PMP Exam Questions and Answers with Complete Solutions

PMP Exam Questions and Answers with Complete Solutions ________ is typically not referred to as a buffer type in critical chain project management. A. Resource buffer B. Free buffer C. Feeding buffer D. Project buf ...

PMP Exam Questions and Answers with Complete Solutions ________ is typically not referred to as a buffer type in critical chain project management. A. Resource buffer B. Free buffer C. Feeding buffer D. Project buffer Correct Answer-B. Free buffer An accepted deadline for a project approaches. However, the project manager realizes only 75% percent of the work has been completed. The project manager then issues a change request. What should the change request authorize? A. Additional resources using the contingency fund B. Escalation approval to use contingency funding C. Team overtime to meet scheduleD. Corrective action based on causes Correct Answer-D. Corrective action based on causes The project manager develops a process improvement plan to encourage continuous process improvement during the life of the project. Which of the following is a valid tool or technique to assist the project manager to assure the success of the process improvement plan? A. Change control system B. Process analysis C. Benchmarking D. Configuration management system Correct Answer-B. Process analysis The project manager meets with the project team to review lessons learned from previous projects. In what activity is the team involved?A. Performance management B. Scope identification C. Risk identification D. Project team status meeting Correct Answer-C. Risk identification Which should be included in a requirements management plan? A. The document should trace requirements to project scope / WBS deliverables. B. It should describe how requirements activities will be planned, tracked, and reported. C. It should trace high-level requirements to more detailed requirements. D. It should trace requirements to business needs, opportunities, goals, and objectives. Correct Answer-B. It should describe how requirements activities will be planned, tracked, and reported. In a traditionally drawn decision tree, a circle represents ___________.A. a chance to which no expected monetary value can be assigned so that a likely pay-off can not be shown. B. a decision to which no expected monetary value can be assigned so that a likely pay-off can not be shown. C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off. D. a decision to which an expected monetary value may be assigned to calculate the most likely pay-off. Correct Answer-C. a chance to which an expected monetary value may be assigned to calculate the most likely pay-off. A project management team has subcontracted work to a service company. Which of the following tools is the best choice to assure that this company will be able to meet the quality requirements of the project? A. Quality audit B. Deliverable inspection C. Fixed price contract D. Service level agreement Correct Answer-A. Quality auditDuring execution of a project which is performed for a customer on a T&M (time and material) contract base, a new project manager is taking over the assignment. He discovers that two members assigned to the project have charged time without performing any work for the project customer. Upon further investigation, he determines that this occurred because there have been no other project assignments open for these employees. The customer is unaware of these facts. What should the project manager do? A. Try to find some productive work for these staff members in the project and leave them on the team. B. The best thing is to do nothing. The customer will not realize the problem anyway. C. Try to find a responsible person for the over-assignment who can be made accountable. D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer. Correct Answer-D. Take the two people off the team immediately and arrange for the refund of the excess charges to the customer. Your project is executed with a globally spread virtual team. The project progress has been found to be too slow. Which measure is most likely to immediately speed up the project?A. Technical training for all team members B. Daily phone conferences and detailed reporting C. A team meeting at a location convenient to all team members D. Collocation of team members at a suitable place Correct Answer-D. Collocation of team members at a suitable place A project management team wants to procure some customized products which are available in identical grade and quality from many vendors. What should be included in the procurement package to ensure that their offers will be comparable? A. A statement of work describing the needs of the project in sufficient detail to enable vendors to make suitable proposals B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bidsC. The approved project scope statement, the WBS which should be broken down to work package level and the WBS dictionary D. The risk management plan and the reports from those risk management reviews which have been made so far Correct Answer-B. A statement of work specifying attributes and metrics of the requested deliverables in detail to allow vendors submission of bids Which of the following becomes increasingly important in a virtual team environment? A. Requirements engineering B. Communication planning C. Formal procurements closure D. Network diagramming Correct Answer-B. Communication planning You are assigned as the project manager to a project which is executed for a customer under FP contract. Your customer informed you this morning that they insist on certain "refinements" of the project scope. You agree that the requested actions make really sense to the project, but believe that they constitute a major change increasing the project scope. What should you do next?A. Accept the request of the customer. Diligently document the additional costs and working hours spent by yourself and the team on the implementation of the change and invoice these to the customer at appropriate rates. B. Perform earned value analysis to assess the current status of the project and get all the numbers you need to communicate the case to the change control board which then will have to make the best decision regarding the customer request. C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise. D. Talk to the project sales department and find a joint solution with them how to best reject the request considering the commercial and strategic value of the customer to the organization you are working for. Correct Answer-C. Check the contract, the project charter, the scope statement and other documents related to the project and the contract. Implement ADR (alternative dispute resolution) procedures if the conflict cannot be resolved otherwise. A prime contractor in a customer project under CPFF contract has run into unexpected technical problems. Fixing them will require a lot of additional work to be done. The company made a decision to book more staff and equipment from their subcontractors in order to adhere to the agreed timeline. The customer agreed to this decision.What will most likely happen? A. The contractor's indirect costs will increase and the customer's payment for them will increase, too. B. The contractor's indirect costs will increase, but the customer's payment for them will not increase. C. The contractor's indirect costs will not increase, but the customer's payment for them will. D. Both the contractor's indirect costs and the customer's payment for them will not increase. Correct Answer-D. Both the contractor's indirect costs and the customer's payment for them will not increase. A project management team is evaluating the causes that might contribute to unsatisfactory performance and quality. Which of the following statements is not true?A. Normal process variation is attributable to random causes and sometimes also called "white noise". B. Special causes are easier to predict and handle than random causes (also called common causes). C. Special causes are unusual events which are difficult to foresee and often produce outliers. D. A process can be optimized to limit the bandwidth of variations due to random causes. Correct Answer-B. Special causes are easier to predict and handle than random causes (also called common causes). You are performing a project management audit in your company and find that most of the project plans are neither consistent nor up-to-date. Which of the following statements is not true? A. Projects should never be executed without a valid, updated and working project management plan.B. The consistency of the project management plan is secondary because it is only the results that matter. C. A great deal of effort is required to develop and update a project plan, but the benefits include less pressure on all stakeholders and a resulting product that will satisfy the requirements. D. Poor planning and insufficient updating of project management plans are common reasons for cost and time overruns. Correct Answer-B. The consistency of the project management plan is secondary because it is only the results that matter. You want to perform active risk acceptance. What should you do? A. Create contingency reserves in resources, money and time. B. Develop a plan to minimize impact in case that an identified risk occurs. C. Develop a plan to minimize the probability of occurrence for identified risks. D. Make additional resources available to speed up the project. Correct Answer-A. Create contingency reserves in resources, money and time.When do bidder conferences normally take place? A. After the contract has been awarded to keep alternatives open. B. After submission of bid or proposal, but before contract award. C. Prior to the submission of a bid or proposal by the bidder. D. After technical meetings with bidders to discuss contract requirements. Correct AnswerC. Prior to the submission of a bid or proposal by the bidder. What is defined by control limits? A. A measuring instrument solely used to describe process capability. The process is found capable if the ±3 sigma range is exceeded by not more than 0.3% of a tested sample lot. B. The limits of the six sigma area on either side of a control chart to plot measured values; data found outside the area are out of specification and can lead to rejection of an entire batch.C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control D. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in quality assurance Correct Answer-C. The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control The scope baseline consists of what? A. Scope statement, WBS, and WBS dictionary B. Cost baseline, quality baseline and schedule baseline C. Configuration management plan and configuration identification document D. Procurement statement of work and project scope statement Correct Answer-A. Scope statement, WBS, and WBS dictionary Which tool and technique is used in the processes Create WBS and Define activities?A. Nominal group technique B. Human resource assignment C. Brainstorming D. Decomposition Correct Answer-D. Decomposition Which of the following statement(s) on whistleblowing is/are not true? 1. It is a term used to define an employee's decision to disclose information on unethical, immoral or illegal actions at work to an authority figure. 2. An employee should always discuss the matter with people external to the company before following the "chain of command" and discuss it with the immediate superior. 3. The consequences of whistleblowing are often extreme and might include being branded as an owner of bad judgment, layoff, civil action and imprisonment. 4. Carefully performed whistleblowing can lead to the end of unethical business practices. A. 1 B. 2C. 2,3 D. 3,4 Correct Answer-B. 2 Which of the following statements is not true? A. Attribute sampling is the process of assessing whether results conform to specifications or not. B. Prevention means keeping errors out of the process by applying actions before the process starts changing its input. C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected". D. Inspection is often mainly done to keep errors out of the hands of the customer instead of as a means of process control. Correct Answer-C. Variables sampling means that the result is classified into one of the 3 categories: "acceptable" - "acceptable after rework" - "rejected". Which statement describes best why you should document assumptions?A. Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows baseline adjustments in case of project crisis. B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. C. Assumptions limit the project management team's options for decision making because they can not be controlled by the team. D. In case of schedule or budget overruns, the documentation of assumptions supports a clear assignment of responsibility. Correct Answer-B. Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. Which is normally not regarded as an element of cost of quality? A. Prevention costs B. Maintenance cost C. Appraisal costs D. Failure costs Correct Answer-B. Maintenance cost You have recently been assigned as a project manager to a new B-O-T (build, operate, transfer) capital project. Reviewing the initial documentation you found out that it has beencalculated with a very small margin during operations of its product for the shareholders. What should you do? A. As you are not responsible for lifecycle costing, you don't have to worry about operation profits. Focus on project costs from initiation through handover. B. Ensure maximum profits by buying the best and cheapest items, components and modules―potentially from a big number of different suppliers―and integrating them. C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders. D. Try to get a second project manager assigned to share decision making and accountability to shareholders with the person. Correct Answer-C. Create a realistic plan broken down to a sufficient level of detail. Perform all risk management processes. Ensure real-time communications with all stakeholders. A project is handled by departments of an organization and expedited by a project coordinator. Which of the following statements is most likely to be true? A. The performing organization is a weak matrix.B. The performing organization is doing "management by projects". C. The performing organization is a strong matrix. D. The performing organization is projectized. Correct Answer-A. The performing organization is a weak matrix. You are project manager in a global project with a team consisting of people from various countries. What can you try to prevent misunderstandings due to cross-cultural differences? A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. B. When you are about to form a team for your project, keep in mind that some cultures are developed, others are more primitive. Some have values, some not. You should consequently avoid choosing members from countries with cultures that are not similar to your own. C. Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort should concentrate on communication that can help reach that goal.D. As norms regarding communication habits differ significantly across various cultures, communicating between people from different countries should only be done using language. The nonverbal dimension simply bears too many risks. Correct Answer-A. Use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Remember that cultural and individual diversity may help project teams solving unforeseen problems during the course of the project. Which statement on conflicts is true? A. Conflict resolution should focus on people, not issues. B. Conflict is natural and forces a search for alternatives. C. Conflict should always be handled in private and not in the team. D. Too much openness is a common cause of conflict. Correct Answer-B. Conflict is natural and forces a search for alternatives. A change request in a project has been rejected some weeks ago. Yesterday, the project manager found out that it nevertheless has been implemented by the team members, who knew of the change request, but not of the rejection.In order to avoid such a situation, rejected change requests should be consistently communicated to stakeholders through which process? A. Report performance B. Verify scope C. Perform integrated change control D. Monitor and control risks Correct Answer-C. Perform integrated change control What is a trigger in project risk management? A. An expected situation causing an unidentified risk to occur B. A warning sign that a previously identified risk might be occurring or has occurred C. An unexpected situation causing an identified risk to occurD. An unexpected situation causing an unidentified risk to occur Correct Answer-B. A warning sign that a previously identified risk might be occurring or has occurred According to the project plan, a contractor is scheduled to deliver some software components today afternoon. A regular payment is due to be made to this contractor tomorrow. You and your project team received a note this morning informing you that the software delivery will be delayed by 2 weeks. What should you do right now? A. You should delay the payment also for 2 weeks. B. You must immediately find a different contractor. C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment. D. You should make the payment and reschedule the project plan. Correct Answer-C. You should conduct a meeting with the contractor to resolve the delivery issues before making the payment.In a software company a large number of simultaneously performed projects utilize the same groups of human and other resources. What is the term commonly used for this situation? A. Concurrent engineering B. Resource over-allocation C. Resource pooling D. Program management Correct Answer-C. Resource pooling What does the acronym RACI commonly stand for in project management? A. Responsible, Accountable, to be Consulted, to be Informed B. Remote, Attached, Connected, IntegratedC. Risk Analysis and Caution Initiative D. Randomly Accessible Cashflow Information Correct Answer-A. Responsible, Accountable, to be Consulted, to be Informed You have used estimates made by your team members and applied the critical path method to compute a network logic diagram for your project. Then you found out that it cannot be sufficiently optimized for scarce resources and fast progress towards a given deadline. What should you do next? A. Apply resource leveling heuristics to uncritical activities only. B. Reduce estimates on duration and work efforts by an adequate percentage. C. Apply Three-point estimation and critical chain project management. D. Remove physical constraints and replace hard logic with soft logic. Correct Answer-C. Apply Three-point estimation and critical chain project management. Liquidated damages (LDs) are contractually agreed payments in order to...1. ...give the contractor an incentive to meet an aggressive schedule or challenging quality objectives. 2. ...penalize the contractor for late completion of a project or failure to meet specifications. 3. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor. 4. ...make a bid or proposal binding for the offerer while the customer has time to select among various bidders. Correct Answer-3. ...cover the customer's costs caused by late completion or failure to meet specifications by the contractor. What should not be covered by a risk management plan? A. Roles and responsibilities for handling project risks B. Timing of project risk management activities C. The methodological approach used for risk management