1. Youare a projectmanagerworkingon a projectto marketa newproduct.The deliverablesof the project havebeenestablished,and the projectworkhas begun.

A contractto deliverthe deliverableshas been signed.The customerwhohas signedthe contracthas telephonedyouto requestadditionalworkto be done on the project. This workwill affect the budgetbut not the scheduleof the project. This projecthas a high prioritywith your company.Whatshouldyouso next? a. Do what the customer asks you to do and add the additional requirements to the original contract b. Refuse the request and send a memo to your management explaining the situation c. Respondto the customersrequestby explainingthe changeprocedureandaskingthathe or she submita requestfor change d. Arrange to meet with the project team to discuss this change

2. Youare the projectmanagerfor a highvisibilityproject. The marginon this projectis low,andit is extremely importantthat the cost estimatesfor the workon the projectbe accurate.Whilereviewingthe cost estimates for this projectyounoticethat one of the cost estimatesfor an elementin the WBSis 10%higherthantwo previousprojectsfor verysimilar work. Whatshouldyoudo? a. Accept the estimate because you trust all of the people on your project team, and they are responsible for estimates b. Reduce the estimate and add the additional budget to the management reserve c. Askthe personresponsiblefor the estimateto explainthe differenceandbringsupportinginformationto you d. Reduce the estimate and add the additional budget to the contingency reserve

3. Youare managinga projectin a foreigncountry.In this countrythereis a normalpracticefor business peopleto exchangegifts whenvery largecontracts,suchas the one youare workingon, are signed.The gift is of a greatervaluethanyour companyspolicyfor gift exchangewill allow.Youhavegivena gift of similar valueto the customersrepresentativealready.Whatshouldyoudo? a. Take the gift b. Contactyour companysmanagementandseekfor assistance c. Refuse the gift graciously, explaining your companys policy d. Ask the customers representative to give the gift to your manager.

4. You are the manager of a research group that is developing a new chemical material.You hire a person from a competing company who has a great deal of expertise in thisarea. The person contributes greatly to the progress of your project.

Duringconversation with the person you determine that many of this persons ideas weredeveloped by the competing company. What do you do? a. Tell the person that he or she should not mention that the ideas came from anothercompany b. Sign a nondisclosure agreement with this person before he or she leaves yourcompany c. Accept the new ideas d. Investigate the employee for security reasons

5. Youare managinga projectthat is in process.A largeand unexpectedproblemoccursthat will causea delayin the schedulein excessof the contingencyschedulefor the project. Whatshouldyoudo? a. Lookat other tasksin the scheduleand see whichonesshouldbe reducedto allowtimefor this problemto be worked b. Reduce testing on the completed tasks c. Require mandatory overtime for the project team d. Speak to the stakeholders about getting additional time and budget for the project

6. Youare the projectmanagerfor a largeproject. Somemembersof the projectteamhavecometo youand askedthat they be permittedto workon a flexibleschedule.Someof the other teammembersfeel that it is importantthat all teammembersbe on site at all timesunlessthey are absentfor businessreasons.What shouldyoudo? a. Turn down the request for flexible time schedules b. Accept the request for flexible time schedules c. Arrangea meetingof the projectteammembersandallowthemto decide d. Discuss this problem with your manager and act on the results of the meeting

7. Youare the projectmanagerfor a projectthat has highvisibility. Yourmanagerwantsyouto preparea presentationfor himto presentat a conference.Mostof the material in the presentationwill be facts that are the resultsof your project. Yourmanagerintendsto presentthe material underhis ownname.Yournamewill not appear.Whatshouldyou do? a. Refuseto workon the presentationunlessyouare listedas a coauthor b. Do the work as you were told by your manager c. Present your own presentation d. Meet with your managers manager and discuss the problem

8. Youare managinga projectandthe customersengineervisits your facility on an inspectionandgeneral gettingacquaintedtour. Duringthe tour they makethe commentthat the parts that are beingdesignedshould be in stainlesssteel insteadof plainsteel withenamel.Whatshouldyoudo?

a. Authorize the change in design to your engineers b. Continue with the present design c. Speakto the visitingengineersand discusshavingan informalmeetingbetween your engineersand the visitingengineers d. Ask the visiting engineers to submit a change proposal to the change system

9. Whichof the followingis the exampleof a conflict of interest? a. You are the fourth cousin of a vendor supplying parts to a project in your company b. Youare the ownerof a companythat is supplyingparts to a projectthat youare managing c. You receive a gift from a supplier of parts for your project d. A supplier tells you sensitive information, in confidence, that allows you to select another supplier for your project

10. Youare the projectmanagerfor a largeprojectthat is completedon timeandon budget.The customerand all of the stakeholdersare pleasedwiththe results. As a direct result of the successfulcompletionof the project, your managerapprovesa bonusof $25,000for you. Thereare fifteenmembersof the projectteam. Oneof the peoplein the project teamhas beena very low contributorto the project;the other fourteenhaveall beenabovestandard.What shouldyoudo withthe money? a. Keep the money yourself; you deserve it. And the manager gave it to you b. Divide the money equally among all the team members c. Askthe teammembershowtheywoulddividethe money d. Divide the money equally among the team members except for the substandard team member

11. Oneof the membersof your projectteamcomesto youandsaysthat he heardthat one of the suppliersto the projecthadgivena substantialgift to one of the projectteammembersin hopesthat the teammember wouldfavorhis companywitha purchaseorder. The companywasfavoredwitha purchaseorderfor the parts. Whatshouldyoudo? a. Talk to the person and get him or her to give back the gift b. Investigatethe mattercompletely c. Cancel the purchase order with the supplier d. Meet with your manager and discuss the problem

12. Decomposingthe majordeliverablesinto smaller, moremanageablecomponentsto providebetter control is called: a. Scope planning b. Scopedefinition c. Scope baselining d. Scope verification

13. Anynumberingsystemthat is usedto monitorprojectcostsby categorysuchas labor, supplies,or materials,for example,is called a. Chartof accounts b. Work breakdown structure c. Universal accounting standard d. Standard accounting practices

14. A personwhois involvedin or maybe affectedby the activitiesor anyonewhohas somethingto gain or lose by the activityof the projectis calleda: a. Team member b. Customer c. Stakeholder d. Supporter

The following should be used for questions 15 through 17. A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project managers estimate of the cash flow that will take place over the next five years. Endof Year CashFlowIn CashFlowOut 1 0 500,000 2 300,000 90,000 3 400,000 100,000 4 100,000 175,000 5 50,000 35,000 15. Whatis the paybackperiodfor this project? a. One year b. Two years c. Threeyears d. Four years 16. Whatis the net cashflowat the endof five years? a. $50,000 b. - $50,000 c. $850,000 d. $100,000 17. If the net presentvaluefor eachof the cashflowswerecalculatedat a 10%interestrate, the net present valuecashflowat the end of five yearswouldbe: a. Greater than the total cash flow without the net present value applied b. Lessthanthe total cashflowwithoutthe net presentvalueapplied c. The same as the total cash flow without the net present value applied d. Unable to be calculated with the information supplied

18. A groupof relatedprojectsthat are managedin a coordinatedwaythat usuallyincludean elementof ongoingactivityis calleda: a. Major project b. Project office c. Program d. Group of projects

19. Duringthe full life cycleof the project, a plot of the projectsexpectedexpenditurewill usuallyfollowa characteristicS shape.This indicatesthat: a. There is a cyclic nature to all projects b. Problems will always occur in the execution phase c. There are high expenditure during closeout d. The bulk of the projectbudgetwill be spentin the executionphase

20. A temporaryendeavorundertakento createa newproductor serviceis calleda: a. New product development b. Project c. Program d. Enterprise

21. A projectmanagermakesa narrativedescriptionof the workthat mustbe donefor her project. This is calleda: a. Project plan b. Control chart c. Statementof work d. Project objective

22. An exampleof scopeverificationis: a. Reviewingthe performanceof an installedsoftwaremodule b. Managing changes to the project schedule c. Decomposing the WBS to a work package level d. Performing a benefit-cost analysis to determine if we should proceed

23. The processof establishingclear andachievableobjectives,measuringtheir achievement,andadjusting performancein accordancewiththe resultsof the measurementis called

a. Strategic planning b. Contingency planning c. Detailed planning d. Managementby objectives 24. Configurationmanagementis: a. Used to ensure that the description of the project product is correct and complete b. The creation of work breakdown structure c. The set of proceduresdevelopedto ensurethat projectdesigncriteriaare met d. A mechanism to track budget and schedule variances 25. A projectmanageris employedby a constructioncompanyandis responsiblefor the furnishingof the completedbuilding.Oneof the first thingsthat the projectmanagerfor this projectshoulddo is to write a: a. Work breakdown structure b. Budget baseline c. Projectcharter d. Project plan

26. A projectmanageris creatinga workbreakdownstructurefor her project. In the workbreakdown structure,the lowestlevel of the breakdownfor the projectmanageris called : a. Activity b. Task c. Workpackage d. Cost account 27. A projectmanageris reviewingthe scopeof the projectand the scopebaselineof the project. This includeswhichof the following? a. The original project schedule, budget, and scope b. The original project description and project charter c. The originalscopeof the projectplus or minusany scopechanges d. The current budget of the project 28. A projectmanagerhas just becomethe managerof a project. The documentthat recognizesthe existence of the projectis called: a. The statement of work b. The project assignment c. The projectcharter d. The product description 29. A projectmanageris reviewingthe workbreakdownstructurefor her project. The WBSof the project represents: a. All the tangible items that must be delivered to the client b. All the workthat mustbe completedfor the project

c. The work that must be performed by the project team d. All the activities of the project 30. A managerwhomanagesa groupof relatedprojectsis calleda: a. Project manager b. Project expediter c. Program coordinator d. Programmanager 31. A newprojecthas begun.The projectcharterhas beenwrittenand the projectmanagerhas been assigned.The projectmanageris preparingthe workbreakdownstructurefor the project. The WBSis typically usedfor: a. Explaining the scope of the project relevant to the client b. The basisfor organizinganddefiningthe total scopeof the project c. Showing the resource conflicts that exist in the project d. The logical relationship between tasks in the project 32. Duringthe life of a project, the projectwill go throughseveralphases initiating,planning,execution,and closeout.Whichphaseof the projectis likely to havethe greatestamountof its fundingspent? a. Initiating b. Planning c. Executing d. Closeout 33. Duringthe courseof the projectit is importantthat the stakeholdersbe informedof the progressof the project. Oneof the reportsthat is frequentlyusedis a progressreport. Whichof the followingis true about progressreport? a. Theyallowstakeholdersto judgethe performanceof the projectaccordingto its plan b. They are generally considered to be overkill on very small projects c. They require the use of earned value reports d. They must be produced by the project manager 34. The coordinatedundertakingof interrelatedactivitiesdirectedtowarda specificgoal that has finite period of performanceis a: a. Project charter b. Project c. Set of project objectives d. Program 35. The documentthat is proofof uppermanagementscommitmentto the projectandgivesthe authorityto managethe projectto the projectmanageris called: a. The project plan b. The project goals and objectives c. The projectcharter d. The project definition

36. A projectmanagerworksin a companyfavoringthe weakestauthorityfor the projectmanagerthe type of organizationthat holdsthe projectmanagerto be the weakestis: a. Projectized organization b. Strong matrix organization c. Weakmatrixorganization d. Balanced matrix organization 37. A projectmanagerhas beenaskedby the client to meetthe promisedateof the project. The project manageranalyzesthe schedulebeforepromisinga date to the customer.The projectmanagerusesthe programevaluationandreviewtechniqueto evaluatethe projectschedule.She decidesthat basedon the PERTcalculationsshe can promisea deliverydate of June30. The expectedvalueof the projectcompletion date is May30. If the projectmanageris willingto accepta 5% probabilitythat the projectwill be delivered later thanJune30, whatis the standarddeviationof the durationof the activitieson the critical path?Assume a five-day workweek. a. Ten days b. Fifteen days c. Onehalf month d. One month 38. A projectis proposedto a customer.Priceandschedulefor deliveryare agreedupon.The work breakdownstructureis agreedto as well. The customerrequeststhat one of the milestonesof the projectbe completedby a certaindate. The projectscheduleis reviewed,and it is foundthat the expectedcompletion date for this milestoneis considerablyearlier that the date requestedby the customer.The date for this milestoneis whichof the following? a. Consideration b. Summary activity c. Constraint d. Suggestion 39. A projectmanageris managinga project. Theoriginalscopebaselineof the projectwasbudgetedat $100,000.Sinceworkon the projectstartedtherehavebeenseventeenauthorizedandapprovedchangesto the project. The changeshavea valueof $17,000andthe cost of investigatingthemprior to their approvalwas $2,500.Whatis the currentbudgetfor the project? a. $100,000 b. $114,500 c. $117,000 d. $119,500 40. In a very largeprojecthavinga budgetof $5 millionand a projectteamof over one hundredpersons,the projectmanagerconstructsa workbreakdownstructure.The projectmanagerwill do the WBSto the detail level of whichof the following? a. Task b. Activity c. WBS element d. Workpackage

41. A project manager is managing a project that has reached the end of planning phase. The work scope has been agreed to and definitive cost estimates have been completed for the project. The total estimated cost of the project is $100,000. It is reasonable to expect that the project will not cost over which of the following value? a. $100,000 b. $110,000 c. $125,000 d. $175,000 The following information and questions 42 through 51 refer to Figure 1

A schedule was developed for a project to install windows in an apartment building. The project is a rush job, and the contractor has agreed to schedule the work on a single shift basis but will work seven days per week until the job is done. The project is to begin on May 1. 42. What day in May will activity D have for its early finish date? a. May 13 b. May 6 c. May 7 d. May 5 43. What is the free float for activity F? a. 6 b. 7 c. 0 d. 8 44. What is the free float for activity D? a. 6 b. 7 c. 8 d. 0 45. What is the critical path of the project? a. A B E G H b. A B D F H c. A C G H d. A B E D F H

46. What is the late start for activity F? a. May 10 b. May 11 c. May 12 d. May 14 47. How long is the project in days? a. Nineteen b. Twenty c. Twenty-one d. Eighteen 48. What is the early start for activity F? a. May 7 b. May 6 c. May 5 d. May 4 49. If there is a delay in activity F of six days, what is the effect on the project completion date? a. Increases one day b. No change to project completion date c. Increases two days d. Increases three days 50. What is the early finish date for activity A? a. May 1 b. May 2 c. May 3 d. May 4 51. The above diagram is called: a. Activity on arrow network diagram b. Network diagram c. Precedence diagram d. Gantt chart 52. If a project manager were to make Thanksgiving dinner, two of the activities that might be of concern would be roasting the turkey and baking the sweet potatoes. In order to ensure that these two items will be finished cooking and will come out of the oven at the same time, what type of relationship should he or she use in the schedule between these two activities? a. Finish finish b. Start start c. Finish start d. Start finish Questions 53 through 56 refer to the diagram in Figure 2 and the table that follows.

In a project to install concrete sewer lines there is a lot of uncertainty as to how long the durations should be for the tasks involved. The project manager has determined that the team will use the PERT technique to evaluate the projects completion date. The diagram shows nine activities and the table shows the optimistic, pessimistic, and most likely estimates that the team has already made. 53. What is the expected value of the number of days to complete the project? a. 47.3 b. 22.0 c. 32.3 d. 48 54. It is desirable to make an estimate that has a greater than 95% chance of being correct. Which of the following ranges of time for the impletion of the project best describes this probability of being correct? a. 33.31 to 31.36 b. 34.28 to 30.39 c. 14.39 to 33.48 d. 35.25 to 29.42 55. What is the expected value of the duration for activity B? a. 5.6 b. 2.8 c. 3.0 d. 2.6 56. What is the standard deviation for the duration of activity B? a. 1.000 b. .133 c. .166 d. 1.413

57. The project manager decided to improve the predicted completion date for the project by doing in parallel several of the activities that were scheduled to be done in sequence. This is called: a. Crashing b. Increasing priorities c. Hurry up defense d. Fast tracking 58. Crashing the schedule means: a. Making the project shorter by any economic means b. Running the project team on overtime c. Doing activities that were in sequence in parallel d. Getting out of town before the project is in trouble 59. The original schedule (for a project, a work package, or an activity). Plus or minus approved changes, is called: a. The working schedule b. The target schedule c. The performance schedule d. The baseline schedule 60. Schedules are used in many ways. In a project to build a bridge the project manager wants to use a tool that will show the scheduled activities in such a way that it is easy to see when each activity starts and finishes and which activities are taking place at the same time. Which tool should be used? a. PERT chart b. Gantt chart c. Precedence diagram d. GERT chart 61. Which of the following is true? a. The critical path is the path through the network that has the highest total duration b. The critical path is the path with the least amount of free float c. The critical path is the list of activities that have zero float d. The critical path is the list of activities that have critical risks associated with them 62. Resource leveling will generally: a. Reduce the time needed to do the project b. Increase the total time necessary to do all the tasks c. Reduce the over utilization of resources d. Reduce resources to the lowest skill that is possible 63. A task was scheduled to use two persons, full time, and take two weeks to complete.Instead, the project manager was only able to assign one person to this task. At the endof two weeks, the person assigned to the task was 75% complete. What is the costperformance index? a. 0.75 b. 1.5 c. 1.33 d. .5 64. Five tasks are scheduled to be completed in sequence. Each task has a finishstartrelationship with the next task. Each has one day of total float. As of today, task one andtwo have been completed on schedule. How many days of float remain in the scheduleof these tasks?

a. Two b. One c. Zero d. Four 65. Whichof the followingis consideredto be a simulationtechnique? a. PERT analysis b. GERT analysis c. MonteCarloanalysis d. Critical path method 66. The maindifferencebetweenthe two types(ADM,arrowdiagrammingmethod,andPDM,precedencediagramming method)of the critical path method(CPM)of schedulingis: a. Placementof the activity on the logic diagramline b. Arrow diagramming method (ADM) is a deterministic method, whereas the precedence diagramming method (PDM) is a probabilistic method c. Precedence diagramming method (PDM) is a deterministic method, whereas the arrow diagramming method (ADM) is a probabilistic method d. Precedence diagramming method (PDM) is a more accurate method 67. The projectscheduleis not usedto determine: a. The start and finish dates of the activities b. Occasional changes to the activity listing c. The total float of the activities d. The projectsbudget 68. A projectmanagerwantsto makea trip to Californiaby car. Theprojectmanagerknowshowmanymilesit will be to driveto California,the currentpriceof gasoline,andhowmanymilesthe car will go on a gallonof gasoline.Fromthis informationhe or she can calculatethe estimatedcost of the gasolinefor the trip. This is a formof whatkindof estimating technique? a. Definitive b. Analogous c. Parametric d. Quantitative 69. A projectmanagerwantsto makea trip to Californiaby car. Theprojectmanagerknowssomeonewhohas madethis trip before.This personhas a similarcar to the one that the projectmanagerhas, and the personhas kept goodrecordson the moneyspentfor fuel on the trip. The distancethat the projectmanagerwill travel is 10%fartherthanthe other persons trip. By multiplyingthe cost of fuel reportedby the other personby 1.1, the projectmanageris performingwhat kindof estimate? a. Definitive b. Analogous c. Parametric d. Quantitative 70. To distinguishtop-downestimatesfrombottomup estimates,it wouldbe correctto say that the bottomup estimate wouldbe: a. Less accurate b. About equal in accuracy to the top-down estimate c. Moreaccurate d. No different to perform than the top-down estimate 71. A projectmanagerandthe projectteamidentifyseveralspecificrisksin a project. Theexpectedvalueof theserisks is estimatedat $10,000.Theimpacton the projectbroughtaboutby theserisksis estimatedat $40,000.Whatvalueshouldbe enteredinto the managementreservefor theserisks? a. $10,000

b. $40,000 c. $0 d. $25,000 72. A projectmanagerandthe projectteamidentifyseveralspecificrisksin a project. Theexpectedvalueof theserisks is estimatedat $10,000.Theimpacton the projectbroughtaboutby theserisksis estimatedat $40,000.Whatvalueshouldbe enteredinto the contingencyreservefor theserisks? a. $10,000 b. $40,000 c. $0 d. $25,000 73. Whatcharacteristicbest describesthe cost baseline? a. Total budget for the project b. Timephasedbudgetfor the project c. Total budget for the project including the contingency budget d. Total budget for the project including the contingency budget and the management reserve 74. A projectis formedto producea productthat will be usedfor transportingpeople.Coststhat are associatedwith the projectthat occurafter the deliveryof the productto the customerare consideredto be what kindof cost? a. Prorated cost b. Expenses c. Life cycle cost d. Expected value 75. A projectteamreceivesan approvedchangerequestfromcustomer.The teamhas previouslyestimatedthat the cost to implementthis changeis $10,000.Thecustomerhas agreedto pay this amountfor the additionalwork. Thecustomer realizesthat thereis a 50 percentchancethat this changewill not workand will later be removed.Whatchange,if any, shouldbe madein the budget? a. The project budget should not be increased b. The project budget should be increased by $15,000 c. The projectbudgetshouldbe increasedby $10,000 d. The project budget should be increased by $5,000 76. The act of doinganythingthat will help to bringfutureprojectperformanceinto line with the projectplan is called: a. Budget update b. Revised cost estimate c. Correctiveaction d. Contingency planning 77. Whichof the followingchoiceswouldbe an acceptablecausefor rebaselininga $10 millionproject? a. The monthly consumer price index on some of the commodities used on the project has been identified as having gone up by 1.6%, an increase of 46% over the 1.1% that had been budgeted b. The client has authorizeda $10,000additionto the scopeof the project c. The contractors company has instituted a quality program on which it has pledged to spend $1 million during the next year d. The productivity in the drafting department has been shown to be lower than anticipated, which has resulted in 1,000 additional hours, a 78% increase over what was budgeted 78. In termsof earnedvaluereporting,a projectis consideredcompletewhen: a. The BAC is equal to the PV b. The EV is equal to the AC c. The PV is equal to the AC d. The BACis equalto the EV

79. The timephasedcost of the projectthat reflectsthe expendituresratherthanthe consumptionof a resourcethat will be usedto measureandmonitorcost performanceon a projectis the: a. Spendingplan b. Cost baseline c. WBS d. Schedule 80. A largepieceof equipmentis neededfor the project. It will be retainedandusedafter the projectis completed.The equipmenthas a valueof $500,000,andit has a scrapvalueof $50,000at the endof its useful life of ten years. If the sumof the years digitsmethodof depreciationis used, whatis the depreciationthat is takenat the end of the third year? a. $81,818 b. $90,900 c. $65,250 d. $72,500

81. Using the formula: Present value = S/(1+i)n where i is the interest rate in percentage, n isthe number of periods, and S is the starting amount, the following table is produced: Periods 10% 12% 14% 1 0.909 0.893 0.877 2 0.826 0.797 0.769 3 0.751 0.712 0.675 4 0.683 0.636 0.592 5 0.621 0.597 0.519 Based on the table, what is the value of an annual income flow of $1,300 each year overthe next three years at 12%? a. $3122.60 b. $3900.00 c. $3497.00 d. 36% 82. Lifecycle costing: a. Is a method of including all of the cost associated with the project over its entire life b. Is a federal government accounting method c. Is a method of predicting the life of a project d. Is a method of evaluating projects when they are complete The following table and description refer to questions 83 through 89. A project manager is using the earned value reporting method to manage his project. Thefollowing table shows the data collected to date. The plan is for the project to be complete aftereight weeks. The earned value report shows data collected for the first four weeks of the project. The figure shown in the table are cumulative. Week PV AC EV 1 1,000 1,000 1,000 2 3,000 2,000 2,500 3 5,000 5,000 6,000 4 7,000 9,000 7,000 5 13,000 6 17,000 7 19,000 8 20,000 83. What is the cost performance index for week 4? a. 1.000 b. 0.777

c. 1.286 d. 1.250 84. What is the schedule performance index for week 3? a. 1.200 b. 0.833 c. 1.000 d. 1.500 85. What is the BAC for the project during week 4? a. 7,000 b. 9,000 c. 5,000 d. 20,000 86. During week 5 it is found that some of the work that was reported complete in week 2was considered unacceptable. It will require $500 to fix the problem and make this workacceptable. The work is scheduled to be done in week 6. No other work is reported to becomplete during week 5. What is the EV for week 5? a. 7,000 b. 6,500 c. 9,000 d. 5,000 87. What is the cost variance for week 4? a. 0 b. -2,000 c. 2,000 d. 7,000 88. What is the schedule variance in week 2? a. 500 b. 1,000 c. -500 d. -1,000 89. What is the EAC at week 4? a. 20,000 b. 15,555 c. 25,740 d. 17,717 90. The calculation of the EAC assumes that: a. The schedule performance index will remain the same for the remaining part of theproject b. The cost performance index will remain the same for the remaining part of the project c. The BAC will be different by the end of the project d. The EAC will continuously increase for the remaining portion of the project 91. What factors need to be known in order to be able to calculate the ETC? a. Budget at completion, actual cost, and planned value b. Budget at completion, earned value, and actual cost c. Estimate at completion and planned value d. Estimate at completion and actual cost

92. A construction company is being measured by the earned value reporting method.During the project one of the tasks, installing ten elm trees, was completed. The plannedvalue for this task was $4,000, and it was completed two weeks ago. Unfortunately forthe contractor, maple trees should have been planted. The customer insists that maple trees be planted and that the elm trees be removed. As of this time the elm trees are stillin the ground, but the contractor has agreed to do the work of replacing them. Whataction should be taken on the earned value report? a. Reduce PV by $4,000 b. Reduce AV by $4,000 c. Reduce EV by $4,000 d. Make no changes since the vendor has agreed to fix the problem 93. Learning curve theory emphasize that in producing many goods: a. Cost decreases as production rates increase b. Average unit cost decreases as more units are produces c. Materials become cheaper when they are purchased in bulk d. Laborers become more productive because of technological advances 94. A project manager is considering applying learning curve theory to his project. Theproject involves designing a number of software modules that are very similar. Accordingto the cost figures that have been collected the first unit required 100 personhours todesign and test. The second unit required 90 person-hours to design and test. Howmany person-hours will the eighth module take to design and test? a. 90 b. 100 c. 73 d. 172 95. The process required to ensure that the project will satisfy the needs for which it wasundertaken include all activities of the overall management function that determines thequality policy, objectives, and responsibilities and implements them by means such asquality planning, quality control, quality assurance, and quality improvement, within thequality system. This is called: a. Quality assurance b. Quality control c. Quality planning d. Quality management 96. Decisions as to the types of projects that should be accomplished and strategic plans asto the quality of the projects that are required should be the decision of which of thefollowing? a. Project manager b. Procurement manager c. Upper management d. Stakeholders 97. According to Deming and Juran most of the quality problems that exist are due to adefect or failure in processes that are controlled by: a. The project manager b. The procurement manager c. Upper management d. Stakeholders 98. A project manager is managing a large project and must consider the application of aquality management plan. One of the critical factors in such a plan is the cost ofimplementing the plan. The project manager should:

a. Invoice the client for all quality improvements b. Implement the highest quality possible regardless of cost c. Implement quality improvements as long as the benefits outweigh the costs d. Rely on upper management to determine the quality budget 99. A project manager has discovered a problem and is trying to determine the cause. Theprocess whereby he identifies the variables that have the most influence on the projectby holding all the variables constant and changing one at a time is called: a. Product correlation b. Design of an experiment c. System integration d. Output processing 100. A control chart is being used to control a manufacturing process. As part of the control asample of five parts is taken from the manufacturing process each hour of operation.Each of the five parts is measured and the dimension is recorded on the work sheet. Thedifference between the highest and lowest measured dimension of the five parts isplotted on the control chart. This is called which of the following values? a. R b. R bar c. X d. X bar 101. The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs is the definition for: a. Modern quality management b. Quality assurance c. Quality d. Quality control 102. A large project is being worked on by a large company. The client is interested in knowing how the company will be able to meet the quality needs of the project. In order to satisfy this request of the client the project manager arranges a meeting between the client and the: a. General manager b. Quality control manager c. Quality assurance manager d. Chief designer 103. One of the fundamental tenets of quality management is that quality: a. Must exceed customer expectation b. Is planned in and not inspected in c. Will increase cost d. Costs must all be passed onto the customer 104. A category or rank given to products that have the same functional use but different technical characteristics is called the products: a. Quality b. Functional characteristics c. Grade d. Technical characteristics 105. The quality manager of a company wishes to analyze the data that is coming to him in the form of a list of defects that have occurred in the shipping department. The report comes with defects listed chronologically as they occurred, the cost of the repair necessary to correct each defect, the person involved, and a description of the defect.

The manager would like to determine which of the defects should be corrected first according to the frequency of the defect occurring. He should use which of the following quality tools? a. Cause and effect diagram b. Sampling inspection c. Pareto diagram d. Quality critical path 106. A project manager from the quality control area is trying to categorize the number of mistakes that are made in the area that paints the right front fender of the Mercedes 560 SL. She list all the possible defects on a sheet of paper and asks the inspector to make a mark each time one of the listed defects is found. This is an example of using which of the following quality tools? a. Scatter diagram b. Statistical measurements c. Check sheet d. Random sampling 107. The project management team should be aware that modern quality management complements modern project management. For example, both disciplines recognize the importance of: a. Completion in the shortest possible time frame b. Making a maximum profit c. Having lower cost than competitor d. Customer satisfaction 108. In a manufacturing process that is being controlled by control charts there are variables occurring that will affect the process output. Variations in the process that are considered to be normal process variables are called: a. Common causes b. Uncommon causes c. Special causes d. Random causes 109. Work results, quality checklists, operational definitions, and the management plan are: a. Inputs to quality control b. Outputs from quality control c. Inputs to quality assurance d. Outputs from quality assurance 110. A control chart is being used to control a manufacturing process. As part of the control a sample of five years is taken from the manufacturing process each hour of operation. Each of the five parts is measured, and the dimension is recorded on the work sheet. The average of the five parts is plotted on the control chart. This is called which of the following values? a. X b. X bar c. Sample average d. Control average 111. A project manager for the quality department is trying to solve a problem with a machine that makes die cast aluminum parts that are used in automobiles. These parts are frequently made with defects. The project manager has decided to hold a meeting to discuss the process of making the parts. He creates a diagram that has branches that show the possible causes of the problems. Each of the branches breaks the cause down

into more and more detail. This diagram is called a: a. Pareto diagram b. Fishtank diagram c. Cause and effect diagram d. Scatter diagram 112. As the manager of the production department where electrical circuits are being made you observe the inspection station where the completed printed circuit assemblies are being inspected. In this operation the inspector takes the printed circuit assembly and puts it into a fixture. The fixture is part of the testing machine that has three digital readouts. The inspector records the readings on the three digital readouts on his inspection report. This is an example of: a. Attribute inspection b. Variable inspection c. Sampling inspection d. Process control 113. One of the important advantages of using control charts in managing a production operation is that the control chart tells you when to take corrective action on the process being controlled. Another important result of using control charts is: a. The control chart identifies the special causes b. The control chart tells you when you should not take corrective action c. The control chart shows how much the defects are costing d. The control chart shows who is responsible for the defects 114. According to the ideas behind modern quality management, quality improvements should be made: a. In large steps through detailed study of problems and then implemented as comprehensive solutions when they are funded b. In small incremental steps c. By assignment of permanent quality improvement teams d. By hiring ISO certification consultants to point out quality deficient areas 115. The Japanese developed a method of modern quality management that relies on continuing small improvements involving everyone from the top management to the lowest level worker in the organization. This is called: a. Kamban b. Kaizen c. PDCA d. Deming cycle 116. The primary benefits of meeting quality requirements are: a. Cost and delays are reduced, production improves, cost to customers goes up, and profits go up b. Cost and delays are reduced, production improves, market share increases, and profits go up c. Cost and delays are reduced, capital expenditures go down, market share increases, and profits go up d. Cost and delays are reduced, production improves, market share increases, and profits are maintained 117. When the quality management discipline is implemented, the benefits to costs ratio should at least be: a. Unable to be evaluated b. Less than one c. Of little importance

d. Greater than one 118. The quality management plan provides input to __________________ and addresses quality control, quality assurance, and quality improvement. a. The overall project plan b. The WBS c. The project scope d. External stakeholders 119. Project quality assurance: a. Includes policing the conformance of the project team to specs b. Provides the project team and stakeholders with standards, by which the project performance is measured c. Is a managerial process that defines the organization, design, resources, and objectives of quality management d. Provide confidence that the project will satisfy relevant quality standards 120. What are the major advantages of the functional type of organization? a. Single point of contact for the customer b. Stable organizational structure c. Project orientation d. Multifunctional teams are easy to form 121. The project managers leadership style should be matched to the corresponding developmental level of the project team and should move through successive steps in the following order: a. Disciplinary, autocratic, participative b. Projectized, matrix, functional c. Team building, team development, responsibility assignment d. Directing, coaching, supporting, delegating 122. A company has signed a contract for new work that is different from work that it has done before. The companys strategic plan calls for much of this kind of work in the future. It is important that it be able to bring the correct shared resources together to work on different parts of the contract. The type of organization that this suggest is a: a. Functional organization b. Contractor organization c. Matrix organization d. Pure project organization 123. The manager of a large corporation wants to sign a contract to build a nuclear power plant in Botswana several thousand miles away from the home office. The project will take several years to build and test. What type of organization will be best for managing this project? a. Functional organization b. Contractor organization c. Matrix organization d. Pure project organization 124. In matrix management organizations, if the organization maintains many of the characteristic of the functional organization and the project managers are considered more like project coordinators or expediters, it is called a: a. Strong matrix b. Project team c. Weak matrix d. Project office

125. A project manager is selecting team members for her project team. She collects the resumes and past performance reviews for the potential team members and discusses each with their functional manager. Which of the following is not a characteristic that the project manager should use in selecting the team members? a. Previous experience b. Personal characteristics c. Personal interest d. Salary 126. A project manager is responsible for all that goes on in the project. One of the most important duties that the project manage can perform is the function of: a. Risk management b. Quality management c. Cost management d. Integration 127. The organization that is a formalized structure directed toward the support of the project community within the organization is called: a. Matrix organization b. Project office c. Project team d. Project management office 128. On a project team one of the team members has a problem collecting on a medical insurance claim. The team member comes to the project manager and explains the problem. The problem is the responsibility of the: a. Project team b. Project manager c. Executive manager d. Human resource department 129. The organization that is a formalized structure where the project teams and the project managers reside is called: a. Matrix organization b. Project office c. Project team d. Project management office 130. A conflict arises about the method to solve a difficult design problem. The project manager is seeking a method of resolving the conflict. In order to achieve the most long lasting resolution to project conflicts, which of the following approached should be used? a. Problem solving b. Compromise c. Withdrawal d. Smoothing 131. In a large organization a project expediter is being used to manage a project for an important client. The position of project expediter would be found in what kind of an organization? a. Strong matrix b. Weak matrix c. Functional d. Projectized 132. The project manager of a project is concerned with managing cost and improving morale and is also concerned about notifying other project managers when individuals

from his project team will be available to work on other projects. This is best addressed in the projects: a. Communications plan b. Work breakdown structure c. Staffing plan d. Project schedule 133. The beginning and the end of the project is defined by: a. The project plan b. The project charter c. The team charter d. The project lifecycle 134. Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers. Examples of satisfiers are: a. Vacation time, assignment of a personal staff assistant b. Work satisfaction, fringe benefit c. Plush office space, performance-based salary raise d. Sense of personal achievement, work satisfaction 135. The skill of listening involves more than just hearing the sounds. One of the characteristics of a good listener is that he or she: a. Finishes the speakers sentences b. Take good notes c. Repeats some of the things said d. Agrees with the speaker 136. Primary outputs from team development are: a. Input to performance appraisals b. High project team morale c. Reduced project cost d. Greater customer satisfaction 137. An automotive oil change station was receiving complaints that service took too long. A coffee machine and television were installed in the waiting room and the complaints went down. This is an example of: a. Smith-Carlisle method b. Creative problem solving c. Analytical problem solving d. Decision analysis 138. A project manager is concerned about team building on her project. One of the mandatory things that she must have in order to have good team building is: a. Commitment from top level management b. Co-location of team members c. Establishment of clear negotiated goals d. Open discussion of poor individual performance 139. The project manager of a new project wants to get things started in a positive way with the project team. The project manager wants the team members to get to know one another, to introduce the project team and the project manager to one another, to discuss the objectives and goals of the project, and to identify some of the potential problem areas. This meeting is called a: a. Project team meeting b. Project kick-off meeting

c. Goal setting meeting d. Introduction meeting 140. A project manager is managing a project where there will be a number of persons working together. She wants to enhance the ability of the team to work together and perform as a team. One of the things that she can do to maximize the ability of the team to do this is: a. Cohabitation b. Co-location c. Staffing plan d. Work breakdown structure 141. A project manager is in need of a solution to a problem. He decides that the best thing will be to arrange a meeting to solve the problem rather than solve the problem himself or by having one of the project team members solve it individually. Generally, this will result in: a. The group taking more time than one individual b. The solution to the problem being less accurate c. The group taking less time than one individual d. In depends on the specific problem 142. A project manager will manage a large complicated project that is located in a remote part of Africa. The project will last for five years and will have the product of producing a nuclear reactor that will generate 900 megawatts of power at start-up. The best kind of organization for managing this project is: a. Strong matrix management b. Weak matrix management c. Projectized organization d. Functional organization 143. Project human resources management is divided into which of the following? a. Organization planning, staff acquisition, and team development b. Leadership, team building, and negotiation c. Recruitment, labor relations, and personnel administration d. Team building, communication, and labor relations 144. A project manager wants to do as much as she can to help in developing her project team. A key barrier to project team development is which of the following? a. Strong matrix management structure b. Major problems that delay the project completion date or budget targets c. Team members who are accountable to both functional and project managers d. Formal training plans that cannot be implemented 145. Which of the following media can a communicator use to present information? a. Visual b. Audio and visual c. Tactile d. Visual, audio, and tactile 146. The three principal interests in maintaining good document control are: a. Timely communication, collection of performance appraisal data, and assuring proper disposal of sensitive documents

b. Timely communication, maintain proper approvals, and communication cost control c. Effective communication, ability to reconstruct why decisions were made, and historical value d. Security, change management, and procedural documentation 147. A project manager wants to handle communications well in his project. In order to do this he has chosen to write a communication plan. Of the items listed below, which one is not part of the communication plan? a. Collection and filling structure b. Distribution plan c. Method for accessing information d. Project organization structure 148. Which of the following are filters that the receiver uses to filter messages? a. Language and knowledge b. Distance c. Culture and distance d. Language, distance, culture, and knowledge 149. A project manager has many different ways of communicating. Which of the following is a good communication tools for the project manager to use? a. Sending a videotape of the project progress to the client b. Inputting a task into the project managers personal computer c. Writing notes on a handheld computer d. Putting the project budget into a spreadsheet 150. The use of brainstorming as a communication technique encourages which of the following? a. Team building and convergent thinking b. Divergent thinking c. Analytical results d. Use of the scientific method 151. Which of the following techniques allows for the participants to be anonymous? a. Brainstorming b. Nominal group c. Delphi technique d. Crawford slip 152. Which of the following is not a standard type of communication? a. Written b. Verbal c. Nonverbal d. Clairvoyant 153. During a project meeting a disagreement between two members of the project team began. The disagreement was over a technical detail of the project. The project manager was in attendance in the meeting. It is important that the conflicting opinion of the two team members be resolved as quickly as possible. It is even more important that the difference of opinion be resolve correctly. What should the project manager do?

a. The project manager should make the decision right away to save time and not let the two disagreeing parties stay in disagreement very long b. End the meeting and give everyone a few days to cool off c. Assign someone to find out more factual information about the problem d. The project manager should suggest a compromise between the two disagreeing team members 154. In the communication model, communications between the sender and the receiver often are affected by communications barriers. These include all of the following except: a. Cultural differences b. Differences in motivation c. Educational differences d. Lack of a communications device 155. A project manager has one member of the project team working on a critical problem. The person working on the problem verbally communicates to the manager that this correction to the problem will probably cost $1,000. Which form of communication should the project manager use to respond to the team member? a. Written b. Oral c. Form letter d. Formal 156. Who is responsible for communications for the project team? a. The human resources representative b. The representative from the management information systems department c. The project manager d. The communications department 157. Statements such as Its never been done before: or It will cost a fortune are examples of: a. Feedback b. Communication blockers c. Conflict generators d. Forcing 158. The project manager has a very complex communication to prepare for the program manager. In order to ensure that the communication will be understood as completely as possible, what method of communication should be used? a. Oral b. Written c. Nonverbal d. Oral, written, and nonverbal 159. There are many ways to organize projects. The persons involved with these projects have several titles that describe their management responsibilities. Which of the following titles describes a person who has a primary responsibility for communications? a. Project manager b. Project manager in a strong matrix environment c. Project manager in a weak matrix environment

d. Project expediter 160. A project manager is responsible for performance reporting. Which of the following is not one of the tools and techniques that the project manager can use for performance reporting? a. Variance analysis b. Earned value reports c. Performance reviews d. Past project review 161. A projectmanagerdiscoversthat there is a part of the projectthat containssomerisk. His strategywith this risk is to subcontractthe workto an outsidesupplierby usinga firm fixedpricecontract.Whichof the followingmustthe projectmangerdo? a. The project manager should make certain that the project team does not reveal the risk to the supplier until the contract is signed b. The project manager should make every effort to make sure that the supplier is made aware of the risk after the contract is signed c. The projectmanagershouldmakesure that the supplierunderstandsthe risk beforethe contractis signed d. The project manager should assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly if it occurs 162. A projectmanageris facedwith makinga decisionabouta risk that the teamhas identified.The risk involvesthe designof a bicycle. It has beenfoundthat the neckof the bicycle,wherethe steeringbearingis locatedandthe two supportingbars of the framecometogether,will corrodein a highsalt environment.If this takesplacethe neckmayfail and injurethe rider. The projectteamdecidesthat the designof the bicycle shouldbe modifiedby usingcorrosionresistantmaterialsin the designof the neck. This will eliminatethe risk fromconsideration.This techniqueis called: a. Riskavoidance b. Risk acceptance c. Risk rejection d. Risk deflection 163. A problemoccursin the designof a grocerycart. In this caseit is determinedthat the wheelswill wear out muchquickerin areasof heavysnowandice becausethe salt will corrodethe wheelbearings.Using sealedbearingwheelswill significantlyincreasecost, and it is determinedthat the carts themselveswill be rusty anddamagedat aboutthe sametimethe wheelbearingsbeginto fail. By injectingthe wheelbearings with a hightemperaturegreasethe life of the wheelbearingsis increasedconsiderably.The project recommendsusingthe hightemperaturegrease.This is called: a. Risk acceptance b. Risk avoidance c. Riskmitigation d. Risk deflection 164. The contingencybudgetwill: a. Reduce the probability of scope changes b. Reducethe probabilityof cost overruns c. Increase the probability of a cost overruns d. Increase the probability of scope changes 165. A risk has four possibleoutcomes.Giventhe followinginformation,whatis the expectedvalueof this risk?

Probability Result of Risk 0.4 -10,000 0.3 -7,500 0.2 -5,000 0.1 +2,500 a. -$20,000 b. -$14,500 c. $7,000 d. -$7,000 166. The projecthas doneits risk analysis.In the processof risk identificationthe projectteamhas determinedthat thereare risksthat will probablyhappenthat havenot beenidentifiedor evaluatedexceptby notingthat otherprojectsof this type havehistoricallyhad a certainamountof risk discussedin the lessons learnedof the project. This projectteamshouldset asidemoneyto handletheserisksin whichfinancial category? a. Risk management fund b. Contingency budget c. Managementreserve d. Emergency fund 167. A projectmanagerobservesthat in one part of the projectseveralactivitiesare beingcompletedlate. All of theseactivitieshaveseveraldaysof free float associatedwiththem.Theseare early warningsof the risk that the projectwill be late in completion. Theyare called: a. Risktriggers b. Warning messages c. Risk forecasts d. Schedule risks 168. The effect of risk on scheduledatesfor the projectcreatesan arrayof datesthat are possiblefor project completion.In a typical projectthe mostlikely date for the projectwill havewhichof the following relationshipswiththe expectedvaluefor the projectcompletiondate? a. The mostlikely date will be earlier thanthe expectedvaluedate b. The most likely date will be later than the expected value date c. Both dates will have the same likelihood d. The most likely date and the expected value date will occur at the same time 169. A projectmanageris reviewingthe risksof her project. Oneof the risksshe is reviewinghas an impactof $25,000and an associatedprobabilityof 10%.The risk is associatedwithan activitythat is the predecessorto sevenotheractivitiesin the schedule.All eightactivitiesare on the critical path. The sevenother activities havea budgetof $75,000.Whatis the expectedvalueof this risk? a. $10,000 b. $100,000 c. $25,000 d. $2,500 170. In probabilitytheory,whatis the probabilitythat if youroll twodice (cubeswith consecutivenumbers1 to 6 on eachof the six faces)you will haveat least one 6? a. 1/3 b. 11/36

c. 1/36 d. 1/6 171. A projectmanageris lookingat the risk associatedwiththe projectschedule.Realizingthat if the risks occurthe projectwill be deliveredto the stakeholderslate, the projectmanagerdecidesto considerthe risk andpromisedeliverylater thanthe mostlikely projectcompletiondate. He thentakesthe timebetweenthe promisedate andthe mostlikely completiondateanddistributesit amongthe activitiesof the project schedule.This createsfloat in the schedule.This processis called: a. Schedule delay b. Critical chain scheduling c. Buffering d. Contingency scheduling 172. A projectmanagerwantsto give someguidelinesto the projectteamas to howrisk eventsshouldbe described.Whichof the followingitemswouldnot be appropriatein describinga risk event? a. Probability that the risk will occur b. The cost of the risk should it occur c. Expected timing of the risk when it is expected to occur d. The clientsoutsourcingmethod 173. A projectmanagerandher projectteamare analyzingrisk in their project. Oneof the thingsthat they mightdo to helpidentifypotential risksor opportunitieswouldbe to review: a. The project budget b. The goals and objectives of the project c. Lessonslearnedfromothersimilar projects d. The monetary value of changes for similar projects 174. A projectmanagerholdsthe first risk meetingof the projectteam.The client is presentat the meeting.At the meetingseveralrisksare identifiedandassignedto membersof the projectteamfor evaluationand quantification.The result of the meetingis: a. Expected value of the risk events b. Strategies for the risk events c. A list of potential risk events d. General statements about risk for the project 175. In the MonteCarlotechnique,what is the criticallyindex? a. The numberof daysthe projectwill be late dividedby the projectduration b. The percentof timea givenactivitywill be on the critical path c. The percent of time an activity will be late d. The sum of the duration of the critical path activities divided by the project expected value for duration 176. The managementreservefor the projectcontains: a. Money to offset missing cost objectives b. Money to offset missing schedule objectives c. Moneyto offsetmissingcost or scheduleobjectives d. Money to handle the effects of known risks in the project 177. A projectmanagerusesthe breakevenpoint to justifyhis project. He presentsthis as a justificationfor buyinga newmachine.Whatrisk doesthe projectmanagerrun by usingthis techniqueto justify buyinga new machinefor his company?

a. Breakevenpoint will favor buyinga cheap,low-quality machine b. Breakeven point will favor buying a machine that is too expensive for the work required c. The company may not have the funds to buy the machine in spite of the justification d. The machine may not be available because the justification method takes a long time to calculate 178. Goldrattscritical chaintheorysaysthat in orderto reducerisk in scheduleswe should: a. Start activities in the feeder chains as early as possible b. Start activities in the feeder chains as late as possible c. Start activities in the critical chains as early as possible d. Addbuffer to the critical chains 179. In managingthe risk of the projectschedulewe are managingthe risk that the projectwill not be deliveredor completedon time. If we assumethat the projectspossiblecompletiondatesare normally distributedandwe promisethe clientthe mostlikely of the projectspossiblecompletiondates,whatis the probabilitythat the projectwill be deliveredlate? a. 5% b. 10% c. 50% d. 77% 180. A risk eventin a projectis somethingthat can havean effect on the project: a. For the better only, a positive effect b. For the worse, a negative effect c. Bothbetter or worse,a positiveor negativeeffect d. Neither better nor worse, neither a positive nor a negative effect

181. The project team has put together a project plan for a project, and the plan has been approved by the stakeholders. The customer asks the project manager if the project can be delivered seven weeks sooner. The customer offers sufficient monetary incentive for the project manager. The project manager decides to fast track the project. This decision will: a. Increase risk b. Decrease risk c. Not affect risk d. Risk change cannot be determined 182. A project team evaluates risk in the project. As an outcome there are some positive and negative risks that are identified and evaluated. To evaluate the worst case for the project the project team should evaluate and summarize: a. All of the risks affecting the project b. Only the negative risks c. The negative risks minus the positive risks d. The positive risks minus the negative risks 183. The Project Management Institute decided to hold its annual meeting in New Orleans, Louisiana. The conference represents a substantial amount of PMIs operating budget for the year. PMI identified a risk of hurricanes during the month of September, when the conference was to be held. PMI decided to purchase convention insurance to offset the loss of convention revenue if a hurricane caused cancellation of the conference. This is a

risk management strategy called: a. Avoidance b. Deflection or transference c. Acceptance d. Mitigation 184. During the project lifecycle, in which part of the lifecycle will risk be the lowest? a. Initiation b. Planning c. Execution d. Closeout 185. The Monte Carlo technique can be used to: a. Determine the amount of contingency budget needed for the project b. Determine the amount of the management reserve c. Determine the critically index for an activity in the schedule d. Determine the risk index for a risk in the project 186. A project manager must make a narrative description of the project. This narrative description covers the items that will be supplied under the contract with the client. It is called: a. The project plan b. The statement of work c. The exception report d. The progress report 187. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following is true? a. The supplier will include an allowance for the risk in the contracted price b. The supplier will lose money on the contract c. The project manager will have to compensate the supplier if the risk occurs d. The project manager will assist the supplier with the project team if the risk occurs 188. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. The project manager should: a. Make certain that the project team does not reveal the risk to the supplier until the contract is signed b. Make every effort to make sure that the supplier is made aware of the risk after the contract is signed c. Make sure that the supplier understands the risk before the contract is signed d. Assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly is it occurs 189. The project manager is considering contracting some of the work of the project to a service bureau. The service bureau has been used in the past by this project manager. The manager has several choices of contracts that can be used to subcontract this work. Which of the following is not a type of contract that the project manager might choose? a. Firm fixed price b. Make or buy c. Cost plus incentive fee d. Unit price 190. A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first things that the project manager for

this project should do is to write a: a. Work breakdown structure b. Budget baseline c. Project charter d. Project plan 191. A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractors project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for partial payment for work accomplished. Which of the following actions by the buyer is most likely to cause problems for the projects? a. Starting to make partial payments to the contractor b. Making no payments to the contractor c. Paying for work accomplished to date d. Negotiating a change to the contract 192. Under a blanket order arrangement, which of the following is correct? a. The cost of carrying the inventory is borne by the buyer b. The seller delivers all of the material ordered at one time c. Payments for all of the material are made at one time d. At the end of the blanket order, prices are adjusted for the actual amount of material delivered 193. Forward buying will: a. Decrease storage cost b. Decrease capital investment c. Decrease transportation costs d. Decrease inventory 194. Which of the following would not be a part of the procurement management process? a. Purchasing b. Contract negotiations c. Inspection d. Marketing 195. The equivalent of cost-reimbursable contracts is frequently termed: a. Back-charge contracts b. Fixed-price contracts c. Progress payment contracts d. Cost-plus contracts 196. The project team has delivered a deliverable to the customer. The deliverable contains defects that are easily correctable. There is a good relationship with the customer and the customer agrees to make the repairs and correct the defects on the item and invoice supplier for the work that was done. This is considered to be a: a. Bid cost reduction b. Payment authorization c. Back charge d. Release payment 197. A project manager decides to go out for bids on some of the project work that must be done as part of the contract to do a project for another customer. The bids are received and evaluated, and the seller with the lowest bid is selected. The cost of the contract to the project can further be reduced by what action? a. Illegal methods

b. Procurement leverage c. Selecting another seller d. Contract negotiation 198. A buyer extends a formal invitation that contains a scope of work that seeks a response that will describe the methodology and results that will be provided to the buyer. This is called: a. Invitation to bid b. Request for information c. Request for proposal d. Request for bid 199. A project manager wants to subcontract part of the project. This part of the project is quite complicated, and there are many ways that the work can be done. What method of request for seller responses should be used by the project team? a. Request for bid b. Request for quotation c. Request for proposal d. Request for information 200. The project team is considering whether to purchase a service or do it themselves. One of the items that should not be considered in their analysis is: a. The sellers price b. The cost and availability of floor space at the teams facility c. The sellers technical staff d. A competitors method of outsourcing

201. Duringtesting,multipledefectswereidentifiedin a product.Theprojectmanageroverseeingthis product's developmentcan best use whichtool to help prioritizethe problems? A. ParetoDiagram B. Control Chart C. Variance Analysis D. Order of Magnitude estimate

202. Youare the managerof an aircraft designproject. A significantportionof this aircraft will be designedby a subcontractingfirm. Howwill this affect yourcommunicationsmanagementplan? A. More formal verbal communication will be required. B. Performance reports will be more detailed. C. Moreformatwrittencommunicationwill be required . D. Official communication channels will significantly increase.

203. Whatofficially createsthe project? A. The project initiating document. B. The kickoff meeting. C. Theprojectcharter. D. The statement of work.

204. Referto the table. Whatis the critical path?

A . Start A B C I Finish B. Start A B H I Finish C. Start D E H I Finish D. Start F G I Finish

205. The Delphitechniqueis a wayto: A. Analyze performance. B. Gatherexpert opinion . C. Resolve conflict. D. Estimate durations.

206. The workauthorizationsystemmakessure that A. All the work and only the work gets performed. B. Workgets performedin the right orderand at the right time.

C. Work is done completely and correctly D. Functional managers are allowed complete control over who is assigned and when.

207. Yourteamis hardat workon their assignedprojecttaskswhenone teammemberdiscoversa risk that wasnot identifiedduringrisk planning.Whatis the FIRSTthingto do? A. Halt work on the project. B. Update the risk management plan. C. Look for ways to mitigate the risk. D. Assessthe risk.

208. The activity durationestimatesshouldbe developedby: A. Thepersonor teamdoingthe work. B. The project manager C. Senior management. D. The customer.

209. Theprojectplanshouldbe all of the followingEXCEPT: A. A formal document B. Distributed to stakeholders in accordance with the communications management plan C. Approvedby all projectstakeholders. D. Used to manage project execution.

210. Youhavebeenaskedto take chargeof projectplanningfor a newproject, but yo haveverylittle experiencein managingprojects.Whatwill be the best sourceof help for you? A. Your education. B. You on-the-job training. C. Historicalinformation. D. Your functional manager.

211. The majorityof the projectbudgetis expendedon" A. Project plan development B. Projectplanexecution C. Integrated change control D. Project communication.

212. Correctiveactionis: A. Fixing past anomalies B. Anythingdoneto bringthe project'sfutureperformancein like with the projectmanagementplan. C. The responsibility of the change control board D. An output of project plan execution.

213. Outputsof Directand ManageProjectExecutioninclude: A. Deliverables and performance reports. B. Deliverables and corrective action. C. Deliverablesandworkperformanceinformation D. Performance reports and requested changes.

214. Youroriginalplanwasto constructa buildingwith six storieswith eachstorycosting$150,000.This wasto be completedin 4 months.However,the projecthas not goneas planned.2 monthsinto the project, earnedvalueis $400,000. Whatis the budgetat completion? A. 450,000 B. 600,000 C. 800,000 D. 900,000

215. ProjectIntegrationis primarilythe responsibilityof" A. The project team. B. Theprojectmanager.

C. Senior management. D. The project sponsor.

216. Oneof your teammemberhas discovereda wayto add an extradeliverableto the projectthat will haveminimal impacton the projectscheduleand cost. The projectcost performanceidex is 1.3 and the scheduleperformanceindexis 1.5 The functionalitywasnot includedin the scope.Howshouldyou procee d? A. Conformto the projectscopeand do not addthe deliverable. B. Deliver the extra work to the customer service since it will not increase their cost. C. Reject the deliverable because you are behind schedule. D. Ask senior management for a decision.

217. If a projectmanageris unsurewhohas the authorityto approvechangesin projectscope,she shouldconsult: A. The customer. B. The scope statement. C. The sponsor. D. the scopemanagementplan.

218. An end user has just requesteda minorchangeto the projectthat will not impactthe projectschedule.Howshould you, the projectmanager, respond? A. Authorize the change quickly to ensure that the schedule can truly remain unaffected. B. Deny the change to help prevent scope creep. C. Evaluatethe impactof changeon the other projectconstraints. D. Submit the change request to customer for approval.

219. Whichof the followingtools is NOTusedin initiatinga project? A. Project selection methods. B. Project management methodology C. Expert judgement D. Earnedvalueanalysis.

220. Youoverhearda causalconversationbetweentwo teammembersin whichoneconfidesto the other someproblems he is havingin completinghis part of the projectwork.Yourealisethat the workbeingdiscusedin on the project'scritical path andthat the informationyou overheardcouldmeana significatintdelayfor the project. what shouldyou do? A. Let the teammemberknowthat you heardhis conversationanddiscussthe workprobelmswith himimmediately. B. Begin analysing ways to compress the project scheudle in anticipation of the potential delay. C. Ask a third team member to get involved immediately and encourage the two other team members to come to you with the delay. D. Ask human resources for help in resolving the problem.

221. The processof ContractAdministrationfalls underwhichprocessgroup

A. Planning B. Closing C. Monitoring and Control

D. Executing 222. SamConsultancyhas a largeinternalprojectto be initiated.To staff this project, SamConsultancyis workingwithPeopleConsultancyto providethreeresourcesfor six months.The resourceswill be part of the teammanagedby SamConsultancyfor six months.Whichcontracttype shouldbe usedby Sam Consultancy?

A. Purchase Order B. Cost plus Fee C. Fixed cost

D. Time and Material 223. SamConsultancyis planningto buy ten desktopsfor $1500eachfroma leadingcomputerstore. Which type of contractwill get signedin this case?

A. Purchase Order B. Cost plus Fee C. Fixed cost

D. Time and Material

224. TreeConsultancyis getting200 computersinstalledfroma vendor.The vendorwill be paidthe cost involvedanda 10%incentive.Whichcontractwill be usedin this case?

A. CPPC B. CPIF C. CPFF

D. Fixed Cost 225. Aliceis a ProjectManager.Sheis coordinatinga bidderconferenceto allowvendorsto get clarification on the workthat needsto be performed.Whichphaseof ProjectManagementis in progress .

A. Request Seller Process B. Plan Contracting C. Select Sellers

D. Contract Administration

226. ProcessAnalysisis a functionof: A. B. C. D. Performance Analysis Quality Metrics ProcessImprovementPlan Quality Improvement Plan

227. Root CauseAnalysisrelatesto: A. B. C. D. ProcessAnalysis Quality Audits Quality Control Measurements Performance Measurements

228. TrendAnalysisis oftenperformedusing: A. B. C. Cause and Effect Diagram Control Charts Pareto Chart

D. E.

RunChart Scatter Diagram

229. A Paretodiagramcan be best describedas: A. B. C. D. Cause and Effect Diagram Scatter Chart Control Chart Histogram

230. A planningphasefor an engineeringcomponentgenerated80 engineeringdrawings.The QA teamrandomly selected8 drawingsfor inspection.This exercisecan BESTbe describedas examp le of: A. B. C. D. Inspection StatisticalSampling Flowcharting Control Charting

231. ReserveAnalysisa techniqueNOTusedin: A. B. C. D. Cost Estimating Cost Budgeting Cost Control Estimating Activity Duration

232. A Projectwith a total fundingof $100,000finishedwith a BACvalueof $95,000.Whattermcan BESTdescribethe differenceof $5,000? A. B. C. D. Cost Variance Management Overhead ManagementContingencyReserve Schedule Variance

233. ProjectCostManagementPlanis createdas a part of: A. DevelopProjectManagementPlanprocess

B. C. D.

Cost Estimating process Cost Budgeting process Cost Control process

234. A particularprojectin the domainof civil constructionrequiresthat everyon-site workerbe insured.Whichof the followinginputsBESTconveysthis requirementto the Cost Estimationprocessso that the insurancecost is estimated and subsequentlybudgeted: A. B. C. D. Enterprise Environmental Factor Organizational Process Assets ProjectScopeStatement Project Management Plan

235. _____________is not a part of the projectcost baselinebut is includedin the projectbudget: A. B. C. D. Activity Cost Contingency Reserve ManagementContingencyReserve Management Overheads Project Management Planing

236. ___________is not part of the EarnedValuecalculations. A. B. C. D. Known Unknowns UnknownUnknowns Project Budget Amount of work completed

237. Whatis the BESTwayto makean accurateforecastingof ETC? A. B. C. D. ManualForecastingof cost of remainingwork. BAC EV (BAC EV)/CPI EAC - AC

238. If the EarnedValueis equalto ActualCost, it means:

A. B. C. D.

Project is on budget and on schedule Schedule Variance Index is 1 There is no schedule variance Thereis no cost variance

239. TrendAnalysisis BESTdescribedas: A. B. C. D. Analyzing performance of similar projects over time Examiningprojectperformanceover time Calculating Earned Value Calculating Cost Variance

240. Whichof the followingis not doneas part of PerformanceMeasurements? A. B. C. D. Calculating Planned Value CalculatingEarnedValue Calculating ETC Calculating Cost Varianc6e

241. Jeff always delivers his projects on time and within budget. He believes that his success can be explained by the fact that he makes all of the project decisions himself and then enforces those decisions with an iron hand. His management style is best described by A. Kurt Lewins Force Field theory. B. McGregors Theory X. C. Elizabeth Duffys Arousal Theory. D. McGregors Theory Y.

242. One of the following items is not used in assessing the completion of the project scope. Which one? A. The product requirements. B. The project management plan. C. The project scope statement. D. The WBS and WBS dictionary.

243. Hard logic is also known as A. Mandatory dependencies B. Preferred dependencies C. External dependencies D. Discretionary dependencies

244. Contract negotiation is the process A. of clarifying and developing a mutual agreement on the structure and requirements of the contract. B. of clarifying and developing a mutual agreement on the responsibilities and authorities that will govern contract administration. C. in which parties with different interests reach an acceptable agreement through communication and compromise. D. bargaining with the seller concerning resources, information and activities in order to come to terms that can be incorporated into the final contract.

245. A checklist is A. an ordered listing of quality items that must be verified before the quality control step is completed. B. an inspection list that is used when no evidence exists that the quality level of the product being submitted is better or worse than the specified quality level. C. a technical list of measured variables or counted data for decision making in a quality process review. D. a structured tool used to verify that a set of required steps has been performed.

246. Developing the answers to questions such as Who needs what information, What form is appropriate and Who is responsible for its preparation is part of which process? A. Communications planning B. Information distribution C. Project plan execution D. Scope planning

247. Questions such as What products are available in the marketplace and What is the current balance between supply and demand are related to what input to procurement planning? A. Availability assessment.

B. Cost/benefit analysis. C. Market conditions. D. Competitive fit analysis.

248. Inspections are A. a statistical sampling and examination. B. activities undertaken to determine whether results conform to requirements. C. recorded data concerning the results of inspection actions. D. performed during the manufacturing or repair cycle to help prevent defects from occurring.

249. Which process in integration management uses inputs from the largest number of of other PMBoK processes? A. Develop Project Management Plan. B. Direct and Manage Project Execution. C. Monitor and Control Project Work. D. Integrated Change Control.

250. The cost baseline is usually not changed unless A. the basis for the original cost estimate is found to be false and the project must be re-estimated. B. significant cost deviations have been reported and it is desired to have future cost reports be based on an as of date. C. the revision is the result of an approved scope change. D. the time baseline is also changed.

251. Qualitative numbers A. cannot be measured numerically. B. cannot be meaningfully added together. C. are ones that are measured by reference to a standard that is external to the system. D. are less reliable than quantitative numbers.

252. In estimating the total amount of material resources required for a project you must first estimate the amount of waste to be expected. You will most likely find this information in which process input? A. Resource requirements B. Historical information C. Parametric modeling D. Supporting detail

253. Which of the following statements is not true about stakeholder analysis? A. A methodical and logical view of the stakeholders information needs should be made. B. Care should be taken to include all information that may be of interest to one or more stakeholders. C. The analysis should consider methods and technolgies suited to the project that will provide the information needed. D. The sources needed to meet stakeholder information needs should be identified.

254. The project plan is usually developed by A. senior management of the performing organization. B. the customer. C. the project manager. D. the project management team.

255. Which of the following is not true about error in project quality management? A. It is an unavoidable component of all project work. B. It is more costly than the design and planning work that would be necessary to prevent it. C. It is a source of learning rather than a basis for disciplinary warnings or actions. D. It is a reflection of inadequate project planning.

256. Which of the following inputs to contract administration is not based on the sellers work deliverables? A. Reports on what work has been started, is in progress or is finished.

B. Change requests. C. Reports on cost, schedule and technical performance. D. Inspection reports.

257. Doing activities in parallel that would normally be done sequentially in order to achieve project objectives or to deal with resource allocation problems is called A. Crashing B. Accelerating C. Fast Tracking D. Objectives management

258. Which of the following is usually not considered a goal of portfolio management? A. To maximize the value of the portfolio by careful examination of candidate projects and exclusion of those no meeting strategic objectives. B. To balance the portfolio among incremental and radical investments. C. To manage the effective and efficient use of resources. D. To ensure that the relationship between projects in the portfolio clearly reflects strategic objectives.

259. Which of the following is not true about the relationship between the activity definition processes and the WBS? A. These processes may identify deliverables missing from the WBS B. These processes may identify inaccurate descriptions in the WBS C. These processes may result in WBS changes that require additional scope definition work. D. The WBS provides the key input to these processes but is not part of any of its outputs .

260. All of the following are true concerning the product description except
A. it is another term for the Statement of Work (SOW). B. it describes the ultimate end product of the project. C. it provides important information about any technical issues that are relevant to procurement planning. D. it is usually included in the Request for Proposal (RFP).