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PMP Exam Set 3 - Questions

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  • 8/18/2019 PMP Exam Set 3 - Questions

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    PMP Exam Set 3 - Questions

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    INITIATING

    1. 

    Mandy works for a consulting company that regularly creates project teams for any new

    assignments and once the assignment is over, the team is dissolved. What kind of

    Organization is Mandy working for?

    a. 

    Matrixb.

     

    Projectized

    c. 

    Functional

    d. 

    Balanced Matrix

    2. 

    What is the key role of the Project Sponsor on a Project?

    a.  Sharing lessons learnt from previous project

    b. 

    Help identifying some key project activities

    c. 

    Help preventing unnecessary changes to project objectives

    d.  Help identifying key project risks

    3. 

    As a Project Manager, you present your cost estimate to the Project Sponsor and he asks tocut cost by 10%. What would you do?

    a.  Replace originally planned resources with new resources at lower rates

    b. 

    Cut some of the project activities and inform sponsor about the same

    c. 

    Strongly say No to Sponsor and walk out from the Project

    d.  Ask all team members to reduce cost of their activities by 10%

    4.  Which of the following is NOT the advantage of obtaining approval for the project charter

    from the sponsor and customer?

    a.  Formalize the authority assigned to the project manager

    b. 

    Gain commitment and acceptance for the project

    c. 

    Declares the project managerd.  Preparation of the project plan is done during this period

    5.  In a multi-phased project, when should the Initiating processes be invoked?

    a. 

    At the start of each phase

    b.  In the middle of each phase

    c. 

    At the end of each phase

    d. 

    Only during the first phase

    6. 

    Of the following, which is not an input to the 'Develop Project Charter'?

    a. 

    Business case

    b. 

    Project statement of workc.

     

    Contract

    d. 

    Expert Judgment

    7. 

    Of the following, which is the tool and technique to the process 'Identify Stakeholders’?

    a. 

    Expert Judgment

    b. 

    Procurement documents

    c. 

    Stakeholder register

    d. 

    Stakeholder management strategy

    8. 

    Which of the following is NOT true about Overlapping phases?

    a. 

    A phase starts prior to completion of the previous one

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    b.  Overlapping phases may increase risk and result in rework if subsequent phase

    progresses before accurate information is available from the previous phase.

    c.  Can be applied as an example of schedule compression technique called fast tracking

    d. 

    Overlapping phases always reduce the risk as phases start prior to completion of

    previous one

    9. 

    All projects are mapped to life cycle structure – Starting, Organizing, Executing and

    Monitoring and Closing. Which of the following characteristic of a generic lifecycle structure

    is NOT true?

    a.  Cost and Staffing levels are low at the start, peak as the work is carried out, and drop

    rapidly as the project draws to a close.

    b. 

    Stakeholder influences, risk and uncertainty are greatest at the start of the project.

    c.  Stakeholder influences, risk and uncertainty are lowest at the start of the project,

    gradually increase and become steady towards the end.

    d.  Ability to influence the final characteristics of the project’s product is highest at the start

    of the project and decreases as the project progresses towards completion.

    10. 

    A project can involve a single person, a single organizational unit, or multiple organizational

    units. A project cannot create,

    a. 

    A product that can either be a component of another item or an end item in itself

    b. 

    A capability to perform a service

    c. 

    A result such as an outcome or document

    d. 

    A result or an outcome and its long term maintenance

    11. 

    Managing a project generally includes identifying requirements, addressing the various

    concerns and expectations of the stakeholders and balancing the competing project

    constraints. Which of the following BEST represents the project constraints ,

    a. 

    Scope, Time, Costb. 

    Scope, Quality, Cost

    c.  Scope, Quality, Schedule, Budget, Resources, Risk

    d. 

    Scope, Quality, Schedule

    12. 

    In terms of Scope, Projects have defined objectives. Programs have a larger scope and

    provide more significant benefits. Portfolios have a business scope that changes with the

    strategic goals of the organization.

    In terms of Success, which is NOT true about the Projects, Programs and Portfolio,

    a.  In Projects, success is measured by product and project quality, timeliness, budget

    compliance, and degree of customer satisfaction

    b.  In terms of Programs, success is measured by the degree to which the program satisfies

    the needs and benefits for which it is undertaken

    c. 

    In terms of Portfolio, success is measure in terms of aggregate performance of portfolio

    components

    d. 

    In terms of Programs, success is measured by the quality, timeliness, budget compliance,

    and degree of customer satisfaction of the projects under it

    13. 

    Lincoln is working for an organizational body that is assigned various responsibilities related

    to the centralized and coordinated management of those projects under its domain. The

    primary function of the organizational body is to support project managers in a variety of

    ways which may include,

    i. 

    managing shared resources across all the projects administered under them,

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    ii.  identifying and developing project management methodology

    iii. 

    Coaching, mentoring, training and oversight

    iv.  Coordinating communication across projects

    Which organizational body is this?

    a. 

    Project Management Body

    b.  Project Management Office (PMO)

    c. 

    Project Management Operation (PMO)

    d.  Steering committee

    14. Projects are a temporary endeavour. Operations are an organizational function performing

    the ongoing activities that produce the same product or provide a repetitive service.

    Projects can intersect with operations at various points during the product lifecycle, except,

    a.  At each closeout phase

    b. 

    Execution of the operations

    c. 

    Improvement of the operationsd.

     

    Developing a new product , upgrading a product or expanding outputs

    15. 

    Large projects may be divided into smaller, more manageable, components

    termed, ____________________.

    a.  checklists

    b. 

    decomposition

    c.  scope breakdown structures

    d. 

    subprojects

    16. 

    Which of the following statements is most true?a.

     

    It is important for PMPs to differentiate between projects and programs. A program is

    an on-going operation and should be managed by a program manager, whereas a

    project is temporary and should be managed by a project manager.

    b. 

    In the PMP lexicon, a program may be defined as a group of related projects, managed

    in a coordinated way.

    c. 

    Portfolio management is a generally accepted methodology used in the financial

    accounting and investment professions and is typically led by Certified Financial Planners

    or Certified Public Accountants, not PMPs.

    d. 

    PMPs may consider employing constrained optimization methodologies to determine

    what projects would be better classified as programs.

    17. 

    You have accepted a consulting assignment with a new organization, an organization with

    which you have no prior experience. You learn that you must adhere to the procedures and

    protocols established by the organization’s PMO. PMO is an acronym for each of the

    following except, _______________.

    a.  Project Management by Objectives

    b. 

    Project Management Office

    c.  Program Management Office

    d. 

    Project Office

    18. 

    Which of the following statements is most true?

    a. 

    The project charter identifies the names of project management team members.b.  The project charter tracks a project’s history.

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    c.  The project charter names and authorizes the project manager.

    d. 

    The project charter describes the details of what needs to be done to satisfy quality

    improvement objectives.

    19. Which of the following is most true?

    a. 

    The project charter is developed during closing.

    b. 

    The project charter is developed during initiation.

    c.  The project charter is developed during execution.

    d. 

    The project charter is developed during planning.

    20. 

    You can generally say each of the following is true except:

    a.  The project charter identifies major task interdependencies.

    b. 

    The project charter includes the product description.

    c.  The project charter defines the business need(s) that the project was undertaken to

    address.d.

     

    The project charter is issued by a manager external to the project.

    21. You and your project team have been assigned to deliver a new, improved version of a

    replacement auto part that has been a core product in your company for the past two years.

    A competitor has already introduced its new, improved version and you have been told that

    you and your team must deliver within 90 days. This 90-day schedule is rigid and non-

    negotiable. The 90-day schedule could be an example of what?

    a.  A mandatory dependency

    b. 

    A business need

    c. 

    A constraint

    d. 

    An assumption

    22. 

    The coordinated undertaking of interrelated activities directed toward a specific goal that

    has a finite period of performance is a :

    a. Project charter

    b. Project

    c. Set of project objectives

    d. Program

    23. 

    A project manager works in a company favouring the weakest authority for the project

    manager the type of organization that holds the project manager to be the weakest is:

    a. 

    Projectized organization

    b.  Strong matrix organization

    c. 

    Weak matrix organization

    d. 

    Balanced matrix organization

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    PLANNING

    1. 

    Whom does the Project Team report to in a Projectized Organization?

    a. 

    Does not report to any one

    b. 

    Project Manager

    c. 

    Functional Managerd.

     

    CEO

    2. 

    In a matrix organization, a Project Manager can expect the communication to be?

    a. 

    Complex

    b. 

    Difficult to Understand

    c.  Simple

    d. 

    Open and Accurate

    3.  During a regular project meeting, one of the team members suggests a nice feature that

    customer may like. But the Project Manager says 'No' to this nice feature saying that the

    project should concentrate only on what is required for the project to be completed andnothing else. This is an example of :

    a.  Scope Management

    b. 

    Time Management

    c. 

    Quality Management

    d.  Project Management Plan

    4.  As a Project Manager, which of the following document can you use to clearly communicate

    what work is included in the Work Packages?

    a.  Requirements Document

    b. 

    Scope Statement

    c. 

    Project Management Pland.  WBS dictionary

    5.  A Project Manager is calculating the weighted average of activity duration estimate to do the

    Schedule network analysis. Which Schedule Network Analysis technique is he using?

    a.  Critical Path Method

    b. 

    Critical Chain Method

    c. 

    PERT

    d.  what if Scenario Analysis

    6. 

    A Project Manager has received activity duration estimates from his team. Which of the

    following does he need in order to complete schedule development?a.

     

    Change Request

    b. 

    Reserves

    c. 

    List of Preventive Actions

    d. 

    Change Control Procedure

    7. 

    Your Program Manager asks you to reduce the Project Schedule. You look at the network

    diagram and start identifying sequence of activities which can possibly happen in parallel.

    Which technique are you using?

    a.  Fast Tracking

    b. 

    Crashing

    c. 

    Flow Chartingd.  WBS

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    b.  40

    c. 

    45

    d.  20

    15. 

    You have been assigned as the Project Manager of a new e-Business Project. There appears

    to be many risks in the project but nobody has evaluated them to assess the range ofpossible outcomes. According to you, what was not done?

    a.  Risk Identification

    b. 

    Risk Response Planning

    c.  Risk Management Planning

    d. 

    Risk Register not updated

    16. Which of the following is an Output of Risk Response Planning?

    a. 

    Risk Register

    b.  Prioritized List of Risk

    c. 

    Risk Probability and Impact Matrix

    d. 

    Residual Risks

    17. 

    Tom is the Project Manager of a software project whose client is based in Brazil. The team is

    in the planning stage performing the processes of risk management. Tom has come to you

    for assistance of handling the response of identified and prioritized negative risks. Which of

    the following is not a strategy of handling negative Risk?

    a. 

    Avoid

    b. 

    Transfer

    c. 

    Mitigate

    d. 

    Enhance

    18. 

    Which of the following is a key characteristic of Delphi Technique?a. 

    Expert Opinion

    b.  Using Historical data to predict

    c. 

    Using Analogous approach to solve problems

    d.  Using Parametric approach to solve problems

    19. 

    As a Project Manager, you have been asked to assist the contract manager in drafting the

    contract of a large project with limited scope clarity. What type of contract would you

    suggest so that your organization does not make any financial losses?

    a.  Time and Material

    b. 

    Firm Fixed Fee

    c.  Cost Plus Fixed Fee

    d. 

    Cost plus percentage of Cost

    20. Which of the following is not a Technique to Plan Procurements?

    a. 

    Make or buy Analysis

    b.  Expert Judgment

    c. 

    Contract Types

    d.  Bidder Conference

    21. 

    You are the project manager of a new model of the car to be launched by your company.

    The car has to hit market before festive season, but you have got information that the

    workers are supposed to go on strike during the same time. You try to come with a strategy

    to get the new model of the car launched inspite of worker's strike? This is an example of?

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    a.  Risk Mitigation

    b. 

    Risk Acceptance

    c.  Risk Transfer

    d. 

    Risk Avoidance

    22. 

    The scope baseline consists of:a.

     

    The Scope Management Plan, the Project Scope Statement, and the WBS

    b.  The Scope Management Plan, Requirements Documents, and the WBS

    c. 

    The Scope Management Plan, the WBS, and the WBS Dictionary

    d.  The Project Scope Statement, the WBS, and the WBS Dictionary

    23. 

    You are managing a design project. You find that bringing all of your team members into a

    single room to work increases their communication, and helps build a sense of community.

    This is referred to as a:

    a.  War room

    b. 

    Virtual team

    c. 

    Socially active teamd. 

    Common area

    24. 

    You and your project team are into week four of a dedicated six week planning session for a

    major business improvement project within your organization. As more information has

    become available during planning, you and your team have been able to further refine the

    WBS every few days. Your WBS is much more detailed and confident now, compared to its

    initial version in week one. This may be an example of what?

    a. 

    Team development

    b. 

    Learning curve

    c. 

    Progressive elaboration

    d. 

    Expert judgment

    25. A responsibility assignment matrix _____________________________.

    a. 

    should be considered for use only on very large, complex projects

    b. 

    shows assignments and levels of authority, typically as a function of WBS elements. A

    RAM does not indicate time.

    c. 

    shows when people will be brought onto the project and when they will leave

    d.  may be used as an alternate way to illustrate the project organization, showing

    reporting relationships, typically down to the core team level.

    26. 

    Ben is the project manager of an Infrastructure development project, which involves 10software engineers, 3 technical leads, 3 quality testers and 2 technical architects. All

    including Ben are scheduled for a status review meeting on the coming Friday for an hour.

    You have to assist Ben in calculating the number of communication channels that will exist

    during the meeting?

    a.  171

    b. 

    153

    c.  306

    d. 

    342

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    27. Of the following channels, which is the best method for communication?

    a. 

    Email

    b.  Telephone

    c. 

    VOIP

    d. 

    All of the above

    28. 

    The contractor will be most careful about cost estimation and budgeting under which type

    of contract,

    a. 

    Cost Reimbursable contract

    b. 

    Firm Fixed Price

    c. 

    Time Reimbursable contract

    d. 

    Firm Price

    29. 

    As a project manager, you need to expedite the project schedule, which is behind schedule.As project cost and schedule project deadlines are constraints, the project manager will take

    the help of one of the following,

    a.  Fast track the project activities

    b. 

    Crash the activities by adding more resources

    c. 

    Insert a lag among the activities

    d. 

    Evaluate the Most Likely value for the activities

    30. You are the Project Manager in a construction industry. Looking at the trend in the natural

    disasters that have occurred in India in the past 5 years, your company is adamant to add

    buy an insurance against earthquakes, as the other disasters do not seem prevalent in the

    area where the work is to be done. Which of the risk response strategies does this belong

    to?

    a. 

    Mitigation

    b.  Contingency

    c. 

    Transference

    d.  Acceptance

    31. 

    You have been chartered to carry out a project to develop the Human Resource

    Management system and have been assigned a budget of $3 Million that is not flexible. This

    is an example of,

    a. 

    Assumption

    b. 

    Expert Judgment

    c. 

    Constraint

    d. 

    Estimation

    32. 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.

    Which of the following is not an example of hierarchical structures,

    a. 

    Organizational Breakdown Structure (OBS)

    b. 

    Bill of Materials (BOM)

    c. 

    Resource Histogramd.

     

    Risk Breakdown Structures (RBS)

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    33. 

    Steffi has recently joined the ‘Minimax’ project, increasing the count of project team

    members to 10. How many new communication channels have been introduced with Steffi

     joining the Project Team?

    a. 

    36b.  45

    c. 

    9

    d.  1

    34. 

    An action has to be taken for a risk event that has occurred during the project execution. It

    was not identified during the Risk Identification process. Which is the best method of

    resolving the event that has occurred, :

    a. 

    Workaround

    b. 

    Fallback Plan

    c. 

    Risk Response Plan

    d. 

    Transfer the risk to third party

    35. You are a project manager for the organization that completes projects for other

    organizations. For the past few months, you have been working on a project for creating a

    remote control device for video cameras. Another company has approached you for

    developing a similar project for their range of video cameras and is a competitor to your

    client. What is the best action you should take?

    a.  This is the kind of work your organization performs, hence take the new project.

    b. 

    Refuse to take the new project and do not disclose the reason to the company

    c.  Take the project if the new customer is ready to pay your organization a higher price

    d.  Accept the new project as both the companies have nondisclosure agreements signed

    with your organization and there is no non-compete clause in the contracts with both the

    clients.

    36. The team has provided the project manager with activity duration estimates. If the project

    manager is about to start schedule development, which of the following is the MOST

    important item the project manager needs to adequately develop a schedule?

    a. 

    Risk Register

    b. 

    Corrective action

    c.  Schedule change control system

    d. 

    Change request

    37. 

    You are the project manager for the LLL Project. Steven, a project team member, is confused

    about network diagrams. Specifically, he wants to know the significance of the critical path

    in a network diagram. What would you tell him?

    a. 

    The critical path is the network that hosts the activities most critical to the project

    success.

    b.  The critical path is the longest path with the shortest time to complete the project.

    c. 

    The critical path is always one path that cannot be delayed or the entire project will be

    delayed.

    d. 

    The critical path is the path from start to completion with no deviation from the projectplan.

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    38. 

    Joe, a project manager for his company, is explaining the difference between a Gantt chart

    and a Milestone chart. Which of the following is the most accurate description of a Gantt

    Chart?

    a.  A Gantt chart depicts what was planned against what actually occurred.

    b. 

    A Gantt chart depicts the work in the project against the work that has been completed.

    c. 

    A Gantt chart depicts the work in the project against each resource’s calendar.

    d.  A Gantt chart depicts the work in the project against a calendar.

    39. A planning process helps the project manager define roles, responsibilities and reporting

    relationships. Which of the following planning process(es) is concerned with reporting

    relationships?

    a. 

    Scope planning

    b.  Resource planning

    c. 

    Human Resource planningd.

     

    Activity definition

    40. You are the project manager for the TLF project. As part of risk identification, you are tasked

    with using a technique called SWOT. Which of the following describes SWOT?

    a. 

    Analysis of: strengths, weaknessess, options, and timing

    b.  An elite project team that comes in and fixes project risks and threats

    c. 

    Analysis of: strengths, weaknessess, opportunities, and threats

    d.  Technique for rating risks on a scale from 1 to 100

    41. 

    You are currently planning your project activities. Some members in your organization are

    against taking up the project because they state that it's better to buy the same product

    from an outside source. Others within the organization feel that building the product in-

    house will provide exposure to new technologies. What tool should the project manager use

    to choose between the options available?

    a.  Make-or-Buy Analysis

    b. 

    Fishbone model

    c. 

    Ishikawa diagram

    d. 

    ROI Analysis

    42. 

    You are the project manager for the FRS Project. For estimating costs in your project, you

    use parametric modelling. Which one of the following is an example of parametric

    modelling?

    a.  Estimates built from bottom-up based on the WBS

    b. 

    Historical information from a similar project

    c. 

    $400 per ton

    d.  Estimates based on top-down budgeting

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    EXECUTION

    1. 

    You have recently completed the procurement document package after the successful execution

    of the Bidder’s conference. You and your team are now involved in the selection of seller using

    the weighting system based mainly on Price, Quality, Delivery Time and Seller’s business size.

    From the following data, which seller will be finally selected?

    [Seller’s names are fictitious and resemblance to any brand name is purely coincidental]

    Seller Price (30%) Quality

    (30%)

    Delivery Time

    (30%)

    Business Size (10%)

    Moon 5 8 8 3

    Star 7 8 9 7

    Sun 4 6 9 9

    Meteor 5 5 7 9

    a.  Moon

    b. 

    Star

    c. 

    Sun

    d.  Meteor

    2. 

    Alfred is the Project Manager for a web based application, having a team of 10 people. Alfred had

    asked the team to work over the weekend so as achieve the final milestone, which has been

    previously agreed with the customer. The team has worked very hard over the weekend and

    Alfred has written an email to his team members thanking them for their efforts. This is an

    example of,

    a. 

    Formal written

    b.  Formal verbal

    c. 

    Informal written

    d.  Informal verbal

    3. 

    You just started a new Project as a Project manager, when a couple of stakeholders, with whom

    you have worked in the past, come to you raising concerns about the utility of the new Project

    Management Package being used and the way project changes would be logged into the new

    Software. As a Project Manager what should you do?

    a.  Supply with Training Material on new Project Management Software

    b.  Inform the Project Management Office about stakeholder's concern

    c. 

    Since they are friends, conduct informal training session

    d. 

    Assure stakeholders that he will keep them engaged in the Project and new Software will not

    way impact their functioning

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    4. 

    With respect to change, what is the most important activity for a project manager to focus on?

    a. 

    Do the change

    b. 

    Track & Record the change

    c.  Prevent unnecessary change

    d. 

    Inform Project Sponsor of the change

    5.  What is the meaning of term 360 degree feedback in appraisals?

    a. 

    A person is appraised by not only the Project Manager but also by peers, supervisors and

    subordinates

    b. 

    A person is appraised based on competency mapping of his skill set

    c.  A person is appraised based on his performance in Key Process Areas

    d. 

    A person is appraised based on Organization policy and procedures

    6. 

    Which of the following is NOT a tool and technique used in 'Develop Project Team' process?a.

     

    Training

    b.  Interpersonal skills

    c.  Co location

    d. 

    Observation and Conversation

    7.  A new Project Manager takes over a project during execution phase. One of the main issues faced

    by the project currently is that the customer complaints of poor visibility of the project. What

    should be his first step towards resolving the issue?

    a. 

    Have a discussion with the customer to understand why he feels the project lacks visibility

    b. 

    Hold a discussion with the team members who have been in this project since beginning to

    understand customer specific communication needs

    c. 

    Go through the communication management plan to understand customer communication

    requirement and whether it is being addressed properly

    d. 

    Project manager should first understand the project and go through project management

    plan to understand the project properly

    8. 

    You are managing a large project which 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. Now while executing the project, one of the stakeholders

    contacts you and informs you that his expectations are not 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 is already completed and all the other stakeholders have been

    present and addressed work towards fulfilling their expectations, the same cannot be

    repeated for this particular stakeholder

    c.  Go through the stakeholder analysis with team as there might be more unidentified

    stakeholders in the project

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    d.  Inform this 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

    9. 

    You are Project Manager of a software project that has finished the design stage and is moving to

    implementation stage. At the end of Design phase you got the document reviewed; tracked and

    closed the defect logs. Also as part of Design Stage Review and kick off for Implementation phase,

    you checked current SPI and CPI and revisited the risks. What have you forgotten to do?

    a. 

    Identify new risks for the next stage and update risk register

    b.  Take corrective and preventive actions from design review so that defects can be minimized

    c. 

    Conduct an impact analysis of the defects found during the design review

    d.  Communicate project stage review findings to all the stakeholders

    10.  In which of the following type of contract does the buyer has the MAXIMUM cost risk?

    a. 

    Cost Reimbursable

    b.  Fixed Price

    c. 

    Time and Materiald.

     

    Cost Plus Fixed Fee

    11. As a project manager, you need to distribute information about your project's status. You intend

    to distribute the actual project result and the planned status. Which of the following report

    should you use?

    a.  Variance Report

    b. 

    Forecasting Report

    c.  Status Report

    d. 

    Trend Report

    12. 

    A project team is in the process of obtaining seller responses, selecting a seller and awarding a

    contract. For this purpose they are using some predefined selection criteria to evaluate the bids

    and select the most appropriate seller. Which process of Project Management is the project

    team working on?

    a.  Plan Procurements

    b. 

    Conduct Procurements

    c. 

    Administer Procurements

    d. 

    Proposal Evaluation

    13. 

    A project manager is involved in Procurement Management process in a centralized contracting

    environment. He is assigned a full time contract manager who reports to him for the project.

    Under this scenario which would usually NOT be the role of project manager?

    a.  Provide increased expertise in contracting and also guide the team on standardized company

    practices

    b. 

    Make sure the contract contains all project management requirements

    c.  Identify risks and incorporate mitigation and allocation of risks into contracts

    d. 

    Help tailor the contract to the unique need of the project

    14. 

    A project manager is forced to give a contract to a preferred supplier as he has a strict deadline tomeet. What could be the BIGGEST risk in this situation for the project manager?

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    Hence you decide to give him a hike in salary. However the employee is still unhappy and

    dissatisfied. This is an example of which theory?

    a. 

    Maslow’s Theory

    b. 

    Herzberg's theory

    c.  McGregor's theory

    d. 

    Expectancy theory

    20. A project manager is preparing for the next milestone release when he realizes that he has

    missed an important feature in project requirements plan. This feature if implemented would

    take at least one person week of effort. What should be his Next step to address this?

    a. 

    Discuss the change with Customer and seek his approval

    b.  Evaluate the impact of change on triple constraint

    c. 

    Look for the alternatives to reduce the impact of change

    d.  Raise a change request to address the change through change control process

    21. 

    What does the kaizen theory state?

    a.  Evaluate project performance on regular basis

    b.  Reduce the inventory cost to zero by making inputs available just when required

    c. 

    Use a process of Plan-Do-Check-Act to improve quality

    d. 

    Apply continuous small improvements to reduce costs and ensure consistency

    22. 

    Your customer asks for a small change in the project, which was not budgeted in the project. It is

    a small effort as compared to the total project and you need the goodwill for a multimillion dollar

    on this gas project. What will you do?

    a. 

    Implement approved changes according to the change management plan in order to meet

    the project requirements

    b. 

    Since you need to maintain goodwill, you agree to incorporate the change

    c. 

    Speak to the sponsor for his consent

    d. 

    Tell the customer to keep it as a secret and not inform the sponsor about this change to be

    implemented

    23. 

    During the project, you and your team discovered that a key project component was stolen. As

    this was not planned for the team decided to launch the product without the stolen component.

    This is an example of?

    a. 

    Work around

    b. 

    Risk Transfer

    c. 

    Risk Mitigation

    d.  Acceptance

    24. During the project execution, the status report shows that an activity on the critical path is

    delayed. As a project manager, what should do?

    a.  Deliver uncompleted activity

    b. 

    Compress the schedulec.  Reduce the scope

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    d.  Stop the project execution

    25. 

    As a project manager, you are assigned to a project that has been decided to be outsourced. The

    next step is to organize a formal bidding process and select the vendor for the 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?

    a.  Get the vendor company selected for the project

    b. 

    Keep the information to yourself

    c.  Tell your manager and remove yourself from the vendor selection committee

    d. 

    Ask other members of the selection committee to select your vendor company

    26. 

    Which of the following is NOT a tool and technique for the 'Conduct Procurements' process?

    a.  Bidders Conference

    b. 

    Independent estimatesc.

     

    Procurement Negotiation

    d.  Contract Types

    27. 

    The project manager has discovered two team members having a disagreement over the

    procurement of the project component. The project manager suggests that the team members

    should compromise and the team members are also willing to resolve the conflict. Who should

    decide the best course of action/

    a. 

    Sponsor

    b. 

    Customer

    c. 

    Project Manager

    d. 

    Team members

    28. 

    The primary communication skill the project manager will use in working with the functional

    manager is:

    a. 

    Problem Solving

    b. 

    Negotiation

    c. 

    Team Building

    d.  Public Relations

    29. 

    Performance improvements include all but:

    a. 

    Improvements in amount of overtime worked

    b.  Improvements in individual skills

    c. 

    Improvements in team behaviour

    d. 

    Improvements in team capabilities

    30. 

    Herzberg divided motivation factors into two classes : satisfiers and dissatisfiers. Examples of

    satisfiers are :

    a. 

    Vacation timeb.  Work satisfaction, fringe benefit

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    c.  Plush offices space, performance based salary raise

    d. 

    Sense of personal achievement, work satisfaction

    31. 

    A project manager is concerned about team building on her project. One of the mandatory things

    that she must have in order to have good team building is:

    a. 

    Commitment from top level management

    b. 

    Co-location of team members

    c.  Establishment of clear negotiated goals

    d. 

    Open discussion of poor individual performance

    32. 

    A project manager is managing a project where there will be a number of persons working

    together. She wants to enhance the ability of the team to work together and perform as a team.

    One of the things that she can do to maximize the ability of the team to do this is:

    a.  Cohabitation

    b. 

    Co-locationc.

     

    Staffing plan

    d.  WBS

    33. 

    Tom always delivers his projects on time and within budget. He believes that his success can be

    explained by the fact that he makes all of the project decisions himself and then enforces those

    decisions with an iron hand. His management style is best described by

    a. 

    Force Field Theory

    b.  Expectation Theory

    c. 

    Gregor's Theory X

    d. 

    Gregor's Theory Y

    34. 

    Outputs of Direct and Manage Project Execution include:

    a. 

    Deliverables and performance reports

    b. 

    Deliverables and work performance information

    c.  Deliverables and corrective action

    d. 

    Performance reports and corrective actions

    35. 

    You are the project manager on a construction project. Midway through your project, you realize

    that there’s a problem with one of the project components you’ve been using in a few rooms and

    you are going to have to tear down some of the work that's done and rebuild. One of your team

    members suggests that the defect isn’t bad enough to cause all of that re-work. Since you have

    worked on a project where a similar mistake was made and it ended up in re-doing it when

    inspectors looked at the house. You convince the team member that it’s probably better to fix it

    now than later. What kind of power are you using to make the decision?

    a. 

    Legitimate

    b.  Expert

    c. 

    Referent

    d.  Reward

    36. A project manager is reporting the final status of the closed contract to the stakeholders.

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    a.  Quality analysis

    b. 

    Quality control

    c. 

    Quality assurance

    d. 

    Quality planning

    42. 

    The Project status meeting that you are anchoring is not going well. Many participants are simply

    talking among themselves and not participating. Which of the following rules of communication

    are NOT being followed?

    a. 

    Relevant stakeholders are not attending the meeting

    b. 

    Meeting Agenda has not been decided and shared

    c.  Stakeholders are mis-behaving

    d. 

    You are not the Project Manager

    43. 

    You make it a point to set aside ten minutes at the end of each weekly team meeting for open

    discussion. In last week’s meeting your team member who is responsible for project risk

    management brought up the topic of team performance improvement. A discussion ensued that

    resulted in some new goals for the team. The goals were documented and distributed. These new

    team performance improvement goals included all of the following,

    a. 

    Improve team behaviour; to deal more effectively with conflict.

    b.  Improve individual skills; to perform activities with greater efficiency.

    c. 

    Improve teaming skills; to tap collective creativity in developing better ways to accomplish

    project work.

    d. 

    Improve individual negotiating skills; to empower team members during salary talks when

    they are released at project’s end.

    44. 

    You assume that team development objectives will be MOST difficult to achieve under which of

    the following conditions?

    a.  When team members are accountable to both you, as project manager, and to their

    respective functional managers.

    b. 

    When any of the seven sources of conflict fail to be resolved and problems linger.

    c.  When the project manager’s leadership power is derived primarily via reward and/or

    punishment.

    d. 

    When the project budget is so austere that zero spending on team building activities isallowed.

    45. 

    You are considering what team development goals to establish, along with what tools to apply to

    help achieve those goals. You decide to use a creative reward and recognition system that should

    be motivational, fun and fair. While developing the details of your reward/recognition system,

    some general guidelines should be observed. Which of the following represents the LEAST

    appropriate guideline for you to observe?

    a. 

    The link between the reward and project performance goal must be clear and explicit.

    b. 

    The required project performance goal must be reasonably achievable.

    c. 

    The reward system should factor cultural differences.

    d.  The reward and/or recognition should be clearly linked to monetary value.

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    46. 

    Of the following statements, identify the LEAST TRUE.

    a.  A buyer/seller contract is a legally binding agreement and cannot be changed.

    b. 

    If a contract is well-planned and negotiated, then the need for contract changes should

    be minimized.c.

     

    Contract changes that will lead to improved project performance should be facilitated,

    but in accordance with the change management provisions of the contract.

    e. 

    It is the project manager’s responsibility to prevent and discourage unnecessary contract

    changes.

    47. During project planning, you and the team created a series of checklists (for later use during

    project execution) to track the completion of defined deliverables. When project planning was

    completed, 327 deliverables were defined and captured on the checklists. Now, well into projectexecution, the checklists are proving to be quite useful. Each week, the checklists are updated to

    show which deliverables have been completed, which are partially completed and those that

    remain. These checklists are helping you and the team to review and track ____________.

    a.  quality metrics

    b. 

    work results

    c.  the work breakdown structure

    d. 

    the scope management plan

    48. Your project team has just received the last of fourteen proposals from prospective suppliers, alleager to win your contract award. Upon initial review, it appears that significant variation exists in

    proposal formats, technical discussions and pricing structures. Of the following, which will be LEAST

    HELPFUL for you and the team to fairly compare and evaluate all these proposals?

    a. 

    use a weighting system

    b.  use a screening system

    c. 

    have an independent estimate performed for comparison

    d.  have an independent background check performed on each bidder

    49. Which of the following roles helps support the project and resolves resource conflicts?

    a. 

    Functional management

    b. 

    Senior management

    c. 

    Sponsor

    d.  Project Management

    50. Which of the following roles controls resources and manages a business unit?

    a.  Functional management

    b. 

    Senior management

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    c.  Sponsor

    d. 

    Project management

    51. A Quality Audit is a structured, independent review to determine whether project activities

    comply with organizational and the project policies, processes and procedures. The subsequent

    effort of quality assurance will result in the following EXCEPT,

    a. 

    Reduced cost of quality

    b.  Increase in customer acceptance of the project’s product

    c. 

    Identifying only the shortcomings and not the best practices

    d. 

    Highlights the contributions of each audit in the lessons learned repository of the

    organization

    52. Which of the following correctly defines the documented direction for executing the projectwork to bring expected future performance of the project work in line with the project

    management plan?

    a. 

    Corrective Action

    b.  Preventive Action

    c.  Defect Repair

    d. 

    Corrective Plan

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    MONITORING AND CONTROLLING

    1. 

    Of the following reports, which one will not be suitable for the top management?

    a. 

    Milestone reportb.  Bar Charts

    c. 

    Gantt Chart

    d.  Control chart

    2.  Judy is the project manager for a construction project and has subcontracted parts of the

    project to 3 vendors. On Monday, she is in an important meeting with one of the vendors

    discussing change in the scope of work and is scheduled to board the plane to meet the

    client for a meeting. Owing to the current meeting, she leaves 25 minutes later than the

    time scheduled for reaching the airport. The probability that she will be able to board the

    airplane is 30% and if she succeeds in boarding the plane, there will be positive outcome of

    $5000 but there will be a negative outcome of $15,000 if she is unable to board the plane.

    What is the Expected Monetary Value if Judy is able to board the plane?

    a. 

    $1500

    b. 

    $10500

    c. 

    -$1500

    d. 

    -$9750

    3. 

    To reduce the chances of failure of your project, you insist on looking at one of the following

    documents that will provide you with instances that lead to success and failure in their

    project and how they resolved the issues in their projects successfully,

    a. 

    Project Plan

    b. 

    Project Schedule

    c.  Lessons Learned

    d. 

    Performance Report

    4. 

    What does a CPI value of greater than 1 indicate?

    a. 

    Cost underrun of the estimatesb.

     

    Cost overrun of estimates

    c. 

    Does not affect the project

    d. 

    Project is ahead of schedule

    5. 

    You are the project manager for a project, which has a budgeted cost of $1200. The work

    done is of value $700 and the actual cost spent on the project till date is $1500. What is the

    CPI for this project?

    a. 

    0.467

    b. 

    0.583

    c. 

    0.8

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    d.  1.25

    6.  As the project manager, you are nearing completion of your project. You are involved in the

    scope verification process of a deliverable with the customer. What is the MOST important

    thing you, as the project manager, should ensure?a.  Acceptance

    b. 

    Timeliness

    c.  Accuracy

    d. 

    Completeness

    7. 

    You have tasked a project team member to list the activities that result in cost of non-

    conformance to quality in your project. The list he submits is inaccurate because one of the

    four, is a cost of conformance. Which of the following did your project team member list

    incorrectly?

    a. 

    Reworkb.  Scrap

    c. 

    Quality training

    d.  Warranty costs

    8. 

    You are the Project Manager working for an IT implementation project. You are required to

    purchase and integrate a software workflow product in an organization. You have signed a

    contract with the vendor and work has initiated. Halfway through the project, the customer

    decides to add new functionality to the workflow software. This addition of features will

    require changes to the signed contract. Who has the authority to change the contract?

    a. 

    Project Managerb. 

    Project Sponsor

    c. 

    Contract Administrator

    d. 

    Customer

    9. 

    Which one of the following is NOT a tool and technique to Administer Contract process?

    a. 

    Contract change control system

    b.  Contract negotiation

    c. 

    Payment system

    d.  Performance rating

    10. You are the project manager and need to ensure that the customer formally accepts the

    deliverables of each project phase. This process is known as ___________?

    a. 

    Earned Value Management

    b.  Verify Scope

    c. 

    Plan Quality

    d.  Control Quality

    11. 

    A project team member has, on his own initiative, added extra vents to an attic to increase

    air circulation in the attic. The project plan did not call for these extra vents, but the team

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    17. You have tasked a project team member to list the activities that result in cost of

    non-conformance to quality in your project. The list he submits is inaccurate

    because one of the four, is a cost of conformance. Which of the following did your

    project team member list incorrectly?

    a. 

    Warranty costs

    b. 

    Quality trainingc.

     

    Rework

    d.  Scrap

    18. You are the project manager for the LRF project. You find out that your project is not

    going according to plan. You decide to measure standard deviations of various

    project parameters, which is a measure of how:

    a.  Far the measurement is from the mean.

    b. 

    Far the estimate is from the average estimate.

    c. 

    Correct the sample is.d.

     

    Much time remains in the project.

    19. 

    You as a project manager use the change management process for your project. You

    know that the need of changes on the project can occur due to:

    a. 

    An external event such as a change in government regulation

    b.  An error or omission in defining the scope of the product

    c. 

    Customer fails to specify the requirement in the initial document.

    d.  All of the above

    20. 

    You as a project manager are deciding the tools & techniques that you need to use

    on your project. Which process uses Issue Log as one of the tool & technique?

    a. 

    Information Distribution

    b. 

    Manage Project Team

    c.  Direct and Manage Project Execution

    d. 

    A,B and C

    21. A technique used to validate that the project can meet the required performance

    and business objectives is:

    a.  Cost/Benefit Analysis

    b. 

    Statistical Regression Analysisc.  Pareto Analysis

    d. 

    Decomposition

    22. 

    You are ensuring that configuration management is done on your project. The

    activities that are included as part of Configuration Management are:

    a. 

    Configuration Identification

    b.  Configuration Status

    c. 

    Configuration Verification and Auditing

    d.  All of the above

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    23. At times, you as a project manager have to implement corrective actions on your

    project. What's not true about corrective action?

    a.  Corrective action is a sign of lack of project planning and needs to be avoided

     

    b. 

    Corrective action is anything done to bring expected future project performance

    in line with the approved project baselinec.

     

    Corrective actions frequently requires root cause analysis to identify the causes

    of the variation

    d. 

    Corrective actions are triggered after variance analysis

    24. 

    A technique for resolving conflict in which the parties agree to have a neutral third

    party hear the dispute and make a decision is called:

    a.  Forcing

    b. 

    Smoothing

    c.  Arbitration

    d. 

    Negotiation

    25. 

    You as a project manager have decided to show the project performance trends with

    the help of charts. Which of the following two charts will help you to do that?

    a. 

    Pareto chart & Control Chart

    b. 

    Control chart & Run Chart

    c. 

    Gantt Chart & Control Chart

    d. 

    Histogram & Run Chart

    26. 

    Tools and techniques used in integrated change control are all of the following

    except:a. 

    Project Management Information System

    b.  Project Management Methodology

    c. 

    Project Change Methodology

    d.  Expert Judgment

    27.  In taking over a failing project you hold a status meeting and find that the

    Engineering and marketing team members are avoiding each other on taking

    decisions on various key points of the project. The type of behaviour the team

    members are demonstrating is:

    a.  Problem Solving

    b. 

    Withdrawal

    c. 

    Compromising

    d.  Forcing

    28. 

    What is the primary way that a project manager can use to measure project

    effectiveness?

    a. 

    Use trend analysis

    b. 

    Perform an inspection

    c. 

    Conduct a performance review

    d. 

    Performa vendor audit

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    29. 

     _____________ monitors specific project results to determine if they comply with

    relevant quality standards and identifies ways to eliminate causes of unsatisfactory

    performance

    a. 

    Quality planning

    b. 

    Quality assurancec.

     

    Quality control

    d.  Process control

    30. An input to the quality assurance process is:

    a. 

    Quality management plan

    b. 

    Scope Statement

    c.  Standards and regulations

    d. 

    Checklists

    31. A project manager needs to determine how the manufacturing is going for the new

    micro satellites. Each satellite takes about three days to manufacture and costs US

    $125,000. The inspection process has been a source of concern. The satellites are so

    small that inspection would destroy them. Under these circumstances, what should

    the project manager do?

    a.  Outsource the inspection to another firm with more expertise

    b. 

    Evaluate the attributes of the population

    c.  Inspect a sample of the satellites

    d. 

    Decrease the costs of quality

    32. 

    Which of the following has the primary responsibility of establishing design and test

    specifications?

    a. 

    Senior Management

    b.  Project Management

    c. 

    Engineering Team

    d.  Quality Control Team

    33. Which of the following is a common format for performance reporting?

    a. 

    Pareto Diagrams

    b.  Bar charts

    c. 

    Responsibility Assignment Matrices

    d. 

    Control Charts

    34. 

    Performance reports should address all the needs of the ___________?

    a. 

    Management

    b. 

    Team members

    c. 

    Project manager

    d. 

    Stakeholders

    35. 

    Progress reporting, variance reporting, and cross-team meetings are forms of which

    of the following?a.

     

    Stakeholder management

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    b.  Risk management and reporting

    c. 

    Quality management

    d.  Communication management

    36. 

    If a project manager wants to examine project results over a period of time toanalyze the improvement in performance, what would she use?

    a.  Trend report

    b. 

    Forecasting report

    c.  Status report

    d. 

    Variance report

    37. 

    Which one of the following is the most suitable method of analyzing project

    performance?

    a. 

    EVM

    b. 

    Management by walking aroundc. 

    Communications management

    d. 

    Project status reporting

    38. 

    In your new project, you have to provide a critical deliverable within five months and

    do not have time to go through the Conduct Procurements process. You decide to

    sign a contract with a supplier with whom your company has done some work in the

    past. The risk you are accepting in this situation is:

    a. 

    The ability of the supplier to deliver the goods

    b. 

    Collusion between the supplier and your team

    c. 

    Lack of proper scope definition

    d. 

    Lack of a legally binding agreement

    39. Verify Scope is the process of formalizing acceptance of the completed project

    deliverables. Which of the following is a tool and technique for this process?

    a.  Requirements matrix

    b. 

    Inspection

    c. 

    Facilitated workshops

    d.  Product analysis

    40. 

    During the intermediate management review on your project that's worth $20K, it is learnt

    that the cumulative PV is $10K, the cumulative AC is $8K, and the cumulative EV is $6K.

    Based on the project data, which of the following is least TRUE??

    a.  The project team has accomplished less than it was planned

    b. 

    Continuing at the same pace the project objectives will be achieved in time

    c. 

    Continuing at the same speed the project objectives will not be achieved in time

    d.  Project team has spent less money than was planned

    41. 

    What is the Cost Variance for a project with the following parameters,

    CPI = 1.2, SPI = 0.8, PV = $600,000, SV = $1,20,000

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    a.  $480,000

    b. 

    $48,000

    c.  $80,000

    d. 

    $8,000

    42. 

    Which of the following states the correct formula to compute Estimate at Completion (EAC)?

    a.  BAC / SPI

    b. 

    BAC / CPI

    c.  BAC x CPI

    d. 

    BAC /CPI

    43. 

    Which of the following is NOT true about Analogous estimating?

    a.  Estimates are prepared with a limited amount of detailed information and

    understanding of the project

    b. 

    Also known as Top down Estimating techniquec. 

    It is extremely difficult for projects with uncertainty

    d. 

    It is more accurate than any estimating technique

    44. 

    Which of the following estimates is done during the planning phase and is in the range of -10

    to +25%?

    a. 

    Definitive estimate

    b. 

    Budget estimate

    c. 

    Rough Order of Magnitude estimate

    d. 

    Planning estimate

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    6.  What should you avoid when you are organizing documents as Lessons learned?

    a.  Devise the lessons learned documentation in a wording which is easy to understand for a

    reader who is not familiar with the project.

    b. 

    Lessons learned must detail how certain groups or persons caused failures and delays,

    especially if they are inside the own organization.

    c.  Writing lessons learned should be an exercise enhancing your personal learning experience.

    Make sure you grasp what you are writing down.

    d.  Keep lessons learned documents at a place where they are easy to access and to retrieve for

    those who may later need the information.

    7. 

    Your client has terminated your project before it is complete. Which of the following is

    true?

    a. 

    You must stop all work and release the team immediately

    b. 

    You must work with the team to document the lessons learned

    c. 

    You must keep the team working on the project to give your senior management time totalk to the client

    d.  You must update the project management plan to reflect this change

    8.  During procurement closure, a procurement audit includes all of the following EXCEPT:

    a. 

    Reviewing the contract terms to ensure that they have all been met

    b.  Identifying successes and failures that should be recognized

    c.  Documenting lessons learned

    d. 

    Using the payment system to process consideration as per the terms of the contract

    9. 

    Which of the following tools is used to document the lessons that were learned when thecontract was administered?

    a.  Quality audit

    b.  Buyer-conducted performance review

    c. 

    Contract review

    d.  Procurement audit

    10. 

    You have just been informed by the Project sponsor that the customer intends to terminate the

    project in the middle of the execution process group. Which of the following will you do FIRST

    as a project manager?

    a. 

    Share this information with all stakeholders by emailb.

     

    Evaluate the impact of project closure

    c. 

    Initiate the Close Project or phase process

    d. 

    Meet the sponsor to discuss the course of actions

    11. 

    Instead of rejoicing project end, the stakeholders are breathing a sigh of relief. None of them

    were confident that the project would meet the end date. Which of the following is NOT one of

    the reasons that this project had difficulty?

    a. 

    Lack of a payback period

    b. 

    Lack of milestones

    c. 

    Lack of a communication pland. 

    Lack of a stakeholder management plan

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    12. Which of the following is an input to the 'Close Procurement' process?

    a. 

    Project management plan

    b.  Project documentation

    c. 

    Expert Judgment

    d. 

    Accepted deliverables

    13. 

    Which of the following is a Tool and Technique for the 'Close Project' process?

    a.  Expert Judgment

    b. 

    Accepted deliverables

    c.  Project charter

    d. 

    Project management plan

    14. 

    Your project team has completed the project work. All of the following must be done before the

    project can be closed EXCEPT:

    a. 

    Ensure that the schedule baseline has been updated

    b. 

    Get formal acceptance of the deliverables from the customerc. 

    Make sure the scope of the project was completed

    d. 

    Verify that the product acceptance criteria have been met

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    DUMMY

    1. 

    Which of the following is identified by Fiedler as an important contextual circumstance that

    influences the appropriateness of a leader’s style?

    a.  Subordinate maturity

    b.  Subordinate’s pay level

    c.  Leader position power

    d.  Group composition

    2. 

    There are situations in which leadership is not important because leadership __________

    enable subordinates to function well without leader guidance. 

    a. 

    substitutes

    b.  styles

    c. 

    neutralisers

    d. 

    willingness

    3. 

    Participative styles of leadership would be more acceptable in countries that have cultures

    where: 

    a.  power-distance and uncertainty avoidance are low, but individuality and masculinity are

    high.

    b.  medium power-distance and individualism, low uncertainty avoidance and masculinity.

    c.  low power distance and uncertainty avoidance and high individualism and masculinity.

    d.  medium power-distance and individualism, but high uncertainty avoidance and

    masculinity.

    4.  The ability of a product to be used for different purposes at different capacities and under

    different conditions determines its:

    a. 

    Usability

    b.  Flexibility

    c.  Operability

    d. 

    Availability

    5. 

    In negotiations, what is a fait accompli tactic?

    a.  Making personal attacks which could be downright insulting

    b. 

    Playing role of Good guy and Bad guy in a team

    c.  Claiming an issue has already been decided and therefore cannot be changed

    d. 

    Hiding or partially disclosing the complete information

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    6. 

    Which of the following is most effective while negotiating?

    a.  Yielding

    b. 

    Forcing

    c. 

    Collaboratingd.

     

    Compromising

    7. 

    What is the best way of explaining the Zero Defect Concept?

    a.  It’s a concept that defines the performance standard for quality management

    b. 

    It's quality concept that's used by the management to communicate to all employees

    that everyone should do things right the first time

    c.  It's a motivational technique that promotes "doing it right the first time"

    d.  A&B

    8. 

    You want Quality management for your project. You know in the field of quality, Six Sigma is

    not:

    a. 

    A quality improvement initiative under taken by the performing

    organization

    b. 

    A Quality improvement initiative that can improve the quality of the project's product

    c.  A quality improvement initiative that focuses on systematically correcting mistakes

    revealed through inspection

    d. 

    A quality improvement initiative that can improve the quality of the project's

    management

    9.  A leadership style in which the project manager shares problems with team members and

    formulates solutions as a group is called :

    a. 

    Consultation

    b. 

    Autocratic

    c.  Laissez-fare

    d. 

    Consensus

    10. Project A has an Internal Rate of Return (IRR) of 20%, Project B has an IRR of 12%, Project C

    has an IRR of 22%, Project D has an IRR of 10%. Which of these would be the BEST project?

    a. 

    Project A

    b. 

    Project B

    c.  Project C

    d. 

    Project D

    11. 

    Payback period needs to be calculated for your project that will be completed in 3 years. The

    internal rate of return (IRR) is 7% and the annual savings expected are $500K per year. The

    total cost of the project is $3,000K. Payback period will be?

    a.  3 years

    b. 

    6 years

    c. 

    7.5 years

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    d.  12 years

    12. 

    Risks can be divided into two basic types: business risk and pure or insurable risk. Of the

    following, which one fall(s) under business risk?

    a. 

    Personal loss

    b. 

    Breakdown loss

    c.  Profit Loss

    d. 

    Price variation

    13. 

    There are two basic types of warranties. What warranty type relates to "merchantability" or

    "fitness for use"?

    a. 

    Expressed

    b.  Implied

    c. 

    Guaranteed.

     

    Selective

    14. Which of the following constitutes Juran's "quality trilogy"?

    a. 

    Planning, inspection, control

    b. 

    Planning, improvement, control

    c.  Planning, organizing, control

    d. 

    Product, price, customer

    15. 

    Which type of leadership style is most appropriate when managing large number of low

    skilled workers?

    a. 

    Autocratic

    b. 

    Paternalistic

    c. 

    Democratic

    d.  Paradorma

    16. 

    What of the following is NOT true about Affinity diagrams?

    a. 

    Also known as KJ method

    b.  Helps to synthesize large amounts of data by finding relationships between ideas

    c. 

    Aids in solving a problem or analyzing a situation

    d. 

    Is a time management tool

    17. Portfolio Management is the responsibility of the senior management team of an

    organization or business unit. Of the following, which is NOT the type of technique that is

    used to support portfolio management process,

    a.  Heuristic model

    b. 

    Scoring technique

    c.  Visual or mapping techniques

    d. 

    Grid technique

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    18. 

    According to the Utility Theory, what are the dimensions on the X and Y axis?

    a. 

    X-axis denotes money at stake and y-axis denotes utility

    b.  X-axis denotes utility and y-axis denotes money at stake

    c. 

    X-axis denotes performance and y-axis denotes money at stake

    d. 

    X-axis denotes money at stake and y-axis denotes performance

    19. 

    Which of the following statements is not true regarding cash flow analysis techniques?

    a.  The discounted cash flow technique compares cash inflows as a total, while NPV

    calculates cash inflows period by period and then totals the present value of each period

    b.  The discounted cash flow technique and the NPV technique both take the time value of

    money into consideration

    c.  NPV is the most conservative cash flow analysis technique and assumes reinvestment at

    the cost of capitald.

     

    The discounted cash flow technique may use future value and present value formulas to

    determine the value of the investment or return. It's the least precise of all the cash flow

    calculations

    20. 

    Which of the following is not a measure of the profitability of a project or program?

    a.  Return on original investment

    b. 

    Net present value

    c.  Depreciation

    d. 

    Discounted cash flow

    21. 

    The swiftest and the most effective communication occurs among people which have?

    a. 

    Common points of view

    b. 

    Dissimilar interests

    c. 

    Advanced Professional degrees

    d.  The ability to reduce perception barriers

    22. 

    Paraphrasing is most closely associated with which part of the communication process?

    a. 

    Encoding

    b.  Decoding

    c. 

    Barriers

    d. 

    Feedback

    23. What are the two events, which cannot both occur in a single trial, known as?

    a. 

    False events

    b. 

    Mutually exclusive

    c.  Statistically independent

    d. 

    Just in time

    24. 

    Which of the following looks at determining if the project idea is a realistic project?a.  Matrix study

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    b.  Demand study

    c. 

    Case project study

    d. 

    Feasibility study

    25. 

    As a project manager for a seminar and training session with approximately 2,000-2500

    employees attending, you have rented a hall for the seminar. However, you are unsure

    exactly how many people will attend. Moreover, the number of tables required will change

    depending on attendance. The cost of the furniture should be considered?

    a.  Variable cost

    b. 

    Direct cost

    c.  Fixed cost

    d. 

    Transient cost