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Pmstudy exam 4
1. Question No : 1
Which of the following is NOT a characteristic of a project?
Choice 1 Constrained by limited resources
Choice 2 Planned, executed, and controlled
Choice 3 Creates a unique product or service
Choice 4 Ongoing and repetitive
Correct Choice : 4
Justification :
A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of
projects indicates that a project has a definite beginning and end.
Reference: PMBOK®
Guide - Fifth Edition, page 3
2. Question No : 2
In your project, you create a document to record the code of account identifier, description of work, responsible
organization, and schedule milestones. This document can be referred to as:
Choice 1 WBS
Choice 2 WBS dictionary
Choice 3 PERT/CPM charts
Choice 4 Roles and responsibilities matrix
Correct Choice : 2
Justification :
Information in the WBS dictionary may include, but is not limited to, code of account identifier, description of work,
assumptions and constraints, responsible organization, schedule milestones, associated schedule activities, resources
required, cost estimates, quality requirements, acceptance criteria, technical references, and agreement information.
Reference: PMBOK®
Guide - Fifth Edition, page 132
3. Question No : 3
In which document will you find the code of account identifier, description of work, responsible organization, and list of schedule
milestones?
Choice 1 WBS
Choice 2 WBS Dictionary
Choice 3 PERT/CPM Charts
Choice 4 Roles and Responsibilities Matrix
Correct Choice : 2
Justification :
Information in the WBS dictionary may include, but is not limited to: code of account identifier, description of work, assumptions and
constraints, responsible organization, schedule milestones, associated schedule activities, resources required, cost estimates, quality
requirements, acceptance criteria, technical references,and agreement information.
Reference: PMBOK®
Guide - Fifth Edition, page 132
Question No : 4
The project manager has created the project schedule. In this context, which of the following activities would the project
manager NOT use schedule control for?
Choice 1 Influencing the factors that create schedule changes
Choice 2 Determining if the project schedule has changed
Choice 3 Determining planned start and finish dates for project activities
Choice 4 Managing actual schedule changes as they occur
4. Correct Choice : 3
Justification :
Option 3 is an activity performed as part of the Develop Schedule process. The remaining options are activities that are
performed as part of the Control Schedule process.
Reference: PMBOK®
Guide - Fifth Edition, pages 173 (figure 6-16) and 185 (figure 6-22)
Question No : 5
As a project manager, in approximating costs, you consider the possible causes of variation of the cost estimates, including
risks. For your project, which is in the initiation phase, your team has suggested a rough order of magnitude estimate. This
could be in the range of:
Choice 1 -75% to +90%
Choice 2 -25% to +75%
Choice 3 -10% to +25%
Choice 4 -5% to +10%
Correct Choice : 2
Justification :
A project in the initiation phase may have a rough order of magnitude (ROM) estimate in the range of -25% to +75%
Reference: PMBOK®
Guide - Fifth Edition, page 201
Question No : 6
5. You are working for a semi-conductor company. There have been several instances in the past week when a few circuits
have not been giving accurate results. You have been assigned the task of determining the probable cause for the
variations. Which tool would you use?
Choice 1 Control Chart
Choice 2 Ishikawa Diagrams
Choice 3 Pareto Diagrams
Choice 4 Inspection
Correct Choice : 2
Justification :
Ishikawa diagrams is also known as Cause-and-effect diagrams or fishbone diagrams. The problem statement placed at
the head of the fishbone is used as a starting point to trace the problem`s source back to its actionable root cause. The
problem statement typically describes the problem as a gap to be closed or as an objective to be achieved.
Reference: PMBOK®
Guide - Fifth Edition, page 236
Question No : 7
Which of the following statements about the project management team and the project team is inaccurate?
Choice 1 The project management team is also called the core, executive, or leadership team.
Choice 2 The project team is responsible for activities like planning, controlling, and closing.
Choice 3 The project management team is a subset of the project team.
Choice 4 For small projects, the project management responsibilities are shared by the entire team or administered solely
by the project manager.
6. Correct Choice : 2
Justification :
The project management team is a subset of the project team and is responsible for the project management and
leadership activities such as initiating, planning, executing, monitoring, controlling, and closing the various project phases.
This group can also be referred to as the core, executive, or leadership team. For smaller projects, the project
management responsibilities can be shared by the entire team or administered solely by the project manager.
Reference: PMBOK®
Guide - Fifth Edition, page 256
PMstudy.com comments: The entire project team is not responsible for Initiating, Controlling and Closing, although they will
be involved in these processes to varying degrees. Only the project management team (which is a subset of the project
team) is responsible for these activities.
Question No : 8
You have recently assumed charge of a project from another project manager. You want to know what kind of information
you should provide to different stakeholders and what methods to adopt for this purpose. You will find this information in
the:
Choice 1 Communications management plan
Choice 2 Performance reports
Choice 3 Project records
Choice 4 Communications plan
Correct Choice : 1
Justification :
The communications management plan provides stakeholder communication requirements, information that needs to be
communicated, including language, format, content, level of detail, methods or technologies used to convey the
information, such as memos, e-mail, and/or press releases, etc.
7. Reference: PMBOK®
Guide - Fifth Edition, page 296
Question No : 9
In your project, you are creating a diagram that describes the decision under consideration and implications of choosing
one or another of the available alternatives. This will help to:
Choice 1 Get a qualitative analysis of the risk
Choice 2 Determine which risks may have the most impact on the project
Choice 3 Translate the uncertainties at a detailed level into potential impact on objectives expressed at the level of the total
project
Choice 4 Determine which decision yields the greatest expected value
Correct Choice : 4
Justification :
Decision Tree Analysis is a diagramming and calculation technique for evaluating the implications of a chain of multiple
options in the presence of uncertainty.
Reference: PMBOK®
Guide - Fifth Edition, page 536
PMstudy.com comments: Solving the decision tree indicates which decision yields the greatest expected value to the
decision-maker when all the uncertain implications, costs, rewards, and subsequent decisions are quantified.
Question No : 10
A contract obligates the seller to provide the specified product and obligates the buyer to pay for it. In this context, which of
8. the following is a mandatory feature of a contract?
Choice 1 Mutually binding
Choice 2 Complicated
Choice 3 Very detailed statement of work
Choice 4 Signatures of senior leadership of the buyer
Correct Choice : 1
Justification :
A contract is a mutually binding agreement that obligates the seller to provide the specified product, or service or product
and obligates the buyer to pay for it.
Reference: PMBOK®
Guide - Fifth Edition, page 533
Question No : 11
The responsibility of stakeholder expectations management usually lies with the:
Choice 1 Project management team
Choice 2 Project manager
Choice 3 Project team
Choice 4 Project manager, project sponsor, and project management team
Correct Choice : 2
9. Justification :
The project manager is responsible for engaging and managing the various stakeholders in a project.
Reference: PMBOK® Guide Fifth Edition, page 406
Question No : 12
In an automobile company in which you are the project manager, the allowable standard deviation for a product to be
delivered by the contractor is less than 0.002 inches. However, product testing has revealed that the actual deviation is
slightly more than 0.002 inches. You believe that the variation from the permissible deviation is negligible. In this case, you
must:
Choice 1 Allow the product, since deviation from the company standards is small.
Choice 2 Document the low quality level of the product, ask the contractor for an explanation, and find a solution.
Choice 3 Reject the product outright.
Choice 4 Allow the product this time, but mentor the contractor to be more quality conscious henceforth.
Correct Choice : 2
Justification :
Any decrease in quality level in the product should be documented and discussed with the contractor. If there is a slight
decrease in the required quality level, rejecting the product outright (option 3) will be an extreme step. Similarly, approving
a product of a lower quality (option 1 and option 4) is also not advisable.
Reference: PMstudy.com comments
10. Question No : 13
In a kick-off meeting for your project, you provided information to your team members about the different process groups to
be followed in the project. According to PMI, which are the project management process groups?
Choice 1 Conceptualizing, Initiating, Executing, Monitoring and Controlling, and Closing
Choice 2 Initiating, Planning, Executing, Monitoring and Controlling, and Closing
Choice 3 Initiating, Verifying, Executing, Monitoring and Controlling, and Closing
Choice 4 Initiating, Planning, Executing, Controlling, and Administrative Closure
Correct Choice : 2
Justification :
The five Process Groups are Initiating, Planning, Executing, Monitoring and Controlling, and Closing.
Reference: PMBOK®
Guide - Fifth Edition, page 5
PMstudy.com comments: Conceptualizing, Verifying, and Administrative Closure are not process groups.
Question No : 14
In your project, you are in the process of leading and performing the work defined in the project management plan and
implementing approved changes to achieve the project`s objectives. This is done during:
Choice 1 Direct and Manage Project Work
Choice 2 Develop Project Management Plan
Choice 3 Monitor and Control Project Work
11. Choice 4 Create Deliverables
Correct Choice : 1
Justification :
Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan
and implementing approved changes to achieve the project`s objectives.
Reference: PMBOK®
Guide - Fifth Edition, page 79
PMstudy.com comments: Please note that option 4 (Create Deliverables) is not a process.
Question No : 15
You are a project manager in a large software development organization. It is a primary objective in your company to
deliver quality products, with a low rate of errors and a high product acceptance rate by your customers. The company has
made significant investments in a robust system to support these corporate objectives and goals. When developing
contracts for software development projects, it is standard that the customer is required to follow rigorously defined
processes for user acceptance testing which must be conducted each time a module is completed. The customer is also
required to notify the project manager, in writing, that the software module was tested and whether it was acceptable or
not. This user acceptance testing, and the resulting notification is part of which process?
Choice 1 Control Scope
Choice 2 Collect Requirements
Choice 3 Validate Scope
Choice 4 Perform Quality Assurance
Correct Choice : 3
12. Justification :
Validate Scope is the process of formalizing acceptance of the completed project deliverables. The key benefit of this
process is that it brings objectivity to the acceptance process and increases the chance of final product, service, or result
acceptance by validating each deliverable. The verified deliverables obtained from the Control Quality process are
reviewed with the customer or sponsor to ensure that they are completed satisfactorily and have received formal
acceptance of the deliverables by the customer or sponsor.
Reference: PMBOK®
Guide - Fifth Edition, pages 133 and 134
PMstudy.com comments: This question describes an inspection of the deliverable by the customer (i.e., testing). The
process of accepting deliverables (Validate Scope) should include written notification that the deliverable has been either
accepted or rejected.
Question No : 16
You are taking over a project that is currently in the planning stage. The previous project manager worked with the team to
finalize the process of defining activities, and you joined the team at the end of this process. The next process requires the
determination and documentation of the relationships among project activities. Of the following, which is a tool and
technique used in this process?
Choice 1 Schedule Baseline
Choice 2 Dependency Determination
Choice 3 Activity List
Choice 4 Schedule Compression
Correct Choice : 2
Justification :
The process being described is Sequence Activities. Dependency Determination is a tool/technique for the Sequence
Activities process. None of the other options are tools or techniques for this process.
13. Reference: PMBOK®
Guide - Fifth Edition, pages 143 (figure 6-1) and 153
Question No : 17
As a project manager, you are estimating the costs required to complete the project activities. In this context, which of the
following tools or techniques cannot be used?
Choice 1 Analogous estimating
Choice 2 Vendor bid analysis
Choice 3 Historical relationships
Choice 4 Cost of quality
Correct Choice : 3
Justification :
Estimate Costs is the process of developing an approximation of the monitory resources needed to complete project
activities. Analogous estimating, vendor bid analysis, and cost of quality are some of the tools used in this process.
Reference: PMBOK®
Guide - Fifth Edition, page 200 (figure 7-4)
Question No : 18
You are managing the tools/spare parts section for an aircraft manufacturing company. Your team members have
discovered some defective tools/spare parts. The probable cause for these could be materials used, defective
measurement systems, inaccurate tolerances in the machines, or other factors. To determine what caused the defect, you
14. will:
Choice 1 Use a control chart
Choice 2 Draw an Ishikawa diagram
Choice 3 Create a flowchart
Choice 4 Draw a Pareto chart
Correct Choice : 2
Justification :
Ishikawa or fishbone diagrams (also called cause and effect diagrams) illustrate how various factors might be linked to
potential problems or effects (please refer to figure 8-7 on PMBOK®
Guide - Fifth Edition, page 239).
Reference: PMBOK®
Guide - Fifth Edition, page 236
Question No : 19
As a project manager, you are interested in the personal activities of team members. Other than working with you on the
project, the team members love to go out with you for lunch or play an occasional game of golf. The power that you have
over the team members is:
Choice 1 Penalty power
Choice 2 Expert power
Choice 3 Legitimate power
Choice 4 Referent power
Correct Choice : 4
Justification :
15. The five interpersonal influences are:
Legitimate Power: The ability to gain support, because project personnel perceive the project manager as being officially
empowered to issue orders.
Reward Power: The ability to gain support, because project personnel perceive the project manager as capable of directly
or indirectly dispensing valued organizational rewards such as salary, promotion, bonus, and future work assignments.
Penalty Power: The ability to gain support, because the project personnel perceive the project manager as capable of
directly or indirectly dispensing penalties that they wish to avoid. Penalty power usually derives from the same source as
reward power, with one being a necessary condition for the other.
Expert Power: The ability to gain support, because personnel perceive the project manager as possessing special
knowledge or expertise.
Referent Power: The ability to gain support, because project personnel feel personally attracted to the project manager or
her project.
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 206 and 207
Question No : 20
In your project, you have drawn up the project management plan and identified the various stakeholders. You are ready to
distribute information to stakeholders as planned. Which of the following inputs will you use for this purpose?
Choice 1 Work Performance Reports
Choice 2 Deliverables
Choice 3 Requested changes
Choice 4 Information methods
16. Correct Choice : 1
Justification :
Manage Communications is the process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition
of project information in accordance to the communications management plan. One of the inputs to the Manage
Communications process is work performance reports.
Reference: PMBOK®
Guide - Fifth Edition, page 297 (figure 10-5)
Question No : 21
As a project manager, you are concerned with determining which risks may affect the project. What is the process by which
such risks are determined?
Choice 1 Plan Risk Management
Choice 2 Identify Risks
Choice 3 Perform Qualitative Risk Analysis
Choice 4 Plan Risk Responses
Correct Choice : 2
Justification :
Identify Risks is the process of determining which risks may affect the project and documenting their characteristics.
Reference: PMBOK®
Guide - Fifth Edition, page 309
Question No : 22
17. In your project, you are entering into a fixed-price contract in the form of a purchase order. The contract is for a specified
item to be delivered by a specific date for a specified price. In the contract, the profit is:
Choice 1 Determined by the buyer during contract sign-off
Choice 2 Determined by the seller during contract sign-off
Choice 3 Provided by the buyer to the seller at the end of the project if defined performance criteria are met
Choice 4 Not known at the time of the contract sign-off
Correct Choice : 4
Justification :
Fixed-price contracts involve setting a fixed total price for a defined product or service or result to be provided.
Reference: PMBOK®
Guide - Fifth Edition, page 362
PMstudy.com comments: The profit is not known at the time of contract sign-off; only the fixed price of the contract is
determined at that time.
Question No : 23
You, as the project manager, are planning to document relevant information on interests, involvement, influence, and
impact of project stakeholders. Which of the following processes should you follow?
Choice 1 Stakeholder Analysis
Choice 2 Plan Communications Management
Choice 3 Manage Stakeholder Engagement
Choice 4 Identify Stakeholders
18. Correct Choice : 4
Justification :
Option 1: Stakeholder Analysis is a technique used to identify and classify stakeholders and their interests. It is used when
identifying stakeholders; however, it is not the name of the process itself.
Option 2: Plan Communications Management is the process of determining the information needs of the project
stakeholders and defining a communication approach to satisfy those needs.
Option 3: Manage Stakeholder Engagement is an executing process which involves working with stakeholders to meet
their expectations. The current project is in the initiating phase as stakeholder-related details are just being gathered.
Option 4: Identify Stakeholders is the process used to identify all those people or organizations impacted by the project and
document relevant information on their interests, involvement, and impact on the success of the project.
Reference: PMstudy.com comments
Question No : 24
Which of the following is not approved by PMI as part of the PMI Code of Ethics and Professional Conduct?
Choice 1 Satisfying scope and objectives of professional services
Choice 2 Refusing to accept gifts under any circumstances
Choice 3 Maintaining confidentiality of sensitive information
Choice 4 Reporting a violation of PMI Code of Ethics and Professional Conduct to PMI
Correct Choice : 2
Justification :
PMI suggests that one should refrain from offering or accepting inappropriate gifts or other forms of personal compensation
19. unless the action is in agreement with the laws or customs of the country where project management services are offered.
Reference: PMstudy.com comments
Question No : 25
You are managing the release of a new drug in the market. Your role is that of a:
Choice 1 Functional Manager, because you have good functional knowledge of the pharmaceutical industry
Choice 2 Project Manager, because you are creating a unique product within specific time schedules
Choice 3 Operations Manager, because you have to do several repetitive tasks
Choice 4 Program Manager, because you have to manage several projects to do your job effectively
Correct Choice : 2
Justification :
Every project creates a unique product, service, or result. A project can create a service or a capability to perform a service
(e.g., a business function that supports production or distribution).
Reference: PMBOK®
Guide - Fifth Edition, page 3
PMstudy.com comments: Since this is the release of "one" new drug, it is a project. Multiple releases may qualify it as a
program.
Question No : 26
20. You are preparing a document using project statement of work, business case, agreements, enterprise environmental
factors, and organizational process assets. These are valid inputs for:
Choice 1 Develop Project Management Plan
Choice 2 Direct and Manage Project Work
Choice 3 Develop Project Charter
Choice 4 Perform Integrated Change Control
Correct Choice : 3
Justification :
Project statement of work, business case, agreements, enterprise environmental factors, and organizational process
assets are inputs for the Develop Project Charter process.
Reference: PMBOK®
Guide - Fifth Edition, page 66, figure 4-2
Question No : 27
In your project, you use product analysis to translate high-level product descriptions into tangible deliverables and
requirements. Which of the following techniques is not used in product analysis?
Choice 1 Value engineering
Choice 2 Value analysis
Choice 3 Product breakdown
Choice 4 Alternatives identification
21. Correct Choice : 4
Justification :
Product analysis includes techniques such as product breakdown, systems analysis, requirements analysis, systems
engineering, value engineering, and value analysis.
Reference: PMBOK® Guide Fifth Edition, page 122
Question No : 28
You are taking over a project during the planning stage. You have managed to identify five tasks to be completed during
the project. Please refer to the table given below:
What is the length of the critical path in months?
Choice 1 12
Choice 2 10
22. Choice 3 11
Choice 4 14
Correct Choice : 1
Justification :
The tasks are shown as a network diagram below.
The lengths of different paths are:
Start→ 1→ 2→ End: 10 Months
Start→ 3→ 5→ End: 11 Months
Start→ 4→ 5→ End: 12 Months
Since the longest path is Start→ 4→ 5→ End; this is the critical path. Length of the critical path is 12 months.
Reference: PMstudy.com comments
Question No : 29
In your company, payback period is primarily used as the decision criterion for project selection. Payback period is the:
23. Choice 1 Number of years a company takes to get back the invested amount
Choice 2 Discount rate on an investment that makes present value of all cash inflows equal to present value of all cash
outflows
Choice 3 Duration in which the project gets completed
Choice 4 Number of years a company takes to make profits equal to the amount invested
Correct Choice : 1
Justification :
Payback Period
Number of years required for an organization to recapture an initial investment.
Discount rate is not taken into account in calculations for payback period.
Project Selection Criterion: Select a project with lower payback period.
Example: There are two projects. Project A has an investment of $500,000 and a payback period of 3 years. Project B has
an investment of $300,000 and a payback period of 5 years. Using the payback period criterion, which project will you
select?
Answer: Project A will be selected. The fact that project B has a smaller investment than project A will not impact the
selection.
Reference: PMstudy.com study notes
Question No : 30
Quality management complements project management, as both recognize the importance of:
Choice 1 Exceeding customer expectations using additional features
Choice 2 Providing customer satisfaction
24. Choice 3 Decreasing total scope of ownership of the project
Choice 4 Decreasing risks associated with outsourcing
Correct Choice : 2
Justification :
Modern quality management complements project management, as both disciplines recognize the importance of customer
satisfaction, prevention over inspection, continuous improvement, management responsibility, and cost of quality (COQ).
Reference: PMBOK®
Guide - Fifth Edition, pages 229
PMstudy.com comments: Option 1 refers to "exceeding customer expectations by providing additional features" - this
constitutes gold plating and is not recommended by PMI.
Question No : 31
As a project manager, you want to have an appropriate recognition and rewards system to encourage better performance
and reinforce desired behavior. Which of the following statements on recognition and rewards system is incorrect?
Choice 1 Recognition and reward systems should promote or reinforce desired behavior.
Choice 2 Recognition and rewards should consider cultural differences.
Choice 3 Recognition for team members who work extra hours on the weekends.
Choice 4 Give the team recognition throughout the life cycle of the project rather than wait until the project is completed.
Correct Choice : 3
Justification :
Part of the team development process involves recognizing and rewarding desirable behavior..........A good strategy for
project managers is to give the team recognition throughout the life cycle of the project rather than waiting until the project
is completed.
25. Reference: PMBOK®
Guide - Fifth Edition, page 277
Question No : 32
In your project, you are monitoring and controlling communications throughout the entire project life cycle to ensure the
information needs of the project stakeholders are met. The information typically provides status and progress information
on the project at the level of detail required by the various stakeholders. This is done through:
Choice 1 Plan Communications Management process
Choice 2 Control Communications process
Choice 3 Manage Communications process
Choice 4 Earned Value management
Correct Choice : 2
Justification :
Control Communications is the process of monitoring and controlling communications throughout the entire project life
cycle to ensure the information needs of the project stakeholders are met. Work performance information is an output of
Control Communications process. Generally, this information provides status and progress information on the project at the
level of detail required by the various stakeholders.
Reference: PMBOK®
Guide - Fifth Edition, pages 303 and 307
Question No : 33
In your project, you have identified important risks and planned appropriate responses to the risks. Some risks, such as the
possibility of natural disasters impacting the project, have been documented and accepted in the risk register. What are the
26. remaining risks called?
Choice 1 Unidentifiable Risks
Choice 2 Residual Risks
Choice 3 Secondary Risks
Choice 4 Accepted Risks
Correct Choice : 2
Justification :
Residual risks are those risks that remain after risk responses have been implemented. Residual risks are expected to
remain after planned responses have been taken, as well as those that have been deliberately accepted.
Reference: PMBOK®
Guide - Fifth Edition, pages 305 and 558
Question No : 34
Which of the following is a hybrid type of contractual arrangement?
Choice 1 Time and material contracts
Choice 2 Fixed-price contracts
Choice 3 Cost-reimbursable contracts
Choice 4 Fixed price with redetermination
Correct Choice : 1
Justification :
The time and material contracts are a hybrid type of contractual management that contain aspects of both cost-
27. reimbursable and fixed-price contracts.
Reference: PMBOK®
Guide - Fifth Edition, page 364
Question No : 35
In your project, you actively manage stakeholders engagement in order to meet their needs and expectations. Doing this is
very beneficial, however, it may not help to:
Choice 1 Increase the likelihood of stakeholders` acceptance of the project goals
Choice 2 Influence and negotiate expectations of stakeholders to achieve project goals
Choice 3 Ensure stakeholders` awareness of all project details
Choice 4 Uncover and discuss stakeholder issues and concerns
Correct Choice : 3
Justification :
Manage Stakeholder Engagement involves communicating and working with project stakeholders to meet their needs and
expectations. Actively managing the expectations and engagement of stakeholders should increase the likelihood of
project acceptance and support, and should also minimize stakeholder resistance. This process also involves negotiating
and influencing stakeholders in favor of achieving the project goals. Addressing concerns that have not yet become issues
and anticipating future problems is useful for managing project risks. Doing all this however, does not ensure that
stakeholders are fully aware when they should be, and in fact, it is not always desirable for stakeholders to be aware of
ALL project details.
Option 3 (i.e., Ensure stakeholders` awareness of all project details) is not recommended. The project manager should try
to manage information, so that only appropriate and relevant information reaches the appropriate stakeholders.
Reference:PMstudy.com comments
28. Question No : 36
You recently went on an official trip to another country to discuss a business proposition with a potential vendor. The
vendor took you out for lunch and offered you gifts, as it is customary in that country. You must:
Choice 1 Tell the vendor that you cannot accept the gifts as per company policy
Choice 2 Accept the gifts as it is a local custom and promptly inform your manager
Choice 3 Return the gifts, because accepting them could be interpreted as a personal gain
Choice 4 Accept the gifts, as they are not very expensive
Correct Choice : 2
Justification :
A project manager has the responsibility to refrain from offering or accepting inappropriate payments, gifts, or other forms
of compensation for personal gain, unless it is in agreement with applicable laws or customs of the country where the
project management services are being provided.
Reference: PMI Code of Ethics and Professional Conduct
PMstudy.com comments: In some cultures where offering gifts is a custom, rejecting or returning the gifts may be
considered rude and inappropriate behavior. Appreciation of cultural differences is the way to win the trust of people from
divergent cultures.
Question No : 37
Your company is responsible for developing an anti-virus software. You are responsible for managing both the individual
product releases and the coordination of multiple releases. Your role is that of a:
29. Choice 1 Program manager
Choice 2 Project manager
Choice 3 Functional manager
Choice 4 Operations manager
Correct Choice : 1
Justification :
A program is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to
obtain benefits not available from managing them individually. Programs may include elements of related work outside the
scope of the discrete projects in the program.
Reference: PMBOK®
Guide - Fifth Edition, page 9
Question No : 38
You are a project manager. You have received a request from the stakeholders to provide more features to the product.
Which tools and techniques do you use to process the request through "Perform Integrated Change Control" process?
Choice 1 Expert judgment and risk identification
Choice 2 Change control tools and project document updates
Choice 3 Expert judgment, meetings, and change control tools
Choice 4 Expert judgment, meetings, and stakeholder analysis
Correct Choice : 3
30. Justification :
Option 3: Expert judgment, meetings, and change control tools are the tools and techniques for Perform Integrated Change
Control process.
Option 1: Risk identification is a separate process, which is not done as part of Perform Integrated Change Control
process.
Option 2: `Change control tools` is a tool and technique of Perform Integrated Change Control process, but project
document updates is not a tool and technique for any process.
Option 4: Expert judgment, meetings, and stakeholder analysis are tools and techniques of Identify Stakeholders process.
Reference: PMBOK®
Guide - Fifth Edition, page 65, figure 4-1 (for options 1, 2, and 3) and page 392, figure 13-1 (for
option 4).
Question No : 39
Your project sponsor recently attended a project management conference where the purposes of the Management-By-
Objectives (MBO) approach were discussed. In this context, which of the following is NOT a purpose of MBO?
Choice 1 Aligning project goals with organization goals
Choice 2 Aligning project goals with the goals of other sub-units of the organization
Choice 3 Aligning project goals with the goals of previous projects
Choice 4 Aligning project goals with individual goals
Correct Choice : 3
Justification :
Management by objectives is a systems approach for aligning project goals with organizational goals, project goals with the
goals of other subunits of the organization, and project goals with individual goals.
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, page 297
31. Question No : 40
You have managed to identify the five main tasks in your project. You represent the dependency and duration in the table
given below:
What is the slack of task 5?
Choice 1 0
Choice 2 1
Choice 3 2
Choice 4 -1
Correct Choice : 1
Justification :
The network diagram for the project tasks can be represented as shown below.
32. The lengths of different paths are:
Start→ 1→ 2→ End: 10 months
Start→ 3→ 5→ End: 11 months
Start→ 4→ 5→ End: 12 months
Since the longest path is Start→ 4→ 5→ End; this is the critical path.
Task 5 lies on the critical path; hence the slack for task 5 is "0".
Reference: PMstudy.com comments
Question No : 41
In your project, you have reasons to believe that the current variances occurred because of extraneous factors, and you do
not expect similar variances to occur in future. What should be the estimate at completion (EAC) for your project? BAC =
$300,000; AC = $100,000; EV = $150,000; CPI = 1.5
Choice 1 $250,000
Choice 2 $220,000
33. Choice 3 $280,000
Choice 4 $200,000
Correct Choice : 1
Justification :
Since current variances are atypical, Estimate at Completion, EAC = AC + BAC - EV = $100,000 + $300,000 - $150,000 =
$250,000
Acronym Term Description Formula
EAC
Estimate at
Completion
Forecast of most likely total project cost
based on project performance
1. Original estimating assumptions
no longer valid
2. Current Variances are atypical;
similar variances will not occur in
the future
3. Current Variances are typical of
future variances
1. AC+ ETC
2. AC + BAC – EV
3. AC + (BAC –
EV)/CPI
BAC
Budget at
Completion
Budget for the whole project EAC x CPI
ETC
Estimate to
complete
From this point, how much time is
required to complete the project
EAC – AC
VAC
Variance at
completion
Over or under budget BAC – EAC
Reference: PMstudy.com comments
Also refer to PMBOK®
Guide - Fifth Edition, page 220
34. Question No : 42
Your company has developed a software product to analyse ‘big data’ From Multiple Sources. While performing beta
testing with a small sample of users, you notice that the product has defects because of the following reasons:
- Non-compatibility with the operating system (20%)
- Bugs in the software (22%)
- Difficulty in understanding instruction manuals (20%)
- Non-availability of desired features (15%)
- Others (23%)
To illustrate the causes of these problems, you could use a:
Choice 1 Flowchart
Choice 2 Quality Checklist
Choice 3 Scatter Diagram
Choice 4 Histogram
Correct Choice : 4
Justification :
A histogram is a vertical bar chart showing how often a particular variable state occurs. Each column represents an
attribute or characteristic of a problem/situation. The height of each column represents the relative frequency of the
characteristic. This tool helps illustrate the most common cause of problems in a process by the number and relative
heights of the bars.
Reference: PMBOK®
Guide - Fifth Edition, page 238
PMstudy.com comments:
Option 4: If all causes are equally important, then histogram should be used.
Option 1: Flowchart is not used to rank order defects
Option 2: Quality Checklist is not a tool; it is an output of Plan Quality process.
Option 3: Scatter Diagram shows how change in an independent variable will cause changes in dependent variables
35. Question No : 43
In a project life cycle, the least number of conflicts occur over:
Choice 1 Priorities
Choice 2 Schedules
Choice 3 Personality
Choice 4 Costs
Correct Choice : 4
Justification :
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, page 302
36. Question No : 44
You have eight people in your project, and one more person will be joining next week. Once the new person joins, the
number of communication channels will increase by:
Choice 1 0
Choice 2 8
Choice 3 12
Choice 4 20
Correct Choice : 2
Justification :
For calculating the number of communication channels, the formula used is n (n-1)/2, where n is the number of
stakeholders. So, in this instance, number of communication channels with 8 people = 8x(8 -1)/2 =(8x7)/2= 28.
Number of communication channels with 9 people = 9x(9-1)/2 = (9x8)/2= 36. So, the communication channels will increase
by: 36 - 28 = 8.
Reference: PMstudy.com study notes
Question No : 45
Workarounds differ from contingency plans in that:
Choice 1 Contingency plans are planned in advance and workarounds are not planned in advance.
37. Choice 2 Workarounds are planned in advance and contingency plans are not planned in advance.
Choice 3 Contingency plans include plans for force majeure events, e.g. natural calamities, but workarounds are the
residual risks in the project.
Choice 4 Workarounds only include plans for force majeure events, e.g. natural calamities
Correct Choice : 1
Justification :
Workaround: A response to a threat that has occurred, for which a prior response had not been planned or was not
effective. Contingency plan or Fallback plan includes an alternate set of actions and tasks available in the event that the
primary plan needs to be abandoned because of issues, risks, or other causes.
Reference: PMBOK®
Guide - Fifth Edition, pages 540 and 567
PMstudy.com comments: Workaround is distinguished from contingency plan in that a workaround is not planned in
advance of the occurrence of the risk event.
Question No : 46
In your project, your subcontracting requirements of the machining of high-value equipment are very demanding. Hence,
you have determined the technical criteria to evaluate the sellers. This is an example of:
Choice 1 Objective evaluation criteria
Choice 2 Source selection criteria
Choice 3 Statement of work
Choice 4 Work breakdown structure
38. Correct Choice : 2
Justification :
Selection criteria are developed and used to rate or score seller proposals, and can be objective or subjective.
Reference: PMBOK®
Guide - Fifth Edition, page 368
Question No : 47
The processes used in Project Stakeholder Management are
Choice 1 Identify Stakeholders, Plan Stakeholder Management, Manage Stakeholder Expectations, and Control
Stakeholder Expectations
Choice 2 Identify Stakeholders, Plan Stakeholder Communications, Manage Stakeholder Engagement, and Control
Stakeholder Engagement
Choice 3 Identify Stakeholders, Plan Stakeholder Management, Manage Stakeholder Engagement, and Control
Stakeholder Engagement
Choice 4 Identify Stakeholders, Stakeholder Management Plan, Manage Stakeholder Engagement, and Control
Stakeholder Engagement
Correct Choice : 3
Justification :
Project Stakeholder Management includes the following processes - Identify Stakeholders, Plan Stakeholder Management,
Manage Stakeholder Engagement, and Control Stakeholder Engagement.
Reference: PMBOK® Guide Fifth Edition, page 392, figure 13-1
PMstudy.com comments: Manage Stakeholder Expectations, Control Stakeholder Expectations, Plan Stakeholder
39. Communications, and Stakeholder Management Plan are not processes. The Stakeholder Management Plan is an output
of Plan Stakeholder Management.
Question No : 48
You recently took over the responsibilities of a project manager from another person. While reviewing the project cost, you
realize there has been an item of $100,000 waiting to be paid, which, you think, is a disputed item. Your project CPI is 1.2.
In this case:
Choice 1 Since this is a small amount compared to the total project value, it can be paid ignoring all objections.
Choice 2 Since the project CPI is greater than one, you do not have any difficulties with the cost of the project. You can,
hence, bury the payment in contingency account and move on with the project.
Choice 3 You should inform your manager and ascertain the facts of the matter before making the payment.
Choice 4 You must refuse the payment.
Correct Choice : 3
Justification :
Option 3 is the best answer because, as a project manager, you are supposed to deal with any issue or alleged unethical
practice and not ignore it.
Option 1 and option 2 ask you to ignore the issue and hence are not recommended. Option 4 is recommended only after
ascertaining the facts of the matter as stated in option 3.
Reference: PMstudy.com comments
40. Question No : 49
You have reached the end of the design phase of your project. You decide to call a "phase end review" for obtaining
authorization to close the design phase and initiate the next phase (i.e., execution phase) of your project. Your manager
disagrees with your suggestion. He wants a "kill point" to formally end the design phase of the project. In this context, you
should:
Choice 1 Disagree with your manager because you know that phase end reviews should be used at the end of each phase
of the project
Choice 2 Agree with your manager as kill point is a phase-end review
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 end of each phase of the
project
Correct Choice : 2
Justification :
A phase end represents a natural point to reassess the activities underway and to change or terminate the project if
necessary. This point may be referred to as a stage gate, milestone, phase review, phase gate, or kill point.
Reference: PMBOK®
Guide - Fifth Edition, page 41
PMstudy.com comments: The answer is option 2, as the manager is justified in asking for a kill point. Kill point is another
term for phase end review.
41. Question No : 50
You are the project manager of a project, which has the objective of producing bearings with a margin of error of .002 mm
according to Six Sigma specifications used in your company. You have been asked to create documents that can help you
apply technical and administrative direction to audit the bearings and ensure that they conform to requirements. You
should use:
Choice 1 Product scope description
Choice 2 Configuration management system
Choice 3 Statement of work
Choice 4 Project management plan
Correct Choice : 2
Justification :
Option 2: Configuration management system: This is a collection of formal documented procedures used to apply technical
and administrative direction and surveillance... to verify conformance to requirements.
Option 1: Product scope description: This documents the characteristics of the product, service, or results that the project
will be undertaken to create.
Option 3: The statement of work (SOW) is a narrative description of products or services, or results to be delivered by a
project.
Option 4: Project management plan defines how the project is executed, monitored and controlled, and closed.
Reference: PMBOK®
Guide - Fifth Edition, page 532 (for option 2), page 68 (for options 1 and 3), and page 74 (for option
4).
42. Question No : 51
During the Validate Scope process, you formalize acceptance of the project deliverables and keep the project focused on
the 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 verified deliverables from the Control Quality process
Correct Choice : 4
Justification :
Verified deliverables are project deliverables that are completed and checked for correctness through the Control Quality
process.
Reference: PMBOK®
Guide - Fifth Edition, page 135.
PMstudy.com comments: Validate Scope is the process of formalizing acceptance of the completed project deliverables.
This should be done after getting individual deliverables from the Control Quality process. Verified deliverables are an input
to the Validate Scope process.
Question No : 52
43. You are a project manager overseeing the construction of a Baseball Stadium. The activity of laying the Grass Sod has an
optimistic estimate of 10 days, pessimistic estimate of 16 days, and most likely estimate of 13 days. If your company has a
quality requirement of Six Sigma, what is the duration within which this task must be completed?
Choice 1 10 days to 16 days
Choice 2 7 days to 19 days
Choice 3 12 days to 14 days
Choice 4 11 days to 15 days
Correct Choice : 2
Justification :
In a normal distribution, the PERT duration (also called mean)
= {Pessimistic + (4* Most Likely) + Optimistic}/6
= {16 + (4 * 13) + 10}/6
= 13
1 Standard Deviation (1 σ)
= (Pessimistic - Optimistic) / 6
= (16 - 10) / 6
= 1
So, if the company has Six Sigma quality requirements,
Mean - 6 σ = 13 - 6 * 1 = 7
Mean + 6 σ = 13 + 6 * 1 = 19
The task can be completed within 7 days to 19 days.
Reference: PMstudy.com comments
44. Question No : 53
Your finance manager informs you that, for accounting purposes, your company assets depreciate by the same amount
every year. This type of depreciation is known as
Choice 1 Reducing balance depreciation
Choice 2 Accelerated depreciation
Choice 3 Straight line depreciation
Choice 4 Double declining balance
Correct Choice : 3
Justification :
Depreciation
Depreciation is the decrease in value of an asset over a period of time for accounting and tax purposes.
Depreciation Methods:
o Straight Line Depreciation: Property depreciates the same amount every year
o Accelerated Depreciation: Property depreciates more rapidly in initial years than Straight Line Depreciation.
Some examples are:
Double Declining Balance
Sum of the year's digits
Reference: PMstudy.com comments
45. Question No : 54
The project team has added some functionalities to the product that are not required as part of the project. However, the
customer is satisfied with the product. From a quality perspective, the action of the team is:
Choice 1 Justified because customer expectations are exceeded.
Choice 2 Not acceptable, because it constitutes gold plating, which is not a good practice.
Choice 3 Desirable as this means repeat business from the customer.
Choice 4 Not ethical as the customer indicated project deliverable is not produced.
Correct Choice : 2
Justification :
Customer satisfaction requires a combination of conformance to requirements (to ensure the project produces what it was
created to produce) and fitness for use (the product or service must satisfy real needs).
Reference: PMBOK®
Guide - Fifth Edition, page 229
PMstudy.com comments: PMI believes that gold plating (providing additional functionalities) is not a good practice, even if
it satisfies the customer.
Question No : 55
In your project, you are in the process of determining the project roles, responsibilities, and reporting relationships for your
46. 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 Plan Human Resource
Management process.
Reference: PMBOK®
Guide - Fifth Edition, pages 257 (figure 9-1), 264, 265, 266 and 267
Question No : 56
You are preparing the communications management plan for your project by using communication requirements analysis.
Which of the following statements about communication requirements analysis is inaccurate?
Choice 1 Requirements are defined by combining the type and format of information needed with an analysis of the cost of
that information.
Choice 2 Project resources are expended on communicating information that contributes to success.
Choice 3 Project resources are expended on communicating information where lack of communication can lead to failure.
47. Choice 4 The intention is to prevent overloading stakeholders with minor details.
Correct Choice : 1
Justification :
The analysis of the communication requirements determines the information needs of the project stakeholders. These
requirements are defined by combining the type and format of information needed with an analysis of the value of that
information.
Reference: PMBOK®
Guide - Fifth Edition, page 291
Question No : 57
You are the project manager of a project which involves off-shore oil exploration. Since you cannot plan for all
eventualities, you establish a contingency reserve, including amounts of time, money, or resources to handle the risks. This
is an example of:
Choice 1 Risk avoidance
Choice 2 Risk transfer
Choice 3 Active risk acceptance
Choice 4 Improper risk planning since all risks should be identified and accounted
Correct Choice : 3
Justification :
The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or
resources to handle the risks.
48. Reference: PMBOK®
Guide - Fifth Edition, page 345
Question No : 58
In your project, you are preparing procurement documents to seek proposals from prospective sellers. Which of the
following statements about procurement documents are accurate :
A. The buyer structures the procurement documents to facilitate an accurate and complete response from prospective
sellers.
B. Requests to potential sellers to submit a proposal or bid is formally issued in accordance with the policies of the buyer`s
organization.
C. With government contracting, some or all of the content and structure of procurement documents can be defined by
regulation.
D. The term `proposal` is usually used when the seller selection decision will be based on price.
Choice 1 B, C and D
Choice 2 Only B and C
Choice 3 All of the Above
Choice 4 A, B and C
Correct Choice : 4
Justification :
Terms such as bid, tender, or quotation are generally used when the seller selection decision will be based on price (as
when buying commercial or standard items), while a term such as proposal is generally used when other considerations
such as technical capability or technical approach are paramount.
Reference: PMBOK®
Guide - Fifth Edition, page 368
49. Question No : 59
You are the project manager in a pharmaceutical company and you are involved in managing stakeholders’ engagement to
satisfy their needs and addressing any issues as they are identified. In this context, which of the following is NOT a
relevant output?
Choice 1 Organizational process assets updates
Choice 2 Change requests
Choice 3 Project management plan updates
Choice 4 Stakeholder Management Plan
Correct Choice : 4
Justification :
The Stakeholder Management Plan is created as part of the Plan Stakeholder Management process. The other options are
all outputs of the Manage Stakeholder Engagement process, which is the process being described.
Reference: PMstudy.com comments
50. Question No : 60
When your project is nearing completion, the customer requests you to include an additional feature in the final product.
You realize that this feature was discussed with the project sponsor in an earlier meeting and he was against having this
feature. What will be the BEST course of action?
Choice 1 Include the feature, as it will improve customer satisfaction
Choice 2 Include the feature --otherwise, the project will not be accepted by the customer
Choice 3 Talk with the sponsor on the benefits of having this feature
Choice 4 Decline the customer request and advise her to create a change request
Correct Choice : 4
Justification :
Option 4 is the best available choice. Neither option 1 nor option 2 is the best answer, because this requirement was
absent in the scope of work, and inclusion of the same now will impact project deliverables.
The issue was already discussed with the sponsor, and he was against having this feature. So, no purpose is served in
referring the matter once again to the sponsor. Hence, option 3 is not the correct choice.
Reference: PMstudy.com comments
Question No : 61
You are working in the Project Management Office (PMO) of your organization. Your job responsibility is to:
Choice 1 Manage the operational activities in the company
51. 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, standardizing policies,
etc.
Choice 4 Provide subject matter expertise in the functional areas of the project
Correct Choice : 3
Justification :
A project management office (PMO) is a management structure that standardizes the project-related governance
processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO
can range from providing project management support functions to actually being responsible for the direct management of
one or more projects.
Reference: PMBOK®
Guide - Fifth Edition, page 10
Question No : 62
You are the project manager responsible for developing a software application based on customer requirements. Which
technique do you use in order to consider the customer`s change request?
Choice 1 Additional planning
Choice 2 Project selection methods
Choice 3 Expert judgment
Choice 4 Corrective action
52. Correct Choice : 3
Justification :
Expert judgment is one of the tools and techniques used in the Perform Integrated Change Control process. The other
tools and techniques used in the Perform Integrated Change Control process are meetings and change control tools.
Reference: PMBOK® Guide Fifth Edition, page 94, figure 4-10.
Question No : 63
As a project manager, you are aware that changes are bound to occur during projects. While monitoring and controlling
change on your projects, you use the term scope creep. What does the term refer to?
Choice 1 Uncontrolled expansion to product or project scope without adjustments to time, cost, and resources
Choice 2 Controlled expansion to product or project scope without adjustments to time, cost, and resources
Choice 3 Manageable expansion to product or project scope without adjustments to time, cost, and resources
Choice 4 Unmanageable expansion to product or project scope with adjustments to time, cost, and resources
Correct Choice : 1
Justification :
Uncontrolled expansion to product or project scope without adjustments to time, cost, and resources is referred to as scope
creep.
Reference: PMBOK® Guide Fifth Edition, page 137
53. Question No : 64
As a project manager, you have developed the Schedule Management Plan. You are now in the process of identifying and
documenting the relationships among the project activities. You want to ensure that every activity and milestone except the
first and last are connected to at least one predecessor and one successor. Which of the following tools can you use for
this purpose?
Choice 1 Published estimating data
Choice 2 Parametric estimating
Choice 3 Precedence diagramming method
Choice 4 Performance reviews
Correct Choice : 3
Justification :
Sequence Activities is the process of identifying and documenting relationships among the project activities. Precedence
diagramming method (PDM) is one of the tools used in this process.
Reference: PMBOK®
Guide - Fifth Edition, page 153 (figure 6-7)
PMstudy.com comments:
Option 1 (Published estimating data) is used for the Estimate Activity Resources process
Option 2 (Parametric estimating) is used for the Estimate Activity Durations process
Option 4 (Performance reviews) is used for the Control Schedule process
54. Question No : 66
Which of the following types of costs is not incurred toward ensuring compliance to requirements?
Choice 1 Prevention costs
Choice 2 Appraisal costs
Choice 3 Quality planning costs
Choice 4 Warranty costs
Correct Choice : 4
Justification :
Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality
assurance to ensure compliance to requirements (i.e., training, QC systems, etc.). Failure costs (cost of nonconformance)
include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and
loss of reputation.
Reference:PMBOK®
Guide - Fifth Edition, page 535
Question No : 65
A company is considering three projects:
Project A has an NPV of $500,000
Project B has an NPV of $300,000
55. Project C has an NPV of $200,000
What is the opportunity cost if project A is selected?
Choice 1 $500,000
Choice 2 $200,000
Choice 3 $300,000
Choice 4 $0
Correct Choice : 3
Justification :
Opportunity cost is the cost of passing up the next best option. The opportunity cost of choosing project A (over project B,
which is the next best option) is equal to NPV of the next best available option. Net present value of project B is chosen =
$300,000
Reference: PMstudy.com comments
Question No : 67
Your company has a projectized organization structure. As your project nears completion, you notice that your team
members are more interested in trying to find new positions rather than properly discharging their duties. Their motivation
is:
Choice 1 Safety
Choice 2 Social
56. Choice 3 Psychological
Choice 4 Self-esteem
Correct Choice : 1
Justification :
Please refer to the diagram below:
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 195 and 196
Question No : 68
You are in the execution stage of your project. For the information of the stakeholders, you have documents to highlight
project status, lessons learned, issue logs, and outputs from other knowledge areas. These documents should be included
in:
Choice 1 Project reports
Choice 2 Change logs
57. Choice 3 Lessons learned documentation
Choice 4 Performance reports
Correct Choice : 1
Justification :
Formal and informal project reports describe project status and include lessons learned, issue logs, project closure reports,
and outputs from other Knowledge Areas.
Reference: PMBOK®
Guide - Fifth Edition, page 302
PMstudy.com comments: Project reports is an organizational process asset which gets updated as an output of the
Manage Communications process.
Question No : 69
Please refer to the Decision Tree diagram given below. It shows the analysis of profit/loss for the two alternatives (i.e., to
build or buy).
What is the opportunity cost if the project manager decides to build instead of buy?
58. Choice 1 - $1,500
Choice 2 $3,500
Choice 3 $1,500
Choice 4 $5,000
Correct Choice : 2
Justification :
Please refer to the diagram below :
Profit of build: $5,000
Profit of buy: $3,500
Opportunity cost of build = Profit you give up if you do not buy = $3,500
Reference: PMstudy.com comments
59. Question No : 70
The process of identifying the project needs that can be met by acquiring products outside the project organization is done
as part of:
Choice 1 Conduct Procurements
Choice 2 Control Procurements
Choice 3 Close Procurements
Choice 4 Plan Procurement Management
Correct Choice : 4
Justification :
The key benefit of the Plan Procurement Management process is that it determines whether to acquire outside support,
and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it.
Reference: PMBOK®
Guide - Fifth Edition, page 358
Question No : 71
You are in the process of identifying the relevant stakeholders in the project. In this context, which of the following is/are
relevant output(s) of this process?
Choice 1 Stakeholder register and Stakeholder Management Plan
60. Choice 2 Stakeholder Management Strategy
Choice 3 Organizational process assets updates
Choice 4 Stakeholder register
Correct Choice : 4
Justification :
The output of the Identify Stakeholders process is the Stakeholder register.
Reference: PMBOK® Guide Fifth Edition, page 392, figure 13-1
Question No : 72
As a project manager, one of your responsibilities is to manage stakeholder expectations to the best of your ability.
However, if there are conflicts among stakeholders, they should usually be resolved in favor of:
Choice 1 Business partner/Project sponsor
Choice 2 Team members
Choice 3 Customers
Choice 4 Stakeholders
Correct Choice : 3
Justification :
In general, differences among stakeholders should be resolved in favor of the customers.
61. Reference: PMstudy.com comments
Question No : 73
You are the project manager in a company where you have maximum authority. To which organizational structure does
your company belong?
Choice 1 Functional
Choice 2 Weak Matrix
Choice 3 Strong Matrix
Choice 4 Projectized
Correct Choice : 4
Justification :
Project managers have maximum authority in a company with a projectized organizational structure.
Reference: PMBOK® Guide Fifth Edition, page 22 table 2-1
Question No : 74
In your project, you are performing several actions to execute the project management plan and to complete the work
62. defined in the project scope statement. You will be involved in:
Choice 1 Identifying 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 information about the completion status of the deliverables and other relevant details about project
performance.
Correct Choice : 4
Justification :
Option 4: During project execution, the work performance data is collected and appropriately actioned and communicated.
Work performance data includes information about the completion status of deliverables and other relevant details about
project performance.
Reference: PMBOK® Guide Fifth Edition, page 81
PMstudy.com comments:
Option 1: This is done as part of the Monitor and Control Project Work process, and not during the project execution phase.
Option 2: This is done as part of Close Procurements process, 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 before project
execution.
Question No : 75
63. You are managing a project. Your company has set a pre-defined budget for you to work with. In this context, a pre-defined
budget is considered as a:
Choice 1 Risk
Choice 2 Assumption
Choice 3 Constraint
Choice 4 Stage point
Correct Choice : 3
Justification :
Constraints: A limiting factor that affects the execution of a project or process. Constraints identified with the project scope
statement list and describe the specific internal or external restrictions or limitations associated with the project scope that
affects the execution of the project, for example, a predefined budget or any imposed dates or schedule milestones that
are issued by the customer or performing organization.
Reference: PMBOK® Guide - Fifth Edition, page 124
64. Question No : 76
Five tasks have to be completed one after another in your project. The Contract with your Sponsor contains very strict
penalties for delays. The schedule reveals that the project has a negative float of three months, which of the following
task(s) should be crashed to bring the project on schedule? Please refer to the table given below:
Task Original Duration
(months)
Crash Savings
(months)
Original Cost Crash Cost
M 5 1 $1,600 $1,700
N 6 2 $1,800 $1,900
O 7 1 $2,000 $2,050
P 8 1 $3,000 $3,200
Q 13 3 $2,500 $2,650
Choice 1 Task Q
Choice 2 Task N and Task O together
Choice 3 Either Task Q or Task N and Task O together
Choice 4 Task N and Task P together
Correct Choice : 3
Justification :
Please refer to the table given below showing additional expenses that will be incurred when each task is crashed:
Task Original Duration
(months)
Crash Savings
(months)
Original Cost Crash Cost Additional
Expenses
M 5 1 $1,600 $1,700 $100
N 6 2 $1,800 $1,900 $100
O 7 1 $2,000 $2,050 $50
P 8 1 $3,000 $3,200 $200
65. Q 13 3 $2,500 $2,650 $150
The maximum savings is available in:
Crashing Task N, Task O: $ 150
Crashing Task Q: $ 150
You have two options from which you can choose.
Reference: PMstudy.com comments
Question No : 77
You recently took over the management of a construction project. The project is in the executing phase and the previous
project manager has left the organization. You realize the project is seriously behind schedule and over budget. After
talking with the project team, and discussions with the project management team regarding the issues, you still have not
been able to discern the reason for the schedule variances.
The team is working well, and from what you can see, should be on schedule and within budget. As you begin to review
the progress that has been made so far, and compare that to the schedule, you see that certain tasks have taken
significantly longer and incurred more costs than originally estimated. The site preparation work was estimated to take one
month, but actually took two months and cost 30% more than anticipated. Pouring the foundation was scheduled to take
two weeks, but actually took three weeks and again cost more than planned. Paving the parking area also took longer than
expected. Your analysis also indicates that the period during which these activities were being carried out had much more
rain than normal.
Based on this information, what would be the MOST LIKELY reason for the variances in the project schedule and budget?
Choice 1 The scope was not well defined
Choice 2 The project manager was not ensuring that scope verification was being done
Choice 3 Assumptions used in the planning processes were not valid
Choice 4 Integrated Change Control was not being performed
66. Correct Choice : 3
Justification :
Based on the scenario described, the variances appear to be related to weather issues, which weren`t anticipated. Many
time and cost estimates are based on assumptions, and if these assumptions are not valid, actual project performance can
and often will differ from what was estimated.
Assumptions are taken into account when estimating both time and cost. PMI mentions documenting the assumptions on
which estimates are based, in both the Cost Management and Time Management chapters. Assumptions are also a key
part of the project scope statement.
Reference: PMstudy.com comments
Question No : 78
Your quality process did not meet the four sigma requirements desired by your customer. So, some of your products were
rejected and there is a possibility that you would not receive repeat business from the customer. From a quality
perspective, 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 nonconformance) include costs to rework products, components, or processes that are non-
compliant, costs of warranty work and waste, and loss of reputation.
67. Reference: PMBOK®
Guide - Fifth Edition, page 535
Question No : 79
In your project, you are in the process of determining the project roles, responsibilities and reporting relationships for your
team members. Which of the following is not used for this process?
Choice 1 Activity resource requirements
Choice 2 Enterprise environmental factors
Choice 3 Organizational process assets
Choice 4 Team performance assessments
Correct Choice : 4
Justification :
Team performance assessments are the output of the Develop Project Team process.
Reference: PMBOK®
Guide - Fifth Edition, page 273, figure 9-9
Question No : 80
You are the project manager of a manufacturing firm that produces machine parts required in automobiles. During a
review, you discover some design requirements are not taken into account. You should:
68. Choice 1 Instruct your team to incorporate the requirements and do an analysis to figure out the potential impact.
Choice 2 Inform your project sponsor that the project may be delayed because of the missed requirements.
Choice 3 Go ahead with production because incorporating the requirements may delay the schedule.
Choice 4 Escalate this issue to your senior management.
Correct Choice : 1
Justification :
Option 1: This is the only option that provides the solution to the problem. Since some requirements are left out, you ask
your team to incorporate the requirements and figure out the potential impact.
Option 2: This is a premature step; you should first do an analysis to figure out the impact of the change before informing
the project sponsor.
Option 3: This is not at all recommended, because it will result in a product, which does not satisfy the requirements and
hence will not be accepted by the customer.
Option 4: This is a premature step; you should first do an analysis to figure out the impact of the change before informing
senior management. Escalating an issue should be the last option.
Reference: PMstudy.com comments
Question No : 81
As part of the risk management process, you have just created an overall risk ranking of the project and a list of prioritized
identified risks which need additional analysis and determined trends in risk analysis results. What should you do next?
Choice 1 Analyze the effect of identified risks on overall project objectives
Choice 2 Create a list of identified risks
Choice 3 Maintain a risk register
69. Choice 4 Make a list of potential responses to the risks
Correct Choice : 1
Justification :
Tasks like creating an overall risk ranking of the project, which includes a list of prioritized risks, identifying which risks
need additional analysis and determining trends in risk analysis results are all outputs of Perform Qualitative Risk Analysis
(PMBOK®
Guide - Fifth Edition, page 333). So, the next step is Perform Quantitative Risk Analysis (i.e. analyze the effect
of identified risks on overall project objectives) - PMBOK®
Guide - Fifth Edition, page 333. Please note that options 2, 3,
and 4 refer to outputs from Identify Risks process which has already been completed - PMBOK®
Guide - Fifth Edition, page
327.
Reference: PMstudy.com comments
Question No : 82
Early termination of a contract is a special case of contract closure. This can happen because of:
Choice 1 Default of the buyer
Choice 2 Default of the seller
Choice 3 Mutual agreement of the parties
Choice 4 Any of the above reasons
Correct Choice : 4
Justification :
Early termination of a contract is a special case of procurement closure that can result from a mutual agreement of both
70. parties, from the default of one party, or for convenience of the buyer if provided for in the contract.
Reference: PMBOK®
Guide - Fifth Edition, page 387
Question No : 83
Identify Stakeholders is the process of identifying all people or organizations impacted by the project and to document:
Choice 1 Stakeholder interests, involvement, and impact on project success
Choice 2 Stakeholder needs and address issues as they occur
Choice 3 Project requirements from stakeholders
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 customers, sponsors, the
performing organization, and the public who are actively involved in the project, or impacted by it.
Option 2: Manage Stakeholder Engagement is the process to communicate and work with stakeholders to meet their
needs and address issues as they occur.
Option 3: Collect Requirements is the process where project requirements are gathered and documented.
Option 4: Plan Communications Management is the process which is used to determine the project stakeholder information
needs and to define a communication approach.
Reference: PMstudy.com comments
71. Question No : 84
You notice that the financial statements of the company you joined recently do not conform to generally accepted
accounting practice standards and hence are inaccurate. What should be your next course of action?
Choice 1 Inform the government agencies of the inaccurate accounting practices in the company
Choice 2 Talk to your finance managers on why you think that they may be violating the standard accounting norms
Choice 3 Assume that the accounting standards are different and hence do not want to make an issue out of it, since you
are new to the company
Choice 4 Talk to the finance manager in your previous company to get expert opinion on accounting standards of the new
company
Correct Choice : 2
Justification :
Option 2: This is the best choice, as you are trying to understand and resolve the problem.
Option 1: This is the last option to be preferred after all the other alternatives are exhausted.
Option 3: This avoids the issue.
Option 4: This is not recommended, as you may be compromising proprietary information.
Reference: PMstudy.com comments
72. Question No : 85
Which of the following exhibits greatest resistance to change?
Choice 1 Business requirements
Choice 2 Technology
Choice 3 People
Choice 4 Environment
Correct Choice : 3
Justification :
People exhibit greatest resistance to change.
Reference: PMstudy.com comments
Question No : 86
A project manager wants to update a project management plan. You suggest that the updated project management plan
should include:
Choice 1 Work performance information and enterprise environmental factors
Choice 2 Expert judgment and change control tools
73. Choice 3 Final product, service, or result transition and organizational process assets updates
Choice 4 Quality management plan, cost, and schedule baselines
Correct Choice : 4
Justification :
Option 4: Project management plan elements that may be updated include, but are not limited to: scope management plan,
requirements management plan, schedule management plan, cost management plan, quality management plan, scope
baseline, schedule baseline, and cost baseline.
Option 1: Work performance information and enterprise environmental factors are some of the inputs used in Monitor and
Control Project Work process.
Option 2: Expert judgment and change control tools are some of the tools and techniques used in Perform Integrated
Change Control process.
Option 3: Final product, service, or result transition and organizational process assets updates are the outputs from the
Close Project or Phase process.
Reference: PMBOK® Guide Fifth Edition, page 93 (for option 4) and page 65, figure 4-1 (for options 1, 2, and 3).
Question No : 87
As the project manager for a large, complex project, you have been getting complaints from your team, including some of
the management team, about all the time being spent on planning. You know that by spending time following the
appropriate planning processes, you can prevent many problems during execution. This will save time in the later stages of
the project. One of the primary complaints you are hearing is related to the time it takes to create the Work Breakdown
Structure (WBS). You are explaining the importance of the WBS to your project team members. Which of the following
statements about the WBS is incorrect?
74. Choice 1 It is a hierarchical decomposition of project work.
Choice 2 Planned work contained in the lowest level WBS components are called WBS dictionaries.
Choice 3 The WBS subdivides the project work into smaller, more manageable pieces of work.
Choice 4 The WBS organizes and defines the total scope of the project work.
Correct Choice : 2
Justification :
The planned work is contained within the lowest level of WBS components, which are called work packages. A work
package can be used to group the activities where work is scheduled and estimated, monitored, and controlled.
Reference: PMBOK® Guide - Fifth Edition, page 126
Question No : 88
You are managing a project to develop an emergency brake to an upcoming new model of RV. In your project, you have to
complete building a prototype before testing can begin. This is an example of:
Choice 1 Mandatory dependency
Choice 2 Discretionary dependency
Choice 3 External dependency
Choice 4 Preferred logic
Correct Choice : 1
75. Justification :
Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work.
Mandatory dependencies often involve physical limitations, such as on a construction project where it is impossible to erect
the superstructure until after the foundation has been built, or on an electronics project, where a prototype must be built
before it can be tested.
Reference: PMBOK®
Guide - Fifth Edition, page 157
Question No : 89
Which of the following statements related to Life Cycle Costs is incorrect?
Choice 1 Life cycle costs include direct and indirect costs.
Choice 2 Life cycle costs include periodic or continuing costs of operation and maintenance.
Choice 3 In the selection criteria for two projects, even if one project has a lower NPV, it may be selected if it has a lower
life cycle cost.
Choice 4 Life cycle costs are the responsibility of a project.
Correct Choice : 4
Justification :
Life cycle costs include the cost of operations, which is beyond the scope of the project.
Life Cycle Cost: The overall estimated cost for a particular program alternative over the time period corresponding to the
life of the program. It includes:
Direct and Indirect Costs
Periodic or continuing costs of operation and maintenance
76. Project Selection Criterion: For two projects having same investment, select a project with lower life cycle cost.
Reference: PMstudy.com comments
Question No : 90
According to the 80/20 rule, 80 percent of the problems are because of 20 percent of the causes. To identify the most
probable defects and to evaluate nonconformities, you do a rank ordering of the defects using:
Choice 1 Statistical sampling
Choice 2 Control chart
Choice 3 Pareto diagrams
Choice 4 Inspection
Correct Choice : 3
Justification :
A Pareto chart (also referred to as a Pareto diagram) is a specific type of histogram, ordered by frequency of occurrence. It
shows how many defects are generated by type or category of identified cause. Rank ordering is used to focus on
corrective action.
Reference: PMBOK®
Guide - Fifth Edition, page 237
77. Question No : 91
You are managing the project for setting up an oil rig in the Pacific Ocean. Which of the following could be a valid
constraint when you are doing human resource planning for your project?
Choice 1 Weak matrix organization structure
Choice 2 Unlimited budget, since the project is very critical to meet compliance needs
Choice 3 Oil price increasing to more than $60 a barrel
Choice 4 Oil price decreasing below $40 per barrel
Correct Choice : 1
Justification :
In a weak matrix organization structure, the project manager`s role is more of a coordinator or expediter than that of a true
project manager.
Reference: PMBOK®
Guide - Fifth Edition, page 23
PMstudy.com comments: Unlimited budget is not a constraint (limited budget could be a potential constraint and limit the
project team`s options). Oil price increasing to more than $60 per barrel is also not a constraint (it is an assumption). Oil
price increasing to more than $60 per barrel is also not a constraint (it is an assumption).
Question No : 92
78. You have fifteen members in your project team. You have called for a project status meeting without prior notice. There
have been too many sidebar conversations and arguments. As a result, you have achieved nothing substantial from the
meeting. To 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 :
Techniques and considerations for effective communications management include, but are not limited to the following:...
Meeting management techniques. Preparing an agenda and dealing with conflicts.
Reference: PMBOK®
Guide - Fifth Edition, pages 298 and 299
PMstudy.com comments:In order to conduct the meeting in an organized way, you will have to follow the meeting
management techniques 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 conducted in an orderly
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 fixed and can be
determined by the formula N * (N-1) / 2.
Option 4: Giving incentives is not recommended.
79. Question No : 93
In your project, probabilities are estimated and the alternatives are expected to be as follows:
25% probability for $ 25,000 profit
50% probability for $ 40,000 profit
25% probability for $ 100,000 profit
What is the expected profit in your project?
Choice 1 $ 40,000
Choice 2 $ 50,000
Choice 3 $ 51,250
Choice 4 $ 53,750
Correct Choice : 3
Justification :
Expected Profit = Sum of the products of Probability and Profit for all alternatives i.e. [Sum of (Probability X Profit)] for all
the three alternatives
=(0.25 x $ 25,000) + (0.50 x $ 40,000) + (0.25 x $ 100,000)
= $ 6250 + $ 20,000 + $ 25,000
= $ 51,250
Reference: PMstudy.com comments
Question No : 94
You are performing a make-or-buy analysis. In which of the following cases would you not prefer making the
80. product/service in-house?
Choice 1 The item under consideration is a capital item which can be used for other projects in the same organization (in
other 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 product in-house,
are underutilized.
Choice 3 The item under consideration is a proprietary or business critical product which is a part of the core business for
the company.
Choice 4 The item under consideration is not part of your core business, but your company has the skills for developing the
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 than making the item
in-house.
Reference: PMstudy.com comments
Question No : 95
Stakeholder analysis is used to systematically gather and analyze quantitative and qualitative information on stakeholders’
level of interest in the project. In this technique:
Choice 1 Stakeholders are identified based on degree of interest
Choice 2 Stakeholder register templates are created
81. Choice 3 Stakeholders are influenced to gain support and reduce negative impact
Choice 4 Stakeholder registers from previous projects are used
Correct Choice : 1
Justification :
Stakeholder analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to
determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and
influence of the stakeholders and relates them to the purpose of the project.
Reference: PMBOK® Guide Fifth Edition, pages 395 and 396
Question No : 96
You are managing a project in a foreign country. You realize that, to get things done for the project, you may have to pay
tips to the government officials. You should:
Choice 1 Pay tips to the officials as otherwise they could cause delays
Choice 2 Refuse to pay tips, as this can be considered unethical
Choice 3 Make a case for payment of tips to government officials and present it to your management
Choice 4 Offer gifts instead of paying cash to government officials to get their support
Correct Choice : 2
Justification :
82. Options 1, 3, and 4 either suggest or imply payment of bribe, which is unethical and prohibited by PMI Code of Ethics and
Professional Conduct.
Reference: PMstudy.com comments
Question No : 97
Matrix organizations exhibit features of both projectized and functional organizations. In a weak matrix organization, the
role of a project manager may be that of a:
Choice 1 Coordinator
Choice 2 Manager with considerable authority
Choice 3 Support person
Choice 4 Functional manager
Correct Choice : 1
Justification :
Weak matrix organizations maintain many of the characteristics of a functional organization, and the role of the project
manager is more of a coordinator or expediter.
Reference: PMBOK® Guide Fifth Edition, page 23
83. Question No : 98
You are the project manager of a pharmaceutical company responsible for releasing a new drug in the market. While
managing the project, you have created several documents (e.g., project management plan; risk registers and other
registers; project calendars; change management documentation; etc.). All these documents should be stored in:
Choice 1 Historical information
Choice 2 Project files
Choice 3 Project or phase closure documents
Choice 4 Configuration management system
Correct Choice : 2
Justification :
Option 2: Project files - Documentation resulting from the project`s activities, for example, project management plan;
scope, cost, schedule, and project calendars; risk registers and other registers; change management documentation;
planned risk response actions; and risk impact.
Option 1: Historical information and lessons learned information are transferred to the lessons learned knowledge base for
use by future projects or phases.
Option 3: Project or phase closure documents, consisting of formal documentation that indicates completion of the project
or phase and the transfer of the completed project or phase deliverables to others, such as operations group or to the next
phase.
Option 4: The configuration management system is a collection of formal documented procedures, which are used to apply
technical and administrative direction and surveillance to: identify and document the functional and physical characteristics
of a product,result, service, or component; control any changes to such characteristics; record and report each change and
its implementation status; and support the audit of products, results, or components to verify conformance to requirements.
Reference: PMBOK® Guide Fifth Edition, page 104 (for options 1, 2 and 3) and page 532 (for option 4).
84. Question No : 99
In your project, a team member suggested the addition of a functionality, which she thinks, will improve customer
satisfaction. Your approach would be to:
Choice 1 Allow for the functionality, because satisfying the customer is your objective.
Choice 2 Disallow the new requirement, because it changes the project scope, and the customer did not explicitly state this
requirement.
Choice 3 Make changes to the project plan to accommodate the new requirement
Choice 4 Ask the customer for additional funding to implement the requirement
Correct Choice : 2
Justification :
Project Scope Management includes the processes required to ensure that the project includes all the work required, and
only the work required, to complete the project successfully. Managing the project scope is primarily concerned with
defining and controlling what is and is not included in the project.
Reference: PMBOK® Guide - Fifth Edition, page 105
PMstudy.com comments: In case a stakeholder requests an additional feature, the recommended course of action is to
discuss within your group and with the customer before taking a final decision. Since these options are not available, the
next best option is to ensure that you prevent gold plating, i.e., providing a requirement that was not explicitly stated in the
project scope.
A project manager should ensure prevention of "gold plating", i.e., addition of any new requirement that has not been
originally requested for by the customer.
85. Question No : 100
In the Develop Schedule process, you create a distribution of probable durations for each activity and use it to calculate the
distribution of probable results for the total project. The technique that you are using is:
Choice 1 Parametric estimating
Choice 2 Mathematical analysis
Choice 3 Simulation
Choice 4 Resource leveling
Correct Choice : 3
Justification :
Simulation involves calculating multiple project durations with different sets of activity assumptions, usually using
probability distributions constructed from the three-point estimates to account for uncertainty.
Reference: PMBOK®
Guide - Fifth Edition, page 430
86. Question No : 101
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 also generally less
accurate.
Reference: PMBOK®
Guide - Fifth Edition, page 205
Question No : 102
Which of the following statements on quality planning is inaccurate?
Choice 1 Quality planning is performed in parallel with the other project planning processes.
Choice 2 During quality planning, you should be aware of governmental regulations, rules, standards, and guidelines
specific to the application area.
Choice 3 You can use DOE to help identify which factors may influence specific variables of a product or process under
87. development.
Choice 4 During quality planning, you can use change requests to take corrective or preventive action or to perform defect
repair.
Correct Choice : 4
Justification :
Plan Quality Management is the process of identifying quality requirements and/or standards for the project and product,
and documenting how the project will demonstrate compliance. Quality planning should be performed in parallel with the
other project planning processes.
- Option 1: Quality planning should be performed in parallel with other project planning processes.
- Option 2: These refer to enterprise environmental factors, which are inputs to the Plan Quality process.
- Option 3: Design of Experiments is a tool and technique used for Plan Quality process.
- Option 4: This refers to change requests, which is an output from the Perform Quality Assurance Process and not Plan
Quality Management process.
Reference: PMBOK®
Guide - Fifth Edition, pages 231, 234, 239, 240 and 243 (figure 8-8)
Question No : 103
To get the work done, the supervisor threatens punishment and strictly supervises the work. The supervisor believes in:
Choice 1 Theory Y (McGregor Model)
Choice 2 Theory X (McGregor Model)
Choice 3 Maslow`s hierarchy of needs
88. Choice 4 Referent power
Correct Choice : 2
Justification :
Douglas McGregor advocates that most workers can be categorized according to two theories:
Theory X: This assumes that the workers are inherently lazy and require supervision
Theory Y: The average worker finds physical and mental effort on the job satisfying.
Reference: Project Management - A Systems Approach to Planning, Scheduling and Controlling, pages 194 and 195
Question No : 104
You are managing a critical project with virtual teams located in eight countries. At times, team members find it difficult to
understand and interpret what others are communicating via tele-conferencing. From a communication management point
of view, this difficulty in transmitting and understanding messages can also be referred to as:
Choice 1 Disturbance
Choice 2 Noise
Choice 3 Interference
Choice 4 Breakdown in encode-decode model
Correct Choice : 2
Justification :
The transmission of message may be compromised by various factors (e.g., distance, unfamiliar technology, inadequate
infrastructure, cultural difference, and lack of background information). These factors are collectively termed as noise.
89. Reference: PMBOK®
Guide - Fifth Edition, page 293
Question No : 105
Project Risk Management includes all the processes concerned with conducting risk management planning, identification,
analysis, response planning, and controlling risk on a project. In this context, which of the following statements about risk is
not accurate?
Choice 1 Risk is an uncertain event or condition.
Choice 2 Risks have to be identified and properly managed.
Choice 3 Risk management should be done throughout the project.
Choice 4 Risk have a negative impact on the project objective.
Correct Choice : 4
Justification :
The objectives of Project Risk Management are to increase the likelihood and impact of positive events, and decrease the
likelihood and impact of negative events in the project.
Reference: PMBOK®
Guide - Fifth Edition, page 309
90. Question No : 106
Your company has decided to outsource one of its IT product developments to ABC IT Services through a contract. You
clarify the structure and requirements of the contract so that mutual agreement can be reached prior to signing the
contract. Which of the following statements on procurement negotiations are correct?
A. You have to discuss technical and business management approaches, proprietary rights, overall schedule, payments,
and price.
B. At the end of the procurement negotiations, you will have a contract document executed by both buyer and seller.
C. The project manager is the lead negotiator on the procurements.
D. Final contract language will reflect all agreements reached.
Choice 1 B, C an D
Choice 2 Only B and D
Choice 3 A, B and D
Choice 4 All of the Above
Correct Choice : 3
Justification :
The project manager may not be the lead negotiator on procurements.
Reference: PMBOK®
Guide - Fifth Edition, page 377
Question No : 107
During the Identify Stakeholders process, the project manager identifies all people or organizations impacted by the
91. project, and documents relevant information regarding their interests, involvement, and impact on project success. Once
identified, a plan needs to be created to keep stakeholders engaged throughout the project. In this context, which of the
following statements is incorrect about stakeholder management?
Choice 1 Stakeholders exert influence over the project and its deliverables
Choice 2 It is critical for project success to identify stakeholders early in the project
Choice 3 All critical stakeholders should be engaged at the same time
Choice 4 A strategy or approach may be developed for engaging each stakeholder
Correct Choice : 3
Justification :
It is critical for project success to identify the stakeholders early in the project, and to analyze their levels of interest,
expectations, importance and influence. A management strategy can then be developed for engaging stakeholders and
determining appropriate levels and timing of involvement to maximize positive influences and mitigate potential negative
impacts. Stakeholders should therefore be engaged at the appropriate time, not necessarily at the same time.
Reference: PMstudy.com comments
Question No : 108
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 client or customer
Choice 2 Ensuring that technical specifications are appropriately defined
92. 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 the collection of
related information
Correct Choice : 2
Justification :
The project manager need not be a technical expert qualified to determine the accuracy of technical specifications.
All other responsibilities stated in options 1, 3, and 4 find a place in the PMI Code of Ethics and Professional Conduct.
Reference: PMstudy.com comments
Question No : 109
You have recently joined as a project manager in a company where they follow a projectized organizational structure. All
your team members work in the same office where you have a lot of independence and authority. Which of the following is
NOT an advantage of a projectized organizational structure?
Choice 1 Loyalty to the project
Choice 2 Home for the team members after the project is completed
Choice 3 Effective communication
Choice 4 Efficiency in project organization
Correct Choice : 2
93. Justification :
In a projectized organization, most of the organizational resources are involved in the project work. The project team
members do not belong to a specific functional group and hence do not have any "home" once the project is over.
Reference: PMstudy.com comments
Question No : 110
When does the project manager review prior phase documentation and customer acceptance documentation from the
Validate Scope process?
Choice 1 Close Project or Phase
Choice 2 Control Scope
Choice 3 Control Quality
Choice 4 Perform Quality Assurance
Correct Choice : 1
Justification :
Option 1 is the correct answer.
Option 1: During project closure, the project manager reviews prior phase documentation, customer acceptance
documentation from the Validate Scope process and the contract (if applicable), to ensure that all project requirements are
completed prior to finalizing the closure of the project.
Option 2: Control Scope is the process of monitoring the status of the project and project scope and managing changes to
the scope baseline.
Option 3: Control Quality is the process of monitoring and recording results of executing the quality activities to assess
performance and recommend necessary changes.