CAPM Practice 436 Questions with Verified Answers,100% CORRECT, Exams of Business Economics

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CAPM Practice Exam 436 Questions with Verified Answers

Events that cannot occur together in a single trial are known as : - CORRECT ANSWER Mutually Exclusive A project that is experiencing constant Communication Blockers is most likely to - CORRECT ANSWER Have conflict occur A project manager is going to use the milestone chart. In what situation is it most relevant to use the milestone chart? - CORRECT ANSWER When reporting to senior management You are due to start work on a new project and have recently been handed the approved Project Charter. What is the first thing you must do? - CORRECT ANSWER Identify the stakeholders involved in giving their input on the scope of the project A project team is working on a project that includes people working in 5 different locations including France, India, USA, Australia and Dubai. There are over 123 main employees in the team. Which of the following can have the Biggest Impact in making the dynamics of the project easier to manage: - CORRECT ANSWER Staffing Management Plan While working on your project, you identify a new risk at 50 percent project completion. There is a very high probability the risk will occur on the project, while at the same time, it is expected to have a low impact. Which of the following mitigation strategies would you use? - CORRECT ANSWER You will add the risk to the watch list When it comes to integration, the project manager is mainly responsible for - CORRECT ANSWER Making sure the aspects of the project are in smooth coordination with one another

Given the circumstances surrounding the project, The project manager has decided to Fast Track the Project. This will likely result in: - CORRECT ANSWER a smaller duration of the project Which of the following is the definitive list of constraints on a project : - CORRECT ANSWER Scope, time, cost, quality, risk, resources, customer satisfaction Which of the following would a project manager consider as an example of a Cost Plus Fixed Fee Contract? - CORRECT ANSWER Cost plus $30,000 as fee A project manager has correctly decided to address a risk by using passive risk acceptance. What sort of a situation do you think he must have been faced with?

• CORRECT ANSWER A situation in which the risk would be dealt with as it occurred. Currently, there are 7 people in the project team. 2 more resources are added later on in the project's life. What is the number of the additional channels of communication? - CORRECT ANSWER = [N(N-1)/2] First there were 7 members of the project team [7(7-1)/2] = 21 Channels of Communication Then there were 9 members of the project team [9(9-1)/2] = 36 Channels of Communication 36-21 = 15 additional channels of communication From amongst the contract types listed below, The _____________ contract has the most cost risk for the buyer - CORRECT ANSWER Cost Plus Percentage of Cost (CPPC) While working as a project manager for a leading Technology consulting firm, you were involved in a project which had a budget of $93000 with a duration of 1. months. You have currently spent $35000 to complete the work which was originally expected to cost $39000. As per your schedule, you should have spent $40,000 by this time. How would you describe your project? - CORRECT ANSWER Under Budget CPI = EV/AC CPI = 39000 / 35000 CPI = 1.09 (This means that the project is currently under budget. You are getting more value out of the project by having spent lesser)

The difference between contingency reserves and management reserves is that - CORRECT ANSWER Contingency reserves are the known unknowns on a project while the management reserves are the unknown unknowns on a project. The communications management plan is developed on a project while keeping in view the needs of the - CORRECT ANSWER Stakeholders The following is an appropriate description of why quality is planned in as opposed to being inspected into the project - CORRECT ANSWER Inspecting quality is more expensive than planning quality. You recently joined a new organization where you have been given the responsibility of leading the project management office. What is the FIRST thing you should do? - CORRECT ANSWER Talk to the main stakeholders to develop an understanding of the organization and its projects. Which of the following can include information such as : Source of the requirements, Requirement identification number, person assigned for managing the requirement - CORRECT ANSWER Requirements Traceability Matrix One of your key suppliers for an important deliverable is constantly making delays in submitting his work to your project. You decide to deal with the situation when you have more time available from your current workload. You are using the conflict resolution technique known as : - CORRECT ANSWER Withdrawing Which of the following is so important that they should always be included on the list of items under discussion at all team meetings. - CORRECT ANSWER Discussing the risks on the project You are working on a global partnership project in the Airline Industry. Til now, you have been diligently tracking the progress of your project via Earned Value Management (EVM). The project's Actual costs are $ 700 million, while your cost variance is $200 million. The schedule Variance shows a value of -$100 million. What are the values of SPI, CPI and PV? - CORRECT ANSWER 0.9; 1.28; 1000 Actual Cost or AC = 700 Cost Variance or CV = 200 Schedule Variance or SV = - First, find the value of EV or Earned Value = CV + AC = 200 + 700 = 900 Next, find

the value of CPI CPI = EV / AC = 900/700 = 1.28 Then , you have to find the value of PV (Note that since the value of Schedule variance is negative , it gets added) PV = EV - SV = 900 - (-100) = 1000 Finally, use the value of PV to find the value of SPI SPI = EV / PV = 900 / 1000 = 0. While working on your construction project, you come across environmental risks that could negatively effect the project. It would be best to hire a consultant to share insights and advice on tackling the challenges. Which contract type should be used for hiring the consultant? - CORRECT ANSWER Time & Material While negotiating with external supplier stakeholders, how important do you think are nonverbal communications for a project manager? - CORRECT ANSWER Very Important In project management terms, what is known as a heuristic? - CORRECT ANSWER A rule that is generally accepted A member of your team informs you that she does not know which project is the most important one out of the several projects she is working on. In a large organization, who is responsible for determining the priorities between the different projects? - CORRECT ANSWER PMO - Project Management Office At the recent meeting, you discover that the customer is not satisfied with a certain deliverable of the project. What is the Best thing to do? - CORRECT ANSWER Ask the customer why they are not satisfied with the deliverable In the Salience Model, Stakeholders are classified according to : - CORRECT ANSWER Power, Urgency, and Legitimacy In what stage of Risk Management do you determine the Impact of Risks on the project? - CORRECT ANSWER Perform Qualitative Analysis The costs of nonconformance include all of the following listed below with the exception of : - CORRECT ANSWER Quality Training

A project manager is highly Skeptical of his team members. He constantly monitors their every move and doubts their performance. The project manager can be considered to be a: - CORRECT ANSWER Theory X Manager What is your analysis of a situation whereby the Earned Value of your project is lesser than Planned Value and if the performance of the project were to continue the same way: - CORRECT ANSWER The project will be behind schedule when it completes Which report would you utilize as a project manager to show the actual performance versus the planned performance on a project? - CORRECT ANSWER Variance Report The Project Charter is vital to every project because while work is being done, the charter is most useful for - CORRECT ANSWER Determining whether the work being done is in line with the project charter Which of the following best describes the benefit of Colocation for a Project : - CORRECT ANSWER Helps build communication between the team. Which of the following issues the project charter? - CORRECT ANSWER Sponsor The project team identifies a risk and shares information on it with the Project Manager. After extensive discussions with the management, a strategy is developed to deal with it. It is decided that it is in the best interest of the project to allow the risk to happen. Which type of Risk Response Strategy is being used? - CORRECT ANSWER Exploit While project work is being executed, a team member informs you that she is uncertain of exactly what sort of work she needs to do. Which of the following documents would you share with her to ensure she reads detailed information regarding work packages? - CORRECT ANSWER WBS Dictionary - it contains the description of the work packages and contains information regarding each of the different elements of WBS. A stakeholder in your company has a regular habit of requesting multiple changes on projects. What is the ideal approach a project manager can take to handle this

situation at the beginning of the project? - CORRECT ANSWER Involve the stakeholder on the project as early as possible On projects, certain risks are kept on the watch list. These risks are considered by the project manager as : - CORRECT ANSWER Low priority Which of the following represents the To complete Performance Index? - CORRECT ANSWER (BAC-EV)/(BAC-AC) Consider yourself as the Seller. From amongst the contracts listed below, for which of them would you pay the most attention to when it comes to the scope of the project? - CORRECT ANSWER Fixed Price _____________ focuses on the most difficult issues and presents information in terms of order of priority. - CORRECT ANSWER Pareto Diagram A project manager is expected to possess various important abilities. Which leadership aspect is considered to be the most important for a project manager to have? - CORRECT ANSWER To be a strong communicator Secondary risks refer to: - CORRECT ANSWER Risks which are created by risk responses The optimistic estimate for an activity is 15 days, and the pessimistic estimate is

27. What is the standard deviation for the activity? - CORRECT ANSWER 2 The beta standard deviation can be calculated as (P-O)/6. =(27-12)/6 = ____________ motivation theory is concerned with how the salary and working conditions of a workplace do not lead to improved levels of motivation for the employees. - CORRECT ANSWER Herzberg While working on your project, the senior management contacts you directly and requests some changes to be made on the project. What is the First thing you should do as a project manager? - CORRECT ANSWER Understand the scope of the change being requested

A Project Manager is working on a big budget international website development project for a company that is based in over 32 countries. She happens to come across some of her colleagues from the other offices who are meant to be the primary users of the new website. They mention that they have some concerns about the user interface design as the website is not that easy to navigate. The Project manager listens to their feedback and then reports it to the sponsor while suggesting changes to the scope. Which of the following is the best description of the project managers action: - CORRECT ANSWER Stakeholder Analysis While managing a project that has several stakeholder requests for changes, which of the following is the best description of when would you decide to change the scope baseline? - CORRECT ANSWER When you have received the approval for the changes During project executing, a project manager uses team meetings in order to (Choose the Best answer): - CORRECT ANSWER Communicate The following Chart allows a project manager to consider how many resources were used on a monthly basis on a project: - CORRECT ANSWER Resource Histogram Your senior management wants to evaluate the performance of your project with reference to the previous projects in your industry domain. What should you provide your management with? - CORRECT ANSWER Benchmarks Which of the following involves the collection, integration and distribution of information regarding outputs of the project management processes? - CORRECT ANSWER Project Management Information System As a project manager, for which of the following situations would you consider that a customer has accepted the entire project as complete? - CORRECT ANSWER You have received formal sign off and formal acceptance from the customer A global scale software application project includes multiple risks. These include : A 30 percent probability of a 15 day delay in the coding process A 40 percent probability of a 10 day delay in the user interface design process A 10 percent probability of a 20 day delay in the online integration

What would be the EMV ( Expected Monetary Value) of the project? - CORRECT ANSWER To calculate EMV , ( which can be calculated for both time and cost ) , calculate the Probability X Impact for each risk and then add them together. EMV = (.30 x 15 ) + (0.40 x 10) + (0.10 x 20) = 4.5 + 4 + 2 = 10.5 days The budget for a project designated $2000 for work performed and till this point in time, has spent $5000. If the budget had included $7000 for the work scheduled on the project, what is the value of the cost variance (CV) - CORRECT ANSWER CV= EV - AC CV = $2000 - $5000 CV = -$3000 or (3000) While working with suppliers, Communications related to contracts should be - CORRECT ANSWER Formal Written Communication You are the project manager working on a large scale office building construction project for one of the leading technology companies in the world. Given the amount of scope left to be completed, you will require more time to finish the project. What is the Best decision to make at this moment? - CORRECT ANSWER Come up with ways to compress the schedule and share them with management Buffers are used in the project schedule to act as a cushion for - CORRECT ANSWER Risks Which of the following theory includes the concepts of Self Actualization,Security and Esteem: - CORRECT ANSWER Maslow While working on a real estate housing construction project in a mountainous area, you realize that the previously identified risk of thunderstorms is inevitable. If there is no appropriate response to this risk, what response strategy would you use? - CORRECT ANSWER Acceptance Your project team member mentions that people from different departments keep asking him to do perform various tasks for them. You are working in a functional organization, which of the following has the authority to give directions to this team member? - CORRECT ANSWER The Functional Manager

On projects , documents which are collected as historical records are archived for future projects during which of the following? - CORRECT ANSWER Project CLosure Which of the following refers to performance requirements : - CORRECT ANSWER What the product should be able to do Based on the current work schedule on the project, you decide that 3:30pm on Fridays is the correct time for team to submit their project status reports. What is the best type of communication to convey this to the team: - CORRECT ANSWER Informal Written Communication The estimated value of work completed is represented most appropriately by the term: - CORRECT ANSWER Earned Value At one of the project team meetings, it is decided certain extra functionalities will be added to the customers website to provide more value. Why is this not encouraged as a practice? - CORRECT ANSWER This is considered as Gold Plating. Gold plating is when you do extra work for the customer even though the customer has not even requested for it. This is not recommended at all as a practice. How would a project manager interpret the performance of a project if it's SPI (Schedule Performance Index) has a value of 0.95? - CORRECT ANSWER You are progressing at 95% of the rate that was originally planned On a project, an activity has an Early Start of day 5, A late start of day 16, an early finish of day 12, and a late finish of day 23. What is the float of the activity? - CORRECT ANSWER Float Formula: 1) LS-ES = 16-5 = 11 Or 2) LF-EF = 23-12 = You have been assigned a construction project in a new city you just moved in to. There are over 300 potential stakeholders on the project, What is the best way to move forward? - CORRECT ANSWER Figure out a way in which you can effectively collect the needs of all the stakeholders One of your stakeholders has suggested a change in the form of a new process that can improve efficiency on the project. However, it will also cause a change in

scope to the project work. What should you as a project manager do FIRST? - CORRECT ANSWER Analyze the risks of implementing the change The following statement is correct in describing a risk rating matrix used on a project: - CORRECT ANSWER The risk rating matreix is standardized between projects The control chart for your project states that the last 15 computer chipboards manufactured were outside of the lower control limit. What should you do immediately as a project manager? - CORRECT ANSWER Halt the production Which conflict resolution technique would allow you to come up with a solution that would have a long lasting effect? - CORRECT ANSWER Problem Solving What is the most effective way to get a group of over 1000 stakeholders to share their requirements regarding the project? - CORRECT ANSWER Questionnaires You need to get intensive research done on a technological component to be included as part of your final project deliverable. You are in the process of determining whether you should get the research done in house or whether you should outsource it to a Specialized research firm. Which process are you in currently? - CORRECT ANSWER Plan Procurement There are various types of meetings on a project. What is the purpose of having Status meetings on a project? - CORRECT ANSWER To exchange information regarding the project Your customer is very particular about ensuring that you keep the costs low on the housing projects you have been assigned as a project manager on. What costs do you need to take into account which will help you keep the customers goal in mind? - CORRECT ANSWER Variable and Direct You are working on a project that involves the development of an enterprise level software. The customer has conveyed his dissatisfaction with how the project is performing. Upon checking, you notice that the project is performing perfectly well as per the baselines which were originally decided upon. What is the FIRST

thing you should do as project manager? - CORRECT ANSWER Having a meeting with the customer While working on your project, you encountered a complicated problem that involved multiple stakeholders and processes. You took a decision to tackle the situation and executed your solution. A year later, you notice the same problem has reoccurred. What did you most likely not do? - CORRECT ANSWER Confirmed that your decision solved the problem at hand As a project manager, In what situation would Formal Written communication be most relevant when interacting with the customer on a project? - CORRECT ANSWER When the customer wants to add more features to the final product In your years of experience, you have accumulated vast and specialized knowledge on the project management discipline. What is the best way to use that knowledge? - CORRECT ANSWER You should share your knowledge with the world by tramsitting it through lectures, presentations, articles, books, etc The Actual cost is $42000, the planned value is $32000 and the earned value is $34000. What is the schedule variance? - CORRECT ANSWER Schedule Variance = Earned Value - Planned Value = $34000 - $ 32000 = $2000. Which of the following is the BEST for completing lessons learned? - CORRECT ANSWER Stakeholders You are assigned as a project manager in another country to develop a crucial project with global implications for your organization. You are requested to make a payment to the country officials so that they may authorize the work order. What should be your decision? - CORRECT ANSWER Consult with your legal team to see if the payment falls under a bribe A project manager may find the following tool to be the most useful in coming up with the best price from the sellers : - CORRECT ANSWER Independent Estimate As a project manager for a yearlong project, you have had regular meetings with stakeholders since the past 11 months. The team is working efficiently, and so far the project has been consistently on budget and on schedule. However, the

stakeholders have expressed their dissatisfaction with the project deliverables which will end up delaying the project by two months. Which of the following could have prevented such circumstances? - CORRECT ANSWER Define Scope As a newly assigned project manager on a large scale international project, Kate has recently developed the risk responses to handle the high ranking risks from the prioritized list of risks. Kate is preparing to proceed to the control risks process when Dave ( A colleague and fellow project manager from another project) reminds her of an important task she left out in the Plan Risk Response Process. What did Dave tell her? - CORRECT ANSWER Kate, you forgot to analyze the secondary Risks "Quality is Planned in, It is not inspected in". What is the best represented significance of this phrase to you as a project manager? - CORRECT ANSWER It leads to lesser cost/expensive and improves the quality The project status reports for the month are due in two days time. One of the team members mentions to you that some of the other members of the team have not been accurately reporting the number of hours being spent on the project's activities. As the project manager, what action should you take first? - CORRECT ANSWER Provide accurate information in the project status reports Who creates the WBS? - CORRECT ANSWER Project Team The configuration management includes multiple processes. Which of the following does not belong to configuration management? - CORRECT ANSWER Configuration CLosure A project manager would consider all of the following as buffers EXCEPT : - CORRECT ANSWER Extra Buffer Organization put a strong emphasis on the creation of lessons learned documents. What is the most relevant use of lessons learned? - CORRECT ANSWER To serve as historical records for projects in the future

After the Plan Risk Responses process, you notice there are residual risks left on the project. What should you do? - CORRECT ANSWER You should document the risks and revisit them later to see if any action needs to be taken The company you are working at is currently going through downsizing due to slow economic conditions globally. Every team is going through layoffs and it is inevitable that some of your team members will be next in line. Your team is discussing this topic constantly, so you decide to add your thoughts by saying "Don't worry about it, we will simply improve our performance and that will help protect us from getting laid off". Which of the following techniques do you think your actions represent: - CORRECT ANSWER Smoothing If the Actual Cost = 450 , Earned Value = 400 and Planned Value = 350 , What is the value of the Cost Variance? - CORRECT ANSWER CV = EV - AC CV = 400 - 450 CV = - A project you are working on has a payback period of 11 months. What does this signify? - CORRECT ANSWER THe project will take 11 months to cover its costs and then start to generate revenue As the project has been performing well and the forecasted risks wont be occurring, you realize you will not be needing the contingency reserves you created for the project, what will MOST LIKELY happen to such reserves? - CORRECT ANSWER You will delete them from the project budget A project manager may consider that quality has been achieved on a project when : - CORRECT ANSWER WHen the requirements of the project have been met The form of power which is not related to the position of a project manager in an organization's hierarchy is : - CORRECT ANSWER Expert There are 4 different projects you can choose to pursue. Project A has an IRR of 32 percent. Project B has an IRR of 20 percent. Project C has an IRR of 13 percent. Project D has an IRR of 21 percent. Which of these is the best project? - CORRECT ANSWER Project A

Milestones are an important part of a successful project. What is considered to be the duration of a milestone on a project in general? - CORRECT ANSWER 0 Total float refers to the amount of time an activity can be delayed without delaying : - CORRECT ANSWER THe completion date of the project The work breakdown structure is considered effective for communicating with which of the following? - CORRECT ANSWER Stakeholders You are working on a machinery automation software project which has detailed requirements. You have to choose a contract type for this project. The contract you will choose is : - CORRECT ANSWER Fixed Price A program can be described as : - CORRECT ANSWER Groups of related projects which hold benefit in being carried out together How would a project manager interpret a CPI ( Cost performance Index) value of 0.69? - CORRECT ANSWER The project is getting $0.69 per every $1.00 invested. A Responsibility Assignment Matrix includes the following data points : - CORRECT ANSWER Resource and Activity At a Steel Manufacturing Plant, the control chart displays that the last 10 steel bars produced were greater than the average weight. This situation is an example of : - CORRECT ANSWER Rule of 7 Because of the recent thunderstorms, the construction project has to be halted and further schedule delays are confirmed given the current weather conditions. The project will require extensive schedule changes. Who should you communicate these changes to? - CORRECT ANSWER Stakeholders Your team members are having an argument about the difference between a project management process and the project life cycle. You clarify the difference between the two terms to your employees by telling them that : - CORRECT ANSWER The project life cycle tells what needs to be done to complete the work on the project

Which of the following terms determines today's value of a future cash flow : - CORRECT ANSWER NPV While working on an project that is under budget, the client calls you to request the addition of extra features to the project. What should you do as a project manager? - CORRECT ANSWER Look for the impact of the change When it comes to risks which are added to the watch list, what is the most appropriate action that can be taken to address them? - CORRECT ANSWER Analyze them again during monitoring and controlling For a project that spans across multiple countries, which of the following would be the best way to solve conflict as the lead project manager - CORRECT ANSWER Collaborating While working as a project manager on a high end watch brand's manufacturing plant , you carefully evaluate as project work is being completed. The best way of making sure the end product batch of watches is acceptable, is to - CORRECT ANSWER Check the quality of the watches with respect to the quality standards in the quality management plan At HG engineering, the project team is discussing the candidacy of the different sellers who have submitted proposals for the multimillion dollar project. Out of the 5 different sellers, the project team is stuck on making the final decision between 3 sellers, each of whom is supported by an equal number of members of the project team. Which of the following can help the team in focusing on making the selection? - CORRECT ANSWER Source Selection Criteria Which of the following variables is present in a resource histogram and not in a responsibility assignment matrix? - CORRECT ANSWER Time At an organization, John and David have recently joined as project manager's. They realize their roles are that of a project expeditor and a project coordinator. Which of the following statements provides information about the difference between a project expeditor and a project coordinator? It can be said that the project expeditor: - CORRECT ANSWER Does not have any authority to make any decisions

The project manager has just developed the scope baseline for the new augmented reality software project. What does the scope baseline comprise of? - CORRECT ANSWER WBS, WBS dictionary, and Scope Statement A project manager has made some changes on a Project. What should she do immediately right after making the changes? - CORRECT ANSWER Update and revise the project management plan and project documents The significance of value analysis for project management is to : - CORRECT ANSWER To decrease the cost while doing the same work If Project A has a Net Present Value of $40,000, and Project B has an NPV of $60,000, What is the opportunity cost to the organization if Project B is Selected?

• CORRECT ANSWER The opportunity cost refers to the value of the opportunity that was not selected. If project B is selected, then $40, A new supplier is being bought on board the project which the customer recommended. This supplier will allow the project to be completed within time, however, it will also lead to an increase in the project's risk. Which of the following actions should you take First? - CORRECT ANSWER Analyze the impact of the risk As a project manager, you have been working with a team of 5 people. Recently, 2 more people have been added to the team. How many communication channels are there? - CORRECT ANSWER The team comprised of 5 people originally, however note that the project manager was also a part of the overall team apart from your team members, so in total there were 6 people originally. Now 2 more people have been added, which brings the total to 8 people. Formula = [N(N-1)/2] Formula = [8(8-1)/2] = Free Float can be defined as the amount of time that an activity can be delayed on a project without delaying : - CORRECT ANSWER The early start of the successor activity

You realize that given the current market conditions, the project will end up with higher costs at completion. What is the best thing to do? - CORRECT ANSWER Eliminate risks and re-estimate Which of the following best explains why would a Project Manager make use of User Stories? - CORRECT ANSWER TO collect information regarding required project features Which of the following is the best description of the responsibility of a project management office (PMO)? - CORRECT ANSWER Their responsibility varies from being an advisor to having complete authority over a project Stakeholders have the most impact on a project during : - CORRECT ANSWER The start of the project You are not satisfied with the way Nathan is handling a project. Given the urgent circumstances, You reassign the work to Vanessa to ensure the deadlines are met and the deliverables are completed as per the defined scope.You ask the newly assigned Vanessa to get all the information regarding the project from Nathan. However, being angry and upset over having the project work taken away from them, Nathan refuses to share the information with Vanessa, making it impossible for her to start work on the project without having the necessary information to proceed. The deadline is approaching fast, What two powers can you use in this case to make sure the project deadlines are met. - CORRECT ANSWER Formal and Punishment A project manager would consider the following to be correct regarding inspections on a project : - CORRECT ANSWER THey prevent defective deliverables from being delivered to the customer You are receiving supply chain services under contract from an external supplier. As per the contract, the supplier is supposed to charge $40,000 per month. However, you notice that in the last 4 months, your project has been billed $75000 by the supplier. What is the best thing to do in this situation? - CORRECT ANSWER Review the contract change control system

A new international project in your organization involves people from 3 different countries. The project sponsor is in the USA. The project manager is in Malaysia. The engineers are in India. If you were the project manager for this project, suggest a way of making sure that all the project work is identified. - CORRECT ANSWER Create a work breakdown structure while taking input from all parties On a new project of yours, You are establishing the rules for how changes to the documents on the project will be recorded , and how everyone working on the project will be able to know which version of the documents they have with them. What are you creating? - CORRECT ANSWER Configuration Management System While working on your app development project for a large online retailer, the client requests you to add a list of some small new features to the app. Given that you do not currently have extra monetary resources available, what will you do? - CORRECT ANSWER Follow the contract change control system You are working on an a construction project for a building. The Project Sponsor has just signed off on the project charter. What should you do NEXT? - CORRECT ANSWER Create the management plans Your company has just been acquired by one of your bigger competitors at a significant premium. The new owners are evaluating the overall and total cost of your company as a new project. Which of the following describes this situation well : - CORRECT ANSWER Life Cycle Cost Which of the following stakeholders is involved in identifying risks on the project?

• CORRECT ANSWER All project stakeholders What percentage of their time do project manager's spend communicating on a project? - CORRECT ANSWER 90% The WBS is useful for tracking : - CORRECT ANSWER Scope A cross cultural project team from 4 countries is assembled to tackle an underground mining project. During which stage of team development do team members become more independent? - CORRECT ANSWER Forming

When a project manager arranges the resources so that a balanced number of them are used as per the demand is known as : - CORRECT ANSWER Resource Leveling A project team is currently involved in designing the prototype for a supercar for the mass market. The team is exploring the types of materials used in the various parts of the car that will result in the fastest performance with the lowest cost. Which of the following techniques can help them find the answer? - CORRECT ANSWER Design of Experiments What would you say is the major difference between the Cost budget and the cost baseline on a project? - CORRECT ANSWER Management Reserves A construction project has had consistently troublesome meetings since it started. There are several gaps in communication. People often interrupt one another during the meetings. Amongst the several complaints is that the correct information rarely reaches the people it was intended for. What do you think the project manager overlooked during the initial stages of this project? - CORRECT ANSWER Communications Management Plan Given that Projects can be managed at various levels, Which of the following would allow you as a project manager to manage the schedule and scope of a project at a higher level than a work package? - CORRECT ANSWER Control Account In procurement, the project manager's role can be most appropriately be considered as - CORRECT ANSWER The person who shares their knowledge of project risks A project manager is working on a project that involves setting up telecommunication towers on a mountainous area. There is a 40 percent chance of a delay in engineering , causing an impact of $300,000 and the delays due to weather may cause an impact of $150,000 (with a probability of 50 percent). What should be the value of the reserves? - CORRECT ANSWER The project manager is dealing with known unknowns. So he needs to create contingency reserves. The calculation will include calculating the Probability times impact of each of the risks separately and then adding them together. Delay in engineering :

0.40 x 300,000 = 120,0000 Delay in weather :0.50 x 150,000 = 75000 120,000 + 75000 = 195000 In a web development project which requires the design to be completed before software development begins is an example of : - CORRECT ANSWER Mandatory Dependency The statement that Best describes a sponsor's role on a project is that the sponsor : - CORRECT ANSWER Helps prevent unnecessary changes on the project Who creates the project management plan? - CORRECT ANSWER The project manager creates the project management plan with the help of the team since he has to manage the project and is responsible for its performance While managing the inventory in an automobile company that follows a Just in time environment, you need to keep a close eye on the inventory as it is in the percentage of : - CORRECT ANSWER 0% You have recently made a change to the scope of a project. In doing so , you have also considered the impact to the costs, performed integrated change control ,made adjustments to the project management plan and updated the project baselines. What should you do Next? - CORRECT ANSWER You should notify all the stakeholders who have been affected by the change Operations work is significantly important for the products which are produced by projects. Operations and Maintenance should : - CORRECT ANSWER Not be considered as a part of the project As a project manager, which of the following do you think is the main objective of having contract negotiations? - CORRECT ANSWER To protect the relationship You are working on a project for which numerous risks have been included in the risk priority list. Under which of the following situations would you (as a project manager) recognize that a risk trigger has manifested itself on the project? - CORRECT ANSWER If you come across a situation which gave a warning sign that an identified risk is about to occur

Which of the following statements is true for Analogous Estimating? - CORRECT ANSWER It is faster than bottoms up estimating While working on the development of a new telecommunication device project, you encounter a problem for which there is no information available in the risk register. What should be the First thing to do as the project manager? - CORRECT ANSWER Develop a workaround What is the considered as the topmost form of conflict to occur in a project : - CORRECT ANSWER Schedule A project manager is assigned to a project ideally during : - CORRECT ANSWER Project initiating The value of 3 Sigma from the mean value is equivalent to : - CORRECT ANSWER 99.73 Which of these techniques allows a project manager to determine the requirements of a project? - CORRECT ANSWER Delphi Technique The project manager comes across an activity on a project which has never been done by your organization before. What would be the best method for estimating time for such an activity? - CORRECT ANSWER Three Point Estimating As project manager, You notice that one of your team member's is not performing up to the mark. What is the best form of communication to handle this situation - CORRECT ANSWER Informal Verbal Communication The purpose of a work authorization system is to manage: - CORRECT ANSWER When and in what sequence work is done on the project You are working on an urgent project for a loyal client, your manager has approved the project charter and at the same time requests that you start working immediately and share the schedule with him. What is the FIRST thing you should do ?You are working on an urgent project for a loyal client, your manager has approved the project charter and at the same time requests that you start working immediately and share the schedule with him. What is the

FIRST thing you should do? - CORRECT ANSWER Create the Project Scope Statement As an organization that manufactures chairs, measuring one chair for quality standards out of a production of 100 chairs is an example of measuring : - CORRECT ANSWER Sample Your company is involved in a very competitive bidding to win a government project in a neighboring country. Your correspondent in the country suggests that you make a small payment to the finance minister to increase your chances of winning the contract. How should you proceed? - CORRECT ANSWER Refrain from making the payment Both Team Performance Assessments and Project Performance Appraisals are vital tools for a Project Manager. They differ from one another in the sense that Project Performance Appraisals are inclined towards - CORRECT ANSWER The individual performance of a team member At the team meeting for an ERP solutions project, your project team member recommends an addition to the scope of the project. Realizing this scope addition is beyond the scope as mentioned in the Project Charter, you suggest that the team should only concentrate on completing the work that is required and nothing extra. This is known as : - CORRECT ANSWER Scope Management In which of the following situations should the project baseline be changed? - CORRECT ANSWER When the change is approved on an official level An organization has a Fixed Price contract with a seller. Which of the following stakeholders has the most risk related to cost? - CORRECT ANSWER Seller What is the right way of dealing with stakeholders who have a High Interest and high power - CORRECT ANSWER Manage them closely One of your project team member's informs you that the activity he was working on will be delayed. As a project manager, what is the best thing to do at this moment? - CORRECT ANSWER Evaluate the problem

A project manager is working on an international project with stakeholders spread across Asia, Africa and Europe. The PM recently came across technical issues which could have a considerable negative impact on the project. What is the most effective way to involve all the experts from the different regions and solve the problem? - CORRECT ANSWER Use the Delphi Technique All projects should contain which of the following process groups? - CORRECT ANSWER Initiating, Planning, Executing, Monitoring & Controlling, and Closing You have just joined as the project manager for a 5 year long project that has recently reached 50 percent completion. The project consists of a team which spans across 4 different countries and over 50 team members. The sponsor wants you to quickly become up to speed with where the project stands , which report type would be Most useful for you to read - CORRECT ANSWER Progress Report Which of the following is the best description of a risk owner on a project? - CORRECT ANSWER Risk owners are responsible for executing risk response strategies At a Project Review Meeting for a large supply chain integration project, multiple concerns and issues were discussed. One of the engineer's mentions that most of the problems being faced on this project are similar to one of the previous project's he worked on earlier. He mentions he has the solutions to the current challenges this project is facing. What type of power would you say he is using? - CORRECT ANSWER Expert You discover that a quality requirement stated by the customer in the scope cannot be fulfilled. Which of the following is the least effective action you could take? - CORRECT ANSWER Communicate a message to senior management regarding the situation The main purpose Project reports are developed is to : - CORRECT ANSWER Provide information related to the project to stakeholders In a ______ organization, the project manager plays the role of a coordinator/expeditor. This organization type follows a functional structure: - CORRECT ANSWER Weak Matrix

The value of the optimistic estimate is 2. The pessimistic estimate is valued at 10, and the most likely estimate has a value of 9. What is the value of the PERT Estimate? - CORRECT ANSWER Formula for PERT = (P+4M+0)/6 =(10+4(9)+2)/6 =48/6 =8 What technique would a group of stakeholders use to assess the time, benefits, risk , and cost estimates to evaluate requirements? - CORRECT ANSWER Multi- Criteria Decision Analysis You are managing an enterprise level software development project for an automobile manufacturer. One of your team members is visiting the manufacturing plant to acquire confidential data in person. Which of the following actions is the most important thing to do when making an online video call to the team member? - CORRECT ANSWER Ask the team member to repeat what you mentioned If your project is experiencing poor risk management, which of the following would you consider as the most likely cause behind it? - CORRECT ANSWER Lack of prioritized risks Over the past few months you have developed a strong professional and close personal friendship with the contracted seller of your project. The seller is working on developing a new technological venture and invites you to serve as a consultant on it. The new venture is not related in any way to your current project or industry. What will you do? - CORRECT ANSWER Request permission from your employer Which of the following statements best states the involvement of stakeholders on projects - CORRECT ANSWER They help in determining the deliverables and constraints of the project Which of the following is the BEST description of how a project is Formally Accepted? - CORRECT ANSWER When the customer has given you the sign off During a project, what should the project manager be Ideally be focusing on? - CORRECT ANSWER Preventing unnecessary changes

A project manager is evaluating the historical performance of a project through multiple charts and graphs over the passage of a long time span. The project manager is most likely use which of the following: - CORRECT ANSWER trend analysis You have a meeting tonight with the client regarding validating the scope of a project deliverable. What is the most important thing to look forward to in this meeting? - CORRECT ANSWER Acceptance of the deliverable After a 3 year long complex telecommunication industry project, it is time to begin closure. What is most necessary in order for closure to begin? - CORRECT ANSWER the deliverables should have been accepted While working approximately mid way through a project , you receive a call from the client who now wishes to cancel the project's remaining work. The contract for the project stands cancelled. Which of the following documents would be useful in determining the purpose of the project? - CORRECT ANSWER The Project Charter, to go over the project description and client need You notice one of the members of the agile development team, Sam, is not performing as per his usual high standard. Since last week, his productivity has significantly gone down and the other members have reported he is not as proactive in his participation during meetings. As the project lead, what is the first thing you should do? - CORRECT ANSWER Talk to Sam privately and discuss the reasons for the recent changes At what point does the Agile team start the next sprint? - CORRECT ANSWER Right after the previous sprint Multiple development teams have been hired to work on a new social networking application. What should be the definition of done? - CORRECT ANSWER All teams will have the same definition of done Which of the following is the ultimate authority of how the product backlog has been organized? - CORRECT ANSWER Product Owner