Exam Collection PMI-002 v Q_formatted

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1 Exam Collection PMI-002 v Q_formatted Number: PMI-002 Passing Score: 800 Time Limit: 120 min File Version: PMI PMI-002 Certified Associate in Project Management (CAPM) Certification Version: 5.3 PMI PMI-002 Exam Topic 1, Exam Set 1,

2 Exam A QUESTION 1 A contract cannot contain. A. Illegal activities B. deadline for the completion of the work C. Penalties and fines for disclosure of intellectual rights D. Al1 of the above /Reference: A contract cannot contain illegal activities. A contract can contain other options available. QUESTION 2 Which one of the following comes first in the project plan? A. Scope Statement B. Quality Plan C. WBS D. Development Plan /Reference: Scope statement comes first in the project plan. Scope statement is the written statement of project. It contains: Project objectives, Project justification, Project deliverables QUESTION 3 You are project manager of a project. During the process of selecting the sellers, you reject one vendor because it doesn't have the manufacturing capability. This is an example of which selection tool? A. Weighting system B. Screening system C. Seller rating system D. Expert judgment /Reference: A screening system rejects sellers that does not meet minimum requirements for the project. QUESTION 4

3 provides details about how the project scope may be changed. A. Control Scope system B. VeiirV Scope C. Scope Charter D. Scope Management plan /Reference: The scope management plan provides details about how the project scope may be changed. QUESTION 5 Which of the following technique to identify the underlying cause of a problem and take steps to prevent further occurrence? A. Root cause analysis B. Quality audits C. Project audits D. Risk audits /Reference: Root cause analysis: A technique to identify the underlying cause of a problem and take steps to prevent further occurrence. QUESTION 6 Which of the following provides the least accurate in estimating? A. Rough order of magnitude B. Budget estimate C. WBS estimate D. Definitive estimate

4 /Reference: The rough order of magnitude is the least accurate approach, as it may vary from -25 percent to +75 percent. QUESTION 7 Who has the responsibility for informing the final deliverable to all stakeholders? A. Project Manager B. Sponsor C. Team Lead D. Management /Reference: Project Manager has the responsibility for informing the final deliverable to all stakeholders. QUESTION 8 What is a corrective action? A. An action that brings future project events Into alignment with the project plan B. An action to correct something in the project C. An action to prevent something in the project D. Corrective action is not related to project /Reference: Corrective action: An action that brings future project events into alignment with the project plan QUESTION 9 Assumptions are factors that, for planning purposes, are considered to be. A. True, real, or certain B. True, real, or uncertain C. Real D. Verbal /Reference: PMBOK describes assumptions as "factors that, for planning purposes, are considered to be true, real, or certain."

5 QUESTION 10 A complete set of indexed project records is called. A. Project archives B. Index C. sow D. Project History /Reference: A complete set of indexed project records for archiving by the appropriate parties. QUESTION 11 You are managing a project that will implement a new Insurance software package. Two project team members have difficulty working together. They come to you, for help resolving the issues. You immediately set up a meeting that includes the functional manager. After the meeting you and the functional manager discuss the issues and agree on a solution. What type of organizational structure you are working in? A. Functional B. Balanced matrix C. Piojectized D. Strong Matrix /Reference: Balanced matrix: Power is shared between both Functional and Project Manager. In this case you include the functional manager in the meeting therefore it is Balanced matrix organization. QUESTION 12 You have been with the organization; you constantly hear rumours about a certain CAPM failing to live up to the CAPM Code. What you should do? A. You can gather as much information as you can before proceeding B. Confront the person immediately C. Ignore the rumours D. pass the rumours along /Reference: You can gather as much information as you can before proceeding.

6 QUESTION 13 Who is responsible for issuing the project charter? A. The project manager B. The project sponsor C. The Team lead D. The management /Reference: The project sponsor creates and issues the project charter. QUESTION 14 In PMBOK, the seller is to the project team. A. Internal B. External C. Outside D. Assigned /Reference: In PMBOK, the seller is External to the project team. QUESTION 15 Project Quality Management includes: A. Customer satisfaction B. Prevention over inspection C. Continuous improvement D. All of the above /Reference: Project Quality Management includes : Customer satisfaction, Prevention over inspection, Continuous improvement, Management responsibility QUESTION 16 You are the project manager of the MKTG Project. The project has a budget of $200,000 and is

7 expected to last 2 years. The project is now 20 percent complete and is on schedule. What is the BAC? A. $400,000 B. $200,00 C. $50,000 D. None of the above /Reference: The BAC is the budget at completion (Total budgeted cost), which is $200,000. QUESTION 17 A Risk Register is a part of the. A. Project Scope Statement B. Project Management plan C. Project Scheduling plan D. Project Charter /Reference: The Risk Register is detailed part of the project management plan. QUESTION 18 A Risk Register is a part of the. A. Project Scope Statement B. Project Management plan C. Project Scheduling plan D. Project Charter /Reference: The Risk Register is detailed part of the project management plan. QUESTION 19 Which type of network diagram is also referred to activity-on-arrow (AOA) diagrams? A. Precedence Diagramming Method (PDM) B. Gant Cnart Diagram (GCD)

8 C. Dependency Diagramming Method (DDM) D. Arrow Diagramming Method (ADM) /Reference: The arrow diagramming method (ADM) is also referred to as activity-on-arrow (AOA) diagramming method. Precedence diagramming method (PDM) is also referred to as activity-on-node (AON) diagramming method QUESTION 20 Create Procurement document is done in. A. Plan Procurements B. Conduct Procurements C. Administer Procurements D. Close Procurements /Reference: Create Procurement document is done in Plan Procurements process. QUESTION 21 Cost benefit analysis, scorecard modelling, payback periods, and internal rate of return are examples of. A. Enterprise benefits measurement methods when selecting a project B. Integral parts of the SOW C. Ways to ensure stakeholder commitment D. Project selection methods /Reference: Projects are seeded from the recognition of a regulatory or business need. Cost benefit analysis, scorecard modelling, payback periods, and internal rate of return are examples of benefits measurement methods when selecting a project. Best Option is A. QUESTION 22 Most change requests are a result of. A. Value added change (enhancements) B. Schedule constraints C. Regulatory constraints

9 D. Improvement to the project scope /Reference: Most change requests (CRs) are a result of Value added change (enhancements). QUESTION 23 Based on the PMBOK, who is ultimately responsible for the project quality? A. Project team B. Project manager C. QA manager D. Validation engineer /Reference: Project manager is ultimately responsible for the project quality. QUESTION 24 The end of the project comes after which of the following? A. Project charter B. Final deliverable C. Schedule D. QA activities are done /Reference: Project will close after final deliverable. QUESTION 25 The product description of a project can help to create procurement details. Which one of the following best describes product description? A. The product description defines the contracted work, based on the requirements of the project customer B. The product description defines the contracted work C. The product description defines the requirements for the contract work D. Al1 of the above

10 /Reference: The product description defines the contracted work, based on the requirements of the project customer QUESTION 26 During the planning phase of your project, your project team members have discovered another way to complete a portion of the project scope. This method is safer for the project team, but may cost more for the customer. This is an example of. A. Alternative identification B. risk assessment C. Alternative selection D. Product analysis /Reference: Alternative identification is a planning process to find alternatives to completing the project scope. QUESTION 27 What is the lowest level in a work breakdown structure? A. Project task B. work package C. sow D. None /Reference: A work package is the lowest level of a work breakdown structure. QUESTION 28 Administrative Closure should occur. A. At the end of each phase of the project B. At the end of the whole project C. At the end of 50% of the project D. At the end of 100% of the project /Reference:

11 Administrative Closure should occur at the end of each phase, not only at the end of the overall project QUESTION 29 In which phase project manager is assigned to a project? A. During the initiation stage B. During the planning stage C. After approval of budget D. After the project is proven feasible /Reference: output of Initiation process : Project charter PM assigned Constraints Assumptions Project manager is assigned to a project During the initiation stage. QUESTION 30 Who gives project acceptance? A. Sponsor B. Customer C. Project Manager D. Team Lead /Reference: Customer gives project acceptance. Customer may be person or organization. QUESTION 31 A requirement document is an input of process? A. Collect Requirements B. Define Scope C. Integrated Change Control D. Monitor and Control Project Work /Reference: A requirement document request is an input to Define Sco

12 QUESTION 32 Make-or-buy decisions measure the costs of both options. What are the two options? A. Direct ar d Indirect B. Tactical and Strategic C. Management and Project D. 0n y Tactical /Reference: Make-or-buy decisions measure the costs of both options. When doing this analysis, it should include both direct and indirect costs so that the final decision is based on comparisons that are equal. QUESTION 33 Which of the following are the inputs of Define Scope? A. Requirements document created in collect requirements process B. Project files from previous projects C. Project Charter D. Al1 of the above /Reference: Define Scope - Inputs Requirements document created in collect requirements process, Project Charter and Organizational Process Assets (Project files from previous projects, lesson learned) QUESTION 34 Which document is best suited for tracking the assignment of all resources to specific tasks in a project? A. RACI matrix B. sow C. Staffing management plan D)0 CPI /Reference: The RACI matrix lists responsibilities of all resources. The staffing management plan only lists types of resources and timing. QUESTION 35 CORRECT TEXT

13 is the international organization that controls the standards for quality. A. ISO B. CAPM C. pmi D. iscn /Reference: ISO is the international organization that controls the standards for quality. QUESTION 36 CORRECT TEXT The work breakdown structure is. A. Used to break down the project into manageable pieces B. Set and does not change throughout the project C. Needed as part of the project charter D. Needed as part of the project scope statement /Reference: Work Breakdown Structure (WBS): A deliverable-oriented grouping of project elements which organizes and defines the total scope of the project. It sub divide the major tasks to minor details. QUESTION 37 If a project with a SPI of 1.8, what you tell? A. The project is running ahead of the schedule B. The project is running behind of the schedule C. Resources assigned to the project cost 1.8 units D. None /Reference: The SPI equals the earned value divided by the planned value. SPI = EV/PV A schedule performance index of 1 or greater suggests that the project is ahead of schedule. QUESTION 38 You are managing a project that will implement a new MARKETING software package. You have assigned the resources and want to keep the IT manager in the loop by informing him or her of your decisions. Which type of organizational structure are you working in?

14 A. Projectized B. Strong Matrix C. Weak Matrix D. Functional /Reference: Projectized Organization: Any organizational structure in which the project manager has full authority to assign priorities and to direct the work of individuals assigned to the project. Strong Matrix: The project manager is assigned full time and has a full time support staff. Project manager has the preeminent position of authority. Weak Matrix: Power reset with Functional Manager. Functional: In this organization Project Manager has least power and all management is taken care by functional manager like marketing engineer, sales engineer. QUESTION 39 At what point in a project do you have the highest probability that it will fail? A. The beginning of the project B. just before the end of the project C. QA Phase D. Execution phase /Reference: Risk and uncertainty are the highest at the beginning or a project. QUESTION 40 From whom do you need to gain the formal acceptance at project closure? A. The customer B. The qualify director C. Project management office D. Project manager /Reference: need to gain this formal acceptance at project closure from the customer and sponsor.

15 QUESTION 41 Which statement is true about Bottom-up estimating? A. Estimating the cost of individual work items and then rolling up the costs to arrive at a project total. B. Uses the actual cost of a previous similar project as the basis for estimating the cost of the current project. C. Using project characteristics (or parameters) in a mathematical model to predict costs. D. Cost of quality can also be used to prepare the schedule activity cost estimate. /Reference: Bottom-up estimating: Estimating the cost of individual work items and then rolling up the costs to arrive at a project total. It is more accurate. QUESTION 42 Which is not part of Project Plan? A. Project Scope Management Plan B. Schedule Management Plan C. Cost Management Plan D. Project Charter /Reference: All are part of Project Plan except project charter. QUESTION 43 Which of the following is the most important task of the project manager during the Execution and Control phase? A. Information management B. Maintain scope statement C. Maintain Charter D. Maintain Closing document /Reference: One of the most important tasks of the project manager during the Execution and Control phases of the project is the management of information. QUESTION 44

16 Which time estimating tools estimate the basis for activity durations can be quantitatively determined by multiplying the quantity of work to be performed by the productivity rate? A. Parametric estimating B. Funding limit reconciliation C. Reserves analysis D. None of the above /Reference: Parametric Estimating: Estimating the basis for activity durations can be quantitatively determined by multiplying the quantity of work to be performed by the productivity rate. QUESTION 45 You are project manager and now in middle of creating RFP (Request for proposal). RFP (Request for proposal) is done in. A. Plan Procurements B. Conduct Procurements C. Administer Procurements D. Close Procurements /Reference: RFP (Request for proposal) is done in Plan Procurements process. QUESTION 46 Which of the following statement is true about Strategic planning? A. Strategic planning determines which projects will be choosing in order to achieve the organizational goals B. Strategic planning determines which projects will be sponsor in order to achieve the organizational goals C. Strategic planning determines these are the projects that get chosen and funded D. All of the above /Reference: Strategic planning determines which projects will be choose or sponsor in order to achieve the organizational goals. Strategic planning determines these are the projects that get chosen and funded. QUESTION 47

17 The Ishikawa diagram, Pareto chart, control charts, and statistical sampling are examples of. A. Quality assurance B. Quality control C. Quality rules D. CMM /Reference: The Ishikawa diagram, the control charts, Pareto chart, and statistical sampling are examples of basic tools of quality control. QUESTION 48 Which risk response is most likely to involve contingency reserves? A. Acceptance B. shaie C. Mitigate D. Transfer /Reference: Acceptance is when no change to the project is made for a risk. A contingency can be set aside to offset the impact of the risk. QUESTION 49 Which of the following does not provided by scope statement? A. Project justification B. Project product C. Project manager authority D. Project objective Correct Answer: C /Reference: The project charter provides the project manager with authority. QUESTION 50 What is the communication channel delta if the members in the communication plan are increased from 5 to 10?

18 A. 35 B. 5 C. 15 D. 75 /Reference: Delta = n*(n-1)/2 - n1*(n1-1)/2 where n = individuals and n1 = new individuals = 35 No of communication channels: n*(n-1)/2 where n = individual QUESTION 51 Collect Requirements process starts in Project Planning Phase and uses the outputs of the. A. Initiation Process B. Project closer Process C. Estimation Process D. Closing process /Reference: Collect Requirements process starts in "Project Planning Phase" and uses the outputs of the Initiation Process. QUESTION 52 You are the project manager of a project that just went into extinction mode. This means that your project. A. Has ended before its stated objective B. 's st'" cunning but missing resources C. Will be closed due to lack of resources D. None of the above /Reference: A project that ends in extinction mode is a project that has ended before meeting its stated objectives. QUESTION 53 When you are developing the estimates for project, you choose to add the individual estimates for the activities that comprise each phase. What type of estimation method are you using? A. Parametric estimating B. Bottom-up estimating

19 C. Top-down estimating D. Analogous estimating /Reference: Bottom-up estimating: Estimating the cost of individual work items and then rolling up the costs to arrive at a project total: It is more accurate. Analogous estimating: Analogous estimating is also called top-down estimating and uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project. Parametric estimating: Using project characteristics (or parameters) in a mathematical model to predict costs (e.g., price per square meter). QUESTION 54 Who is responsible for the creation of the final project plan? A. Project Manager B. Team Leader C. Sponsor D. Project Team /Reference: Project Manager is responsible for the creation of the final project plan. QUESTION 55 Who has the responsibility for Plan Quality? A. Project manager B. QA manager C. Project planner D. Team 'ead /Reference: Project manager has the responsibility for Plan Quality. QUESTION 56 Assumptions in the project plan should be. A. Written down

20 B. Understandable C. Not understandable D. No need to write /Reference: Assumptions that are not written down are the most dangerous. QUESTION 57 Who applies project selection methods to decide whether to accept or reject a project? A. Project sponsor B. Project team C. Project manager D. Senior Management /Reference: The project sponsor must have the authority to select and fund the project. QUESTION 58 Which of the following statement is true about project charter? A. Provides a high level definition of the effort and its stakeholders B. Announces who is the project engineer C. Tells the newspapers and media when the project will end D. Announces who is the project sponsor /Reference: project charter: The project charter formally authorizes the project, assigns the project manager, and gives a high-level definition of the projects and its deliverables.

21 QUESTION 59 Which of the following is NOT an input of close project process? A. Project management plan B. Contract documentation C. Deliverables D. WBS /Reference: WBS is NOT inputs of close project process. QUESTION 60 Which of the following is conflict resolution technique? A. Compromise B. Smoothing C. Foimal D. Coercive /Reference: smoothing is a conflict resolution technique, the rest are forms of leadership power. QUESTION 61 is providing detailed plans for tasks that are about to start in the near future using the most current information and revisiting future activities when they near their starting dates. A. Rolling wave planning B. Progressive elaboration C. Milestone detail planning D. Expert judgment /Reference: Rolling wave planning is providing detailed plans for tasks that are about to start in the near future using the most current information and revisiting future activities when they near their starting dates.

22 QUESTION 62 Which of the following activities is not part of Plan Risk Management? A. Updating risk register B. Determining risk roles and responsibilities C. Identifying risk categories D. Developing a risk management plan /Reference: Updating the risk register first happens in Identify Risks phase. Determining risk roles and responsibilities, Identifying risk categories and developing a risk management plan are part of Plan Risk Management. QUESTION 63 PMI discusses procurement focusing on the relationship. A. Buyer or seller B. Vendor or seller C. Purchasing D. Sellino- /Reference: PMI discusses procurement focusing on the buyer or seller relationship QUESTION 64 Administrative closure is the process that. A. Closes all activities pertaining to a specific project B. Collects user acceptance of the project product or service C. Includes all the activities needed to validate the project products and services D. Al1 of the above /Reference: Administrative closure: Closes all activities pertaining to a specific project QUESTION 65 You are project manager of a project, which of the following is not your responsibility?

23 A. Quality in the organization B. Acquiring HR resources for the project team C. Overall responsibility for risk on the project D. Al1 of the above /Reference: Senior management is responsible for quality in the organization QUESTION 66 Project success can be achieved only if: A. There is a clear link between the project deliverables and the business strategy. B. The project sponsor leads the initiatives. C. The project manager is an expert in managing resources. D. Team members like project manager. /Reference: There is no project for the sake of spending money. There is a clear link between the project deliverables and the business strategy. QUESTION 67 You are project manager of a project and as part of the team acquisition process; you hire a new employee and assigns him to your project team. According to Maslow's hierarchy of needs, what needs level he most likely is at? A. Social need B. Physical need C. Safety and security D. Security /Reference: as new to project he is most likely looking for acceptance and friendship. This comes under Social need. QUESTION 68 Which one of the following is not an output of contract closure?

24 A. close contracts B. Lessons learned documentation C. Deliverable acceptance D. Scope statement /Reference: All are output of contract closure: Close contracts,contract file,lessons learned documentation and Deliverable acceptance. QUESTION 69 The intent of the risk management process group is to. A. Increase the probability of positive outcomes in the project B. Announce project risks C. Not consider risks affecting the company D. Announce project deliverables /Reference: The risk management process group serves as the road map used to reduce its impact on the project. QUESTION 70 ISO Stands for. A. International Organization for Standardization B. International Standardized Organization C. 'n Standardized Organization D. Indiana Standardized Organization /Reference: ISO Stands for International Organization for Standardization. QUESTION 71 The project baseline is. A. Original plans plus the approved changes B. Important in the project initiation phase C. Initial estimates for tasks and resource utilization

25 D. Original plans and the approved major changes /Reference: The project baseline: original plans plus the approved changes. QUESTION 72 Which of the following is not a form a leadership power? A. Compromise B. Smoothing C. Foimal D. Coercive /Reference: smoothing is a conflict resolution technique, the rest are forms of leadership power. QUESTION 73 is a group of processes required to purchase or acquire the products, services, or results needed from outside the project team to perform the work. A. Procurement Management B. Planning Management C. Scope Management D. Control Management /Reference: Procurement Management is groups of processes required to purchase or acquire the products, services, or results needed from outside the project team to perform the work. QUESTION 74 You are the project manager of a project. If there are approved changes to the original scope, what you do with the old original scope? A. Save the old versions B. No need to save old version C. Scrap the old version D. Old version is not required

26 /Reference: All the version you should keep in version control system. QUESTION 75 Which of the following subsidiary plan contains the quality objectives for the project? A. Quality baseline B. Quality management plan C. Process improvement plan D. QA checklist /Reference: The quality baseline documents the quality objectives for the project. QUESTION 76 Function of the is to make sure that changes to anything in the project are recorded and agreed to by the stakeholders. A. Project Manager B. Sponsor C. Team Lead D. Management /Reference: Function of the project manager is to make sure that changes to anything in the project are recorded and agreed to by the stakeholders. QUESTION 77 Which of the following is an output of Verify Scope? A. Formal acceptance B. WBS template C. sow acceptance D. Rework

27 /Reference: Output of Verify Scope is formal acceptance. QUESTION 78 Delivery dates and availability of resources can be found in the details of the. A. Work Breakdown Structure B. sow C. Project Charter D. Project Scope Statement /Reference: Delivery dates and availability of resources can be found in the details of the WBS. QUESTION 79 How many communication channels will be required in a project in which 5 individual are participating? A. 10 B. 12 C. 4 D. 5 /Reference: No of communication channels: n*(n-1)/2 where n = individual. In this case 5*(5-1)/2 = 10 QUESTION 80 Which of the following project document is best suited for tracking costs of resources? A. Work breakdown structure B. task breakdown structure C. Organizational breakdown structure D. Resource breakdown structure /Reference:

28 The resource breakdown structure organizes all resources in a hierarchical structure, allowing for cost tracking also. QUESTION 81 If a project with a CPI of 0.8, what you tell? A. The project is consuming more resources than anticipated. B. The project is using fewer resources than anticipated. C. The project is falling behind. D. The project is running ahead of schedule. /Reference: If your cost performance index is above 1.0, it indicates that you have costs that are less then estimated. CPI = EV/AC (Earned value/ Actual cost) QUESTION 82 Which monitoring or controlling activities would not result in preventive action being applied? A. Control Scope B. Manage project team C. Quality control D. Manage Scope statement /Reference: Scope, schedule, and Control Costs can all result in corrective action, but not preventive action. QUESTION 83 is the road map for the execution of the project. A. Project plan B. sow C. WBS D. Strategic planning /Reference: Project plan is the road map for the execution of the project.

29 QUESTION 84 You are the project manager of a project and budgeted money to provide cash awards to team members that exceed expectations. A project team member that is motivated by the chance to earn cash reward can most accurately be explained by which theory A. Hierarchy of needs B. Expectancy theory C. Achievement theory D. All of the above /Reference: The team member is working hard because he expects to be rewarded so it is Expectancy theory QUESTION 85 Which of the following are input of close project process? A. Project management plan B. Contract documentation C. Deliverables D. All of the above /Reference: All are inputs of close project process. QUESTION 86 The main purpose of project initiation is to. A. Assign the project manager to the project B. Formally describe the project C. Produce the project charter D. Formally authorize the project /Reference: Output of project initiation is formally authorizing the project. Output of project scope initiation is: Project charter PM assigned Constraints and Assumptions. QUESTION 87

30 Which document formally authorizes a project? A. The project charter B. Project scope statement C. The Project contract D. Project closing document /Reference: The project charter is the formal document for authorizes a project. QUESTION 88 Project just went into inclusion mode. This means that project. A. Has become part of the business processes B. Has been accepted by the sponsor and the client C. Will be closed due to lack of resources D. None of the above /Reference: inclusion mode: Has become part of the business processes. A contract cannot contain. QUESTION 89 The main purpose of project initiation is to. A. Assign the project manager to the project B. Formally describe the project C. Produce the project charter D. Formally authorize the project /Reference: Output of project initiation is formally authorizing the project. Output of project scope initiation is: Project charter PM assigned Constraints and Assumptions. QUESTION 90 Who is responsibility for making sure that a message in the project team is understood A. Project Manager

31 B. Sender C. Project coordinator D. Sponsor /Reference: The sender has to make sure that the receiver acknowledges the receipt and message is understood, and the receiver needs to ensure that the sender received the acknowledgement. QUESTION 91 is always the lowest risk for the buyer if the scope of work is not well defined. A. Cost plus incentive fee B. Fixed Price C. Time and material D. "'s^ 's nc* 'elated to price /Reference: Cost plus incentive fee is always the lowest risk for the buyer if the scope of work is not well defined. Fixed price and purchase order are the best choice for buyer when the item is well defined QUESTION 92 How many communication channels will be required in a project in which 5 individual are participating? A. 10 B. 12 C. 4 D. 5 /Reference: No of communication channels: n*(n-1)/2 where n = individual. In this case 5*(5-1)/2 = 10 QUESTION 93 Acceptance of the product should be. A. Formal B. Consistent C. Personal

32 D. Verbal /Reference: The acceptance should be formal. QUESTION 94 You are creating your WBS and keep decomposing tasks into smaller units. How can you tell when you are done? A. Keep decomposing tasks until you reach an amount of work that is small enough to reliably estimate required resources and duration. B. Keep decomposing work until you reach a predetermined number of hierarchy levels to keep the WBS balanced. C. Keep decomposing tasks until you reach an amount of work that can be accomplished in one DAY. D. Keep decomposing tasks until you reach an amount of work that can be accomplished in one WEEK. /Reference: Keep decomposing tasks until you reach an amount of work that is small enough to reliably estimate required resources and duration. QUESTION 95 If a project with a SPI of 0.8, what you tell? A. The project is running ahead of the schedule B. The project is running behind of the schedule C. Resources assigned to the project cost 1.8 units D. None /Reference: The SPI equals the earned value divided by the planned value. SPI = EV/PV A schedule performance index of 1 or greater suggests that the project is ahead of schedule. QUESTION 96 If a project with a CPI of 1.2, what you tell? A. The project is consuming fewer resources than anticipated B. The project is using fewer resources than anticipated.

33 C. The project is falling behind. D. The project is running ahead of schedule. /Reference: If your cost performance index is above 1.0, it indicates that you have costs that are less then estimated; so doing good. Option A is BEST fit for this CPI = EV/AC (Earned value/ Actual cost QUESTION 97 What are the inputs for Initiation process? A. Product description and Strategic plan B. Selection criteria C. Historical information D. All of the above /Reference: Inputs for Initiation process : Product description Strategic plan Selection criteria Historical information QUESTION 98 Which of the following are parts of project scope management? A. Verify Scope B. Collect Requirements C. Control Scope D. All of the above /Reference: There are following processes which are part of Project Scope Management. Collect Requirements Define Scope Create WBS Verify Scope Control Scope QUESTION 99 Project scope is. A. The features and functions that are to be included in a product or service B. The work that must NOT be done in order to deliver a product with the specified features and functions C. Part of the project charter D. Part of sow

34 /Reference: Project scope : The features and functions that are to be included in a product or service. The work that must be done in order to deliver a product with the specified features and functions. QUESTION 100 You have a piece of equipment that was purchased for your project recently for $5,000 and is expected to last 5 years in production. At the end of the five years the expected worth of the equipment is $2,000. Using straightline deprecation, what is the amount that can be written off each year? A. $600 B. $1200 C. $3000 D. Zero /Reference: The straight-line depreciation takes the purchase value of the item, minus the salvage price of the item, divided by the number of time periods. Calculation is ( )/5 = $600 QUESTION 101 Which of the following plans is not done during the writing of a project plan? A. Executive Communication B. Risk Management C. Quality Management D. Scope Statement /Reference: Executive Communication may be a part of your communication process but not in project plan. QUESTION 102 Stakeholder influence is greatest at the of the project. A. Beginning B. Closing C. Controlling D. Executing

35 /Reference: Stakeholder influence is greatest at the beginning of the project QUESTION 103 Which of the following is not part of project scope management? A. Verify Scope B. Collect Requirements C. Create WBS D. None of the above /Reference: e are following processes which are part of Project Scope Management. Collect Requirements Define Scope Create WBS Verify Scope Control Scope QUESTION 104 You are the project manager for the software Project. This project must be completed within one year. This is an example of which of the following? A. Schedule B. Assumption C. Constraint D. Planning process Correct Answer: C /Reference: A project that must be completed by a deadline is dealing with time constraints. A is incorrect since the condition does not offer a schedule. B is incorrect because the condition is not an assumption. D is also incorrect because this is not a planning process. QUESTION 105 The project management plan: A. Identifies all the steps and processes that will be used after a project is initiated B. Steps needed to complete a project task C. Prepared at the beginning and fixed throughout the execution of the project D. Includes project charter

36 /Reference: Project Management Plan: The project management plan provides the overall plan for executing, monitoring, and controlling, closing the project. QUESTION 106 Which type of network diagram is also referred to Activity-on-Node (AON) diagrams? A. Precedence Diagramming Method (PDM) B. Gantt Cnart Diagram (GCD) C. Dependency Diagramming Method (DDM) D. Arrow Diagramming Method (ADM) /Reference: The arrow diagramming method (ADM) is also referred to as activity-on-arrow (AOA) diagramming method. Precedence diagramming method (PDM) is also referred to as activity-on-node (AON) diagramming method QUESTION 107 What are common types of cost-reimbursable contracts? A. CPF B. CPFF C. CPIF D. All of the above /Reference: Three common types of cost-reimbursable contracts are CPF, CPFF, and CPIF Cost-Plus-Fee (CPF), Cost- Plus-Fixed-Fee (CPFF) and Cost-Plus-Incentive-Fee (CPIF). QUESTION 108 Information should be communicated to. A. Everyone in the communication plan B. Everyone on the team C. Sponsor D. Team leader

37 /Reference: One of the most important tasks of the project manager during the Execution and Control phases of the project is the management of information. All Information should be communicated to everyone in the communication plan. QUESTION 109 You are the project manager of a project. Your project just went into integration mode. This means that your project. A. Has been accepted by the sponsor and the client B. Will be closed due to lack of resources C. Resources are being assigned to other areas of the business D. None of the above Correct Answer: C /Reference: A project that ends in integration mode is the type of project where its resources are being assigned to other areas. QUESTION 110 You are working with an organization and you found that one stakeholder not disclosing all of the costs involved with an upcoming project. Rather, this CAPM is constructing a WBS that does not include all the tasks necessary to get the project done. What you should do? A. Talk to the CAPM about the WBS to see if you can rework it to reflect actual costs of the project B. Confront the other project manager immediately C. Mail to PMI headquarters D. Ignore it /Reference: You can talk to the CAPM about the WBS changes. If he or she refuses to change the WBS, you have a responsibility to go to stakeholders and voice your concerns. QUESTION 111 Which document formally authorizes a project? A. The project charter B. Project scope statement C. The Project contract D. Project closing document

38 /Reference: The project charter is the formal document for authorizes a project. QUESTION 112 You are project manager of a project and you are offering an estimate that you know will be changed after the contract is signed is. A. Bad practice B. Unprofessional practice C. Bacl for both the buyer and seller D. All of the above /Reference: It is both bad and unprofessional to knowingly offer an estimate that is incorrect QUESTION 113 In PMBOK, the buyer is to the project team. A. Internal B. External C. Outside D. Assigned /Reference: In PMBOK, the buyer is Internal to the project team. QUESTION 114 Define Scope involves subdividing the major project deliverables into smaller, more manageable components to. A. Improve the accuracy of cost, time and resource estimates B. Define a baseline for performance measurement and control C. Facilitate clear responsibility assignments D. All of the above

39 /Reference: Define Scope involves subdividing the major project deliverables into smaller, more manageable components to: Improve the accuracy of cost, time and resource estimates. Define a baseline for performance measurement and control. Facilitate clear responsibility assignments. QUESTION 115 Your company create software products, and introducing a new product. To determine the characteristics and features of the new product line, you will have to perform. A. Progressive elaboration B. Stake holder's review C. plan project life cycle D. Fast backing /Reference: The process of determining the characteristics and features of the product of the project is called Progressive elaboration. Progressive elaboration is carried out via steps in detailed fashion. QUESTION 116 You are the project manager of a project.you have just completed the Collect Requirements and Define Scope. What should you do next? A. Create WBS B. Verify Scope C. Value analysis D. Control Scope /Reference: Create the WBS is the process that follows Collect Requirements and Define Scope. QUESTION 117 Which process must occur after a project manager has been assigned to the project? A. Collect Requirements B. Develop the project charter C. Develop the project statement of work D. Develop project closing document

40 /Reference: The Collect Requirements process occurs during project planning. Other options occur during project initiation. Option D is associated with project closing. Collect Requirements is the best option. QUESTION 118 You are the project manager of a project.you have just completed the Define Activities, activity resources estimating, and Estimate Activity Durations processes. Which process have you left out? A. Control Schedule B. Create WBS C. Sequence Activities D. Operations Correct Answer: C /Reference: The PMBOK places Sequence Activities between Define Activities and Estimate Activity Resources. QUESTION 119 Which of the following is NOT an input of Estimate Costs? A. Earn Value Analysis B. Scope Baseline C. P'sk Register D. Human Resource Plan /Reference: Earned value analysis is used during the execution of the project to determine resource consumption versus planned QUESTION 120 Which of the following is NOT input of Identify Risks? A. Project Charter B. Stakeholder Register C. Risk Management Plan D. Activity Cost Estimates

41 /Reference: Project Charter is NOT input of Identify Risks. QUESTION 121 You are the project manager of a project.you have just completed the Collect Requirements and Define Scope. What should you do next? A. Create WBS B. Verify Scope C. Value analysis D. Control Scope /Reference: Create the WBS is the process that follows Collect Requirements and Define Scope. QUESTION 122 If you are project manager for a Project and will need as many inputs to the initiation phase as possible. Of the following, which is the best source of information for your project? A. Historical information B. WBS C. Business plans D. RBS /Reference: Historical information is the best input of the choices available. B is incorrect since the WBS has not been created at this point of the project. C is incorrect since business plans are not a likely input to the initiation process QUESTION 123 Which of the following activity is not performed as part of the direct and manage project execution process? A. Monitor implementation of approved changes B. Validate deliverables C. Staff, train, and manage the project team D. Manage cisks and implement risk responses

42 /Reference: In the direct and manage project execution process, approved changes are implemented but monitoring of those changes is part of monitoring OR controlling project work. QUESTION 124 You are the project manager and you have created a contract for your customer. The contract must have. A. Offer and consideration B. Start date and acceptance of start date C. Signatures and the stamp of a notary public D. Signatures of all stakeholders /Reference: A contract must have Offer and consideration. Not all contracts demand signatures and notary public involvement. Contract may specify a start date, but the Acceptance of the start date is not needed for all contracts. QUESTION 125 If a project with a CPI of 1.6, what you tell? A. The project is consuming fewer resources than anticipated B. The project is using fewer resources than anticipated. C. The project is falling behind. D. The project is running ahead of schedule. /Reference: A cost performance index of 1 or greater suggests that project in delivering more with less money; so doing well. Option A is BEST fit for this. CPI = EV/AC (Earned value/ Actual cost) QUESTION 126 Which is the most risky phase of a project? A. Planning B. Closing C. Execution D. Control Correct Answer: C

43 /Reference: The Planning phase is the phase with the least risk attached. The Execution phase of the project is when you are using your resources at their highest level. QUESTION 127 Lessons learned session should be held at what point in a project? A. At the project conclusion B. At key milestones C. When risk events occur D. When sponsor want /Reference: Although lessons learned should be held at project conclusion, they should be held throughout the project any time. QUESTION 128 What are the outputs of Initiation process? A. Project charter and PM assigned B. Constraints C. Assumptions D. All of the above /Reference: output of Initiation process : Project charter PM assigned Constraints Assumptions QUESTION 129 Which process group is for detailed resource assignments and responsibilities? A. Human resources management plan B. Project charter C. A plan D. Project management plan

44 /Reference: Develop Human Resource Plan: Planning, identifying, documenting, and assigning project roles, responsibilities, and reporting relationships to individuals or groups. QUESTION 130 You are the project manager for a Project. Project is a global project. Some peoples are working from US and some are from India. Client says budget should not cost more than $12 million. Because of the global concerns, the final budget must be in U.S. dollars. This is an example of which of the following? A. Internationalization B. Budget constraint C. Management constraint D. Quality constraint /Reference: This is an example of a budget constraint. The budget must not exceed $12 million. QUESTION 131 You are the project manager of a project. Project is installing AC to hotel rooms. You have done project cost and time estimates, told the customer that the estimates provided will be accurate if the rooms meet the requirements like (wooden coated). This is an example of which of the following? A. Risk B. Assumption C. Constraint D. Budget /Reference: This is an example of an assumption because estimates provided will be accurate if the rooms meet the requirements like (wooden coated). A and C are incorrect because the scenario did not describe a risk or constraint. QUESTION 132 When you are developing the estimates for project, you choose in a mathematical model to predict estimate. What type of estimation method are you using? A. Parametric estimating B. Bottom-up estimating C. Top-down estimating D. Analogous estimating

45 /Reference: Bottom-up estimating: Estimating the cost of individual work items and then rolling up the costs to arrive at a project total: It is more accurate. Analogous estimating: Analogous estimating is also called top-down estimating and uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project. Parametric estimating: Using project characteristics (or parameters) in a mathematical model to predict costs (e.g., price per square meter). QUESTION 133 Purchasing insurance is an example of. A. Transfer B. Acceptances C. Mitigation D. Contingency /Reference: Purchasing insurance means transfer the risk to third party. QUESTION 134 CORRECT TEXT How many communication channels exist in a team of 10 members? A. 45 B. 10 C. 30 D. 20 /Reference: formula (N)(N - 1)/2 where N = no of people. Therefore calculation is (10*9)/2. QUESTION 135

46 The primary output of the project closing process. A. To formalize and distribute all information pertaining to the project closing B. Lessons learned C. To get customer and sponsor approval D. Milestone list /Reference: The primary output of the project closing process is to formalize and distribute all the information pertaining to the closing of the project. QUESTION 136 Which type of network diagram allows you to depict four types of dependencies (finish-to-start, finish-to-finish, start-to-start, and start-to-finish)? A. Precedence Diagramming Method (PDM) B. Gant Cnart Diagram (GCD) C. Dependency Diagramming Method (DDM) D. Arrow Diagramming Method (ADM) /Reference: The precedence diagramming method (PDM) supports finish-to-start, finish-to-finish, start-to-start, and start-tofinish dependencies. QUESTION 137 Which of the following best describes project scope? A. The work that must be done in order to deliver a product with the specified features and functions B. The description of the project deliverables C. The authorizing document that allows the project manager to move forward with the project and to assign resources to the tasks D. The process of planning and executing all of the required work to deliver the project /Reference: project scope: The work that must be done in order to deliver a product with the specified features and functions. QUESTION 138

47 In which phase you define the final deliverable? A. Closing B. Execution C. Planning D. Initiation /Reference: Project will close after final deliverable. Final deliverables are defined in the closing phase. QUESTION 139 The activity that is most concerned with the current status of the project schedule is called. A. Project time management B. Control Schedule C. Monitoring and controlling D. All of the above /Reference: Control Schedule: The activity that is most concerned with the current status of the project schedule. QUESTION 140 Your project team is composed of team members in three countries plus a contractor team in a fourth country. What tool would optimize communication? A. Extranet-based electronic document repository B. Manual filing system C. War loom D. Verbal /Reference: An electronic document repository allows all team members access to the documents, regardless of location. QUESTION 141 Conformance to specifications document is one description of. A. Quality