MGT6153.

E1 Summer 2012 Multiple-Choice Exercise 1

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Taken By Your Score Answered Correctly Min. Pass % Your Result Time Taken : Answer Key (69.19.114.214) : 100 out of 100 (100%) : 50 Question : 70 % : Pass : 5 mins 17 secs

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Q1) The process of forecasting or approximating the time and cost of completing project deliverables is called: A. B. C. D. Budgeting Predicting Estimating(your answer) Planning Explanation:Estimating is the process of forecasting or approximating the time and cost of completing project deliverables. Larson & Gray Chapter 5

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Q2) In practice, estimating processes are frequently classified as _____________ A. B. C. D. Top down/bottom up(your answer) Precise/order of magnitude Draft/final Rough/polished Explanation:Estimating processes are frequently classified as top-down and bottom-up. Top-down estimates are usually done by senior management. Larson & Gray Chapter 5

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Q3) A good starting point for developing time and cost estimates is _______________. A. B. C. D. Past experience(your answer) Work packages Task analysis Work breakdown structure Explanation:Past experience is a good starting point for developing time and cost estimates. Larson & Gray Chapter 5

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Q4) Which of the following is not one of the factors that need to be considered to improve quality of estimates for project times and costs? A. B. C. D. E. Planning horizon People Padding estimates Profit(your answer) Project structure Explanation:Larson & Gray Chapter 5 See List on Page 128-129

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Q5) Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation? A. B. C. D. E. Padding estimates(your answer) Planning horizon Project structure People Organization culture Explanation:In work situations where you are asked for time and cost estimates, most of us are inclined to add a little padding to increase the probability and reduce the risk of being late. If everyone at all levels of the project adds a little padding to reduce risk, the project duration and cost are seriously overstated. Larson & Gray Chapter 5

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Q6) Which of the following is a good condition for top-down estimating? A. B. C. D. Cost and time important Fixed price contract Customer wants details Internal, small project(your answer) Explanation:Larson & Gray Chapter 5 Page 132

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Q7) Which of the following best condition for bottom-up estimating? A. Strategic decision making

B. C. D.

Internal, small project Fixed price contract(your answer) High uncertainty Explanation:Larson & Gray Chapter 5 Page 132

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Q8) Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others she estimates that it will take about 10 percent less time and money. Which of the following methods is she using? A. B. C. D. E. Ratio Template Apportion Function Point Learning Curve(your answer) Explanation:A phenomenon of tasks that are labor intensive. In these circumstances the pattern of improvement phenomenon can be used to predict the reduction in time to perform the task. From empirical evidence across all industries, the pattern of this improvement has been quantified in the learning curve (also known as improvement curve, experience curve, and industrial progress curve). Larson & Gray Chapter 5

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Q9) Which of the following is not one of the recommended guidelines for developing useful work package estimates? A. B. C. D. E. Estimates should be made by those responsible for the work Use several people to estimate the same work Estimates should be based on normal conditions Estimates should include a normal level of contingency(your answer) Estimates should be independent of other projects Explanation:Larson & Gray Chapter 5 Page 144-145

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Q10) Many companies are using which of the following for improving the estimating process? A. B. C. D. Adjusting estimates based on individual forecasting abilities Creating historical databases of previous projects(your answer) Using time and motion studies Benchmarking using the experience of other companies Explanation:Some organizations have large estimating departments of professional estimatorse.g., Boeing, Kodak, IBMthat have developed large time and cost databases. Larson & Gray Chapter 5

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Q11) Reasons why estimating time and cost are important include all of the following except: A. B. C. D. E. To schedule work To determine how long the project should take and cost To develop cash flow needs To determine how well the project is progressing All of the above are valid reasons(your answer) Explanation:Larson & Gray Chapter 5 Page 127

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Q12) If you are developing a Project Management Plan, how should you determine the level of detail to be included in the plan? A. B. C. D. Always only provide a summary or high level plan Provide the level of detail based on the project complexity and application area(your answer) Always provide the maximum level of detail possible Include only the details your manager specifically requested Explanation:The level of detail required in a Project Management Plan would vary by project and would include only the details necessary for the project PMBOK Guide 4.2 Page 78

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Q13) Which of these is not an approved Estimate Activity Durations technique? A. B. C. D. Three Point Estimating Parametric Estimating Analogous Estimating Critical Path Estimation(your answer) Explanation:Analogous, parametric, and three-point estimating techniques are all accepted practices for determining the correct amount of time required for a portion of the project

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Q14) If you are working on a project where there is no definite project detailed scope, but similar projects have been completed in the past, what is the correct estimating technique to use? A. B. C. D. Analogous Estimating(your answer) Parametric Estimating Critical Path Estimation Critical Path Estimation

Explanation:Analogous estimation relies on comparing a project to previous such projects that were similar in nature.

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Q15) The accuracy of estimates can be improved by considering the amount of risk in the original estimate. The tree types of estimates on which three-point estimates are based are: A. B. C. D. Budgetary, Ballpark, Order of Magnitude Best case scenario, Expected scenario and current scenario Most likely, likely, unlikely Most likely, optimistic, pessimistic(your answer) Explanation:The accuracy of estimates can be improved by considering the amount of risk in the original estimate. The three types of estimates on which three-point estimates are based are: Most likely, Optimistic, and Pessimistic. An Activity Duration can be created using a value derived from these three estimated durations.

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Q16) 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 informaiton about the project. Which of the following estimation techniques would be least suited to his requirements. A. B. C. D. Top-down Estimating Bottom-up Estimating(your answer) Analogous Estimating Budgetary Estimating Explanation:Bottom-up estimating is a technique that can be applied only when there is a large amount of detail available to the project manager.

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Q17) An estimating technique that uses a statistical relationship between historical data and other variables (for example, square footage in constructions, lines of code in software development) is known as: A. B. C. D. Parametric Estimating(your answer) Analogous Estimating Bottom-up Estimating Historical Analysis Explanation:This technique is known as Parametric Estimating and can produce higher levels of accuracy depending on the sophistication, as well as the underlying resource quantity and cost data built into the model.

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Q18) Lucy is the project manager involved in Estimate Costs process in the initiation phase of a project. Given the limited detail available to her, what would you expect the range of her estimate to be and what would you call such an estimate? A. B. C. D. -20 to +25%, Order of Magnitude -10 to +10%, Budgetary -1 to +1%, Definitive -50 to +50%, Rough Order of Magnitude(your answer) Explanation:During the initial stages of the project, the level of information available will be limited. Hence the Rough Order of Magnitude (ROM) estimate is usually prepared and has an accuracy range of -50 to +50%. Practice Standard for Project Estimating Chapter 2 Page 12

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Q19) Which of the following are the factors used for three-point estimates? A. B. C. D. High probability, Low probability, Most likely Most likely, Optimistic, Pessimistic(your answer) Best-case, Worst-case, Mean Most like, Most dangerous, average Explanation:Most likely, optimistic, and pessimistic are factors used for three-point estimates.

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Q20) John, a project manger, for Code Crashers, Inc. has been assigned a project where he must lead a group of inexperienced programmers in developing a software package that creates Material Safety Data Sheets (MSDS) for a chemical company. This is very similar to a project that his colleague, Peter, worked on in 2006, with some junior programmers. If John needs to come up with a rough order of magnitude estimate, what tool or technique should he use? A. B. C. D. Parametric Estimating Bottom Up Estimating Three-point Estimate Analogous Estimating(your answer) Explanation:Analogous estimating is the correct choice. This technique relies on parameters from a similar previous project and is a gross value estimating approach. It is also generally less accurate. PMBOK Guide 171-172

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Q21) You have run away and joined the carnival as a project manager and are in charge of constructing the Ferris wheel in each town the carnival visits. However, this is something you have never done before and you are getting different opinions from others on how long it takes. Joe, is new and has given you what you believe to be an optimistic estimate of 3 hours, Bill says it will take 10 hours, which seems too long to you and quite pessimistic. Lastly, Margie, who is the most experienced at this task is telling you it will take 8 hours. You are not sure who to believe, so you decide to do a PERT estimation, based on this you have determined it will take how many hours to assemble the Ferris wheel.

A. B. C. D.

7.5 hours(your answer) 8 hours 21 hours 7 hours Explanation:The PERT formula is Estimate = (Optimistic + (Most likely *4) + Pessimistic) / 6

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Q22) The transition from one phase to another within a projects life cycle (e.g., design to manufacturing) is typically marked by: A. B. C. D. Technical transfer or hand-off(your answer) Deliverables Milestones Reviews Explanation:The transition from one phase to another within a project's life-cycle generally involves, and is usually defined by, some form of technical transfer or hand-off. PMBOK Guide Page 19

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Q23) A company that designs and manufactures a series of new bicycles each year may manage the effort more efficiently how? A. B. C. D. As separate design and engineering projects As separate UPC codes As a program(your answer) As independent product lines Explanation:A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. PMBOK Guide Page 9

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Q24) Ongoing operations and a project both have Initiating Process, but only a project has _________. A. B. C. D. Planning Processes Closing Processes(your answer) Controlling Processing Executing Processes Explanation:A project is a finite effort; the Initiating Process Group starts the cycle, and the closing Process Group ends the cycle. PMBOK Guide Page 39

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Q25) Which of the following are enterprise environmental factors influence a projects success: A. B. C. D. Stakeholder risk tolerances Political climate Marketplace conditions All of the choices are correct(your answer) Explanation:All the three listed factors are enterprise environmental factors that influence a project's success. Enterprise environmental factors may enhance or constrain project management options. Project Management Framework

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Q26) Estimating the type and quantities of material, people, equipment or supplies required to perform each activity is: A. B. C. D. Estimate Activity Workload Estimate Activity Input Activity Resource Requirements Estimate Activity Resources(your answer) Explanation:Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity. PMBOK Guide 6.3

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Q27) ______________ means developing in steps and continuing increments. A. B. C. D. Progressive management Iterative elaboration Waterfall development Progressive elaboration(your answer) Explanation:Progressive elaboration is a characteristic of projects that allows a project management team to manage it to a greater level as the project evolves. PMBOK Guide Page 7

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Q28) Defining the requirements for a new product is what type of activity? A. B. C. D. Initiating process group(your answer) Planning process Scope management process Control process Explanation:The Initiating process group consists of the processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project of phase. PMBOK Guide Page 44

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Q29) Analysis of project spending against project budget and calculating the percentage complete of tasks currently underway are examples of: A. B. C. D. Delivery management Earned value Work performance information(your answer) Baseline variance Explanation:Information on the status of the project activities being performed to accomplish the project work is routinely collected as part of the project management plan execution PMBOK Guide Page 87

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Q30) Collect Requirements, Develop Schedule and Perform Qualitative Risk analysis are all part of what process group? A. B. C. D. Planning(your answer) Scope Planning Monitor and Controlling Executing Explanation:All activities listed are planning activities. PMBOK Page 43

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Q31) A project consists of multiple phases. Which of the following is a valid statement and applies to each phase of the project? A. B. C. Each phase is generally concluded with a review of the work accomplished and a decision authorizing the next phase of the project. Each phase of the project is considered complete when the project sponsor signs off on that phase of the project. Each phase of the project is generally concluded with a review of the work accomplished and the deliverables to determine acceptance and whether the phase should be considered closed. (your answer) Each phase is generally concluded with a review of the work accomplished. A phase is never considered complete until the end of the project when the entire project can be deemed complete. Explanation:A project phase is generally concluded with a review of the work accomplished and the deliverables to determine acceptance, whether extra work is still required and to decide whether the phase should be considered closed. The other options are not valid. Formal phase completion does not include authorizing the next phase of the project.

D.

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Q32) Which of the following is not a characteristic or key feature of the Project Management Office? A. A PMOs sole responsibility and function is to directly manage shared resources. (your answer)

B. C. D.

A PMO is an organization unit that centralizes and coordinates the management of projects under its domain. Other names for the PMO include: project office, program office, and program management office. Support functions such as training, software, standardized policies, and procedures July also be part of the function of a PMO. Explanation:A Project Management Office is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain.

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Q33) What are the priniples underlying the life cycle of project estimating? A. B. C. D. Prepare to estimate, create estimates, manage estimates, improve estimating processes(your answer) Rough order of magnitude, budget estimate, definitive estimates Initiate estimates, plan estimates, execute estimates, close estimates Plan-do-check-act Explanation:Principles underlying the life cycle of project estimating are prepare to estimate, create estimates, manage estimates, improve estimating processes. Practice Standard for Project Estimating Chapter 1 Page 2-3

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Q34) Project estimating is _____________________ A. B. C. D. The act of creating a quantitative assessment of the likely amount or outcome. Is usually applied to project costs, resources, effort, and durations. Is vital to successful project execution as it is an integral part of project management practices. All of the above describe project estimating. (your answer)

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Q35) Which of the following is not considered in project estimating? A. B. C. D. Project durations Contingency reserves(your answer) Project resources Project effort Explanation:Practice Standard for Project Estimating Chapter 2 Page 10

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Q36) What is the role of the project manager in project estimating?

A. B. C. D.

Aggregation of estimates Review and approve project estimates Accountable for the estimate (your answer) Creates estimates Explanation:Practice Standard for Project Estimating Table 2-1 Page 11

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Q37) Evolution of estimates refers to ______________________ A. B. C. D. A process where as more information is available estimates are refined through progressive elaboration. (your answer) The project estimating life-cycle The baseline used for tracking project estimates. Project estimation change control process. Explanation:Practice Standard for Project Estimating Page 13

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Q38) Which of the following is not and input to the Create Proejct Estimating Approach A. B. C. D. Project Documents Experts Constraints and Assumptions Estimating Information(your answer) Explanation:Practice Standard for Project Estimating Page 18 Table 3-1

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Q39) Which of the following is not a project estimation approach factor that should be included in the project management plan? A. B. C. D. Scope of estimate Estimating assumptions Procurement audit information(your answer) Resources needed to estimate Explanation:Practice Standard for Project Estimating Create Project Estimating Approach 3.3.1 Page 20

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Q40) You are in the planning stages of a facility, which is identical to an existing senior care facility that was built with a final cost of $4.5 million. For the purposes of initial planning, a your total project cost was determined to be between $4 million and $5 million. In this scenario, the buildings were considered were considered to be identical. What estimating activity are you using to create an estimate for your project. A. B. C. D. Ratio estimating Range estimating Parametric estimating Analogous estimating(your answer) Explanation:Practice Standard for Project Estimating Page 29-30

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Q41) Which of the following is not one of the baselines considered when managing estimates? A. B. C. D. Quality Performance Estimates(your answer) Cost Performance Estimates Schedule Baseline Estimates Resource Histogram Estimates Explanation:Practice Standard for Project Estimating Manage Estimates Page 36

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Q42) Which of the following is not an improve estimating process activity? A. B. C. D. E. Gather Estimating Information Assess estimating process Determine root causes and lessons learned Update Estimate forecasts(your answer) Develop action plan and share lessons learned Explanation:Practice Standard for Project Estimating Improve Estimating Process Page 48

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Q43) The stakeholders of a project typically have: A. B. C. D. Positive objectives Negative objectives Conflicting objectives(your answer) Similar objectives Explanation:Stakeholder expectation management is a key responsibility of a project manager as they often have conflicting objections.

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Q44) Project tradeoffs are usually made by comparing ____________, __________, and __________ constraints. A. B. C. D. Time, cost, scope(your answer) Time, risk, and quality Risk, quality, and manpower availability Cost, quality, and technical performance Explanation:PMBOK 1.3 Time, cost, and scope are referred to as the three constraints that surround projects.

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Q45) ______________ means developing in steps and continuing increments. A. B. C. D. Progressive management Iterative elaboration Waterfall development Progressive elaboration(your answer) Explanation:Progressive elaboration is a characteristic of projects that allows a project management team to manage it to a greater level as the project evolves.

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Q46) The application of knowledge, skills, tools and techniques in order to meet stakeholder requirements from a project is called: A. B. C. D. Project initiation Project management(your answer) Scope definition Life cycle management Explanation:PMBOK 1.3 This is the PMI definition of project management

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Q47) A project can be defined as: A. B. C. D. A series of non-related activities designed to accomplish single or multiple objectives A coordinated effort of related activities designed to accomplish a goal without a well-established point Cradle-to-grave activities which must be accomplished in less than one year and consume human resources Any undertaking with a definable time frame, well-defined objectives, and consumes both human and non human resources within certain constraints(your answer)

Explanation:PMBOK 1.2 Projects have objectives, constraints, consume resources, are unique and usually multifunctional

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Q48) What is the primary risk with including reserves or contingency allowances in your cost estimate? A. B. C. D. Understating the cost estimate Overstating the cost estimate(your answer) Tracking the funds Canceling your project

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Q49) A technique that uses a project model to translate the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project is called: A. B. C. D. Effect Analysis Probabilistic Analysis Simulation(your answer) Theoretical Analysis

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Q50) The cost estimates for a project are in the range of + / - 5%. What phase is the project likely to be in? A. B. C. D. Closing phase(your answer) Initial phase Intermediate phase Preliminary phase