1. The project manager is evaluating two projects. Project A has an expected duration of 90 days with a standard deviation of 10 days, and Project B has an expected duration of 100 days with a standard deviation of 4 days. Which statement is not true regarding these two projects? Project B is riskier than Project A because its expected duration is longer. Project A is riskier than Project B because its standard deviation is larger. The maximum possible duration of Project A estimated at a 95 percent probability is longer than Project B. Both projects have the potential to be completed within 90 days.
2. Oil Company A has mineral rights to land that their geologists believe has a 50 percent chance of holding $11 million of extractable oil; however, there is a 50 percent chance the well could be completely dry. If the company does the drilling itself, it will cost $4.75 million. The company could also lease the rights to Oil Company B in exchange for a 20 percent royalty on an oil strike and pay only 10 percent of the cost of drilling. Which decision should Oil Company A make, and what would be the EMV of that decision? Lease; EMV = $2.2 million Drill; EMV = $3.125 million Lease; EMV = $1.1 million Drill; EMV = $750,000.
3. An organization has recently adopted project management practices, and an inexperienced project manager and project team are developing a WBS for their first project. The team lacks a good understanding of the scope of the project, but they have invited stakeholders to their WBS development meeting to help them brainstorm. Which of the following approaches should the team take to develop the WBS? Bottom-up approach Top-down approach 100 percent approach Tight matrix approach.
4. A project manager is responsible for __________________. Overseeing business units Ensuring that business operations are efficient Achieving the project objectives Securing funding for the project.
5. The project manager and project team are breaking down major project deliverables into more manageable components. What will be the output of the process in which they are engaged? WBS Scope management plan Project scope statement RBS.
6. The project scope statement has been approved. What does the project manager need to complete the scope baseline? Scope management plan and requirements management plan Scope management plan and requirements documentation WBS and WBS dictionary Requirements documentation and requirements traceability matrix.
A series of activities to create a unique product or service by a specific date is best described as which one of the following? A program An operation A project A subproject.
Of the following, which one is the best example of progressive elaboration? It is the process of decomposing the work into small, manageable tasks. It is the process of taking a project from concept to completion. It is the process of taking a project concept to a project budget. It is the process of identifying the business needs of a potential project.
A program is which one of the following? A very large, complex project A collection of small projects with a common goal A collection of projects with a common cause A collection of subprojects with a common customer.
Who manages programs? Management Project sponsors Project managers Program managers.
You have an excellent idea for a new project that can increase productivity by 20 percent in your
organization. Management, however, declines to approve the proposed project because too many resources
are already devoted to other projects. You have just experienced what? Parametric modeling Management by exception Project portfolio management Management reserve.
Of the following, which is not part of the Iron Triangle? Quality Time Scope Cost.
Of the following, which statement is correct? A project manager must use every process identified within the PMBOK on every project. A project must use every tool and technique as identified within the PMBOK on every project. A project manager must use the most appropriate processes on every project. A project manager must agree that he will use the most appropriate tools and techniques on every project.
Projects are temporary endeavors to create a unique product, service, or result. Which one of the following does not relate to the concept of “temporary” in project management? The project team The market window status on which the project is capitalizing The project deliverable The project manager.
You are the project manager of the KHGT Project, which will span four countries around the world. You will
need to consider all of the following characteristics of the international and political environment except for
which one? International, national, regional, and local laws Customs Customers Holidays.
A risk response, appropriate for both positive and negative risks, but often used for smaller risks within a project. Acceptance Avoidance Decision tree Exploit.
A risk response to avoid the risk; sometimes called a workaround. Brainstorming Avoidance Business risks Flow charts.
A risk response effort to reduce the probability and/or impact of an identified risk in the project. Enhancing Exploit External risks Mitigation.
A risk response that attempts to enhance the conditions to ensure that a positive risk event will likely happen. External risks Enhancing Expected monetary value (EMV) Exploit.
The monetary value of a risk exposure based on the risk’s probability and impact in the risk matrix. This approach is typically used in quantitative risk analysis, as it quantifies the risk exposure. Expected monetary value (EMV) Flow charts Influence diagrams Low-priority risk watchlist.
Low-priority risks are identified and assigned to a watch-list for periodic monitoring. Low-priority risk watchlist External risks Enhancing Expected monetary value (EMV).
When is it appropriate to accept a project risk? It is never appropriate to accept a project risk. All risks must be mitigated or transferred. It is appropriate to accept a risk if the project team has never completed this type of project work before. It is appropriate if the risk is in balance with the reward.
Frances is the project manager of the LKJ Project. Which of the following techniques will she use to create the risk management plan? Risk tolerance Status meetings Planning meetings Variance meetings.
You are the project manager of the GHK Project. You and the manufacturer have agreed to substitute the type of plastic used in the product to a slightly thicker grade should there be more than 7 percent error in production. The thicker plastic will cost more and require the production to slow down, but the errors should diminish. This is an example of which of the following? Threshold Tracking Budgeting JIT manufacturing.
An organization's risk tolerance is also known as what? The utility function Herzberg's theory of motivation Risk acceptance The risk-reward ratio.
The customers of the project have requested additions to the project scope. The project manager notifies you that additional risk planning will need to be added to the project schedule. Why? The risk planning should always be the same amount of time as the activities required by the scope
change. Risk planning should always occur whenever the scope is adjusted. Risk planning should only occur at the project manager’s discretion. The project manager is incorrect. Risk planning does not need to happen at every change in the
project.
When should risk identification happen? As early as possible in the initiation process As early as possible in the planning process Throughout the product management life cycle Throughout the project life cycle.
You are the project manager of the KLJH Project. This project will last two years and has 30 stakeholders. How often should risk identification take place? Once at the beginning of the project Throughout the execution processes Throughout the project Once per project phase.
Complete this sentence: A project risk is a(n)-------------occurrence that can affect the project for good or bad. Known Potential Uncertain Known unknown.
-------------include(s) fire, theft, or injury, and offer(s) no chance for gain. Business risks Pure risks Risk acceptance Life risks.
Which one of the following best describes the risk register? It documents all of the outcomes of the other risk management processes. It’s a document that contains the initial risk identification entries. It’s a system that tracks all negative risks within a project. It’s part of the project’s project management information system (PMIS) for integrated change control.
The customers of the project have requested additions to the project scope. The project manager notifies you that additional risk planning will need to be added to the project schedule. Why? The risk planning should always be the same amount of time as the activities required by the scope
change. Risk planning should always occur whenever the scope is adjusted. Risk planning should only occur at the project manager’s discretion. The project manager is incorrect. Risk planning does not need to happen at every change in the
project.
When should risk identification happen? As early as possible in the initiation process As early as possible in the planning process Throughout the product management life cycle Throughout the project life cycle.
You are the project manager of the KLJH Project. This project will last two years and has 30 stakeholders. How often should risk identification take place? Once at the beginning of the project Throughout the execution processes Throughout the project Once per project phase.
Which one of the following is an acceptable tool for risk identification? Decision tree analysis Decomposition of the project scope The Delphi Technique Pareto charting.
Which risk analysis technique provides the project manager with a risk ranking? Quantifiable Qualitative The utility function SWOT analysis.
A table of risks, their probability, impact, and a number representing the overall risk score is called a Risk table Probability and impact matrix Quantitative matrix Qualitative matrix.
You are presented with the following table: What is the EMV for Risk Event 3? Risk Event Probability Impact Cost/Benefit EMV
1 .20 -4,000
2 .50 5,000
3 .45 -300
4 .22 500
5 .35 − 4,500 $135 -$300 $45 -$135.
Which one of the following is not a characteristic of a project's cultural and social environment? Economics Time zone differences Demographics Ethics.
The project life cycle is comprised of which of the following? Phases Milestones Estimates Activities.
Which of the following best describes a project deliverable? The resources used by the project to complete the necessary work The resources exported from the project as a result of the project work The end result of a project planning session A verifiable, measurable work product.
The compilation of all the phases within a project equates to the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. Project life cycle Product life cycle Project completion Project processes.
Which of the following describes the early stages of a project? High costs and high demands for resources A high demand for change A high demand for project team time Low costs and low demands for resources.
At which point is the risk of failure the lowest, but the consequence of failure the highest? During the early stages During the middle stages During the final stages Risk of failure is even across all project phases.
Why would an organization divide a project into phases? To provide better management and control of the project To identify the work that will likely happen within a phase of the project To identify the resources necessary to complete a phase of the project To define the cashflow requirements within each phase of the project.
All of the following are true statements about the project life cycle, except for which one? The project life cycle defines the work to be done in each phase of the project The project life cycle defines the deliverables that each phase will create The project life cycle defines who is involved in each phase The project life cycle defines how much each phase will cost.
Which project management plan guides the creation of the detailed project scope statement? Charter Project management plan Project scope plan Project scope management plan.
Which one of the following is not needed to define the project scope? Project charter Organizational process assets Risk management plan Preliminary project scope statement.
You are the project manager of the BHY Project. Your project customer has demanded that the project be
completed by December 1. December 1 is an example of which one of the following? Constraint Assumption Project boundary Product acceptance criteria.
The lowest-level item in a WBS is called what? Deliverable Work package Activity Leaf object.
You are working with the project team to create the WBS. There are some elements in the WBS that can’t be
broken down yet. You and the team elect to break down these items later in the project as more details
become available. This approach to creating the WBS is also known as what? Decomposition 8/80 Rule Parkinson’s law Rolling wave planning.
Your WBS is numbered in a hierarchical fashion for easy identification and reference. This numbering
scheme is called what? Code of accounts Chart of accounts WBS template WBS dictionary.
Scope verification leads to what? Defect repair Formal acceptance of the complete project scope Rework Inspection.
What is the only tool and technique used during scope verification? Inspection Quality control Stakeholder analysis Defect repair review.
David, one of your project team members, has been making changes to his work, which, as a result, changes
the project scope. David’s changes are also known as what? Gold plating Scope control defect Scope creep Improvised scope composition.
Which system defines how the project scope and the product scope can be changed? Project scope change control system Project integrated management system Project management information system Change control.
A change has been approved in Marcy's project. All of the following must be updated to reflect the change,
except for which one? Project scope statement WBS WBS dictionary Defect repair review.
Which of the following is an output of scope control? Workaround Recommended corrective action Transference Risk assessment.
You are the project manager for the JHG Project. Your project is to create a new product for your industry. You have recently learned that your competitor is also working on a similar project, but their offering will include a computer-aided program and Web-based tools, which your project does not offer. You have implemented a change request to update your project accordingly. This is an example of which of the following? A change due to an error and omission in the initiation phase A change due to an external event A change due to an error or omission in the planning phase A change due to a legal issue.
You are the project manager of a large project. Your project sponsor and management have approved you to outsource portions of the project plan. What must be considered if a change request affects the procured work? Project sponsor Contractual agreement Vendor(s) Cause of the change request.
A project team member has asked you what a scope statement is. Which of the following is a characteristic of a project scope statement? Defines the scope baseline for the project Defines the requirements for each project within the organization Defines the roles and responsibilities of each project team member Defines the project deliverables and the work needed to create those deliverables.
One of the stakeholders of the project you are managing asks why you consider the project scope statement so important in your project management methodology. You answer her question with which of the following? It is mandatory to consult the plan before authorizing any change. Project managers must document any changes before approving or declining them The project scope helps the project manager determine if a change is within or without of scope. The project plan and earned value management (EVM) work together to assess the risk involved with
proposed changes.
You are the project manager for a large construction project. The architect has provided your project team with blueprints detailing the exact layout of the building your team will be creating. He insists that the team follow the blueprints as he’s designed them. The blueprints are an example of which one of the following? Project specifications Approval requirements Project constraints Initially defined risks.
Complete this sentence: Project scope management is primarily concerned with defining and controlling What is and is not included in the project What is and is not included in the product Changes to the project scope Change to the configuration management system.
You are working with your project team to break down the project work into activities. Which component in the WBS must be broken down to get to the schedule activities? Project scope Work packages Planning package Product scope.
Which one of the following will not be included in the activity list created with the project management team? Activities that are not part of the project scope Quality control activities Activities to create the work packages Physical terms, such as linear feet of pipe to be installed.
Your project team agrees that the server’s operating system must first be installed before the application can be installed. This best describes which one of the following? Hard logic Soft logic Start-to-start relationship Finish-to-finish relationship.
Which of the following may be used as a risk mitigation tool? Vendor proposal Contract Quotation Project requirements.
You are the project manager for the 89A Project. You have created a contract for your customer. The
contract must have what two things? Offer and consideration Signatures and the stamp of a notary public Value and worth of the procured item Start date and acceptance of start date.
The purpose of a contract is to distribute between the buyer and seller a reasonable amount of what? Responsibility Risk Reward Accountability.
Sammy is the project manager of the DSA Project. He is considering proposals and contracts presented by vendors for a portion of the project work. Of the following, which contract is least risky to the DSA Project from Sammy's perspective? Cost plus fixed fee Cost plus percentage of cost Cost plus incentive fee Fixed-price.
In the following contract types, which one requires the seller to assume the risk of cost overruns? Cost plus fixed fee Cost plus incentive fee Lump-sum Time and materials.
Benji is the project manager of the PLP Project. He has hired an independent contractor for a portion of the project work. The contractor is billing the project $120 per hour plus materials. This is an example of what? Cost plus fixed fee Time and materials Unit-price Lump-sum.
Mary is the project manager of the JHG Project. She has created a contract statement of work (SOW) for a vendor. All of the following contribute to the creation of the contract statement of work, except for which one? Project scope statement Work breakdown structure (WBS) Risk register WBS dictionary.
You are the project manager for a software development project for an accounting system that will operate over the Internet. Based on your research, you have discovered that it will cost you $25,000 to write your own code. Once the code is written, you estimate you’ll spend $3,000 per month updating the software with client information, government regulations, and maintenance.
A vendor has proposed to write the code for your company and charge a fee based on the number of clients using the program every month. The vendor will charge you $5 per month per user of the Web-based accounting system. You will have roughly 1,200 clients using the system per month. However, you’ll need an in-house accountant to manage the time and billing of the system, so this will cost you an extra $1,200 per month. How many months will you have to use the system before it is better to write your own code than to hire the vendor? 3 months 4 months 6 months 15 months.
Martha is the project manager of the MNB Project. She wants a vendor to offer her one price to do all the detailed work. Martha is looking for which type of document? Request for proposal Request for information Proposal Invitation for bid.
In what process group does the select seller process happen? Initiating Planning Executing Closing.
A tornado has wrecked your construction project. The tornado is known as what? Force majeure Risk transference Direct costs Unknown unknown.
You are the project manager for a new technology implementation project. Management has requested that your estimates be as exact as possible. Which one of the following methods of estimating will provide the most accurate estimate? Top-down estimating Top-down budgeting Bottom-up estimating Parametric estimating.
You and your project team are about to enter a meeting to determine project costs. You have elected to use bottom-up estimating and will base your estimate on the WBS. Which one of the following is not an attribute of bottom-up estimating? People doing the work create the estimates. It creates a more accurate estimate. It’s more expensive to do than other methods. It’s less expensive to do than other methods.
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