100 PMI Questions

Question No : 101

In your project, some of the benefits of a well-constructed scope statement are all the following EX
Choice 1

Provides a documented basis for making future project decisions

Choice 2

Develops common understanding of project scope among stakeholders

Choice 3

Provides knowledge of project justification, deliverables, and objectives

Choice 4

Provides a basis for time and cost estimates

Correct Choice : 4
Justification :

Work breakdown structure (which is an output from Create WBS process) helps in providing a ba
estimates.
Options 1, 2, and 3 are benefits of a well-constructed scope statement.
Reference: PMstudy.com comments
Question No : 102

You are the project manager of a high priority project, which will require more than 1,000 team mem
humanresource planning, you would like to apply proven principles to shorten the time needed to c
plan and make it effective. In this context, you will benefit if you consult an expert in the field of:
Choice 1

Networking and team formation

Choice 2

Human resource theory

Choice 3

Organizational theory

Choice 4

Project organization charts

Correct Choice : 3
Justification :

Organizational theory provides information regarding the way in which people, teams, and organiz
Effective use of this information can shorten the amount of time, cost, and effort needed to create t

planning outputs and improve the likelihood that the planning will be effective.
Question No : 103

The following is the data for a CPIF project you are managing:
Target cost is $ 100,000;
Actual cost is $ 80,000
Target fee is $ 20,000;
Maximum fee is $ 25,000;
Sharing ratio is 60:40.
What should be the final price of the contract?
Choice 1

$ 100,000

Choice 2

$ 108,000

Choice 3

$ 105,000

Choice 4

$ 92,000

Correct Choice : 3
Justification :

Target cost (TC) = $ 100,000
Target fee (TF) = $ 20,000
Maximum fee = $ 25,000
Sharing ratio=60:40
Actual fee (AF) = {(TC - AC) * SSR} + TF = {($ 100,000 - $ 80,000) * 40%} + $
20,000 = $ 20,000 * 40% + $ 20,000 = $ 28,000,

Although the actual fee is more than the maximum fee, the maximum fee ($ 25,000) only
So, final price = AC + AF = $ 80,000 + $ 25,000 = $ 105,000
Reference: PMstudy.com comments
Question No : 104

Of the following documents, all of which are updated during Control Schedule process, which is NO
management plan?
Choice 1

Schedule baseline

Choice 2

Cost baseline

Choice 3

Schedule management plan

Choice 4

Schedule data

Correct Choice : 4
Justification :

Elements of the project management plan that may be updated include, but are not limited to, sche
management plan, and cost baseline. Schedule data is the project document that gets updated as
the ControlSchedule process.
Reference: PMBOK® Guide Fourth Edition, Page 164
PMstudy.com comments: Schedule data is a project document, but all baselines/plans are part of
plan. Refer PMBOK® Guide Fourth Edition, Page 350
Question No : 105

You are the project manager in a pharmaceutical company. You are constantly involved in managin
expectations to satisfy their needs and resolve issues. In this context, which of the following is not
Choice 1

Organization process assets updates

Choice 2

Change requests

Choice 3

Project management plan updates

Choice 4

Communications requirements analysis

Correct Choice : 4
Justification :

Communication requirements analysis is a tool for Plan Communications process. Please refer fig
244 in PMBOK® Guide Fourth Edition
Reference: PMBOK® Guide Fourth Edition, Page Number:244, figure10 – 1
Question No : 106

As part of your duties as a project manager, you make sensitive company data available to a vend
of the following precautions should you take?

Choice 1

Insist that the vendor signs a non-disclosure agreement after you release the sensitiv

Choice 2

Make sure that the vendor receives all the sensitive information in time.

Choice 3

Ensure that the vendor signs non-disclosure agreement before you release the sensit

Choice 4

Monitor the vendor in order to prevent her from sharing the information with her comp

Correct Choice : 3
Justification :

PMI Code of Ethics and Professional Conduct requires a project manager not to disclose sensitive
information. But, at times, an organization has a legitimate need to disclose confidential informatio
governmental agencies, or others. When disclosing confidential or sensitive information, it is the re
manager to ensure that propernondisclosure agreements are signed prior to the disclosure of the s
Reference: PMstudy.com comments
Question No : 107

As the project manager in a software company, you are determining the possible costs to complet
done as part of:
Choice 1

Variance analysis

Choice 2

Estimate Costs

Choice 3

Determine Budget

Choice 4

Control Costs

Correct Choice : 2
Justification :

Estimate Costs is the process of developing an approximation of the monetary resources needed
activities. Cost trade-offs and risks must be considered, such as make versus buy, buy versus leas
resources in order to achieve optimal costs for the project.
Reference: PMBOK® Guide Fourth Edition, Page Number:168
Question No : 108

You have created an Excel spreadsheet that shows cumulative cost at any particular point of time

Your director wants to review the project costs and you decide to make a presentation. Cumulative
time is shown in the slide as a:
Choice 1

S-curve

Choice 2

Histogram

Choice 3

Control chart

Choice 4

Pareto diagram

Correct Choice : 1
Justification :

S-curve is a graphic display of cumulative costs, labor hours, percentage of work, or other quantiti
The name derives from the S-like shape of the curve.
Reference: PMBOK® Guide Fourth Edition, Page Number:441
Question No : 109

Ideally, when should a project manager be assigned to a project?
Choice 1

As soon as a project is authorized

Choice 2

Soon after the scope statement is finalized

Choice 3

When the WBS is completed

Choice 4

At any time during the project life cycle, depending on requirements

Correct Choice : 1
Justification :

A project manager is identified and assigned as early in the project as is feasible.
Reference: PMBOK® Guide Fourth Edition, Page 73
Question No : 110

Which of the following statements about "Quality" and "Grade" is incorrect?
Choice 1

Grade is a rank given to entities having the same functional use but different technica

Choice 2

Low quality product may be of high grade.

Choice 3

Low grade product may be of high quality.

Choice 4

It is a problem if the product is of high quality and low grade.

Correct Choice : 4
Justification :

Grade is a category assigned to products or services having the same functional use but different
While a quality level that fails to meet quality requirements is always a problem, low grade may no
softwareproduct can be of high quality (no obvious defects, readable manual) and low grade (a lim
or of low quality (many defects, poorly organized user documentation) and high grade (numerous f
Reference: PMBOK® Guide Fourth Edition, Page Number:190
Question No : 111

ABC company has recently launched a new model of their car in the market and the market respon
overwhelming. Sales have gone up to a level much higher than what the company anticipated. To
market demand, the company plans to start a project to create a new assembly line for the cars. W
the user for this project?
Choice 1

Project manager and project management team

Choice 2

Person who may buy the car in the future

Choice 3

Project sponsor who provides funding

Choice 4

Assembly line worker who is going to work on the new assembly line being created

Correct Choice : 4
Justification :

Customers refer to the entity acquiring the project`s product, and users refer to those who will direc
product.
Reference: PMBOK® Guide Fourth Edition, Page 25

PMstudy.com comments: Here the assembly line worker will use the project`s product, i.e., the new
created. So, he is user of the project.
Question No : 112

Your project is very critical for the company and must be completed within six months. The project
but the scope statement is not yet prepared. The management asks you to go ahead with the proje
statement being approved. What should you do?

Choice 1

Refuse to work on the project, because the management is not following standard pro
management practices.

Choice 2

To save time, you should start the project with inputs from the project charter.

Choice 3

Meet the management and explain the problems you may face if you start a project w

Choice 4

Escalate the issue to the project sponsor and issue a risk memo.

Correct Choice : 3
Justification :

Option 3: This is the best available alternative. Without the scope statement, you do not have a go
project justification, product, or project deliverables and project objectives. Also, you do not have a
definition and for the creation of work breakdown structure (WBS). The best option is to talk to the
problems likely to be faced if you start a project without a scope statement.

Option 1: This is an extreme step and is not recommended
Option 2: This will pose problems. For example, you will not be able to create a WBS without the h
Option 4: This is an extreme measure and is not recommended.
Reference: PMstudy.com comments
Question No : 113

Ten members were assigned in advance to your project. In this context, which of the following can
pre-assignment?
Choice 1

Specific people were promised as part of a competitive proposal.

Choice 2

Suitable people volunteered to work on the project.

Choice 3

Staff assignments were defined in the project charter.

Choice 4

The project was dependent on the expertise of the pre-assigned persons

Correct Choice : 2

Justification :

When project team members were selected in advance, they would be considered pre-assigned. T
the project was the result of specific people being promised as part of a competitive proposal, if the
upon the expertise of particular persons, or if some staff assignments were defined within the proje
Reference: PMBOK® Guide Fourth Edition, Page Number:227
Question No : 114

A contract which includes features of cost reimbursable and fixed price types of contract is a:
Choice 1

Fixed price plus incentive fee contract

Choice 2

Cost plus award fee contract

Choice 3

Time and material contract

Choice 4

Cost plus fixed fee contract

Correct Choice : 3
Justification :

Time and material contracts are a hybrid type of contractual arrangements that contain aspects of
and fixed-price contracts.

Options 1: This type of contracts involves fixed-price arrangement that allows for deviation from pe
financialincentives tied to achieving agreed metrics.

Option 2: In this type of contracts, the seller is reimbursed for all legitimate costs, but the majority o
based on the satisfaction of certain broad subjective performance criteria defined and incorporated

Option 4: In this type of contracts, the seller is reimbursed for all allowable costs for performing the
receives a fixed fee payment calculated as a percentage of the initial estimated project costs.

Reference: PMBOK® GuideFourth Edition, Page Number:324
Question No : 115

Activity attributes extend the description of the activities in the activity list. Which of the following d
attributes as input?
Choice 1

Sequence Activities

Choice 2

Define Activities

Choice 3

Estimate Activity Resources

Choice 4

Estimate Activity Durations

Correct Choice : 2
Justification :

Activity attributes are outputs from the Define Activities process and inputs for Sequence Activities
Resources, Estimate Activity Durations, and Develop Schedule processes.
Reference: PMBOK® Guide Fourth Edition, Page Number:131, figure 6 - 1

PMstudy.com comments: Activity List and Activity attributes are created in the Define Activities pro
Question No : 116
Identify Stakeholders is the process to identify all people or organizations impacted by the project
Choice 1

Stakeholder interests, involvement, and impact on project success

Choice 2

Their needs and address issues as they occur

Choice 3

Project status reports, progress measurements and forecasts

Choice 4

Stakeholder needs and define a communication approach

Correct Choice : 1
Justification :

Option 1: (This is the correct answer). Project stakeholders are persons or organizations such as c
performing organization, and the public that are actively involved in the project.

Option 2: Manage Stakeholder Expectations is the process to communicate and work with stakeho
and address issues as they occur.

Option 3: Report Performance is the process to collect and distribute performance information, inc
progress measurements and forecasts.

Option 4: Plan Communications is the process to determine the project stakeholder information ne
communication approach.

Reference: PMBOK® Guide Fourth Edition, Page Number:243
Question No : 117

You are a member of the committee which is appointed to oversee the awarding of an important co
In this context, which of the following cannot be treated as conflict of interest situations?
Choice 1

Your friend bids for the contract and you inform the committee and the project sponso

Choice 2

Your relative bids for the contract and you do not inform the project sponsor about it.

Choice 3

Your close friend bids for the contract and you refrain from participating in the contrac
decision processwithout informing your sponsor.

Choice 4

Your friend bids for the contract and you make sure that the contract is awarded to him

Correct Choice : 1
Justification :

Conflict of interest arises when personal interests out-weigh professional considerations. A person
affiliations with others can also lead to conflict of interest.

Please note that if there is a conflict of interest situation, please inform the appropriate stakeholder
from the conflict situation, if possible.
Reference: PMstudy.com comments
Question No : 118

Your project is in the execution stage. NPV of your project is -$200,000 and IRR is 5%. CPI is 1.2 a
recommended action?
Choice 1

Cancel the project since NPV is negative

Choice 2

Cancel the project since IRR is very low

Choice 3

Crash your project

Choice 4

Try to improve the NPV

Correct Choice : 3
Justification :

Option 3 is the most recommended action. CPI is greater than 1 and SPI is less than 1. Since SPI

that project is behind schedule; hence it is recommended to crash the project to bring it on schedu
that crashingmay increase costs. Since your project has CPI greater than 1, cost will not be a conc
Options1, 2, and 4 are not recommended actions. NPV and IRR are project selection criteria (selec
the initiation stage). Since this project is already in the execution phase, NPV and IRR should not b
Reference: PMstudy.com comments
Question No : 119

Your company is a pioneer in the construction industry. The government recently floated a tender f
airport. Since you do not have all the requisite skills within the company, you enter into a joint vent
construction company to bid jointly for the government contract. This is an example of:
Choice 1

Risk exploitation

Choice 2

Risk sharing

Choice 3

Risk enhancing

Choice 4

Risk mitigating

Correct Choice : 2
Justification :

Strategies for positive risks or opportunities (share): Sharing a positive risk involves allocating som
to a third party who is best able to capture the opportunity for the benefit of the project. Examples o
forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures, which can
express purpose of taking advantage of the opportunity so that all parties gain from their actions.
Reference: PMBOK® Guide Fourth Edition, Page Number:304
Question No : 120

Project integration management includes the processes and activities needed to identify, define, co
coordinate the various processes and project management activities within the project manageme
project is initiated, one of the processes taken up early on in the project initiation stage is:
Choice 1

Identify Stakeholders

Choice 2

Develop Scope Statement

Choice 3

Develop Human Resource Plan

Choice 4

Develop Project Management Plan

Correct Choice : 1
Justification :

Identify stakeholders is the process of identifying all people or organizations impacted by the proje
relevant information regarding their interests, involvement, and impact on project success... It is cr
success to identify the stakeholders early in the project, and to analyze their levels of interest, expe
influence.
Reference: PMBOK® Guide Fourth Edition, Page 73
Question No : 121

Your company has implemented ISO standards for quality. In this context, which of the following st
quality is NOT accurate?

Choice 1

Objective of quality audit is to compare project deliverables against the product requir
WBS.

Choice 2

Process analysis identifies the needed improvements from organizational and technic

Choice 3

Perform Quality Control is the process of monitoring and recording results of executin
assess performance and recommend necessary changes.

Choice 4

Quality management plan describes how the project management team will implemen
organization`s quality policy.

Correct Choice : 1
Justification :

A quality audit is a structured, independent review to determine whether project activities comply w
project policies, processes, and procedures.
Reference: PMBOK® GuideFourth Edition, Page Number:204
Question No : 122

You have reached the end of the design phase of your project. You decide to call a "phase end rev
authorization to close the design phase and initiate the next phase (i.e., execution phase) of your p
Your managerdisagrees with your suggestion. He wants a "kill point" to formally end the design pha
context, you should:

Choice 1

Disagree with your manager because you know that phase end reviews should be use
phase of the project

Choice 2

Agree with your manager

Choice 3

Escalate this issue to the project sponsor

Choice 4

Take advice from a senior project manager about what should actually be done at the
project

Correct Choice : 2
Justification :

A phase-end represents a natural point to reassess the effort underway and to change or terminate
These points are referred to as phase exits, milestones, phase gates, decision gates, stage gates,
gates or kill points.
Reference: PMBOK® Guide Fourth Edition, Page 19
Question No : 123

During the Verify Scope process, you formalize acceptance of the project deliverables and keep th
business need for which it was undertaken. This should be done:
Choice 1

At the beginning of the project

Choice 2

At the end of the project

Choice 3

When required by the project sponsor

Choice 4

After getting validated deliverables from the quality control process

Correct Choice : 4
Justification :

Validated deliverables are the deliverables that have been completed and checked for correctness
Control process. They are an input to Verify Scope process.
Reference: PMBOK® Guide Fourth Edition Page 124.

PMstudy.com comments: Verify Scope is the process of formalizing acceptance of the completed p
should be done after getting individual deliverables from quality control process.
Question No : 124

In your project, you are in the process of determining the project roles, responsibilities, and reporti
team members. Which of the following would you not define/create at the end of this process?

Choice 1

Project staff assignments

Choice 2

Roles and responsibilities

Choice 3

Project organization charts

Choice 4

Staffing management plan

Correct Choice : 1
Justification :

Project staff assignments are an output from the "Acquire Project Team" process and not the Deve
Plan process.
Reference: PMBOK® Guide Fourth Edition, Pages 217 (figure 9-1), 222, 223, and 224
Question No : 125

The buyer wants to provide a single source contract, but your sponsor tells you that sole source co
the company. In this context, how do sole source contracts differ from single source contracts?

Choice 1

Single source contracts are forms of non-competitive procurements, where as sole so
of competitive procurements.

Choice 2

Single source contracts are forms of competitive procurements, where as sole source
non-competitive procurements

Choice 3

In single source contracts, you (buyer) contract a seller because he is your preferred s
source contracts, you (buyer) contract a seller because there are no other sellers for y
item.

Choice 4

Unlike sole source contracts, single source contracts help an organization to save tim
involveprocurement process before bids or proposals are received.

Correct Choice : 3
Justification :

Option 3: This is the correct answer. The major difference between single source contracts and sol
though both are non-competitive forms of procurements— is that in single source contracts, contra
because he is the organization’s preferred seller, where as in sole source contracts, contract is aw
there are no other sellers for the organization’s required procurement item.

Options 1 and 2: Both types are forms of non-competitive procurements.
Option 4: Sole source contracts help organizations save time.

Reference: PMstudy.com comments
Question No : 126

In your project, identifying and documenting relationships among the project activities is done
Choice 1

Define Activities

Choice 2

Estimate Activity Durations

Choice 3

Sequence Activities

Choice 4

Develop Schedule

Correct Choice : 3
Justification :

Sequence Activities is the process of identifying and documenting relationships among the pro
Reference: PMBOK® Guide Fourth Edition, Page Number:136
Question No : 127

While identifying stakeholders, you plan to group the stakeholders based on their level of authority
involvement in the project. You can do this by using:
Choice 1

Power/interest grid,

Choice 2

Power/influence grid

Choice 3

Influence/impact grid

Choice 4

Salience model

Correct Choice : 2
Justification :

There are multiple classification models(for stakeholders) available including, but not limited to:


Power/interest grid, grouping the stakeholders based on their level of authority (power) and
(interest) regarding the project outcomes;



Power/influence grid, grouping the stakeholders based on their level of authority (power) an
(influence) in the project;



Influence/impact grid, grouping the stakeholders based on their active involvement (influenc
ability to effect changes to the project`s planning or execution (impact); and



Salience model, describing classes of stakeholders based on their power (ability to impose
for immediate attention), and legitimacy (their involvement is appropriate).

Reference: PMBOK® Guide Fourth Edition, Page 249

Question No : 128
Your company asks you to manage a project of its subsidiary unit in another country. You quickly re
subsidiary unit have poor work ethics as compared with that of your parent company. In this contex
will be the most appropriate course of action?
Choice 1

Ask your new team to emulate the work ethics of the teams of your parent concern.

Choice 2

Take steps to change the work culture of your new team.

Choice 3

Regard your new team as lazy and impose sanctions.

Choice 4

Treat it as cultural differences, and try to determine ways to improve productivity.

Correct Choice : 4
Justification :

The PMI Code of Ethics and Professional Conduct requires a project manager to address things w
accept the cultural and ethical diversity that exists between different countries. So, it is not the resp
manager to enforce the work-ethics of one`s own country on the people of another country.
Reference: PMstudy.com comments
Question No : 129

What is the status of the project?
Choice 1

Behind schedule, under budget

Choice 2

Ahead of schedule, under budget

Choice 3

Ahead of schedule, over budget

Choice 4

Behind schedule, over budget

Correct Choice : 3
Justification :

Earned value (EV)
= The sum of the approved cost estimates for activities completed during a given period
= Estimated cost of work that is completed after day 11
= $ 5,000 + $ 5,000 + $5,000*.50 = $ 12,500 (because Task A, Task B are complete, Task C

Present value(PV)
= Present work to be completed after day 11
= $ 5,000 + $ 5,000 + $ 5,000 * (1/5) (because at end of day 11, according to our plan, Tas
complete; Task C only one day out of 5 days should be complete, i.e., 20% complete ($ 1,0
done)
= $ 11,000.
Actual cost (AC)
= Actual Cost of work completed

= $ 13,000.
Schedule variance (SV)
= EV - PV = $ 12,500 - $ 11,000 = $ 1,500
Since SV is positive, we are ahead of schedule.
Cost variance (CV)
= EV - AC = $ 12,500 - $ 13,000 = - $ 500
Since CV is negative, we are over budget.

Reference: PMstudy.com comments

Question No : 130
In your project, you identified disaster situations (e.g. floods, earthquakes, etc.) as potential ris
suggested that, at the project level, no steps could be taken to deal with such risks and recomm
contingency reserve (with 5% of the project budget) which could be used in case of disaster sit
example of:
Choice 1

Risk mitigation

Choice 2

Risk acceptance

Choice 3

Risk avoidance

Choice 4

Bad policy decision

Correct Choice : 2
Justification :

Accept: This strategy is adopted because it is often not possible to eliminate all threats from a
indicates that the project team has decided not to change the project management plan to dea
to identify any other suitable response strategy... The most common active acceptance strateg
contingency reserve, including amounts of time, money, or resources to handle the risks.

Reference: PMBOK® Guide Fourth Edition, Page Number: 304
Question No : 131

Your project involves creating a launch vehicle for NASA satellites. For successful project imple
to coordinate activities with other NASA operational groups and also divide your project into se
better management control. To facilitate this, you should (select the BEST answer):
Choice 1

Break the project into several sub-projects.

Choice 2

Use life cycle approach to manage the project.

Choice 3

Develop specific deliverables, which are approved by the sponsor.

Choice 4

Create a very comprehensive project charter.

Correct Choice : 2
Justification :

A project life cycle is a collection of generally sequential and sometimes overlapping project ph
number are determined by the management and control needs of the organization or organizat
project, the nature of the project itself, and its area of application.
Reference: PMBOK® Guide Fourth Edition, Page 15

PMstudy.com comments:
Option 1: There is nothing in the question that suggests that breaking the project into several s
required. Instead, it mentions clearly that the project should be broken into several phases, wh
a life cycle approach.
Option 3 and Option 4: These are required for any project, but they do not address the specific
question (e.g. coordinating different operational activities and dividing the project into several p

Question No : 132
In your pharmaceutical company, quality is an important criterion to determine project success
not an example of cost of non-conformance?
Choice 1

Training

Choice 2

Rework

Choice 3

Loss of reputation

Choice 4

Warranty

Correct Choice : 1
Justification :

Cost of quality: A method of determining the costs incurred to ensure quality. Prevention and a
conformance) include costs for quality planning, quality control (QC), and quality assurance to
requirements (i.e., training, QC systems, etc.). Failure costs (cost of non-conformance) include
components, or processes that are non-compliant, costs of warranty work and waste, and loss
Reference: PMBOK® Guide Fourth Edition, page 422
Question No : 133

As a project manager, you understand the importance of identifying and documenting project r
which of the following statements is true?
Choice 1

Risk identification occurs during the Planning of the project

Choice 2

Risk identification occurs during Monitoring and Controlling of the project

Choice 3

Risk identification occurs during Execution of the project

Choice 4

Risk identification occurs during different project stages depending on the type of the

Correct Choice : 1
Justification :

Risk identification is done as part of the Planning Process Group.
Reference: PMBOK® Guide Fourth Edition, Page 43, table 3-1
Question No : 134

In your project, the process of monitoring the status of the project and product scope and managing ch
baseline is referred to as:
Choice 1

Verify Scope

Choice 2

Control Scope

Choice 3

Define Scope

Choice 4

Collect Requirements

Correct Choice : 2
Justification :

Control Scope is the process of monitoring the status of the project and product scope and managing
scopebaseline.
Reference: PMBOK® Guide Fourth Edition, Page 125
Question No : 135

Motivating your team members is important for the success of the project. You understand from
that employees are motivated by self-esteem, recognition, and self-actualization. To which theo
referring?
Choice 1

Theory Y

Choice 2

Learning curve theory

Choice 3

Herzberg`s theory

Choice 4

Maslow`s theory

Correct Choice : 4
Justification :

Abraham Maslow`s hierarchy of needs states that different people are at different levels in the
Usually people start out looking for physiological needs and then progressively move up the ne

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controllin
196
Question No : 136

During the Close Procurements process, you should attend to all the following EXCEPT:
Choice 1

Perform a structured review of processes from plan purchases and acquisitions throu

Choice 2

Perform procurement performance reviews to determine seller`s progress to deliver p
quality, within cost and on schedule, as compared to the contract.

Choice 3

Identify successes and failures that warrant recognition to prepare or administer procu
the future.

Choice 4

Use procurement audits as a technique.

Correct Choice : 2
Justification :

Option 2: Procurement performance reviews are conducted in the Administer Procurements pr
Options 1, 3, and 4 are performed as part of Close Procurements process.
Reference: PMBOK® Guide Fourth Edition, Page 338
Question No : 137

In the Control Schedule process, changes to project schedule can result in change requests to

Choice 1

Schedule baseline

Choice 2

Components of project plan

Choice 3

Activity attributes

Choice 4

Schedule baseline and/or components of project plan

Correct Choice : 4
Justification :

Schedule variance analysis along with review of progress reports, results of performance mea
modifications to the project schedule can result in change requests to the schedule baseline an
components of the project plan.
Reference: PMBOK® Guide Fourth Edition, Page 164
Question No : 138

You are the project manager of a $ 20 million project, and you are struggling to manage the ne
stakeholders. So, you decide to classify the stakeholders, which will enable you to focus on the
necessary to ensure the success of the project. In this context, which of the following is not a fa
consider while classifying stakeholders?
Choice 1

Stakeholders` interest in the project

Choice 2

Hierarchy of the organization

Choice 3

Stakeholders` involvement in the project

Choice 4

Stakeholders` influence on the project

Correct Choice : 2
Justification :

Most projects will have a large number of stakeholders. As the project manager`s time is limite
as efficiently as possible, these stakeholders should be classified according to their interest, in
involvement in the project. This enables the project manager to focus on the relationships nece
success of the project.
Reference: PMBOK® Guide Fourth Edition, Page 246

Question No : 139

Your company has awarded a contract to a vendor. After some time, you realize that the vendo
your old buddy from school. You inform this to your senior management, but they insist that yo
administer the contract. So, to avoid any accusations of bias in this conflict of interest situation
Choice 1

Document all the decisions taken by you on the activities performed by the vendor.

Choice 2

Refrain from administering the contract.

Choice 3

Resign from the project.

Choice 4

Remind your senior management of conflict of interest.

Correct Choice : 1
Justification :

In case of conflict of interest situations, the project manager should inform senior managemen
oneself from the conflict of interest situation, if possible. However, in this context, as the senior
and the project manager has to continue in the current position, appropriate documentation ca
any accusation of bias in conflict of interest situations.

Option 2 and Option 4 are not relevant - you had already mentioned about the conflict of intere
senior management and got approval to continue with the project.
Option 3 is an extreme step which need not be taken at this time.
Reference: PMstudy.com comments

Question No : 140
In your project, you use a hierarchical structure of resources by resource category and resourc
resource-limited schedules. This hierarchical structure is also called as:
Choice 1

Project hierarchy

Choice 2

Organization hierarchy

Choice 3

Resource breakdown structure

Choice 4

Project breakdown structure

Correct Choice : 3

Justification :

Resource breakdown structure (RBS) is a hierarchical structure of resources by resource cate
type used in resource leveling schedules and to develop resource-limited schedules, and whic
identify and analyze project human resource assignments.
Reference: PMBOK® Guide Fourth Edition, Page Number:438
Question No : 141

Project initiation consists of processes that facilitate the formal authorization to start a new pro
phase. In this context, which of the following is not performed during project initiation?
Choice 1

Create the project charter

Choice 2

Divide large or complex projects into phases

Choice 3

Involve customers and stakeholders

Choice 4

Create project scope statement

Correct Choice : 4
Justification :

Project Scope Statement is created after project initiation.
Reference: PMBOK® Guide Fourth Edition, Page Number:49, Table 3-11 and page 43, Table
PMstudy.com comments: Please note:

Option 1: Project Charter is developed/created during the project initiating stage (PMBOK® GU
page 45)
Option 2: As part of the initiating process group, many large or complex projects may be divide
phases (PMBOK® Guide Fourth Edition; page 44)
Option 3: Involving the customers and other stakeholders during the initiating stage generally i
the probability ofshared ownership, deliverable acceptance, and customer and other stakehold
(PMBOK® Guide Fourth Edition page 44)

Question No : 142
The project scope statement consists of the product scope description and project deliverables
Choice 1

Scope Baseline

Choice 2

WBS

Choice 3

Product acceptance criteria

Choice 4

WBS dictionary

Correct Choice : 3
Justification :

The detailed project scope statement includes, either directly, or by reference to other docume
product scope description, the project deliverables, the product acceptance criteria, project exc
constraints and project assumptions
Reference: PMBOK® Guide Fourth Edition, Pages 115 and 116

PMstudy.com comments: Option 1(Scope Baseline), Option 2(WBS) and Option 4(WBS Dictio
Create WBS process. Hence, they are not included in the Scope Statement, which is output of
process.

Question No : 143
Which of the following is not a conflict resolution mode you can use to resolve conflicts in y
Choice 1

Collaborating

Choice 2

Smoothing

Choice 3

Avoiding

Choice 4

Directing

Correct Choice : 4
Justification :

Reference: Project Management - A Systems Approach to Planning, Scheduling and Con
306
Question No : 144

You have recently taken over a project from another project manager, who left the company. Y
project is behind schedule and over budget, but the senior management is unaware of this fac
should you do FIRST?
Choice 1

Do not continue to manage the project.

Choice 2

Update the management with the status of the project.

Choice 3

Bring the project on schedule and then inform the management about the status of th

Choice 4

Do crashing and fast-tracking of the project.

Correct Choice : 2
Justification :

As per the PMI Code of Ethics and Professional Conduct, a project manager should always pr
information in an appropriate manner at appropriate times.

Option 1: This is an extreme step and should not be taken now
Option 2: This is the correct answer, the management should be informed about the project sta
Option 3: This is unethical - you should not withhold information from appropriate stakeholders
Option 4: Crashing would further increase costs and fast-tracking may increase risks : this may

project status, and should be done only after informing the management.
Reference: PMstudy.com comments
Question No : 145

You note that the ability to influence the cost of a project is:
Choice 1

Greatest at the early stages of the project

Choice 2

Greatest at the middle of the project

Choice 3

Greatest at the project closure stage

Choice 4

Constant throughout the project

Correct Choice : 1
Justification :

The ability to influence cost is greatest at the early stages of the project, making early scope
Reference: PMBOK® Guide Fourth Edition, Page Number:165
Question No : 146

A project team member informs you that a particular task is taking much more time than what w
are surprised because you, as a project manager, had not anticipated this delay, and you ask f
forecasts from all projectteam members. Which process group are you in?
Choice 1

Initiating

Choice 2

Executing

Choice 3

Monitoring and Controlling

Choice 4

Planning

Correct Choice : 3
Justification :

Report Performance is the process of collecting and distributing performance information, inc
progress measurements, and forecasts, etc.
Reference: PMBOK® Guide Fourth Edition, Page 63 and 266

PMstudy.com comments: Report Performance is a part of Monitoring and Controlling process g
Page 43
Question No : 147

In your project, you are now interested in determining the cause of variance relative to the sco
deciding whether corrective action is required. You should use:
Choice 1

Configuration management system

Choice 2

Variance analysis

Choice 3

Re-planning

Choice 4

Earned value spreadsheets

Correct Choice : 2
Justification :

Variance Analysis: A method for resolving the total variance in the set of scope, cost, and sche
specific component variances that are associated with defined factors affecting the scope, cos
variables.
Reference: PMBOK® Guide Fourth Edition, Page 444
Question No : 148

Frequent heated discussions with your colleague over an issue are creating a hostile environm
situation, you agree with your colleague`s point of view. The conflict resolution mode that you a
Choice 1

Problem solving

Choice 2

Withdrawal

Choice 3

Forcing

Choice 4

Confrontation

Correct Choice : 2
Justification :

Reference: Project Management - A Systems Approach to Planning, Scheduling and Controllin
304, 305, and 306
Question No : 149

You have been working on a project for the last six months. Your management lets you know th
incentive of $ 5,000, if you complete the project one month ahead of schedule. When closing t
schedule, your team informs you that the product contains a minor flaw and may not fully satis
needs. However, rectification of the minor flaw will require a lot of changes and take 2 more mo
you will:
Choice 1

Close out the project.

Choice 2

Review the situation with your customer and sponsor.

Choice 3

Rectify the flaw and then close out the project.

Choice 4

Close the project and then inform the sponsor about the flaw.

Correct Choice : 2
Justification :

Option 2: Since this is a "minor flaw," but rectification of that flaw would take a long time, it is b
the sponsor and customer and get their inputs
Option 1 and Option 4: This is unethical - the project manager should definitely complete the p
specifications before closing the project.
Option 3: Rectification of a minor flaw can lead to delay of 2 months in the project: so, the proje

first inform the sponsor and customer before rectification of the flaw.
Reference: PMstudy.com comments
Question No : 150

In your project, if the benefit cost ratio is greater than 1, it means that
Choice 1

The ratio of profits to cost is greater than 1.

Choice 2

The ratio of revenue to cost is greater than 1.

Choice 3

You should select this project from all other competing alternatives.

Choice 4

You should not select this project from all other competing alternatives.

Correct Choice : 2
Justification :

Please note that option 3 and 4 are not valid, because you do not know about other competing
competing alternatives may have a greater benefit cost ratio than this project.
Reference: PMstudy.com comments
Question No : 151

You are working in the Project Management Office (PMO) of your organization. Your job responsibility i

Choice 1 Manage the operational activities in the company

Choice 2 Manage human resource and risk management issues for individual projects

Choice 3 Provide support functions to project managers in the form of training, providing software, stan

Choice 4 Provide subject matter expertise in the functional areas of the project

Correct Choice : 3

Justification :

A Project Management Office (PMO) is an organizational body or entity tasked with various responsibili
centralized and coordinated management of those projects under its domain. The responsibilities of a P
providing project management support functions to actually being responsible for the direct manageme
Reference: PMBOK® Guide Fourth Edition, Page 11

Question No : 152

As a project manager, you are aware that changes are bound to occur in the projects. During change monitor a
term project scope creep. What does the term refer to?

Choice 1 Uncontrolled changes

Choice 2 Controlled changes

Choice 3 Manageable changes

Choice 4 Unmanageable changes

Correct Choice : 1

Justification :

Uncontrolled changes are often referred to as project scope creep.
Reference: PMBOK® Guide Fourth Edition, Page 125

Question No : 153

Your company has a projectized organization structure. As your project nears completion, you notice that your t
interested in trying to find new positions rather than properly discharging their duties. Their motivation is:

Choice 1

Safety

Choice 2

Social

Choice 3

Psychological

Choice 4

Self-esteem

Correct Choice : 1

Justification :

Please refer to the diagram below:
Please refer to the diagram below:

Question No : 154

In your project, you are documenting project purchasing decisions, specifying the approach, and identi
this context, which tool would you not use?

Choice 1 Make-or-buy analysis

Choice 2 Bidder conferences

Choice 3 Expert judgment

Choice 4 Contract types

Correct Choice : 2

Justification :

Option 2: This is the correct answer. Documenting project purchasing decisions, specifying the approac
potential sellers are performed as part of the Plan Procurements process. `Bidder conferences` is a tec
Procurements process.

Make-or buy-analysis, expert judgment, and contract types specified in the options 1, 3, and 4 respecti
tools and techniques used in Plan Procurements process.
Reference: PMBOK® Guide Fourth Edition, Page 317, figure 12-2
Question No : 155

The following provides information on a particular task in your project:
Early Start(ES): 25 days
Late Start(LS): 30 days
Early Finish(EF): 50 days
Late Finish(LF): 55 days
Based on this information, you can deduce that:

Choice 1 The task is on the critical path.

Choice 2 The project may get delayed.

Choice 3 The project float is 5 days.

Choice 4 The task is not on the critical path.

Correct Choice : 4

Justification :

Option 4: This is the correct option, as the task is not on the critical path.

Option 1: Since LS - ES = LF - EF = 5 days, the task has a slack of 5 days; hence this task cannot be o
Option 2: There is no information in the question that suggests that the project may get delayed,

Option 3: The project float is the amount of time a project can be delayed without delaying the external
the externally imposed date is not mentioned, we cannot determine the project float.

Reference: PMstudy.com comments
Question No : 156

You are a project manager and have just discovered a risk in your project that requires an immediate c
which Project Risk Management Process is this action performed?

Choice 1 Plan Risk Management

Choice 2 Identify Risks

Choice 3 Perform Qualitative Risk Analysis

Choice 4 Monitor and Control Risks

Correct Choice : 4

Justification :

Monitor and Control Risks is the process of implementing risk respose plans, tracking identified risks, m
identifying new risks, and evalulating risk process effectiveness throughout the project.
Reference: PMBOK® Guide Fourth Edition, Page 308
Question No : 157

As a project manager, you use work authorization system to assign and allocate work to your team me
the primary purpose of the work authorization system is to:

Choice 1 Prevent team members from starting the work without your permission

Choice 2 Prevent scope creep

Choice 3 Prevent unnecessary changes to project scope

Choice 4 Clarify and initiate the work for each work package

Correct Choice : 4

Justification :

Work authorization system: A subsystem of the overall project management system. It is a collection of
procedures that defines how project work will be authorized (committed) to ensure that the work is don
organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking s
approval levels needed to issue work authorizations.
Reference: PMBOK® Guide Fourth Edition, page 444

Question No : 158

Your project is facing attrition of project resources, and you would like to document processes carefully
continuity. Certain costs have to be incurred for this purpose. These costs are known as:

Choice 1 Costs of non-conformance

Choice 2 Appraisal costs

Choice 3 Failure costs

Choice 4 Prevention costs

Correct Choice : 4

Justification :

Reference: PMBOK® Guide Fourth Edition, Page 195, figure 8-4

PMstudy.com comments:
‘Prevention costs’ are costs incurred by an organization to create high quality products in order to avoid
cost of training, cost of documenting processes, cost of equipment, etc.

Question No : 159

You are in the process of obtaining seller responses to select a seller. In this context, you conduct a bid
your primary objective is to:

Choice 1 Ensure that sellers have a clear understanding of the proposal

Choice 2 Determine who would be qualified sellers for bidding

Choice 3 Evaluate the interest level of sellers

Choice 4 Use evaluation criteria to select sellers

Correct Choice : 1

Justification :

Bidder conferences are meetings with all prospective sellers and buyers prior to submittal of a
are used to ensure that all prospective sellers have a clear and common understanding of the
technical and contractual requirements), and that no bidders receive preferential treatment.

Reference: PMBOK® Guide Fourth Edition, Page Number:331
Question No : 160

You are managing the construction project of an overpass. You would like to use the best practices in th
constructionindustry to help you in your project. Which of the following tools of Sequence Activities proc
best practices?

Choice 1 Mandatory dependencies

Choice 2 Discretionary dependencies

Choice 3 Industry norms

Choice 4 Best Practice standards for ISO 9001 certification

Correct Choice : 2

Justification :

Discretionary dependencies are established based on the knowledge of best practices within a
area or some unusual aspect of the project where a specific sequence is desired, even though
acceptable sequences. Discretionary dependencies should be fully documented, since they ca
total float values and can limit later scheduling options.

Reference: PMBOK® Guide Fourth Edition, Page 140
Question No : 161

In Plan Risk Management, you define how to conduct risk management activities for a project because
planning enhances the probability of success for the subsequent risk management processes. In this c
NOT do when you Plan Risk Management?

Choice 1 Identify Risks

Question No : 162

The project management plan is the most important planning document produced with inputs from sev
members. In which of the following processes will the project management plan NOT be updated?

Choice 1 Monitor and Control Project Work

Choice 2 Develop Project Charter

Choice 3 Perform Integrated Change Control

Choice 4 Direct and Manage Project Execution

Correct Choice : 2

Justification :

Develop Project Management Plan is the process of documenting the actions necessary to define, prep
coordinate all subsidiary plans. Project management plan is the only output of this process.
Reference: PMBOK® Guide Fourth Edition, page 78, figure 4-4
Choice 2 Establish an agreed-upon basis for evaluating risk

Choice 3

Ensure that the degree, type, and visibility of risk management are commensurate with both t
importance of the project

Choice 4 Provide sufficient resources and time for risk management activities

Correct Choice : 1

Justification :

Planning risk management processes is important to ensure that the degree, type, and visibility of risk
commensurate with both the risks and the importance of the project to the organization. Planning is als
sufficient resources and time for risk management activities, and to establish an agreed-upon basis for
Reference: PMBOK® Guide Fourth Edition, Page 276

PMstudy.com comments: Risk identification (Identify Risk process) is not done during Plan Risk Manag
Question No : 163

In your project, you are doing a structured review to determine whether product activities comply with o
project policies. This is conducted as part of (a) ________________, and is performed during (b) ____

Choice 1 (a) Quality audit (b) Quality Assurance

Choice 2 (a) Quality audit (b) Quality Control

Choice 3 (a) Process analysis (b) Quality Assurance

Choice 4 (a) Process analysis (b) Quality Control

Correct Choice : 1

Justification :

Quality audit is a structured, independent review performed to determine whether product activities com
and project policies, processes, and procedures. `Quality audits` is a technique used in Perform Quality
Reference: PMBOK® Guide Fourth Edition, Page Number:204
Question No : 164

Which of the following should you (the buyer) pay attention to when you administer a contract?

Choice 1 Ensure that contractual obligations are met.

Choice 2

Apply appropriate project management processes to the contractual relationship and integrat
processes to the overall management of the project.

Choice 3 Monitor payments to the seller.

Choice 4 Perform regular procurement audits.

Correct Choice : 4

Justification :

A procurement audit is a structured review of the procurement process originating from Plan Procurem

Administer Procurements process. This is one of the tools and techniques used in Close Procurements
Reference: PMBOK® Guide Fourth Edition, Pages 336 and 343
Question No : 165

You are working on a 12 month assignment to build a website with 4000 pages for $ 1,000,000. You ar
250,000 every 3 months. After 6 months, you determine that only $ 400,000 of work is completed and c
800,000. What is the ETC?

Choice 1 $ 2,000,000

Choice 2 $ 1,500,000

Choice 3 $ 1,000,000

Choice 4 1,200,000

Correct Choice : 4

Justification :

The default value of EAC (assuming current variances are typical) is calculated as below: EAC= AC + (
$800,000 + ($ 1,000,000 - $ 400,000)/($ 400,000 / $ 800,000) = $ 800,000 + ($ 600,000/0.5) = $ 2,000
So, ETC = EAC – AC = $ 2,000,000 - $ 800,000 = $ 1,200,000
Reference: PMstudy.com comments
Question No : 166

Your project is complete and you are performing project closure activities. In this context, what should y

Choice 1 Creating final product, service, or result transition

Choice 2 Releasing project resources working on the project

Choice 3 Updating organizational process assets

Choice 4 Accepting deliverables

Correct Choice : 2

Justification :

Final product, service, or result transition, organizational process assets updates are outputs of the Clo
and accepted deliverables are its inputs. However, even Close Project will need resources (e.g. people
Hence, releasing of project resources should happen at the very end of the Close Project or Phase.
Reference: PMstudy.com comments
Question No : 167

While preparing the schedule for the project activities, you find that there is very limited information on
you wish to use the actual duration of a previous, similar activity as a basis for estimating future activity
tool do you use?

Choice 1 Three-point estimates

Choice 2 Parametric estimating

Choice 3 Quantitative estimating

Choice 4 Analogous estimating

Correct Choice : 4

Justification :

Analogous estimating uses parameters such as duration, budget, size, weight, and complexity, from a p
as the basis for estimating the same parameter or measure for a future project. Analogous duration est
used to estimate project duration when there is a limited amount of detailed information about the proje
early phases of a project. Analogous estimating uses historical information and expert judgment.

Reference: PMBOK® Guide Fourth Edition, Page 149
Question No : 168

You are a retail company which routinely buys goods from foreign countries. Since currency fluctuation
you keep all other factors constant and try to find out how much your project will be impacted if the curr
5%, 10%, 20% or 25%. This helps you determine appropriate risk response. This can also be effectivel

Choice 1 Beta probability distributions

Choice 2 Expected monetary value analysis

Choice 3 Tornado diagram

Choice 4 Simulation

Correct Choice : 3

Justification :

Sensitivity analysis helps to determine which risks have the most potential impact on the project. It exa
which the uncertainty of each project element affects the objective being examined when all other unce
at their baseline values. One typical display of sensitivity analysis is the tornado diagram, which is usef
importance and impact of variables that have a high degree of uncertainty to those that are more stable
Reference: PMBOK® Guide Fourth Edition, Page 298
Question No : 169

In your project, you are defining and documenting stakeholders` needs to meet the project objectives. Y
very important as the project`s success is directly influenced by the care taken during this process. In t
be very diligent when you:

Choice 1 Identify Stakeholders

Choice 2 Collect Requirements

Choice 3 Create Project Charter

Choice 4 Create Project Management Plan

Correct Choice : 2

Justification :

Collect Requirements is the process of defining and documenting stakeholders` needs to meet the proj
project`s success is directly influenced by the care taken in capturing and managing project and produc
Requirements include the quantified and documented needs and expectations of the sponsor, custome
stakeholders.
Reference: PMBOK® Guide Fourth Edition, Page 105
Question No : 170

Your sponsor believes in "SMART" goals for evaluating the objectives or goals for your project. In this
includes all the following keywords EXCEPT:

Choice 1 Significant

Choice 2 Measurable

Choice 3 Relevant

Choice 4 Attainable

Correct Choice : 1

Justification :

SMART Goals: The performance goals should be SMART - Specific, Measurable, Achievable/Attainab
specific.
Reference: PMstudy.com comments
Question No : 171

A documented direction to perform an activity that can reduce the probability of negative consequence
project risks is called:

Choice 1 Corrective action

Choice 2 Preventive action

Choice 3 Defect repair

Choice 4 Risk mitigation

Correct Choice : 2

Justification :

Preventive action: A documented direction to perform an activity that can reduce the probability of neg
associated with project risks.

Reference: PMBOK® Guide Fourth Edition, page 92
Question No : 172

You are monitoring the technical performance of your website. Past data on the number of users and th
you forecast how your website would perform if the number of users increases in the future. This is an

Choice 1 Design of experiments

Choice 2 Control chart

Choice 3 Organizational process assets

Choice 4 Trend analysis

Correct Choice : 4

Justification :

Trend analysis is performed using run charts and involves mathematical techniques to forecast future o
historical results. Trend analysis is often used to monitor technical performance, i.e., how many errors o
identified, and how many remain uncorrected and cost and schedule performance, i.e., how many activ
werecompleted with significant variances.
Reference: PMBOK® Guide Fourth Edition, Page 211 and 212
Question No : 173

Which of the following is not true about conducting procurement negotiations?

Choice 1 The project manager should be the lead negotiator.

Choice 2 Subjects covered may include responsibilities, authority to make changes, applicable terms, a

Choice 3

For complex procurement items, contract negotiations can be an independent process with in
own.

Choice 4 Negotiations should clarify the structure, requirements, and other terms of the purchases.

Correct Choice : 1

Justification :

The project manager may not be the lead negotiator on procurements. The project manager and other
projectmanagement team may be present during negotiations to provide assistance, and if needed to a
project’s technical, quality, and management requirements.
Reference: PMBOK® Guide Fourth Edition, Page Number: 333
Question No : 174

As a project manager, you are required to produce project performance reports on a regular basis, you
atCompletion is $750,000, planned value is $100,000, schedule variance is $30,000, and cost variance
percentage complete and estimate at completion in your project?

Choice 1 18%, $ 500,000

Choice 2 17.33%, $ 461,538

Choice 3 17.8%, $ 437,500

Choice 4 18%, $ 437,500

Correct Choice : 2

Justification :

SV = EV – PV
EV = SV + PV
= 30,000 + 100,000
= 130,000
CV= EV – AC
AC=EV- CV =130,000 – 50,000
= 80,000
Percentage Complete = EV/BAC x 100
= 130,000/750,000x100=17.33%
CPI=EV/AC
= 130,000/80,000
=1.625
EAC= AC + (BAC-EV)/CPI
= 80,000 + (750,000 – 130,000)/1.625
= 80,000+(620,000)/1.625
= 461,538
Reference: PMstudy.com comments
Question No : 175

Which of the following processes occurs in the Planning Process Group?

Choice 1 Identify Risks

Choice 2 Manage Stakeholders Expectations

Choice 3 Acquire Project Team

Choice 4 Identify Stakeholders

Correct Choice : 1

Justification :

Identify Risks happens during Planning Process Group.
Reference: PMBOK® Guide Fourth Edition, Page Number:43 (Table 3-1)
PMstudy.com comments:
Option 2 (Manage Stakeholders Expectation) relates to Executing Process Group
Option 3 (Acquire Project Team) relates to Executing Process Group
Option 4 (Identify Stakeholders) relates to Initiating Process Group
Question No : 176

In your project, you have found that a deviation from the schedule baseline has occurred. You want to d
and level of variance relative to the schedule baseline so that corrective action can be taken. Which of
would you use for this purpose?

Choice 1 Scheduling tool

Choice 2 Performance reviews

Choice 3 What-If Scenario analysis

Choice 4 Variance analysis

Correct Choice : 4

Justification :

Variance analysis is used to determine the cause and degree of variance relative to the schedule base
corrective or preventive action is required.

Reference: PMBOK® Guide Fourth Edition, Page 162
Question No : 177

When your company buys computers from Dell, you also pay extra for a three year warranty which ens
manufacturing defects will be taken care of by Dell. The risk response strategy used is:

Choice 1 Exploit

Choice 2 Avoid

Choice 3 Mitigate

Choice 4 Transfer

Correct Choice : 4

Justification :

Transfer. Risk transfer requires shifting some or all of the negative impact of a threat, along with owner
a third party… Transference tools can be quite diverse and include, but are not limited to, the use of ins
bonds, warranties, guarantees, etc.
Reference: PMBOK® Guide Fourth Edition, Page 303

Question No : 178

In your project, you are performing several actions to execute the project management plan and to complete th
project scope statement. You will be involved in:

Choice 1 Taking corrective or preventive action to control the project performance

Choice 2 Settling or closing any contract agreement established for the project

Choice 3 Creating a document that will formally authorize the project

Choice 4 Collecting work performance information about the completion status of the deliverables and what has

Correct Choice : 4

Justification :

Option 4: Work performance information, about the completion status of the deliverables and what has been ac
as part of project execution and is fed into the performance reporting process.
Reference: PMBOK® Guide Fourth Edition, Page 83

PMstudy.com comments:
Option 1: This is done as part of the Monitor and Control Project Work, and not during the project execution pha
Option 2: This is done as part of Close Procurements, which is part of the project closure activities.

Option 3: The project charter formally authorizes the project. This document is created in the initiating stage bef

Question No : 179

Your quality process did not meet the four sigma requirements desired by your customer. So, some of y
rejected and there is a possibility that you would not receive repeat business from the customer. From a
the costs associated with the rejected products can also be categorized as:

Choice 1 Cost of conformance

Choice 2 Customer retention costs

Choice 3 Failure costs

Choice 4 Performance costs

Correct Choice : 3

Justification :

Failure costs (cost of non-conformance) include costs to rework products, components, or processes th
costs of warranty work and waste; and costs due to loss of reputation.
Reference: PMBOK® Guide Fourth Edition, Page 422
Question No : 180

In which Process Group will work defined be completed and all the specifications of your project be sat

Choice 1 Planning Process Group

Choice 2 Executing Process Group

Choice 3 Monitoring and Controlling Process Group

Choice 4 Closing Process Group

Correct Choice : 2

Justification :

The Executing Process Group consists of those processes performed to complete the work defined in
project managementplan to satisfy the project specifications.

Reference: PMBOK® Guide Fourth Edition, Page 55
Question No : 181

For your project, find the to-complete performance index (TCPI) based on the given data:
Budget at completion of the project = 700,000
Cost variance of the project = 25,000
Earned value of the project = 200,000
Estimate to Complete has now been revised to 425,000

Choice 1 0.9

Choice 2 1.176

Choice 3 1.5

Choice 4 -1.5

Correct Choice : 2

Justification :

CV=EV-AC
AC=EV-CV
=200,000-25,000
=175,000
Question No : 182

You are a project manager. You have completed the project. While reviewing the costs, you observed t
budget was utilized for activities performed in processes relating to one particular process group. This P

Choice 1 Planning Process Group

Choice 2 Executing Process Group

Choice 3 Monitoring and Controlling Process Group

Choice 4 Closing Process Group

Correct Choice : 2

Justification :

A large portion of the project`s budget will be expended in performing the Executing Process Group pro
Reference: PMBOK® Guide Fourth Edition, Page 56
Question No : 183

In your project you had planned to have Tasks A, B & C completed already, however tasks A, B, C, and
and 0% complete respectively. The value of each day of work is $100. Using the 0-100 Rule and the in
calculate the SPI:
Tasks A, B, C, and D have duration of 3, 5, 4, and 3 days respectively.

Choice 1 0.25

Choice 2 1

Choice 3 0.50

Choice 4 0.75

Correct Choice : 1

Justification :

To calculate SPI, you just use the equation SPI = EV/PV. In this case EV would = 3 days. Because we are apply
can only say that Task A counts towards earned value (value of work completed). We say that Task A has 100%
(or $300), and Task B only counts as 0% (even though it is currently at 80% completion because of the 0-100 ru
for this task). PV would be 12 days (or $1200) because we planned to have Tasks A, B & C done by this point. T
0.25. We are behind schedule. This logic would also work if they gave you $$ values in the table instead of dura
Reference: PMstudy comments

Question No : 184

Your project team had a meeting with the customer (during Verify Scope process) for getting formal ac
projectdeliverables. This activity refers to which process group?

Choice 1 Closing

Choice 2 Executing

Choice 3 Planning

Choice 4 Monitoring and Controlling

Correct Choice : 4

Justification :

Verify Scope is done as part of Monitoring and Controlling Process Group.
Reference: PMBOK® Guide Fourth Edition, Page Number:60, figure 3-38
Question No : 185

According to McClelland`s theory, managers are not motivated by:

Choice 1 Need for achievement

Choice 2 Need for power

Choice 3 Need for affiliation

Choice 4 Need for recognition

Correct Choice : 4

Justification :

According to David McClelland`s theory (also called Achievement Motivation Theory), managers are
- Need for achievement
- Need for power
- Need for affiliation
Reference: PMstudy.com comments
Question No : 186

Assuming that the critical path of your project has duration of ten days, which of the following cannot af
timelines?

Choice 1

If the project has one critical path, you are able to decrease the duration of the critical path by
new tool.

Choice 2 If the project has one critical path, you have to increase the duration of the critical path by one

Choice 3

If the project has two critical paths, you are able to decrease the duration of one critical path b
new tool.

Choice 4 If the project has two critical paths, you have to increase the duration of one critical path by on

Correct Choice : 3

Justification :

Option 1: This will decrease the duration of the project by 1 day because the critical path decreases by

Option 2: This will increase the duration of the project by 1 day, because the critical path increases by 1

Option 3: This will not decrease the duration of the project. This is because even if one critical path is d
the other critical path retains the same duration of 5 days; so the overall duration of the project remains

Option 4: This will increase the duration of the project by one day, because the critical path increases b
Reference: PMstudy.com comments
Question No : 187

Who should be in charge of the project during the Close Project process?

Choice 1 Sponsor

Choice 2 Project manager

Choice 3 Customer

Choice 4 Project closing functional expert

Correct Choice : 2

Justification :

A project manager is identified and assigned as early in the project as is feasible, preferably while the p

developed and always prior to the start of planning.
Reference: PMBOK® Guide Fourth Edition, Page Number:73

PMstudy.com comments: The project manager is responsible for the whole project from initiation throu

Question No : 188
A risk that remains after risk responses have been implemented is referred to as:

Choice 1 Secondary risk

Choice 2 Residual risk

Choice 3 Fallback Plan

Choice 4 Accepted risk

Correct Choice : 2

Justification :

Residual Risk. A risk that remains after risk responses have been implemented.
Reference: PMBOK® Guide Fourth Edition, Page 438

Question No : 189

In your project, you use a hierarchical structure of resources by resource category and resource type to
limited schedules. This hierarchical structure is also called as:

Choice 1 Project hierarchy

Choice 2 Organization hierarchy

Choice 3 Resource breakdown structure

Choice 4 Project breakdown structure

Correct Choice : 3

Justification :

Resource breakdown structure (RBS) is a hierarchical structure of resources by resource category and
resource leveling schedules and to develop resource-limited schedules, and which may be used to iden
projecthuman resource assignments.
Reference: PMBOK® Guide Fourth Edition, Page 438
Question No : 190

In your project, you wish to monitor the status of the project to update project progress and manage ch
baseline. Which of the following will you use for this purpose?

Choice 1 Schedule network analysis

Choice 2 Pareto diagram

Choice 3 Performance reviews

Choice 4 Dependency Determination

Correct Choice : 3

Justification :

`Performance reviews` is a technique used in Control Schedule process. It measures, compares, and a
performance.
Reference: PMBOK® Guide Fourth Edition, Page 160, figure 6-15 and Page 162
PMstudy.com comments:
Option 1(Schedule Network Analysis) is used in Develop Schedule
Option 2(Pareto Chart) is used in Perform Quality Control
Option 4(Dependency Determination) is used in Sequence Activities
Question No : 191

In your project, you want to examine and document the effectiveness of risk responses in dealing with i
root causes, as well as the effectiveness of the risk management process. The tool you should use is:

Choice 1 Risk reassessment

Choice 2 Variance Analysis

Choice 3 Technical performance measurement

Choice 4 Risk Audit

Correct Choice : 4

Justification :

Risk audits examine and document the effectiveness of risk responses in dealing with identified risks a
well as the effectiveness of the risk management process. The project manager is responsible for ensu
performed at an appropriate frequency, as defined in the project’s risk management plan.
Reference: PMBOK® Guide Fourth Edition, Page 310

Question No : 192

You have joined as a project manager in ABC Company. In your new role, which one of the following ta
accomplish FIRST?

Choice 1 Develop Human Resource Plan

Choice 2 Develop Project Management Plan

Choice 3 Direct and Manage Project Execution

Choice 4 Identify Stakeholders

Correct Choice : 4

Justification :

Among the given tasks, Identify Stakeholders is performed first (this is related to the Initiating Process
PMstudy.com comments:
--> Option 1 (Develop Human Resource Plan) is related to Planning Process Group.
--> Option 2 (Develop Project Management Plan) is related to Planning Process Group.
--> Option 3 (Direct and Manage Project Execution) is related to Executing Process Group.
Reference: PMBOK® Guide Fourth Edition, Pages 43(Table 3-1) and 45 (figure 3-5)

Question No : 193

You are performing a make-or-buy analysis. In which of the following cases would you not prefer makin
in-house?

Choice 1

The item under consideration is a capital item which can be used for other projects in the sam
words, there is an ongoing need for the item).

Choice 2

Your organization is going through a slack period, and some resources, who can produce the
underutilized.

Choice 3

The item under consideration is a proprietary or business critical product which is a part of the
company.

Choice 4

The item under consideration is not part of your core business, but your company has the ski
product in-house, if required.

Correct Choice : 4

Justification :

If it is a non core item, it may make sense to consider outsourcing as an option, as it may be cheaper t
house.
Reference: PMstudy.com comments
Question No : 194

In your project, you have to complete building a prototype before testing can begin. This is an example

Choice 1 Mandatory dependency

Choice 2 Discretionary dependency

Choice 3 External dependency

Choice 4 Preferred logic

Correct Choice : 1

Justification :

Mandatory dependencies are those that are contractually required or inherent in the nature of the work
dependencies often involve physical limitations, such as on a construction project where it is impossible
superstructure until after the foundation has been built, or on an electronics project, where a prototype
can be tested.
Reference: PMBOK® Guide Fourth Edition, Page 139
Question No : 195

You have fifteen members in your project team. You have called for a project status meeting without pri
been too many sidebar conversations and arguments. As a result, you have achieved nothing substant
achieve orderliness in the meeting next time, you should:

Choice 1 Decrease the number of people in the meeting

Choice 2 Publish a meeting agenda

Choice 3 Ensure that you control the channels of communication

Choice 4 Give incentives to team members for conforming to desired meeting norms

Correct Choice : 2

Justification :

Effective Information Distribution includes... meeting management techniques, preparing an agenda an
Reference: PMBOK® Guide Fourth Edition, Page 258

PMstudy.com comments:In order to conduct the meeting in an organized way, you will have to follow th
meeting managementtechniques of preparing and publishing an agenda and to deal with conflicts.

Option 2: Preparing and publishing a meeting agenda is the best way to ensure that meetings are cond
fashion.
Option 1: Decreasing the number of people may mean that we will not have the required stakeholders.
Option 3: Controlling the channels of communication is not possible as the number of channels is not fi
determined by the formula N * (N-1) / 2.
Option 4: Giving incentives is not recommended.
Question No : 196

In your project, your project architect met with an accident and will not be available for the next 3 mont
for this in risk planning - what should you do NEXT?

Choice 1 Create a Workaround

Choice 2 Create a Fallback Plan

Choice 3 Do additional risk response planning

Choice 4 Create a new risk register for this risk

Correct Choice : 1

Justification :

Workaround. A response to a negative risk that has occurred. Distinguished from contingency plan in th
planned in advance of the occurrence of the risk event.
Reference: PMBOK® Guide Fourth Edition, Page 445
Question No : 197

The project customer and project sponsor have requested for the addition of a new feature to your proj
request is approved by the change control board. The change will result in delay of project by 2 months
$ 1 million. What should you do NEXT?

Choice 1 Re-baseline the project scope, cost, and time

Choice 2 Get approval from all your project team members

Choice 3 Try to prevent this change, since you think it is unnecessary

Choice 4 Issue a change request

Correct Choice : 1

Justification :

In this context, the next step to take is to re-baseline the project scope, cost, and time.
Option 2: This is not required, since the project funding is not provided by the team members. It is prov
Option 3: This is not possible, since the change has already been approved by the change control boar
Option 4: This is not required. This is not what you should do next, because issue of a change request

Reference: PMstudy.com comments
Question No : 198

In the project network diagram shown below, which of the following tasks will have some float?

Choice 1 A

Choice 2 E

Choice 3 F

Choice 4 C

Correct Choice : 3

Justification :

Let us calculate the critical path for the diagram:
Different possible paths are:
ABCDH: 3 + 4 + 3 + 3 = 13
ABCGH: 3 + 4 + 2 + 4 = 13
AECDH: 2 + 5 + 3 + 3 = 13
AECGH: 2 + 5 + 2 + 4 = 13
AEFGH: 2 + 2 + 4 + 4 = 12

There are four critical paths, and all the tasks that lie on the critical paths have zero float. Only
any critical path and has a non-zero float.

Reference: PMstudy.com comments

Question No : 199
Which of the following is not the responsibility of a PMP certificant?

Choice 1 Ensuring that there is no conflict of interest that can compromise the legitimate interests of a

Choice 2 Ensuring that technical specifications are appropriately defined

Choice 3 Disseminating PMI Code of Ethics and Professional Conduct to other PMI members

Choice 4

Cooperating with PMI concerning ethics violation related to PMI and PMP Certification, and t
information

Correct Choice : 2

Justification :

The project manager need not be a technical expert qualified to determine the accuracy of technical specificatio

All other responsibilities stated in options 1, 3, and 4 find a place in the PMI Code of Ethics and Professional Co
Reference: PMstudy.com comments
Question No : 200

Which cost estimating technique costs the least and saves the most time?

Choice 1

Parametric estimating

Choice 2

Bottom-up estimating

Choice 3 Analogous estimating

Choice 4 Three-point estimates

Correct Choice : 3

Justification :

Analogous cost estimating is generally less costly and time consuming than other techniques, but it is

accurate.
Reference: PMBOK® Guide Fourth Edition, Page Number:172