PMP Question and Answers 11-20

11. You are a project manager for a major golf club manufacturer. Your team is working on developing a new line of golf clubs for the upcoming season. It was planned that you will meet with the stakeholders after the first few production sets were ready and allow them to try the clubs. You are reviewing how effective this type of stakeholder meeting is. Why would this type of meeting take place?
A. To aid in performance testing of the product
B. To further engage stakeholders in the project
C. To smooth out any issues that may exist with stakeholders
D. To allow the stakeholders to audit the product
Answer: C, The Control Stakeholder Engagement process monitors stakeholder relationships.

12. You are a project manager overseeing the development of a new console video game and are currently involved in the Monitor and Control Project work process. A working beta of the game is supposed to be available in the next two weeks to demo at an investor's conference. However, it is behind schedule due to problems that occurred when adding bonus content. Which option is the BEST course of action?
A. Continue as scheduled and demo the product that is available
B. Obtain the latest performance reports to verify the status of development
C. Issue a change request to minimize the scope for the release
D. Initiate a change request to have extra resources removed from the project
Answer: C, You should analyze the situation with the project management team and determine a solution. By doing this, you and the team will realize that it was only after the bonus content was added that the project began to have issues. For the conference, you may determine it would be in the best interest to disable the features that are causing problems, thus minimizing the scope. This way the investors can see a working beta, but not be distracted by fancy features that may or may not work. To do this, a change request would need to be issued to disable the features causing the problems.

13. You are managing a project that is overseeing the expansion of a local car dealership that specializes in performance vehicles. The project has been scheduled to take 16 weeks. The total cost of the project is set at $500,000. At the seven week mark of the project, it has been determined that the project is one week behind schedule, and the cost so far is $250,000. At this point, which option represents the planned value of the project?
A. $218,750
B. $62,500
C. $31,250
D. $187,500
Answer: A, Solution can be calculated with the formula Planned Value (PV) = Planned % complete * budget at completion(EIAC).
By dividing the current point in the schedule, which is week seven, by the total number of weeks in the project, which is 16 weeks, we can calculate planned % complete. The result is 7/16 = 0.4375 or 43.75%. By multiplying this value with the EIAC we get the PV = 0.4375 * $500,000, which is $218,750.

14. You are currently involved in controlling procurements on a mission critical project for your organization. A seller has been contracted to provide a high load winch system. The winch that was to be supplied was rated at 1,000 pounds, but it is currently unavailable and will be replaced with the 1,200 pound model. This will result in a change to the contract. Who would be eligible to make a change of the contract?
A. The project management office
B. The function manager of the contracting company
C. The CEO of the contracted company
D. The procurement office
Answer: D, As contracts are formal and legally binding documents that use specialized and technical language, only qualified individuals should prepare them. These qualified individuals include the contracting officer, procurement office, and legal counsel. A project manager would not be considered a contracting officer.

15. You are managing a construction project that is creating a new set for a talk show. The show is set to premiere next month. The backdrop is nearing completion. However, the main stage is only 50% complete. You move a few of the human resources to the main stage team. Which technique did you use?
A. Scheduling tool
B. Adjusting leads and lags
C. Resource levelling
D. Schedule compression
Answer: C, Resource leveling is a technique that is used to allot the proper amount of resources to a specific task. Since one task is nearing completion, and another task is only half done, resources could be moved from the task that all tasks can be more aligned with the schedule.

16. You are the project manager on an IT project that is performing decision analysis and resolution to identify the best possible solution. There is a 10% chance that a component you are going to upgrade will be difficult to integrate and cost $3,000 in rework and delays. There is also a 50% chance that the component will save $5,000 in time and effort that would have been used to build the component from scratch. What is the expected monetary value for these two possibilities?
A. $3,300
B. $7,500
C. $2,200
D. $8,000
Answer: C, The expected monetary value(or EMV) of the problems integrating the component is the probability(10%) times the cost ($3,000), but do not forget that since it is a risk, that number should be negative. So it's EMV is 10% * $3,000 = -$300. The savings from not having to build the component from scratch is an opportunity. It has an EMV of 50% * $5,000 = $2,500. By adding them up we get -$300 + $2,500 = $2,200.

17. Schedule is represented in different ways. You are a project manager on a construction project and want to view the scheduled activities in such a way that it is easy to view the start and end dates of each activity. Which tool is the best fit for this scenario?
A. PERT chart
B. GANTT chart
C. Precedence diagram
D. Network diagram
Answer: B, GANTT chart shows activity start and end dates as well as expected durations but do not usually show dependencies. This is also called as Bar charts.

18. What is the critical path of the project? Refer to the network diagram provided in the image above.
A. ABEGH
B. ABDFH
C. ACGH
D. ABEFH
Answer: A, Critical path is the list of activities that have zero total float.

19. Which executing processes can result in change results?
A. Conduct procurements, Acquire Project Team and Manage Stakeholder Engagement
B. Manage Communications, Manage Project Team and Perform Quality Assurance
C. Perform Quality Assurance, Direct and Manage Project Work and Develop Project Team
D. Direct and Manage Project Work, Conduct Procurements and Manage Stakeholder Engagement
Answer: D, Change requests can result from the following executing processes.
- Direct and Manage Project Work
- Conduct Procurements
- Manage Stakeholder Engagement

20. Which option describes the MAIN purpose for creating a management reserve?
A. Create a reserve for unidentified risks when the project that will occur
B. Create a reserve for unidentified risks when the project that may or may not occurs
C. Create a reserve for identified risks when the project that will occur
D. Create a reserve for identified risks when the project that may or may not occurs
Answer: B, A management reserve is used to create a reserve for unidentified events that may or may not occur during the project. Management can use their experience to determine the prudence to provide a reserve for unknown events that are uncertain to occur. This type of event is sometimes described as an unknown.

PMP Question and Answers 1-10

1. You are thinking of purchasing a software product from a relatively young organization. They have been in business less than 2 years. This is a cutting edge financial product that would put you at least 18 months ahead of all competitors in your market space. However, your concern is that if you purchase software from them, there is a possibility that they may go out of business and you would lose the investment in the software. You ask the company to outright purchase the software code, but the company has rejected this as an option. What is your BEST option moving forward if the company's survivability is an issue?
A. Contract it as a work made for hire
B. Set up a code escrow arrangement
C. Offer to buy the company
D. Look for viable alternatives

Answer: B, A code escrow arrangement will protect the seller and the buyer. If the seller goes out of business, the buyer will have access to the code for continuing support of the product. Otherwise, the code stays in escrow.

2. you have identified a number of defects related to a component needed for a project deliverable. The project manager has asked you to determine the impact of each defect in a meaningful way. What should you do?
A. Create a histogram
B. Create a scatter diagram
C. Create a run chart
D. Create a central chart

Answer: A, Creating a histogram can help you determine the impact of each defect by quantitatively charting the results as bars. The longer or higher the bar, the greater the impact of the defect.

3. Helen, Irene and John make up an organization's review committee for a project they are working on. They have received responses from various vendors to the procurement document package and are formally reviewing prospective vendors according to their capabilities to successfully complete the conditions of the contract. They have been authorized to select vendors prior to senior management approval. Which action is the review committee currently undertaking?
A. Bidder conference
B. Approved change requests review
C. Documentation review
D. Proposal evaluation

Answer: D, The review committee is formally evaluating proposals to the procurement document package submitted by vendors and selecting a vendor. This evaluation is done prior to getting approval from senior management.

4. You are creating the budget for a project you are managing and you need to review the assumptions related to the activity costs. Which item is the BEST source of this information?
A. Reserve analysis
B. Project funding requirements
C. The risk register
D. Basis estimates

Answer: D, The basis of estimates is a documented record of how you arrived at activity cost estimates. This is important because it identifies any assumptions made. For example, the cost of a required resource could be based on the availability of the resource at a particular time.

5. You are a project manager for a major tire distributor, and you are monitoring your team's performance for the summer tire campaign project. You are currently involved in the control communications process. Which information is distributed as part of this process?
A. Resource calendars
B. SWOT analysis
C. Work performance information
D. Activity resource requirements

Answer: C, The control communications process deals with gathering and distributing information to the required individuals. This information includes information such as forecasts, variances, and project status.

6. You are a project manager for a small consulting company. You are tasked with completing a project to integrate three new servers into the customer's current server infrastructure, as well as retire two of the servers being replaced. You are performing this project under contract, and are currently in the close procurements process. All outstanding claims and issues have been addressed. Which following BEST describes what you currently need to document?
A. procurement audits
B. Stakeholder feedback
C. Formal acceptance
D. Final project report

Answer: C, The project manager is the individual responsible for documenting the formal acceptance of the work specified in the contract. In cases where a project is carried out under contract, the task of documenting formal acceptance should be completed during the close procurements process. This would only occur after all outstanding claims and disputes have been settled.

7. You are the project lead overseeing a project to create a new wireless media streaming device. An LCD display was used that does not match the original project scope. During a stakeholder meeting, the customer expresses that they are upset and the screen should be changed. Your CEO is worried about the costs associated with the replacement of the screens and believes the product is fine as it is. Functional managers are concerned about the additional time it will take the workers to replace the screens and suggest a revised model slightly after product release. Other upper management suggests releasing a standard version with the current LCD and a deluxe model with another LCD. As the manager, you need to settle this dispute. It whose favor should this dispute be resolved?
A. Upper management
B. The customer
C. Functional managers
D. your CEO

Answer: B, Always Dispute favor to the customer.

8. You are managing new staff members who are working on a particular procurement. On your personal schedule for the day, you have a meeting set up to meet with the new staff. You arrive in the meeting room to discover that no staff members have arrived. After waiting thirty minutes, you leave to attend another meeting. The next day you meet with a couple of members from the staff and ask why they did not show up at the meeting. They mentioned that they were not aware that they had to attend any meetings. Which documents should have outlined the meeting requirement?
A. Project charter
B. Procurement statement of work
C. Resource calendar
D. Project statement of work

Answer: B, The procurement statement of work needs to clearly outline all the work required for the procurement, including required meetings.

9. You are the project lead overseeing a project to create a new wireless media streaming device. The working model has been created and you are meeting with the customer to ensure that it meets the requirements. Upon inspection, the customer informs you that the LCD output screen does not meet the specifications. Which result from this problem is MOST likely to occur?
A. A change request
B. A close project or phase
C. A contract change
D. An administration claim

Answer: A, Inspection, as described in this scenario, is plan of the validation scope process. In the event that the customer is not satisfied with the results of a project after an inspection, a change request to fix the issue is submitted.

10. You have completed the planning of your project and project work is being carried out. Which activity should you be doing while executing the project?
A. Watching out for non-critical risks increasing in importance
B. Checking the variation of the results with the scope baseline
C. Checking the compliance of each work product
D. monitoring payments made to the sellers

Answer: A, Watching out for non-critical risks increasing in importance would be considered a risk response activity. Managing risks and implementing risk response activities is part of the Direct and Manage Project work process, which is part of Executing Process Group.