholders have been agreed to the project deliverables, the process cannot be repeated for this particular stakeholder C. Go through the stakeholder analysis with the team as there might be more unidentified stakeholders in the project D. Inform the stakeholder that he will be included in all project communications and he can raise his concerns whenever he feels his requirements are not being addressed - Correct Option: A EXPLANATION Managing stakeholder expectations and establishing an effective communication with them is one of the most critical activities for project success. The Project Manager should update the project documents according to the requirements of the stakeholders. Option (B) is incorrect as all the stakeholders in the project need to be identified and their expectations managed throughout the project. Option (C) is incorrect as there is no reference in the question to suggest that more stakeholders might have been missed in the project. Option (D) is an incorrect approach. The Project Manager should proactively manage stakeholder expectation in the project. A software project run in an IT company has 14 stakeholders and is in the final testing stage. At this point, the technical architect leaves the project and two new test engineers join. What is the change in the potential communication channels of the project? A. Communication channel would remain unaffected by change in team members. B. Number of communication channels will increase by 13. CONTINUED (471 pages) [Show More]

Last updated: 1 year ago

Preview 1 out of 471 pages