5.75 Questions Ol - Modified

14/07/2013 Test time: 02:04:32 - Total test time: 90 Min.
PMP Exam Self-Assessment Test

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2. A company has to make a choice between two projects, because the available "O liver, resources in
money and kind are not sufficient to run both at the same time. Each project on a s ide note I take
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ques tions I would not have pas s ed the P M P exam as eas ily
year. This benefit would be achieved immediately after the end of the project.
as I did. Y ou really made a differenc e for me and I
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T he mos thepart
t diffic ult following
for me was getting into the P M P
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The first project is more attractive by app. 3%.
3. A production process has been defined as part of an industrial equipment manufacturing

project. The process is intended to produce steel bolts with a length of 20 cm. The control limits
are 19.955cm and 20.045cm.
The measurements made at the end of the process yielded the following results:
20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm,

19.963cm, 19.958cm, 19.962cm, 19.979cm, 19.959cm.
What should be done?
The process is under control. It should not be adjusted.

A special cause should be investigated, the process should be adjusted.
The control limits should be adjusted.

The measuring equipment should be recalibrated.
4. Your project management team includes two external consultants each from a different
company. You found that repeated conflicts between the two consultants already slow down
project progress and jeopardize achievement of objectives.
Which stage of team development can be difficult to overcome in such a situation?
Storming from Forming, Storming, Norming, Performing
Panic from Enthusiasm, Panic, Hope, Solution
Kickoff from Assignment, Kickoff, Training, Communicating

Frustration from Direction, Frustration, Cooperation, Collaboration
5. During a project, earned value analysis is performed, resulting in the following numbers:
EV: 523,000; PV: 623,000; AC: 643,000.
Which results are correct?
CV: +120,000; SV: +100,000
CV: +100,000; SV: +120,000

CV: -100,000; SV: -120,000
CV: -120,000; SV: -100,000
6. A project manager spent some days to create a multi-page document, which he called project
charter. The document should have been issued by the project sponsor. The sponsor found the
document outsized and asked for a condensed document.
Which of the following is usually not an element of the project charter?

The authority level of the project manager
Detailed control account and work package descriptions
The business need that the project was undertaken to address

High-level risks
7. A document called ____________ is created by decomposing the project scope into smaller,
more manageable elements.
Scope Statement
Network Logic Diagram
Work Breakdown Structure

Requested Change
8. Which of the following tools is used to create a risk management plan?
Risk planning meetings
Documentation reviews
Data precision rankings
Diagramming techniques
9. In order to speed up a project, you made a decision to fast-track a phase currently performed
with five team members, and another one which was planned to begin in four weeks time with
another five team members.
Which of the following activities should you do first?
Make sure that all exit criteria of the consecutive phase have been met to ensure the flow
of communications in a team situation which is more complex by a factor of 2.
Make sure that all entry criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical aptness.
Make sure that all exit criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical performance.
Restructure your team and delegate tasks in order to ensure the flow of communications
in a team with the number of communication channels increased by a factor of 4.5.
10. A project manager has been asked to support an internal project request by developing a
business case.
What kind of information is the person expected to provide in the document?
The detailed information from a business standpoint to determine whether bidding for
the customer project will be successful.
The detailed information from a project management standpoint to determine whether
the project will be successful.
The detailed information from a technical standpoint to determine whether the project
will be successful.
The necessary information from a business standpoint to determine whether the project
is worth the investment.
11. You found the following earned value analysis information for a project that was recently
closed-out:
SPI = 0.7, CPI = 1.0
The project has been cancelled while it was executed. At that time the project was
behind schedule and on budget.
The project's deliverables have all been finished. The project came in behind schedule
but on budget.
The project's deliverables have all been finished. The project came in ahead of schedule
but on budget.
The project's deliverables have all been finished. The project came in on schedule but
over budget.
12. Which should be included in a requirements management plan?
The document should trace requirements to project scope / WBS deliverables.

It should describe how requirements activities will be planned, tracked, and reported.
It should trace high-level requirements to more detailed requirements.

It should trace requirements to business needs, opportunities, goals, and objectives.
13. In a traditionally drawn decision tree, a circle represents ___________.

a chance to which no expected monetary value can be assigned so that a likely pay-off
can not be shown.
a decision to which no expected monetary value can be assigned so that a likely pay-off
can not be shown.
a chance to which an expected monetary value may be assigned to calculate the most
likely pay-off.
a decision to which an expected monetary value may be assigned to calculate the most
likely pay-off.
14. 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?
Quality audit
Deliverable inspection
Fixed price contract
Service level agreement
15. With your team you are using judgment from subject matter experts to identify and analyze
project risks. There is a small number of experts available, but some of them have long been in
a teacher-student or manager-assistant relationship.
Which of the following techniques can ensure best that there is no dominating opinion during
an expert review?
Peer review
SWOT analysis
Delphi technique
Monetary value calculation
16. You are running a project for a customer based on a cost-reimbursable contract with the
following terms:
Target costs: $ 1,000,000

Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%

Price ceiling: $ 1,200,000
Which is the PTA (= point of total assumption, break point) of the project?
$1,300,000
$1,500,000
$80,000
$1,125,000
17. During 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?
Try to find some productive work for these staff members in the project and leave them
on the team.
The best thing is to do nothing. The customer will not realize the problem anyway.
Try to find a responsible person for the over-assignment who can be made accountable.
Take the two people off the team immediately and arrange for the refund of the excess
charges to the customer.
18. Start dates in the following network logic diagram are defined as early morning, finish dates
are evening.
If tasks are scheduled to begin at early start date, what is true?
Activity B has a free float of 10 d.

Activity B has a free float of 10 d.
Activity B has a total float of 10 d.
Activity A has a free float of 10 d.

Activity A has a total float of 10 d.
19. 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?
Technical training for all team members

Daily phone conferences and detailed reporting
A team meeting at a location convenient to all team members

Collocation of team members at a suitable place
20. 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 statement of work describing the needs of the project in sufficient detail to enable
vendors to make suitable proposals
A statement of work specifying attributes and metrics of the requested deliverables in
detail to allow vendors submission of bids
The approved project scope statement, the WBS which should be broken down to work
package level and the WBS dictionary
The risk management plan and the reports from those risk management reviews which
have been made so far
21. Which of the following becomes increasingly important in a virtual team environment?
Requirements engineering
Communication planning
Formal procurements closure

Network diagramming
22. 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?
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.
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.
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.
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.
23. 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?
The contractors indirect costs will increase and the customers payment for them will
increase, too.
The contractors indirect costs will increase, but the customers payment for them will not
increase.
The contractors indirect costs will not increase, but the customers payment for them will.
Both the contractor's indirect costs and the customers payment for them will not
increase.
24. A project management team is evaluating the causes that might contribute to unsatisfactory
performance and quality. Which of the following statements is not true?
Normal process variation is attributable to random causes and sometimes also called
"white noise".
Special causes are easier to predict and handle than random causes (also called common
causes).
Special causes are unusual events which are difficult to foresee and often produce
outliers.
A process can be optimized to limit the bandwidth of variations due to random causes.
25. 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?
Projects should never be executed without a valid, updated and working project
management plan.
The consistency of the project management plan is secondary because it is only the
results that matter.
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.
Poor planning and insufficient updating of project management plans are common
reasons for cost and time overruns.
26. You want to perform active risk acceptance. What should you do?
Create contingency reserves in resources, money and time.

Develop a plan to minimize impact in case that an identified risk occurs.
Develop a plan to minimize the probability of occurrence for identified risks.
Make additional resources available to speed up the project.
27. A project manager made 3-point estimates on a critical path and found the following results:
Assuming 3 sigma precision level for each estimate, what is the standard deviation of the
allover path?
App. 4.2 days
App. 5.2 days

App. 6.2 days
You can not derive the path standard deviation from the information given.
28. When do bidder conferences normally take place?
After the contract has been awarded to keep alternatives open.

After submission of bid or proposal, but before contract award.
Prior to the submission of a bid or proposal by the bidder.
After technical meetings with bidders to discuss contract requirements.
29. What is defined by control limits?
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.
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.
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 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
30. The scope baseline consists of what?

Scope statement, WBS, and WBS dictionary
Cost baseline, quality baseline and schedule baseline
Configuration management plan and configuration identification document
Procurement statement of work and project scope statement
31. Activity 1 has a duration of 20 days, activity 2 of 10 days, activity 3 of 5 days and activity 4 of 6
days.
What is the minimum total duration between the milestones A and B?
36 days
37 days
39 days
42 days
32. Which tool and technique is used in the processes Create WBS and Define activities?
Nominal group technique
Human resource assignment

Brainstorming
Decomposition
33. Which of the following statement(s) on whistleblowing is/are not true?
a. It is a term used to define an employees decision to disclose information on unethical, immoral

or illegal actions at work to an authority figure.
b. 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.
c. The consequences of whistleblowing are often extreme and might include being branded as an
owner of bad judgment, layoff, civil action and imprisonment.
d. C arefully performed whistleblowing can lead to the end of unethical business practices.
a
b
b, c
c, d
34. Which of the following statements is not true?
Attribute sampling is the process of assessing whether results conform to specifications

or not.
Prevention means keeping errors out of the process by applying actions before the
process starts changing its input.
Variables sampling means that the result is classified into one of the 3 categories:
"acceptable" - "acceptable after rework" - "rejected".
Inspection is often mainly done to keep errors out of the hands of the customer instead
of as a means of process control.
35. Which statement describes best why you should document assumptions?
Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows
baseline adjustments in case of project crisis.
Assumption analysis is a valuable tool and technique to explore the validity of
assumptions during risk identification.
Assumptions limit the project management team's options for decision making because
they can not be controlled by the team.
In case of schedule or budget overruns, the documentation of assumptions supports a
clear assignment of responsibility.
36. Which is normally not regarded as an element of cost of quality?
Prevention costs
Maintenance cost
Appraisal costs
Failure costs
37. 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 been
calculated with a very small margin during operations of its product for the shareholders. What
should you do?
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.
Ensure maximum profits by buying the best and cheapest items, components and
modulespotentially from a big number of different suppliersand integrating them.
Create a realistic plan broken down to a sufficient level of detail. Perform all risk
management processes. Ensure real-time communications with all stakeholders.
Try to get a second project manager assigned to share decision making and
accountability to shareholders with the person.
38. 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?
The performing organization is a weak matrix.

The performing organization is doing "management by projects".
The performing organization is a strong matrix.
The performing organization is projectized.
39. 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?
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.
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.
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.
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.
40. Which statement on conflicts is true?

Conflict resolution should focus on people, not issues.
Conflict is natural and forces a search for alternatives.
Conflict should always be handled in private and not in the team.
Too much openness is a common cause of conflict.
41. 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?
Report performance
Verify scope
Perform integrated change control
Monitor and control risks
42. What is a trigger in project risk management?
An expected situation causing an unidentified risk to occur

A warning sign that a previously identified risk might be occurring or has occurred
An unexpected situation causing an identified risk to occur
An unexpected situation causing an unidentified risk to occur
43. 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?
You should delay the payment also for 2 weeks.
You must immediately find a different contractor.
You should conduct a meeting with the contractor to resolve the delivery issues before
making the payment.
You should make the payment and reschedule the project plan.
44. 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?
Concurrent engineering
Resource over-allocation
Resource pooling
Program management
45. What does the acronym RACI commonly stand for in project management?
Responsible, Accountable, to be Consulted, to be Informed
Remote, Attached, Connected, Integrated

Risk Analysis and Caution Initiative
Randomly Accessible Cashflow Information
46. 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?
Apply resource leveling heuristics to uncritical activities only.
Reduce estimates on duration and work efforts by an adequate percentage.

Apply Three-point estimation and critical chain project management.
Remove physical constraints and replace hard logic with soft logic.
47. Liquidated damages (LDs) are contractually agreed payments in order to...
...give the contractor an incentive to meet an aggressive schedule or challenging quality
objectives.
...penalize the contractor for late completion of a project or failure to meet specifications.
...cover the customer's costs caused by late completion or failure to meet specifications
by the contractor.
...make a bid or proposal binding for the offerer while the customer has time to select
among various bidders.
48. What should not be covered by a risk management plan?

Roles and responsibilities for handling project risks
Timing of project risk management activities
The methodological approach used for risk management

Individual risks and potential responses to them
49. You are assigned as the project manager to a project which had a one-time cost variance in
the past caused by unexpected rework which has meanwhile been finished.
You perform earned value analysis and get the following results:
EV: 250,000; PV: 200,000; AC 275,000
BAC is 500,000.
What is right?
EAC = 550,000
EAC = 525,000
EAC = 500,000
EAC = 425,000
50. An estimation has been made that the construction of a residential home will cost a certain
amount per square foot of living area. This is an example of what type of estimating?
Analogous estimating
Bottom-up estimating
Top-down estimating
Parametric estimating
51. What is true for prototypes?

Prototyping causes significant costs and should be avoided wherever possible.
They are tangible and allow for early feedback on requirements by stakeholders.
Prototypes are mostly developed toward the end of a design or build phase.
Prototypes increase the risk of misunderstandings between developers and users.
52. What is a constructive change?
A change request that helps improving the project and its product, service or result and
is discussed generally in a friendly style.
A direction by the buyer or an action taken by the seller that the other party considers an
undocumented change to the contract.
A field change or ad-hoc change mandated by the project customer in a public
construction project.
A change request which will lead to the re-construction of an older version of the project
performance baseline by the contractor.
53. Which of the following is generally not regarded to be a motivator according to Frederick
Herzberg?
Working conditions and interpersonal relations
Responsibility for enlarged task
Interest in the task
Recognition for achievement
54. What is true for modern project management? Project managers need...
... to have a strict standing in negotiating
... to show experience in tricking business partners
... to be team players and facilitators instead of "bosses"

... to be strongly linked to local traditions
55. You are the project manager in an engineering project and have recently signed a contract
with a software vendor for the development of a complicated control solution. The software will
be used to control machinery equipment which your project team is currently developing. The
contract is a lump-sum contract. The contractor has target cost estimated which seem rather
low to you. Which of the following statements is not true for this situation?
It is the contractor's risk in this type of contract that their profit may vanish if costs have
been underestimated.
This form of contract should only be chosen when all the requirements for the building of
the product are well-known by all parties involved.
In a fixed-price contract, change requests can cause issues regarding additional time and
extra costs for the changes to be applied.
It is likely that your organization may have to assume any unexpected additional costs
for the software development.
56. A review to determine whether of project activities comply with organizational and project
policies, processes, and procedures is commonly called
Quality auditing
Inspection
Quality testing
Reject screening
57. Which of the following is true regarding the code of accounts?
It allows one to easily identify the breakdown level of the item in the resource structure.
It describes the coding structure used by the performing organization to report financial
information in its general ledger.
It is the collection of unique identifiers generally assigned to WBS items.
It defines ethical behavior in the project and the responsibilities to the customer and the
profession.
58. You are the manager of your company's project management office. The company is running
many concurrent projects; most of them share a resource pool of technical staff. Understanding
how resources are utilized across projects has been found essential to overall project
performance, including cost effectiveness and profitability.
This morning you received a message that the resource pool members will be unable to
perform as planned for the next months because the overall work load has grown too high and
while delays are adding up, the morale of the staff is going down.
What should you do next?
Ensure that quantitative information for all projects is being made available in a uniform
and reliable fashion and verify that the project management methodology is adhered to.
Then consolidate the information to get an understanding of the problems related with
the use of shared resources.
Implement an enterprise project management software solution which is able to level
the human resources across the various projects and which has the capability to model
resource assignment on a percentage level thus optimizing resource utilization for the
overall organization.
Do nothing related to the described problem unless you are explicitly requested by the
organizations upper management. Supporting decision making on the level on which
project portfolio management is done, is not the project management office's business.
Evaluate project management software which supports planning and scheduling across
enterprise-wide project portfolios. Avoid managing the availability of shared enterprise
resources for the projects run by an organization because this is not the business of a
project management office.
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59. You have been criticized that certain specifications in your scope statement do not pass the
test for SMART objectives. What are SMART objectives?
Objectives specified in far more detail than necessary for a execution of a successful
project.
Easily achievable objectives which help you reducing the pressure on yourself and the
team.
Objectives that should be achieved in order to attain formal recognition by both the
customer and the project sponsor.
Objectives that are described using specific, measurable, assignable, realistic and time-
related specifications.
60. You have been assigned as a project manager to a software project. While you and your team
are working on a WBS (work breakdown structure), estimations for activity durations based on
the activity list vary significantly. Which additional documents may help you clarify this
situation?
Milestone list and scope baseline.
Project schedule network diagrams and human resource plan.
Activity cost estimates and scope baseline.
Activity attributes and project scope statement.
61. You are performing earned value technique on your project.
After budget approval, an additional and unexpected cost item has been identified, which
made the project more expensive some weeks ago. The item has meanwhile been paid by the
project team, and it is expected that for the remaining duration of the project, costs will be as
budgeted.
In this case, which is the best formula to calculate EaC (Estimate at Completion)?
EaC = BaC - CV
EaC = BaC / CPI

EaC = AC + BtC / CV
You can not compute the EaC.
62. During a company event, you had the opportunity to talk to a colleague project manager. He
told you that in his current project actual costs are 15% under cumulated costs budgeted for
today.
What do you think?
The information given to you by the colleague is not sufficient to assess project
performance.
The project will probably be completed with total costs remaining under budget until the
end.
A significant cost increase during the further course of the project will probably bring the
costs back to baseline level.
Original cost forecasting and budgeting for the project must have been poor to allow this
variance.
63. What is the meaning of a concept called the "Journey to Abilene"?
Project managers should visit their customers far more often than what is usual in order
to avoid misunderstandings and bad emotions.
International projects may have an increased need for traveling which can lead to
additional costs and troubles with time zones.
Committee decisions can have the paradox outcome, that a jointly made or approved
decision is not desired by any individual group member.
A project is a temporary endeavor undertaken to create a unique product, service or
result. Repeating it would be similar to making the same journey twice.
64. Which of the following statements describes best the relationship between project phases and
the project life cycle?
The project life cycle includes the time when the project is performed and the expected
product lifespan after that.
In project management, the sequence of project phases and phase gates is often
referred to as project life cycle.
The project life cycle is regarded as a sequence of project activities while phases are
defined to control overlapping activities.
The project life cycle describes how iterations of project management processes are used
when a project schedule is developed.
65. Which is an appropriate order in most project situations for the development of scope-related
documents?
1. Project SOW (statement of work),

2. Project charter,
3. Project scope management plan,
4. Project scope statement,
5. WBS (work breakdown structure) and WBS dictionary.
1. Work breakdown structure,
2. Scope statement,
3. Project charter,
4. CSOW (contractual statement of work),
5. Contractual work breakdown structure
1. Feasibility study
3. Contract,
4. CWBS (contractual work breakdown structure),
5. Scope of work descriptions,
6. PID (project initiation document).
1. BOM (Bill of materials),
2. CAP (control account plan),
3. Project charter
4. Change management plan,
5. Scope baseline.
66. What is the S-curve in project management?
A graph that is generated if a normal curve is integrated.
A graph that is to be integrated to generate a normal curve.
A metaphoric description of the short term uncertainties that are present in every project.
The graph that describes the typical growth of earned value during the course of the
project.
67. An output of the process Estimate activity resources is a document called "activity resource
requirements". It identifies the types and quantities of resources...
...while the term resources is limited to equipment and materials.
...required for each activity in a work package.
...while the term resources is limited to human resources.
...to be obtained solely from the performing organization.
68. What is not the purpose of configuration control when configuration management is applied in
a project?
Verification that the configuration identification for a configuration item is accurate,

complete, and will meet specified program needs.
Ensuring that proposed and approved changes to configuration items are fully analyzed.
Ensuring that proposed and approved changes to configuration items are fully
documented.
Managing and controlling the frequently requested changes to a project by applying
agreed rules.
69. Which statement describes best the meaning of the term cost baseline?
A cost baseline is always created by translating time-phased cost information into cost
data on activity or work-package level.
A cost baseline is an approved time-phased budget that will be used to measure and
monitor cost performance on the project.
Data to draw a cost baseline can be easily generated and updated as necessary from
information related to actual project cost.
A cost baseline is usually displayed in the form of an inverse S-curve drawn from the
beginning of the project until data date.
70. Which is not true in regard of RoI (return on investment) for a project?
It defines the cumulated net income from an investment at a given point in time or during
a defined period.
It includes investment, direct and indirect costs and may include allowances for capital
cost, depreciation, risk of loss, and/or inflation.
It is most commonly stated as a percentage of the investment or as a dimensionless
index figure.
It is the time when cumulated net income is equal to the investment.
71. A project sponsor requested earned value data on two concurrent projects from the project
managers. Both projects are regarded as equally important and strategically beneficial and
have been finished by over 80%. He received the following information:
Project A:
PV: $1,800,000
EV: $2,300,000
AC: $2,100,000
Project B:
PV: $2,000,000
EV: $1,500,000
AC: $1,600,000
The sponsor considers to shift some resources from project A to project B to speed up the
second project which is currently behind schedule.
What is the most likely outcome of such a measure?
Changing team assignments during late course of a project typically increases cost
efficiency.
Changing team assignments during late course of a project typically increases time
efficiency.
According to the law of diminishing returns, the consolidated cost variance of the two
projects will decrease.
According to the law of diminishing returns, the consolidated cost variance of the two
projects will increase.
72. Which of the following statements describes best the relationship of quality and grade?
Low grade is always a problem; low quality may be overcome by a good rework and
repair process.
Grade is a category or rank given to entities having different functional requirements but
the same need for quality.
Both quality and grade can often be improved through intelligent measuring, testing and
examining.
Low quality is always a problem as it bears on the ability of an item to meet
requirements; low grade may sometimes be acceptable.
73. Network templates which contain only portions of a network are often referred to as
Sub-networks or fragment networks

Subprojects
Programs
WBS items
74. You have been asked to calculate the internal rate of return (IRR) of a project? What will you
assess?
The time period needed to pay back the investment from a project when future income is
discounted.
The inherent discount rate or investment yield rate produced by the project's deliverables
over a pre-defined period of time.
The rate of negative risk that can be accepted for a project without turning the expected
net present value negative.
The expected benefit from a projects deliverable calculated as a percentage of the
original investment over a specified time period.
75. You just created the following network logic diagram to describe the planned flow of activities
for your project which will start tomorrow:
Which potential inconsistency in the diagram should you solve right now?
Activity E is open ended ( a "dangle") in relation to the finish milestone path

convergence.
Activity F is open ended in relation to the path divergence after the start milestone.
You cannot calculate a critical path when lags and/or leads are calculated in percent.
Activities E to F need another task drawn as a hammock to calculate level of effort.
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PMP Exam Self-Assessment Test

M ailed J anuary 2 6 2 0 1 2 by Sandie Q . (U SA ):

M ailed N ovember 0 4 2 0 1 1 by Satis h S. C . (I ndia, via

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3. A production process has been defined as part of an industrial equipment manufacturing

20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm,

What should be done?

The process is under control. It should not be adjusted.

The control limits should be adjusted.

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Which stage of team development can be difficult to overcome in such a situation?

Storming from Forming, Storming, Norming, Performing

Panic from Enthusiasm, Panic, Hope, Solution

Kickoff from Assignment, Kickoff, Training, Communicating

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EV: 523,000; PV: 623,000; AC: 643,000.

Which results are correct?

CV: +120,000; SV: +100,000

CV: +100,000; SV: +120,000

CV: -120,000; SV: -100,000

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Which of the following is usually not an element of the project charter?

Detailed control account and work package descriptions

The business need that the project was undertaken to address

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Network Logic Diagram

Work Breakdown Structure

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8. Which of the following tools is used to create a risk management plan?

Risk planning meetings

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Which of the following activities should you do first?

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What kind of information is the person expected to provide in the document?

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SPI = 0.7, CPI = 1.0

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12. Which should be included in a requirements management plan?

The document should trace requirements to project scope / WBS deliverables.

It should trace high-level requirements to more detailed requirements.

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13. In a traditionally drawn decision tree, a circle represents ___________.

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Service level agreement

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Target costs: $ 1,000,000

Benefit/cost sharing: 80% / 20%

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What should the project manager do?

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If tasks are scheduled to begin at early start date, what is true?

Activity B has a free float of 10 d.

Activity A has a free float of 10 d.

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Technical training for all team members

A team meeting at a location convenient to all team members

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Formal procurements closure

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