PMP Lite Mock Exam 3 Practice Questions

Test Name: PMP Lite Mock Exam 3

Total Questions: 50

Correct Answers Needed to Pass: 35 (70.00%)

Time Allowed: 60 Minutes

Test Description
This is a cumulative PMP Mock Exam which can be used as a benchmark for
your PMP aptitude. This practice test includes questions from all PMBOK
knowledge areas, including the five basic project management process
groups.

Test Questions
1. A project stakeholder is anybody whose interest can be negatively or
positively affected by the outcome of the project or who may be able
to affect the success or failure of the project. Which of the following
examples is of a negative stakeholder?
A. The chief financial officer of the company believes that the
project's NPV is zero
B. The sponsor wants to add resources to the project to
complete the project on time
C. The marketing manager is expecting increased revenue as an
outcome of the project
D. The operations manager believes that legacy technology is
being deployed
2. What is the difference between a histogram and a Pareto chart?
A. A histogram is a less accurate version of a Pareto chart.
B. A histogram is a type of Pareto chart.
C. A Pareto chart is a type of histogram.
D. A histogram and a Pareto chart simply different terms for the
same technique.
3. As a project manager, you are responsible for determining and
delivering the required levels of both grade and quality. Select which
of the following statements you disagree with.
A. Grade relates to the product's characteristics
B. Grade relates to the customer requirements
C. Quality relates to the customer requirements
D. Quality and grade of a product must be carefully managed
4. Which of the following processes produces a work breakdown
structure as an output?
A. Create WBS
B. Define Scope
C. Develop Project Management Plan
D. Define Activities
5. How can a project manager ensure continued active support of the
project supporters and at the same time minimize negative impacts
from the negative stakeholders?
A. By ensuring that stakeholders clearly understand the
communication management plan
B. By ensuring that stakeholders clearly understand the
stakeholder management strategy
C. By ensuring that stakeholders are kept disengaged
throughout the project life cycle
D. By ensuring that stakeholders clearly understand project
goals, objectives, benefits and risks
6. Most project management software packages use a method of
constructing a project schedule network diagram known as:
A. Activity Diagramming Method
B. Precedence Diagramming Method
C. Project Diagramming Method
D. Critical Diagramming Method
7. When a negative unplanned risk occurs in a project, a response to it
would be called:
A. Disaster recovery
B. Failure planning
C. A workaround
D. Backup planning
8. Martin is the project manager of a project that is in an early phase.
He needs to estimate costs but finds that he has a limited amount of
detailed information about the project. Which of the following
estimation techniques would be least suited to his requirements?
A. Top-down Estimating
B. Bottom-up Estimating
C. Analogous Estimating
D. Budgetary Estimating
9. The performance reports produced during the Control Procurements
process are then provided to which project management process for
further processing?
A. Monitor & Control Project Work in the form of work
performance information
B. Direct & Manage Project Work in the form of work
performance data
C. Perform Integrated Change Control in the form of change
request
D. Performance report is not an output of the Control
Procurement process
10. In order to develop a project's stakeholder management plan,
knowledge should be sought from groups or individuals with
specialized training or subject matter insight into the relationships
within the organization. In PMBOK jargon, what is this technique
called?
A. Professional verdict
B. Consultation
 C. Expert judgment
D. Sage opinion
11. Three years back, your organization awarded a fixed price contract
to a reputable local contractor to construct a new airport terminal in
the city. Few days back, you have received a change request from
the contractor requesting to adjust the price of the contract. The
contractor is claiming that as a result of the recent national
recession, the prices of raw materials have gone up and he cannot
complete the rest of the project at the contract price. Is the
contactor's request legitimate?
A. Yes, you cannot penalize the contactor for price escalations
due to force majeure
B. Yes, unless there is no Economic Price Adjustment provision
in the contract
C. No, the price of the contract is fixed and cannot be changed
D. No, the price hike due to recession must be adjusted against
the contractor's profit
12. You are looking at various process improvement models. Which of
the following is not a process improvement model?
A. Malcolm-Baldrige
B. Organizational Project Management Maturity Model (OPM3)®
C. Capability Maturity Model Integrated (CMMI®)
D. Shewhart-Deming
13. Which of these statements correctly links project and product life
cycles?
A. A product life cycle is generally contained within a project life
cycle.
B. A project life cycle is generally contained within a product life
cycle.
C. A product life cycle is the same as a project life cycle.
D. The last life cycle for a project is generally the product's
retirement.
14. Unless an enterprise-wise ERP is deployed in an organization,
disparate IT systems perform specialized tasks in a project. Which of
the following systems typically processes supplier's payments once
all the necessary certification of satisfactory work has been
obtained?
A. Project management information system
B. Accounts payable system
C. Change control and tracking system
D. Supply chain management system
15. It is extremely important for a project manager to determine and map
key stakeholder engagement levels early in the project. Which of the
following statements support this claim:
A. Stakeholder engagement levels change during the life cycle
of the project
B. Stakeholder engagement throughout the life cycle of the
project is critical to project success
C. Leading stakeholders assume a supportive role during project
 execution
D. Development of the stakeholder assessment matrix is a
mandatory PMBOK requirement
16. A management control point where scope, budget, actual cost and
schedule are integrated and compared to earned value for
performance measurement is called a:
A. Code of accounts
B. Control packages
C. Control account
D. Account Plan
17. You are defining the schedule activities for your project and
identifying deliverables at the lowest level in the Work Breakdown
Structure (WBS). You find that there is insufficient definition of the
project scope to decompose a branch of the WBS down to the work
package level. You now look at using the last component in that
branch of the WBS to develop a high-level project schedule for that
component. Such a planning component is called:
A. A planning packet
B. Control system
C. A planning package
D. Control element
18. Which of the following best describes the Validate Scope process?
A. Validating that the project quality requirements have been
met
B. Controlling changes to the scope of the project
C. Obtaining stakeholders' formal acceptance of the project
deliverables
D. Validating that all of the project's objectives have been met
19. As a project manager of a project, you are analyzing the costs which
have been incurred. Which of the following costs cannot be
classified under cost of non-conformance?
A. Quality Assurance Costs
B. Warranty costs
C. Costs due to loss of reputation
D. Rework costs
20. A records management system is used by the project manager to
manage contract and procurement documentation and records. It
consists of a specific set of processes, related control functions, and
automation tools. A records management system is a sub-
component of a:
A. Change control system
B. Scheduling tool
C. Project management information system
D. Mote Carlo tool
21. A Project manager estimates the work to be accomplished in the
near term in detail at a low level of the Work Breakdown Structure
(WBS). He estimates work far in the future as WBS components that
are at a relatively high level of the WBS. What is this technique
called?
 A. Decomposition
B. Rolling wave planning
C. Scope Creep
D. Earned value planning
22. Negative risks can either be ______, transferred, or mitigated as a
countermeasure.
A. enhanced
B. avoided
C. exploited
D. ignored
23. The WBS represents all product and project work. The total work at
the lowest levels should roll up to the higher levels so that nothing is
left out and no extra work is performed. This principleis also called
the:
A. 100% rule
B. 80/20 rule
C. Pareto's rule
D. Ground rule
24. A technical team can begin editing a large document 15 days after
they begin writing it. What kind of dependency would this be
represented as?
A. Start-to-start with a 15-day lead
B. Finish-to-finish with a 15-day lead
C. Start-to-start with a 15-day lag
D. Finish-to-start with a 15-day lag
25. According to the PMBOK guide, the Control Procurements is the
process of managing procurement relationships, monitoring contract
performance, and making changes and corrections to contracts as
appropriate. However, effective procurement control involves
integration of the Control Procurements process with other project
management processes. Which of the following PMBOK process is
not integrated with the Control Procurements process in order to
ensure effective procurements administration and control?
A. Direct and Manage Project Work
B. Control Quality
C. Validate Scope
D. Perform Integrated Change Control
26. According to the PMBOK guide, the Control Procurements is the
process of managing procurement relationships, monitoring contract
performance, and making changes and corrections to contracts as
appropriate. Why are Work Performance Reports and Work
Performance Data important inputs of this process?
A. Work Performance Reports, an output of the Direct and
Manage Project Work process, provides seller's work
performance information. On the other hand, Work
Performance Data, an output of the Monitor and Control
Project Work process, provides financial data
B. Work Performance Reports, an output of the Monitor and
Control Project Work process, provides financial data
 regarding the contract. On the other hand, Work Performance
Data, an output of the Direct and Manage Project Work
process, provides seller's work
C. Work Performance Reports, an output of the Direct and
Manage Project Work process, provides financial data
regarding the contract. On the other hand, Work Performance
Data, an output of the Monitor and Control Project Work
process, provides seller's work
D. Work Performance Reports, an output of the Monitor and
Control Project Work process, provides seller's work
performance information. On the other hand, Work
Performance Data, an output of the Direct and Manage
Project Work process, provides financial data
27. In a strong matrix organization, where the team members report to
both a functional manager as well as a project manager, whose
responsibility is it to manage the dual reporting relationship?
A. Functional manager
B. HR manager
C. Team members
D. Project Manager
28. Nancy is carrying out cost-benefit analysis for a project. If
undertaken, the project will start in January next year and end by
December. The project will incur a constant cost of $10,000 each
month (payable by the end of each month) giving a total cost of
$120,000 for the project. The revenue from the project will be
collected on a quarterly basis. The total revenue for the project by
the end of December will be $200,000. The opportunity cost of the
project is 12% which is the bank interest rate Nancy can get if she
does not invest in this project. The total present value of all cash
outflows is $112,551, while the total present value of all cash inflow
is $185,721. What is the benefit-to-cost ratio for the project?
A. 1.67
B. 0.6
C. 1.65
D. 0.61
29. A Resource Breakdown Structure (RBS) is used to break down the
project by type of resources. The RBS is an example of a:
A. Linear chart
B. Matrix chart
C. Flow chart
D. Hierarchical chart
30. It is not practical, and usually not necessary, to engage with all
stakeholders with the same level of intensity at all times. A project
manager must prioritize stakeholders depending upon on who they
are, what level of influence they have on the project, and what are
their interests. Which of the following techniques helps in
stakeholder prioritization?
A. Stakeholder engagement matrix
B. Stakeholder register
C. Classification models
 D. Resource histograms
31. Lucy is managing a high-tech software development project. She
has been lucky in acquiring the best performing employees of the
organization. However, the project team is not communicating
effectively causing delays. The project communications plan is in
place but it seems like it is not being followed. The communication
plan outlays the communications requirements but does not
explicitly assign responsibilities. What should Lucy do first? (assume
that all of the following actions need to be taken at some stage)
A. Persuade the team to follow the plan
B. Motivate the team to effectively communicate
C. Set and manage expectations
D. Resolve conflicts to prevent disruptive behavior
32. Analogous Estimating is an estimation technique that uses the
values of parameters such as scope, cost, budget and duration from
a previous similar activity as the basis of activity. It is frequently used
for estimation when there is a limited amount of information about
the project. This is a form of:
A. Gross value estimation
B. Function point estimation
C. Fixed point estimation
D. Precision Estimation
33. During the execution of your project, you decide that you would like
to have charts of your project status— cost and schedule—display
certain key project data, and to hold your project meetings in a
specific conference room. Such a place would be called a:
A. Armageddon
B. War room
C. Battlefield
D. Ground zero
34. Once the project charter is authorized, it is the project manager's
duty to distribute the charter to all key stakeholders and ensure
common understanding of the key deliverables, milestones, and
their roles and responsibilities. During which of the following
processes the project charter is distributed to the project
stakeholders?
A. Direct and Manage Project Work
B. Manage Stakeholder Engagement
C. Develop Project Charter
D. Manage Communications
35. Adam has just taken over a construction project. The project is
currently in the planning phase of the project lifecycle. Adam's next
deliverable is to product an effective stakeholder management
strategy. Which of the following is the most important component of
an effective stakeholder management strategy?
A. Management style
B. Risk tolerance
C. Construction know-how
D. Communications
36. The Banks in Ukraine have raised the annual interest rates sharply
to 30%. You have the option to invest your money either in Ukrainian
banks or to build a small factory for a client. The total cost of building
the factory will be $12 million but will be spread evenly over one year
($1 million payable by the end of each month for the next 12
months). The client will make a payment of $3.9 million at the end of
each quarter from the start of the project. Which of the following is
the best option (if you are only considering the return on
investment)?
A. Build the factory for the client
B. Invest the money in the bank for a year
C. Both options offer the same payoff
D. Information given is insufficient to determine the best option
37. A manager asks you to evaluate four new projects that he has
suggested for next year. You review the projects and notice that one
is actually not a project but an operational task. Which of these is not
a project?
A. Change the product to enable increased consumer usage
B. Manage a set of people for the next year to deliver the
desired productivity results
C. Respond to a customer request for different product
packaging
D. Resolve a space constraint issue by building a new addition
to the plant
38. Which of the following Project Scope Management processes
documents a configuration management system?
A. Control Scope
B. Define Scope
C. Verify Scope
D. Plan Scope Management
39. John has just finished analyzing his project's stakeholders' needs,
interests, expectations and influence. He wishes to create a group of
stakeholders that must be constantly kept on his radar. These will be
most important stakeholders he wants to closely manage. Which of
the following stakeholders would qualify for this group?
A. Positive stakeholders in a support role
B. Unaware stakeholders with no direct role
C. Negative stakeholders in a decision-making role
D. Positive stakeholder with no influence on the project
40. A project was estimated to cost $200,000 with a timeline of 10
months. Due to a shipment delay, the schedule was slightly delayed.
However, this was made up by shipping the first batch of materials
for the project by air. The net result was that there was some
additional cost in the project. At the end of the second month, the
Project Manager reviews the project and finds that the project is
20% complete and Actual Costs are $50,000. The Estimate to (ETC)
for the project would now be:
A. $160,000
B. $210,000
C. $250,000
 D. $200,000
41. You have a team of engineers working on your project. Two of the
engineers have frequent disagreements. You ask them to resolve
their differences through a discussion. However, that does not yield
any results. Subsequently, you intervene, and based on your
analysis of the situation you suggest some changes in the way they
work with each other. This still does not yield results, and you find
that the project schedule is beginning to suffer. What is your next
course of action?
A. Take Disciplinary action, if required, since the needs of the
project are not being met.
B. Don't do anything. Differences of opinion amongst the team
members is a healthy situation
C. Speak to the two team members and ask them to resolve
their conflict amicably.
D. Ensure that they work in different shifts so that they don't
clash with each other
42. Nate is the project manager for a research and development project.
According to the project communication management plan, Nate has
to call in weekly project progress update meetings. Last few
meetings have been a disaster since more time was spend in
arguments and less on decisions. Which of the following techniques
Nate needs to acquire fast?
A. Presentation techniques
B. Listening techniques
C. Writing style
D. Meeting management techniques
43. While developing the project schedule, you find that the completion
of a successor activity depends on the completion of its predecessor
activity. What is this dependency called?
A. Start-to-Finish
B. Start-to-Start
C. Finish-to-Start
D. Finish-to-Finish
44. Which of the following is not a tool and technique of the Collect
Requirements process?
A. Group creativity techniques
B. Interviews
C. Questionnaires
D. Traceability matrix
45. Project communications can decide the fate of any project. A project
manager must ensure effective and efficient communications
throughout the project lifecycle. What is efficient communication?
A. Padding relevant supporting detail with the required
information
B. Clubbing information together to meet the needs of multiple
stakeholders with a single message
C. Pushing information rather than having stakeholders pull the
information
 D. Providing only the information that is needed
46. A project manager wishes to illustrate the connections between the
work that needs to be done and the project team members.
According to the PMBOK, the resulting document would be called:
A. Responsibility Assignment Matrix (RAM)
B. Resource Planning Chart (RPC)
C. Task Assignment Model (TAM)
D. Resource Assignment Chart (RAC)
47. Many project managers have seen a graph that shows "Influence of
Stakeholders" starting out high and declining as the project
progresses. In contrast, it also shows the "Cost of Changes" starting
out low and increasing as the project progresses. What is the key
insight a project manager should gain from this graph?
A. Stakeholder influence is not important at the end of the
project.
B. Changes should be made as early in the project as possible.
C. Money should be set aside for expected changes at the end
of the project.
D. The project should be placed on hold until all changes are
made.
48. Which of the following techniques can help a project manager review
a supplier's internal work processes to ensure compliance to
standards during the production of the deliverables? (Assume that
all of the given choice are available to the project manager).
A. Procurement performance review
B. Performance reporting
C. Contract change control
D. Inspection and audits
49. The best practice to gather and document lessons learned is during
weekly progress meetings. A lessons learned brainstorming agenda
item can be added at the end of these meetings. You can ask team
members to put forward their recommendations but it is always
better to adopt a more structured way to gather lessons learned.
Which of the following approach will ensure you capture important
lessons learned on your project?
A. Planning risk responses
B. Determining estimate to complete
C. Review of project variances
D. Signing off the minutes of the meeting
50. Work Performance Data is an important input to the Control
Procurements process. Which of the following is not a component of
Work Performance Data?
A. Data regarding supplier's conformance to quality standards
B. Data on deliverables that have been completed
C. Data regarding costs that have been incurred or committed
on each supplier contract
D. Data on supplier invoices and respective payments
Answers

1. D - The sponsor and the marketing manager are supportive of the project.
The chief financial officer is neutral since the NPV is zero. However, the
operations manager has a negative attitude since he believes that the
technology being deployed is outdated.
[PMBOK 5th edition, Page 30] [Project Stakeholder Management]
2. C - A Pareto chart is a type of histogram where the causes are ordered by
frequency. [PMBOK 5th edition, Page 237] [Project Quality Management]
3. B - The grade of a product relates to the technical characteristics of the
product. [PMBOK 5th edition, Page 228] [Project Quality Management]
4. A - The Create WBS process produces the work breakdown structure of
the project as an output. [PMBOK 5th edition, Page 125] [Project Scope
Management]
5. D - Managing stakeholder engagement helps to increase the probability of
project success by ensuring that stakeholders clearly understand the
project goals, objectives, benefits, and risks. This enables them to be
active supporters of the project and to help guide activities and project
decisions.
[PMBOK 5th edition, Page 406] [Project Stakeholder Management]
6. B - PDM uses Nodes to represent Activities and connects the activities
with Arrows to show dependencies. This is the method most commonly
used by project management software packages. [PMBOK 5th edition,
Page 156] [Project Time Management]
7. C - A workaround is a response to a negative unplanned risk that has
occurred. It differs from a contingency plan in that a workaround is not
planned in advance of the occurrence of the risk event. [PMBOK 5th
edition, Page 567] [Project Risk Management]
8. B - Bottom-up estimating is a technique that can be applied only when
there is a sufficient amount of detail available to the project manager.
[PMBOK 5th edition, Page 205] [Project Cost Management]
9. A - Although, PMBOK does not explicitly mentions performance reports as
an output of the Control Procurements process, these reports are
produced during this process. The performance reports are then provided
to the Monitor & Control Project Work in the form of work performance
information.
[PMBOK 5th edition, Page 380] [Project Procurement Management]
10. C - The technique can be called anything but according to the PMBOK
jargon, this technique is called Expert Judgement.
[PMBOK 5th edition, Page 401] [Project Stakeholder Management]
11. B - Unless this is no provision for economic price adjustment due to
inflation, a fixed price contract's value cannot be changed. Usually fixed
price contracts spanning over one year in duration have this provision
built into the contract.
[PMBOK 5th edition, Page 363] [Project Procurement Management]
12. D - Shewhart and Deming were quality management experts. The other
choices are process improvement models. [PMBOK 5th edition, Page
229] [Project Quality Management]
13. B - The product life cycle usually consists of sequential, nonoverlapping
 product phases. The project life cycle is typically contained within one or
more product life cycles. [PMBOK 5th edition, Pages 12, 13, 38] [Project
Framework]
14. B - Payments to the seller are typically processed by the accounts
payable system of the buyer after certification of satisfactory work by an
authorized person on the project team.
[PMBOK 5th edition, Page 383] [Project Procurement Management]
15. B - No project management practice, tool or technique is a mandatory
requirement in PMBOK. Rather, PMBOK allows project managers to tailor
the PMBOK processes to suit the needs of a project.
Although the rest of the three statements are true, the question is asking
for the 'reason' of stakeholder engagement mapping exercise since the
reason will support the claim. The correct answer is that the stakeholder
engagement throughout the life cycle of the project is critical to project
success.

[PMBOK 5th edition, Page 402] [Project Stakeholder Management]

16. C - This is a control account. Control accounts are placed at selected
management points of the Work Breakdown Structure (WBS). Each
control account may include one or more work packages, but each of the
work packages must be associated with only one control account.
[PMBOK 5th edition, Page 132] [Project Scope Management]
17. C - The correct response is a planning package. Control accounts and
planning packages are two planning components used when there are
insufficient details of the project scope. [PMBOK 5th edition, Page 132]
[Project Time Management]
18. C - Scope Validation involves obtaining the stakeholders' formal
acceptance of project deliverables. [PMBOK 5th edition, Page 133]
[Project Scope Management]
19. A - The Quality Assurance Costs are part of the cost of conformance. The
cost of non-conformance includes the failure costs. [PMBOK 5th edition,
Page 229] [Project Quality Management]
20. C - A records management system is a part of the project management
information system.
[PMBOK 5th edition, Page 384] [Project Procurement Management]
21. B - In Rolling Wave Planning, the work to be accomplished in the near
term is estimated in detail at a low level of the Work Breakdown Structure
(WBS), while the work far in the future is estimated as WBS components
that are at a relatively high level of the WBS. The work to be performed
within another one or two reporting periods in the near future is planned in
detail during the current period. [PMBOK 5th edition, Page 152] [Project
Time Management]
22. B - You can avoid a risk by revising the project plan to eliminate the risk
entirely. [PMBOK 5th edition, Page 344] [Project Risk Management]
23. A - The WBS represents all product and project work. The total work at
the lowest levels should roll up to the higher levels so that nothing is
omitted and no extra work is performed. This principle is also called the
100% rule. [PMBOK 5th edition, Page 131] [Project Scope Management]
24. C - The relationship between the two tasks would be represented as a
 startto-start with a lag of 15 days. A lag directs a delay in the successor
activity. [PMBOK 5th edition, Page 156] [Project Time Management]
25. C - The Direct and Manage Project Work is integrated with Control
Procurements to authorize the seller's work at the appropriate time. The
Control Quality is integrated with Control Procurements to inspect and
verify the adequacy of the seller's product. The Perform Integrated
Change Control is integrated with Control Procurements to assure that
changes are properly approved.
On the other hand, Validate Scope is a customer-focused process. The
verified deliverables obtained from the Control Quality process are
reviewed with the customer or sponsor to ensure that they are completed
satisfactorily and have received formal acceptance of the deliverables by
the customer or sponsor. The Validate Scope process differs from the
Control Quality process in that the former is primarily concerned with
acceptance of the deliverables with the project customer or sponsor, while
quality control is primarily concerned verifying the correctness of the
deliverables with the project team or the vendor/subcontractor/supplier.

[PMBOK 5th edition, Pages 134, 381] [Project Procurement Management]

26. D - Work Performance Reports, an output of the Monitor and Control
Project Work process, provides seller's work performance information. On
the other hand, Work Performance Data, an output of the Direct and
Manage Project Work process, provides financial data regarding the
contract.
[PMBOK 5th edition, Pages 380, 382] [Project Procurement Management]
27. D - In a matrix organization, where the team members are accountable to
both a functional manager as well as a project manager, the management
of the project team can be complicated. In matrix organizations, the role of
the project manager varies from a coordinator's role to a directive project
manager's role. In a strong matrix organization, it is considered the
responsibility of the project manager to manage this dual reporting
relationship and handle the coordination. [PMBOK 5th edition, Page 23]
[Project Framework]
28. C - Benefit-to-cost ratio (BCR) = PV of inflows / PV of outflows = 1.65 The
gross BCR can also be calculated as Total Revenue / Total Cost.
However, since the total present value of both the inflow and outflow is
given, this must be used for a more accurate calculation.
[PMBOK 5th edition, Pages 195, 198, 235, 535]

[Project Integration Management]

29. D - The Resource Breakdown Structure (RBS) is a hierarchical chart. It is
used to break down the project by type of resources. For example, an
RBS can depict all of the welders and welding equipment used in different
areas of a ship, even though these resources may be scattered among
different branches of the Organizational Breakdown Structure and RBS.
[PMBOK 5th edition, Page 165] [Project Human Resource Management]
30. C - Stakeholder classification models are used during stakeholder
analysis to rank stakeholders based on their power, influence, interest,
and impact. [PMBOK 5th edition, Page 396] [Project Stakeholder
Management]
31. C - Assuming that none of the given actions have been undertaken in the
past, the first thing to do is to set expectations. Once the expectations are
set, the behavior need to be managed. Persuasion, motivation and
conflict resolution should follow this. [PMBOK 5th edition, Page 288]
[Project Communications Management]
32. A - Analogous estimating is a gross value estimating technique. It is most
reliable when the previous activities are similar in fact and not just in
appearance, and the project team members preparing the estimates have
the needed expertise. [PMBOK 5th edition, Page 169] [Project Time
Management]
33. B - According to the PMBOK, a team meeting room is also called a war
room. [PMBOK 5th edition, Page 277] [Project Human Resource
Management]
34. C - Although the Manage Communications and Manage Stakeholder
Engagement are processes involving stakeholder communication, these
processes are from the executing process group. Project charter is
developed during the project initiating and must be communicated to all
key stakeholders as soon as it is authorized. The Develop Project Charter
process produces the project charter and this output must be shared with
the stakeholders at the end of this process.
[PMBOK 5th edition, Page 66] [Project Integration Management]
35. D - Stakeholder management relies on continuous communication with
stakeholders to understand their needs and expectations, addressing
issues as they occur, managing conflicts and fostering stakeholder
engagement.
[PMBOK 5th edition, Page 391] [Project Stakeholder Management]
36. B - In this scenario you are considering investing your money in the bank
or building a factory. Since all transactions are not happening at the same
point in time, we need to discount the cash flows and then determine the
return on investment. Since the bank is offering a 30% annual interest
rate (the opportunity cost if you decide to build the factory), you need to
discount all the cash flows for the factory project by 2.5% (30% / 12) on a
monthly basis. The discount formula is: Present Value (PV) = Future
Value / (1 + interest rate)^period. Let's use this formula to determine the
net present value of all cash outflows:
· Month 1: PV = 1,000,000/(1+2.5%)^1 = 975,610
· Month 2: PV = 1,000,000/(1+2.5%)^2 = 951,814
· Month 3: PV = 1,000,000/(1+2.5%)^3 = 928,599
· Month 4: PV = 1,000,000/(1+2.5%)^4 = 905,951
· Month 5: PV = 1,000,000/(1+2.5%)^5 = 883,854
· Month 6: PV = 1,000,000/(1+2.5%)^6 = 862,297
· Month 7: PV = 1,000,000/(1+2.5%)^7 = 841,265
· Month 8: PV = 1,000,000/(1+2.5%)^8 = 820,747
· Month 9: PV = 1,000,000/(1+2.5%)^9 = 800,728
· Month 10: PV = 1,000,000/(1+2.5%)^10 = 781,198
· Month 11: PV = 1,000,000/(1+2.5%)^11 = 762,145
· Month 12: PV = 1,000,000/(1+2.5%)^12 = 743,556

Adding these up we get the total PV of outflows = 10,257,765

 Now let's calculate the PV of all inflows using the same formula:
· Quarter 1: PV = 3,900,000/(1+2.5%)^3 = 3,621,538
· Quarter 2: PV = 3,900,000/(1+2.5%)^6 = 3,362,958
· Quarter 3: PV = 3,900,000/(1+2.5%)^9 = 3,122,841
· Quarter 4: PV = 3,900,000/(1+2.5%)^12 = 2,899,868

Adding these up we get the total PV of inflows = 13,007,204

The return on investment (today) = (13,007,204 - 10,257,765)*100 /

10,257,765 = 27%

Since the bank is offering an annual 30% return on investment, it is

advisable not to undertake the project and leave the money in the bank
account

[PMBOK 5th edition, Pages 195, 198] [Project Integration Management]

37. B - Managing an operating team does not meet the project definition
because it is not temporary or unique. [PMBOK 5th edition, Page 3]
[Project Framework]
38. D - Configuration management activities are documented as part of the
requirements management plan which is an output of the Plan Scope
Management process. [PMBOK 5th edition, Page 110] [Project Scope
Management]
39. C - All project stakeholders need to be managed. However, the negative
stakeholders in a decision-making role can cause the maximum damage
to the project. These stakeholders need to be very closely managed and
should be on the project manager's radar 24/7.
[PMBOK 5th edition, Pages 30-32] [Project Stakeholder Management]
40. A - The budget at completion (BAC) = $200,000 (given). The Actual Cost
(AC) = $50,000 (given). The Earned value (EV) = (2/10) * 200,000 since
20% of the project is complete; i.e., 2 months out of 10. Hence, Earned
Value (EV) = $40,000. This is an instance of an atypical situation in the
project. Late arrival of materials does not mean that all subsequent
material will arrive late. Hence, the calculation used for ETC is ETC =
BAC - EV = $200,000 - $40,000 = $160,000. [PMBOK 5th edition, Page
220] [Project Cost Management]
41. A - After the project manager has tried intervening, it is time to employ
more formal conflict resolution mechanisms, such as disciplinary action.
[PMBOK 5th edition, Page 283] [Project Human Resource Management]
42. D - Nate needs to acquire meeting management skills that includes
preparing agenda, timekeeping, dealing with conflicts, and recording and
distributing minutes etc. [PMBOK 5th edition, Page 299] [Project
Communications Management]
43. D - In a Finish-to-Finish dependency, the completion of the successor
activity depends upon the completion of its predecessor activity. [PMBOK
5th edition, Page 156] [Project Time Management]
44. D - The requirements traceability matrix is an output of the Collect
Requirements process and not one of its tools and techniques. [PMBOK
5th edition, Page 111] [Project Scope Management]
45. D - Efficient communication means providing only the information that is
needed; nothing more, nothing less.
[PMBOK 5th edition, Page 290] [Project Communications Management]
46. A - The correct response is Responsibility Assignment Matrix (RAM). This
illustrates the connections between the work that needs to be done and
the various team members. On larger projects, RAMs can be developed
at various levels. [PMBOK 5th edition, Page 262] [Project Human
Resource Management]
47. B - Changes should be made as early as possible in the project to avoid
additional cost and delays. The influence of stakeholders is high at the
start of the project and low towards the end. In contrast, the cost of
making changes in a project is low at the start of a project and high
towards the end. [PMBOK 5th edition, Page 40] [Project Framework]
48. D - Inspections and audits required by the buyer and supported by the
supplier, if specified in the procurement contract, can be conducted during
execution of the project to verify compliance in the seller's work processes
or deliverables. On the other hand, a procurement performance review is
a structured review of the seller's progress to deliver project scope and
quality, within cost and on schedule, as compared to the contract. A
procurement performance review does not require supplier's participation
and does not involve reviewing supplier's internal work processes.
[PMBOK 5th edition, Page 383] [Project Procurement Management]
49. C - Signing off minutes of the meeting is a good meeting management
technique specially in highly bureaucratic environments. However, this
doesn't help at all in gathering lessons learned. Planning risk responses
and determining estimates to complete are forward look-ahead of the
project. Lessons learned can be captured through the review of project
variances. You review the variances again and focus on how to avoid
them in the future. You also identify other tasks or people who are likely to
encounter the same issue so it can be avoided.
[PMBOK 5th edition, Page 254] [Project Integration Management]
50. B - Data on status of deliverables progress is part of Work Performance
Information and not Work Performance Data. The subtle difference
between Work Performance Data and Work Performance Information
confuses many people, however it is very important to clearly distinguish
between these two concepts.
[PMBOK 5th edition, Page 382] [Project Procurement Management]