1. Which of the following is true regarding the project charter?
A. The project charter should be published under the name of a manager
external to the project.
B. The project charter should be published under the project sponsor’s name.
C. The project charter should be published under the name of the project
manager.
D. The project charter should be published under the name of the project
champion.
E. The project charter should be published under the technology supplier’s
name.
2. Which of the following is not an advantage of using matrix structure for the
project management?
A. Enables the project manager to exercise control over all the resources
B. Facilitates quick response to conflicts, changes, and other needs
C. Facilitates cost minimization by sharing key personnel.
D. Enables authority and responsibility sharing.
E. Establishes vertical communication channels.
3. What is one of the advantages of a functional organization?
A. All employees report to one manager and have a clear chain of command
B. All employees report to two or more managers, but project team members
show loyalty to functional managers.
C. The organization is focused on projects and project work.
D. Teams are collocated
E. Bureaucratic
4. You are a project manager working on a new technology product your company
plans to market to businesses. The project sponsor told you that the project must
be completed by October 15. The company plans to demo the new software
product at a trade exhibition in early November and therefore needs the project
completed in time for the trade exhibition. However, the sponsor has also told you
that the budget is fixed at $100,000 and it would take an act of Congress to get it
increased. You must complete the project within the given time frame and budget.
Which of the following is the primary constraint for this project?
A. Budget
B. Scope
C. Time
D. Schedule
E. Technology
5. You are a project manager for BA421 Chemicals Inc. You’ve been asked to
perform a cost-benefit analysis for two proposed projects. Project A costs $2
million, with potential benefits of $15 million and future operating costs of $3
million. Project B costs $4 million, with potential benefits of $24 million and
future operating costs of $2 million. Which project should you recommend?
A. Project A, because the cost to implement is cheaper than Project B.
B. Project A, because the potential benefits plus the future operating costs are
less in value than the same calculation for Project B. C. Project B, because the potential benefits minus the implementation and
future operating costs are greater in value than the same calculation for
Project A.
D. Project B, because the potential benefits minus the costs to implement are
greater in value than the same calculation for Project A
E. None of the above
6. You’ve constructed the WBS for your recent project. You’ve requested that the
subproject manager’s report back to you in three weeks with each of their
individual WBSs constructed. Which statement is not true regarding the
subproject managers’ WBS?
A. The work package level facilitates resource assignments
B. The work package level is the lowest level in the WBS
C. The work package level defines the agreed-upon deliverables
D. The work package level facilitates cost and time estimates
E. None of the above
7. You’ve just completed the WBS. Which of the following statements is true?
A. The WBS breaks the project deliverables down to a level where
alternatives identification can be used to determine how level two
assignments should be made.
B. The WBS breaks the project deliverables down to a level where project
constraints and assumptions can be easily identified
C. The WBS breaks the project deliverables down to the work package level,
where product analysis can be documented
D. The WBS breaks the project deliverables down to the work package level,
where cost and time estimates can be easily determined
E. None of the above
8. Which of the following statements is not true regarding Work Breakdown
Structure (WBS)?
A. Activities should be carried on with dependence or linkages with other
activities
B. Every activity should produce a single tangible deliverables
C. Every activity at any level of WBS is an aggregation of all its subordinate
activities listed immediately below it
D. There should be some flexibility in the WBS development process as the
WBS might be updated when the project scope changes
E. The activities should be compatible with organizational and accounting
procedures
9. What are work breakdown structure elements that must be completed to conclude
the project deliverables?
A. Activities
B. Tasks
C. Work packages
D. Milestones
E. Summary tasks
10. Which of the following is true regarding the project scope statement? A. The project scope statement includes a change control system that
describes how to make changes to the project scope
B. The project scope further elaborates the initiating processes and serves as
a basis for future project decisions
C. The project scope statement describes how the team will define and
develop the work breakdowns structure
D. The project scope statement assesses the reliability of the project scope
and describes the process for verifying and accepting completed
deliverables
E. The project scope statement is provided by the client
11. Which of the following statements is true regarding the critical path?
A. It should never be compressed
B. It allows for looping and branching
C. The critical path technique is the same as PERT
D. It’s the duration of all tasks with zero float
E. It has the shortest duration among all project paths
12. Which of the following statements is not true with regard to PERT/CPM?
A. PERT cannot handle situations in which two or more projects have to be
planned together to share the available resources
B. CPM assumes that the cost associated with a project can be divided into
two components: direct costs and indirect costs
C. PERT is based on time and variance estimates that consist of six-value
weighted averages
D. CPM and PERT techniques assume that the project has unlimited
resources, and they can be assigned for project activities
E. PERT can be used when there is a change in the precedence and sequential
relationships of project activities
13. Which of the following is false for the critical path method of network analysis?
A. Activities on critical path have least amount of scheduling flexibility
B. Any delay in a critical activity results in a delay in the entire project
C. The series of critical activities is called the “critical path” of the project
D. The critical path of the project is the shortest path through the network
E. A Project manager should give more priority to critical activities while
allocating resources
14. A simple CPM network has three activities, D, E, and F. D is an immediate
predecessor of E and of F. E is an immediate predecessor of F. The activity
durations are D=4, E=3, F=8.
A. The critical path is D-E-F, duration 15
B. The critical path is D-f, duration 12
C. Slack at D is 3 units
D. Slack at E is 3 units
E. Both a and c are true
15.
Activit Time Predecessor
y
A
4
– B
7
C
8
A
D
2
A
E
4
B
F
5
C, D
G
9
E, F
H
7
H
What is the late start time for Activity E given the activity times and precedence
requirements shown in the table?
A. 12
B. 13
C. 14
D. 15
E. 16
16. Activity D on a CPM network has predecessors B and C, and has successor F. D
has duration 6. B’s earliest finish is 18, while C’s is 20. F’s late start is 26. Which
of the following is true?
A. B is a critical activity
B. C is completed before B
C. D has no slack but is not critical
D. D is critical, and has zero slack
E. All of the above are true
17. Which of the following statements regarding critical paths is true?
A. The shortest of all paths through the network is the critical path
B. Some activities on the critical path may have slack
C. Every network has exactly one critical path
D. On a specific project, there can be multiple critical paths, all with exactly
the same duration
E. The duration of the critical path is the average duration of all paths in the
project network
18. Use the table below to calculate PERM estimates t(e) for activities A, B, and C.
Time Estimates (days)
t(e)
Activity
t(o)
t(m)
t(p)
A
4
5
9
?
B
1
3
7
?
C
3
6
10
?
D
2
8
12
?
E
1
4
6
?
A. 5 days, 3 days, 6 days
B. 5.50 days, 3.33 days, 6.16 days
C. 6 days, 3.66 days, 6.33 days
D. 3.16 days, 5.33 days, 1.83 days
E. None of the above
19. Two activities (A and B) are candidates for crashing on a CPM network. Activity
details are in the table below. To cut one day from the project’s duration, activity
___ should be crashed first, adding ___ to the project cost.
Activity
Normal Time Normal Cost
Crash
Crash Cost
Duration
A
8 days
$6,000
6 days
$6,800
B
10 days
$4,000
9 days
$5,000
A. A; $400
B. A; $6,800
C. B; $1,000
D. B; $5,000
E. A or B should be crashed; $1,400
20. If you know expected value is 600 and the standard deviation is 10, you can say
with approximately a 95 percent confidence rating which of the following?
A. The activity will take from 588 to 612 days
B. The activity will take from 595 to 605 days
C. The activity will take from 590 to 610 days
D. The activity will take from 580 to 620 days
E. The activity will take approximately 610 days
21. You are a project manager for Don’t Worry Be Happy trucking company. Your
company specializes in commercial (i.e. Office goods) goods across the city or
across the country. Your project involves upgrading the nationwide computer
network for the company. Your lead engineer has given you the following
estimates for a critical path activity: 80 days most likely, 96 days pessimistic, 72
days optimistic. What is the approximate weighted average or expected value?
A. 84
B. 66
C. 81
D. 72
E. 48
22. What are possible values for earned value (EV), planned value (PV), and actual
cost (AC) if a project has an SPI of 0.5 and a CPI of 2.0?
A. EV = $30,000, PV = $60,000, AC = $15,000
B. EV = $60,000, PV = $30,000, AC = $15,000
C. EV = $15,000, PV = $30,000, AC = $60,000
D. EV = $60,000, PV = $15,000, AC = $30,000
E. None of the above
23. A cost performance index (CPI) of 0.91 means:
A. At this time, we expect the total project to cost 91 percent more than
planned
B. When the project is completed we will have spent 91 percent more than
planned
C. The project is only progressing at 91 percent of the rate planned
D. The project is only getting 91 cents out of every dollar invested
E. None of the above
24. Project costs are under estimated budget when A. CPI > 1
B. CPI < 1
C. CPI < 0
D. SPI = 1
E. SPI > 1
25. You expect the types of variances that have occurred on the project date to
continue. If BAC = 800, ETC = 275, PV = 300, AC = 200, EV = 250, and CPI =
1.25. What is the EAC?
A. 640
B. 750
C. 600
D. 550
E. 700
26. You are a contract project manager for a wholesale flower distribution company.
Your project is to develop a website for the company that allows retailers to place
their flower orders online. You will also provide a separate link for individual
purchases that are ordered, packaged, and mailed to the consumer directly from
the grower’s site. This project involves coordinating the parent company, growers,
and distributors. You are preparing a performance review and have the following
measurements at hand. PV = 300, AC = 200, and EV = 250. What do you know
about this project?
A. The EAC is a positive number, which means the project will finish under
budget.
B. You do not have enough information to calculate CPI
C. The CV is a negative number in this case, which means you’ve spent less
than you planned to spend as of the measurement date
D. The CV is a positive number in this case, which means you’re under
budget as of the measurement date.
E. None of the above
27. You are the project manager for a Management Development Program that
approximately 1,00-1,500 participants will be attending. You have rented a hall
for the program; however, you are unsure exactly how many people will attend.
Moreover, the number of tables required will change depending on attendance.
The cost of the furniture should be considered?
A. Variable cost
B. Direct cost
C. Fixed cost
D. Transient cost
E. None of the above
2
8. Performance measurement techniques like earned value analysis helps the project
manager to assess whether:
A. Costs are within specified limits
B. Time is within specified limit
C. Variances in scope, cost, and schedule are within specified limits
D. Manpower is within specified limit
29. An earned value report shows: A. How much money has actually been spent so far on the project
B. Slippages in performance measures for the work product
C. The budgeted value of work performed
D. Slippages in time against planned measures
E. None of these
30. During a software project Earned Value Analysis is performed and gives the
following results: EV: 120,000, PV: 220,000, AC: 240,000. Which results are
correct?
A. CV: +120,000; SV: +100,000
B. CV: +100,000; SV: +120,000
C. CV: -100,000; SV: -120,000
D. CV: -120,000; SV: -100,000
E. CV: -100,000; SV: -120,000
31. In which of the following criteria used to select a strategy for decision-making
under uncertainty, does the project manager identify the minimum payoff values
for each strategy and adopts the strategy that has the highest payoff value from
among those minimum payoff values?
A. Maximax criterion
B. Maximin criterion
C. Minimax regret criterion
D. Minimin criterion
E. Criterion of realism
32. You are a project manager for an NGO Green is the Future. Your project involves
installing a new accounting system and you’re performing the risk-planning
processes. You have identified several problems along with the causes of those
problems. Which of the following diagrams will you use to show the problem and
its causes and effects?
A. Decision tree diagram
B. Fishbone diagram
C. Benchmark diagram
D. Network diagram
E. Mind map diagram
33. Which of the following techniques incorporates a form of risk assessment?
A. Arrow diagramming method
B. Network diagramming
C. Critical path method
D. Program evaluation and review technique
E. Gantt chart
34. A decision-maker using the maximax criterion on the problem below would
choose Alternative_____
States of nature
1
2
3
Alternative A
50
55
60
Alternative B
30
50
60
Alternative C
70
80
70
Alternative D
-100
-10
140 A. A
B. B
C. C
D. D
E. Insufficient data
35. If a project has a 60% chance of a US $100,000 profit and a 40% chance of a US
$100,000 loss, what is the expected monetary value for the project?
A. US $100,000 profit
B. US $60,000 loss
C. US $20,000 profit
D. US $40,000 loss
E. US $60,000 profit
36. Which of the following terms describes a method for transforming contractual
arrangements into a cohesive project team with a s ingle set of goals and
established dispute resolution procedures?
A. A contract unification plan
B. Partnering
C. Arbitration
D. Coordination
E. None of these
37. You are the project manager for Evergreen Textiles. It’s introducing a new line of
clothing called New England. You will outsource the production of this clothing
line to a vendor. Your legal department has recommended you use a contract that
reimburses the seller’s allowable costs and builds in a bonus based on
performance criteria they’ve outlined in their memo. Which of the following
contract types will you use?
A. CPIF
B. CPFF
C. CPF
D. CPPC
E. Lump-sum
38. You are the project manager for a local sports event scheduled for one year from
today. You’re working on the procurement plan for the computer software
program that will control the performance monitoring and recording during the
event. You’ve decided to contract with a professional services company that
specializes in writing custom software programs. You want to minimize the risk to
the organization, so you’ll opt for which contract type?
A. Fixed price plus incentive
B. Cost plus fixed fee
C. Fixed price
D. Cost plus incentive
E. Lump-sum
39. With which type of contract is the seller most concerned about project scope?
A. Fixed price
B. Cost plus fixed fee
C. Time and material D. Purchase order
E. Outsourcing
40. Which of the following contracts should you use for projects that have a degree of
uncertainty and require a large investment early in the project life cycle?
A. Fixed price
B. Cost reimbursable
C. Lump sum
D. T&M
E. Cost plus contract
41. What percentage of the total distribution are 3 sigma from the mean equal to?
A. 68.26
B. 99.99
C. 95.40
D. 99.73
E. 70.00
42. You are a project manager for a PMP film company. In light of a recent tragedy in
North Dakota, the company CEO wants to get a new documentary on the rescue
efforts of the heroic rescue teams to air as soon as possible. She’s looking to you
to make this documentary the best that’s ever been produced in the history of this
company. She guarantees you free rein to use whatever resources you need to get
this project done quickly. However, the best photographer in the company is
currently working on another assignment. Which of the following is true?
A. The primary constraint is time because the president wants the film done
quickly. She told you to get it to air as soon as possible.
B. Resources are the primary constraint. Even though the president has given
you free rein on resource use, you assume she didn’t mean those actively
assigned to projects
C. The schedule is the primary constraint. Even though the president has
given you free rein on resource use, you assume she didn’t mean those
actively assigned to projects. The Photographer won’t be finished for
another three weeks on his current assignment, so schedule adjustments
will have to be made.
D. The primary constraint is quality because the president wants this to be the
best film ever produced by this company. She’s given you free rein to use
whatever resources needed to get the job done
E. The primary constraint is information technology support because the
president wants this film to be on the cutting edge of technology. She’s
given you free rein to use whatever resources needed to get the job done.
43. A software project has faced major difficulties in the quality of its deliverables.
Management now states that quality is the most important project constraint. If
another problem with quality were to occur, what would be the BEST thing for
the project manager to do?
A. Fix the problem as soon as possible
B. Allow the schedule to slip by cutting cost
C. Allow the cost to increase by fixing the root cause of the problem
D. Allow the risk to increase by cutting cost E. Do nothing, the problem will take care of itself.
44. You are the project manager for a construction company, BA421, Inc., that is
building a new university campus in Southern Pennsylvania. You recently looked
over the construction site to determine if the work to date was conforming to the
requirements and quality standards. Which tool and technique of the Perform
Quality Control process are you using?
A. Defect repair review
B. Inspection
C. Sampling
D. Quality audit
E. Quality assurance
45. Quality is:
A. Meeting and exceeding the customer’s expectations.
B. Adding extras to make the customer happy
C. Conforming to requirements, specifications, and fitness of use
D. Conforming to management’s requirements
E. Meeting the budget
46. What is the duration of this project and the free slack for node 8 of this project
network? A. Duration = 65 days; Free Slack for node 8 = 0 days
B. Duration = 75 days; Free Slack for node 8 = 18 days
C. Duration = 75 days; Free Slack for node 8 = 10 days
D. Duration = 75 days; Free Slack for node 8 = 28 days
E. None of these
47. How much can C be delayed without delaying the project? A. Activity C cannot be delayed as it is on the critical path
B. Activity C can be delayed by three days
C. Activity C can be delayed by two days
D. Insufficient data to make a conclusion
E. Activity C can be delayed by a day
48. The critical path and its duration for this project are: A. A-B-C-E-G-H; 12
B. A-D-F-E-G-H; 10
C. A-B-C-E-G-H; 10
D. A-D-F-E-G-H; 12
E. None of these
49. You are a project manager for Don’t Worry Be Happy trucking company. Your
company specializes in commercial (i.e. Office goods) goods across the city or
across the country. Your project involves upgrading the nationwide computer
network for the company. Your lead engineer has given you the following
estimates for a critical path activity: 80 days most likely, 96 days pessimistic, 72
days optimistic. What is the standard deviation?
A. 22
B. 20
C. 2
D. 4 E. 10
