PMP_SampleQA3
SAMPLE PMP PREPARATORY QUESTIONS AND ANSWERS
160 Free PMP Exam Prep Questions (Obtained from PM Connection:
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1. Regarding management and leadership all of the following are true except
A. On a project, particularly a larger project, the project manager is generally
expected to be the project's leader as well.
B. Technical leadership is of primary importance in project management
C. Managing is primarily concerned with consistently producing key results
expected by stakeholders
D. Leading involves establishing direction, aligning people, motivating and
inspiring
Answer: B
2. A company has to make a choice between two projects, because the available
resources in money and kind are not sufficient to run both at the same time.Each project would take 9 months and would cost $250,000.
?The first project is a process optimization which would result in a cost reduction of $120,000 per year.This benefit would be achieved
immediately after the end of the project.
?The second project would be the development of a new product which could produce the following net profits after the end of the project:
15,000
1 year:$
125,000
2 year:$
220,000
3 year:$
?Assumed is a discount rate of 5 % per year.Looking at the present
values of these projects' revenues in the first 3 years, what is true?
A. Both projects are equally attractive.
B. The first project is more attractive by app.7%.
C. The second project is more attractive by app.5%.
D. The first project is more attractive by app.3%.
Answer: D
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 acceptable control limits are 19.955 cm and 20.045 cm.
The measurements made at the end of the process yielded the following
results:
20.033 cm, 19.982 cm, 19,995 cm, 20.006 cm, 19.970 cm, 19.968 cm,
19.963 cm, 19.958 cm, 19.962 cm, 19.979 cm, 19.959 cm.
What should be done?
A. The process is under control.It should not be adjusted.
B. The process should be adjusted.
C. The control limits should be adjusted.
D. The measuring equipment should be recalibrated.
Answer: B
4. What are the 4 stages of team development?
A. Forming, Storming, Norming, Performing.
B. Enthusiasm, Hope, Panic, Solution.
C. Assignment, Kickoff, Training, Communicating.
D. Direction, Motivation, Cooperation, Collaboration.
Answer: A
5. During a software project Earned Value Analysis is performed and gives
the following results:
EV: 523,000;
PV: 623,000;
AC: 643,000.
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.
Answer: D
6. Which of the following is not normally an element of the Project Charter?
A. The formal authorization to apply organizational resources to
project activities.
B. Work package descriptions.
C. The business need that the project was undertaken to address.
D. The product description or a reference to this document
Answer: B
7. Which process is applied to break down the project into smaller, more
manageable elements?
A. Scope Planning.
B. Activity Duration Estimating.
C. Scope Definition.
D. Scope Verification.
Answer: C
8. Which of the following Tools and Techniques are part of Risk Management
Planning?
A. Risk planning meetings.
B. Documentation reviews.
C. Data precision rankings.
D. Diagramming techniques.
Answer: A
9. All of the following statements concerning project stakeholders are true
except
A. Differences between or among stakeholders should be resolved in
favor of the customer.
B. Managing stakeholder expectations may be difficult because
stakeholders often have very different objectives, that may come
into conflict.
C. Project stakeholders may influence the course of the project and
its results.
D. Differences between or among stakeholders should be resolved in
the most cost efficient manner consistent with project objectives.
Answer: D
10. Which of the following is the output of Source Selection?
A. Proposals.
B. Evaluation criteria.
C. Contract negotiation.
D. Contract.
Answer: D
11. Which of the following statements is not true?
A. Standards and regulations are mandatory.
B. According to ISO, standards are not mandatory, but regulations are.
C. Standards often begin as guidelines that are not mandatory.With later
widespread adoption, they can become de facto regulations.
D. Standards and regulations are socio-economic influences to a project.
Answer: A
12. Which type of leadership is best suited for optimizing team performance in
projects?
A. Democratic leadership.
B. Participative leadership.
C. Autocratic leadership.
D. Benevolent authoritative leadership
Answer: B
13. Where is the result node (outcome) shown on a typical Ishikawa or
Fishbone diagram?
A. Top.
B. Bottom.
C. Right hand side.
D. Center.
Answer: C
14. A project management team has subcontracted work to a service company.
The process of ensuring that this service company's performance meets contractual requirements is called
A. Contract Administration.
B. Staff Acquisition.
C. Contract Closeout.
D. Contract Negotiation
Answer: A
15. What are workarounds in project management?
A. Workarounds are essentially the same as rework.
B. Workarounds are alternative strategies.
C. Workarounds are unplanned responses to emerging risks that were
previously unidentified or accepted.
D. Workarounds are activities performed according to applicable
contingency plans
Answer: C
16. What are faits accomplis?
A. A French dinner after a kick-off meeting.
B. Unachievable deliverables.
C. Accomplished objectives.
D. Decisions made earlier which limit the options for decision making.
Answer: d
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.Upon further investigation, he determines that this occurred because there were no other project assignments available for these people.The customer is unaware of these facts.
What should the project manager do?
A. Try to find some productive work for these staff members in the project
and leave them on the team.
B. The best thing is to do nothing.The customer will not realize the problem
anyway.
C. Try to find a responsible person for the over-assignment who can be
made accountable.
D. Take the two people off the team immediately and arrange for the refund
of the excess charges to the customer .
Answer: d
18. In the following network logic diagram start dates are defined as early
morning, finish dates are evening.
If tasks are scheduled to begin at early start date, what is true?
A. Activity B has a free float of 10 d.
B. Activity B has a total float of 10 d.
C. Activity A has a free float of 10 d.
D. Activity A has a total float of 10 d.
Answer: B
19. Which of the following is not considered to be part of Project Resource
Management?
A. Working staff.
B. Materials.
C. Equipment.
D. Time and money.
Answer: D
20. Tools and Techniques of Risk Response Planning include
A. Identifying, quantitative and qualitative analysis, monitoring and control.
B. Avoidance, transference, mitigation, acceptance.
C. Identification, assessment of magnitude and probability, assessment of
costs of response .
D. Risk management reviews
Answer: B
21. A project manager performs Earned Value Analysis and finds the following
values:
EV: 100,000; PV: 125,000; AC: 100,000
A. The project is on schedule but costs exceed budget.
B. The project is on schedule and on budget.
C. The project is behind schedule but on budget.
D. Then project is behind schedule and costs exceed budget.
Answer: C
22. What are "Global Literacies"?.
A. The ability to read reports written in many different languages.
B. The ability to succeed in a cross cultural environment.
C. The ability to develop internationally accepted contracts.
D. The ability to communicate using drawings and pictograms which are
understood all over the world
Answer: B
23. During a project the scope of product purchased on a cost reimbursable
contract has increased. In the contract the contractor‘s indirect costs are calculated as 20 % of the direct costs. What is most likely to be true?
A. The contractor‘s indirect costs will increase and the customer‘s payment
for them will increase, too.
B. The contractor‘s indirect costs will increase but the customer‘s payment
for them not.
C. Neither the indirect costs nor the customer‘s payment for indirect costs
will increase.
D. The contractor‘s indirect costs will not increase but the customer‘s
payment for them will.
Answer: D
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?
A. Normal process variation is attributable to random causes.
B. Special causes are easier to predict and handle than random causes.
C. Special causes are unusual events.
D. A process can be optimized to limit the bandwidth of variations due to
random causes.
Answer: B
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?
A. Projects should never be executed without a valid, updated and working
project plan.
B. The project plan is secondary because it is only the results that matter.
C. A great deal of effort is required to develop and update a project plan, but
the benefits include less pressure on all stakeholders and a resulting
product that will satisfy the requirements.
D. Poor planning is one of the major reasons for cost and time overruns.
Answer: B
26. What is active risk acceptance?
A. Creating contingency reserves in money and time.
B. Developing a plan to minimize potential impact.
C. Developing a plan to minimize probability.
D. Making additional resources available
Answer: A
27. Project costs are over budget when
A. CPI > 1.
B. CPI < 1.
C. CPI < 0.
D. SPI = 1.
Answer: B
28. Which of the following statements is not true?
A. Only those who realize that cultural differences are a resource to be fully
utilized will survive.
B. There is a common ground for people from different cultures on which
they can interact without unsolvable conflicts.
C. Cultural differences will always be an obstacle to be overcome.
D. Culture is a critical lever for competitive advantage.
Answer: C
29. What is a quality audit?
A. A team meeting dedicated to measuring and examinations.
B. A quality based inspection of work results.
C. A structured review of quality management activities.
D. A meeting with the customer to identify quality requirements.
Answer: C
30. You are assigned as the project manager in a project with an aggressive
schedule. During a recent meeting your team complained about the high pressure applied and the many hours of overwork time.
What is the preferred solution to handle the problem?
A. Try to obtain additional budget and time.
B. Improve team communication and availability of high quality data on risks.
Use this information to enable you to make well-founded decisions earlier.
C. The problem might be the customer disturbing project rhythm. Keep him
on distance from the team.
D. Apply fast tracking to shorten project duration without additional work.
Answer: A
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?
A. 36 days
B. 37 days
C. 39 days
D. 42 days
Answer: B
32. Which of the following statements is true concerning Scope Definition?
A. The Activity List is a principle output used for resource allocation and is
an input to network diagramming.
B. The Scope Statement is a principle output containing a narrative
description of project work and deliverables.
C. The Project Charter is a principle output and authorizes the project.
D. The Work Breakdown Structure is a principle output and should be
broken down to a level which allows sufficient accuracy in planning.
Answer: D
33. All the following statements regarding "whistleblowing" are true except
A. It is the term used to define an employee’s 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 include
possible being branded as having bad judgment, firing, civil action and
imprisonment.
D. Carefully considered whistleblowing can lead to the end of unethical
business practices.
Answer: B
34. Which of the following statements is not true?
A. Attribute sampling is the process of assessing whether results conform to
specifications or not.
B. Prevention means keeping errors out of the process
C. Variables sampling means that the result is classified into one of the 3
categories: "acceptable" - "acceptable after rework" - "rejected".
D. Inspection means keeping errors out of the hands of the customer.
Answer: C
35. Why should assumptions be documented?
A. Assumptions might prove to be wrong. Knowing which assumptions were
incorrect allows baseline adjustments in case of project crisis.
B. Assumption analysis is a valuable tool and technique of Risk
Identification.
C. Assumptions limit the project management team's options for decision
making.
D. In case of schedule or budget overruns, the documentation of
assumptions supports a clear assignment of responsibility.
Answer: B
36. All the following statements are true except
A. It is axiomatic of the quality management discipline that the benefits
outweigh the costs.
B. Quality should be tested and inspected into work results on a regular
base.
C. The primary cost of meeting quality requirements is the expense
associated with project quality management activities.
D. The primary benefit of meeting quality requirements is less rework, which
means higher productivity, lower costs, and increased stakeholder
satisfaction.
Answer: B
37. Which of the following statements about diagramming methods is not
A. PDM is the same as AON.
B. ADM is the same as AOA.
C. GERT is the same as System Dynamics Model.
D. GERT and System Dynamic Model are examples of conditional
diagramming methods
Answer: C
38. A project is managed by a project coordinator. Which of the following
statements is most likely to be true?
A. The performing organization is a weak matrix.
B. The performing organization is doing "management by projects".
C. The performing organization is a strong matrix.
D. The performing organization is projectized.
Answer: A
39. Which of the following statements concerning cross-cultural differences is
true?
A. There is no one "best way" for project organization.
B. Some cultures have values, some not.
C. Cultural dilemmas should be denied to not allow them to disrupt project
work.
D. Communicating across cultures should only be done using language. The
nonverbal dimension bears too many risks.
Answer: A
40. What are dummy activities?
A. Activities in PDM which are not necessary and can be dropped if time is
running out.
B. Arrows in ADM which represent dependencies between nodes without
real activities.
C. Activities, which can be passed to the team members with the lowest IQ.
D. Activities in PDM which are not performed by team members.
Answer: B
41. Which of the following are not cost of quality?
A. Prevention costs.
B. Failure costs.
C. Transportation costs.
D. Appraisal costs.
Answer: c
42. What is a trigger in project risk management?
A. An expected situation causing an unidentified risk event to occur.
B. A warning sign that an identified risk event might have occurred.
C. An unexpected situation causing an identified risk event to occur.
D. An unexpected situation causing an unidentified risk event to occur.
Answer: b
43. According to the project plan, a contractor is scheduled to deliver some
software components at the end of the day. A regular payment is due to be made to this contractor tomorrow.
The project team received a note this morning informing them that the
software delivery will be delayed by 2 weeks.
This morning, the project team received a note that the software will be delayed by 2 weeks.
How should the project management team react?
A. The project management team should delay payment for 2 weeks.
B. The project management team must immediately find a different
contractor.
C. The project management team should conduct a meeting with the
contractor to resolve the delivery issues before making the payment.
D. The project management team should make the payment and reschedule
the project plan.
Answer: C
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?
A. Concurrent engineering.
B. Resource over-allocation.
C. Resource pooling.
D. Program management
Answer: c
45. What does the acronym RAM commonly stand for in project management?
A. Responsibility Assignment Matrix.
B. Remotely Applied Measurements.
C. Risk Aware Management.
D. Randomly Accessible Material.
Answer: A
46. What is not handled as a constraint in project management?
A. Laws and regulations.
B. Limits of authorization.
C. Team preferences.
D. Physical constraints.
Answer: C
47. A precontract agreement that establishes the intent of a party to buy
products or services is called a
A. Seller initial response.
B. Seller immediate response.
C. Letter of intent.
D. Letter of credit.
Answer: C
48. What should not be part of a risk management plan?
A. Roles and responsibilities for handling risks.
B. Timing of risk management activities.
C. The managerial approach towards risk.
D. Individual risks
49. A project manager performs Earned Value Analysis and finds the following
results:
EV: 250,000; PV: 200,000; AC 275,000
BAC is 500,000.
What is right?
A. EAC = 400,000
B. EAC = 550,000
C. BTC = 400,000
D. ETC = 75,000.
Answer: B
50. The construction of a residential home will cost a certain amount per
square foot of living space. This is an example of what type of estimating?
A. Analogous estimating.
B. Bottom-up estimating.
C. Top-down estimating.
D. Parametric modeling.
Answer: D
51. Which of the following should not be reason for “rebaselining” in a
project?
A. Scope changes.
B. Cost variances.
C. Major schedule changes.
D. New information indicating that the basis for the original project cost
estimates was incorrec
Answer: B
52. When a change control system‘s provision for changes without formal
review in case of emergency is being utilized
A. Changes can be simply applied without further managerial activities if
they help solving the problem.
B. Changes must still be documented and captured so that they do not
cause problems later in the project.
C. A new change control board (CCB) should be established.
D. The project baseline must be changed as well.
53. Which of the following is generally not regarded to be a motivator
according to Frederick Herzberg?
A. Working conditions and interpersonal relations.
B. Responsibility for enlarged task.
C. Interest in the task.
D. Recognition for achievement.
Answer: A
54. Companies and institutions commonly hire leaders with
A. A strong position in negotiating.
B. Experience in tricking business partners.
C. Integrity and expertise.
D. A strong link to local traditions.
Answer: C
55. You are the project manager and have contracted with a service provider to
develop a complicated software solution This software is necessary to
control the machinery equipment which your project team will develop. It is
a lump-sum contract with additional incentives for meeting predefined
schedule targets. The payment schedule and incentives are as follows: ?10% with order
?20% after submission of prototype (+ 5% if delivered one week early) ?50% after product delivery (+ 5 % if delivered one week early)
?20% after final product acceptance (+ 5 % if delivered one week early)
Yesterday the company submitted the prototype to your project team. This was 2 weeks after the scheduled delivery date and 3 weeks after the date necessary to qualify for the incentive payment.
This morning, the manager of the contractor approached you to ask for
changes to the payment schedule. They found that their initial work and costs were much higher than originally expected and they now wish to
increase the second payment to 30% and reduce the final payment to 10%.
During the discussion you got the impression that the company is in
serious financial trouble.
Which of the following might be the most appropriate initial step?
E. Offer to pay 25% now and to reduce the final payment down to 15%.
F. Point out that the contractor is not in a position to demand a change to
the contract.
G. Demand an urgent meeting with the seller.
H. Revisit the planning processes of project risk management to understand
the upcoming risks in conjunction with the seller before any further
decisions are made.
Answer: D
56. A review of management processes and the associated documentation is
commonly called
. Audit.
A. Inspection.
B. Testing and measuring.
C. Screening.
Answer: A
57. Which of the following is true in regard to the Code of Accounts?
. It allows one to easily identify the breakdown level of the item in the resource structure.
A. It describes the coding structure used by the performing organization to
report financial information in its general ledger.
B. It is the collection of unique identifiers generally assigned to WBS items.
C. It defines ethical behavior in the project and the responsibilities to the
customer and the profession.
Answer: C
58. You are a member of your company's project office. The company is
running many concurrent projects; most of them share a resource pool.
Understanding how resources are utilized across projects is seen as being essential to cost effectiveness and profitability.
You recently received an inquiry to assess the benefits of using project management software to manage the company's project portfolio.
Which of the following is true?
. Project management software has the capability to help organize resource pools.
A. Project management software will dramatically simplify the task of
leveling resources across projects with different project management
teams.
B. Supporting project portfolio management is not the project office's
business.
C. Evaluating project management software is not the project office's
business.
Answer: A
59. What are SMART objectives?
. Objectives specified with far more detail than necessary for a successful project.
A. Easily achievable objectives.
B. Objectives that should be achieved in order to attain formal recognition.
C. Objectives that have specific, measurable, assignable, realistic and time-
related specifications.
Answer: D
60. You have been assigned to a new project and have finished the scope
statement. You and your team are now going to create a Work Breakdown Structure. You are spending a lot of time discussing how to create a
completely decomposed Work Breakdown Structure.
Which of the following is not relevant to this discussion?
. Status/completion is measurable.
A. Time/cost is easily estimated.
B. Start/end events are clearly defined.
C. Resource availability can be reliably foreseen.
Answer: D
61. A project manager performs Earned Value Analysis and finds the following
results:
AC: 220,000, PV: 250,000, EV: 220,000.
A. CV = 0.
B. CV = 30,000.
C. CV = -30,000.
D. CV = 1
Answer: A
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 scheduled for today.
What do you think?
A. The information available is not sufficient to assess project performance.
B. The project will probably be completed with total costs remaining under
budget.
C. A significant cost increase during the further course of the project will
probably bring the costs back to baseline level.
D. Original cost planning must have been poor to allow this variance.
Answer: A
63. Which is true regarding projects?
A. A project is a unique service undertaken to create a temporary product.
B. A project is a unique endeavor undertaken to create a temporary service.
C. A project is a temporary endeavor undertaken to create a unique product
or service.
D. A project is a temporary product undertaken to create a unique endeavor
or service
Answer: C
64. Which of the following statements describes the relationship between
project phases and the project life cycle?
A. The project lifecycle contains the iterative incremental elements inside a
project phase.
B. Collectively, the project phases are known as the project life cycle.
C. The project lifecycle is regarded as a sequence of project activities while
phases are defined to control the overlapping of activities.
D. The project lifecycle contains the repetitive elements inside a project
phase
Answer: B
65. A project management team discusses what scope means in a project.
All of the following statements are true except
A. The processes, tools, and techniques used by project scope management
are mostly depending on the application area.
B. Product scope includes features and functions that are to be included in a
product or service.
C. Project scope includes the work that must be done in order to deliver a
product with the specified features and functions.
D. Project Scope Management includes the processes required to ensure
that the project includes all the work required and only the work required.
Answer: A
66. What is the S-curve in project management?
A. A graph that is generated if a normal curve is integrated.
B. A graph that is to be integrated to generate a normal curve.
C. A metaphoric description of the short term uncertainties that are present
in every project.
D. The graph that describes the typical growth of earned value during the
course of the project.
Answer: D
67. The output of the resource planning process is a document "resource
requirements". This a description of what types of resources are required in what quantities...
A. where the term resources is limited to equipment and materials.
B. for each element at the lowest level of the work breakdown structure.
C. where the term resources is limited to human resources.
D. to be obtained solely from the performing organization.
Answer: B
68. The major output document of Scope definition is the.
A. Hierarchically structured WBS.
B. Flat Activity List.
C. Narrative Scope Statement.
D. The Project Charter for the project manager
Answer: A
69. In regards of a cost baseline all of the following is true except
A. It is a time-phased budget that will be used to measure and monitor cost
performance on the project.
B. It can be easily created and updated as necessary.
C. It is developed by summing estimated costs by period.
D. It is usually displayed in the form of an S-curve.
Answer: B
70. Which is not true in regard of RoI (Return on Investment)?
A. It defines the cumulated net income from an investment at a given point in
time or during a defined period.
B. It includes investment, direct and indirect costs and may include
allowances for capital cost, depreciation, risk of loss, and/or inflation.
C. It is generally stated in currency units, as a percentage or as an index
figure.
D. It is the time when cumulated net income is equal to the investment.
Answer: D
71. Regarding Delphi Technique all of the following statements are true except
A. It is a way to reach a consensus of experts.
B. Experts are identified but participate anonymously while a facilitator uses
a questionnaire to solicit ideas.
C. The experts are encouraged by the facilitator to make direct contact with
each other during the assessment process to create a higher number of
feedback loops.
D. The responses are submitted and are then circulated to the experts for
further comment.
Answer: C
72. Regarding quality and grade all of the following statements are true except
A. Low quality is always a problem; low grade may not be. Grade is a
category or rank given to entities having the same functional use but
different requirements for quality. Quality is the totality of characteristics
of an entity that bear on its ability to satisfy stated or implied needs.
Quality can simply be improved through intelligent testing and examining,
upgrading requires additional expenses.
Answer: D
73. Network templates which contain only portions of a network are often
referred to as
A. Subnets or fragnets
B. Subprojects
C. Programs
D. WBS items
Answer: B
74. In making an investment in a project, investors require compensation for
which of the following?
A. The risk-free rate of return plus a risk premium plus a premium for
inflation.
B. Sacrifice of immediate use of cash for consumption or other investments,
possibility of inflation and risk.
C. Payback period in years x investment x (1 + discount rate)periods.
D. Inflation and depreciation.
Answer: B
75. A summary activity in a network logic diagram is often referred to as a
A. Hammock.
B. Dangler.
C. Milestone.
D. Subtask.
Answer: A
76. When a project phase is finished, this is also known as a ____.
A. Kill point
B. Milestone
C. Scope creep
D. Quality metrics
Answer: A
77. Ongoing project planning is also known as ________.
A. Rolling wave planning
B. Buildup planning
C. Activity planning
D. Project processes
Answer: A
78. A ______looks at determining if the project idea is a realistic project.
A. Case project study
B. Feasibility study
C. Matrix study
D. Demand study
Answer: B
79. You are the project manager for a seminar and training session that
approximately 2,000-2500 employees will be attending. You have rented a hall for the seminar; 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
Answer: A