Question 1

Question Statement:
Which of the following is a tool used to secure expert judgment?

Choices:
A. Peer review
B. Delphi technique
C. Expected value technique
D. Work Breakdown Structure (WBS)

Answer 1

Correct Choice:
B

Explanation: The ‘Delphi technique’ is a commonly used tool to secure expert judgment while initiating a
project.

‘Peer review’ is a project selection tool, ‘Expected value’ is a method quantitative risk analysis, and ‘WBS’ is
a project planning tool

Question 2

Question Statement:
Based on the information provided below, which project would you recommend pursuing?

Project I, with BCR (Benefit Cost ratio) of 1:1.6;

Choices:
A. Project I
B. Project III
C. Either project II or IV
D. Can not say from the data provided

Answer 2

Correct Choice:
B

Explanation:
Project III has an IRR of 15%, which means the revenues from the project equal the cost expended at an
interest rate of 15%. This is a definitive and a favorable parameter, and hence can be recommended for
selection.

Project I has an unfavorable BCR and hence cannot be recommended.

Information provided on projects II and IV is not definitive, and hence neither of projects II and IV qualifies
for a positive recommendation.
Question 3

Question Statement:
What should be done by the project manager to ensure that all work in the project is included?

Choices:
A. Create a contingency plan
B. Create a risk management plan
C. Create a WBS
D. Create a scope statement

Answer 3

Correct Choice:
C

Explanation:
A WBS is a deliverable oriented grouping of project components that organizes and defines the total scope
of the project.

Question 4

Question Statement:
What kind of a relationship is implied when completion of a successor is dependent on initiation of its
predecessor?

Choices:
A. FS
B. FF
C. SS
D. SF

Answer 4

Correct Choice:
D

Explanation:
A start-to-finish (SF) relationship between two activities implies that the completion of successor is
dependent on the initiation of its predecessor.

A finish-to-start (FS) relationship between two activities implies that the initiation of successor is dependent
on the completion of predecessor.

A finish-to-finish (FF) relationship between two activities implies that the completion of successor is
dependent on the completion of predecessor.

A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation of
predecessor.

Question 5

Question Statement:
What should a project manager do or follow to ensure clear boundaries for project completion?

Choices:
A. Scope verification
B. Complete a scope statement
C. Scope definition
D. Risk management plan

Answer 5

Correct Choice:
B

Explanation:
The project team must complete a scope statement for developing a common understanding of the project
scope among stakeholders. This lists project deliverables – summary level sub-products, whose full and
satisfactory delivery marks the completion of the project.

Scope verification is the process of securing a formal acceptance of the project scope by stakeholders.

Scope definition is the process of subdividing the major project deliverables into smaller, more manageable
components.

A risk management plan involves setting up processes for identifying and dealing with project risks.

Question 6

Question Statement:
An organization is certified to a stringent environmental standard and uses that as the key differentiator
with its competitors. Alternative identification during scope planning for a particular project has thrown up
an expeditious approach to achieve a project need, but this involves a risk of environmental contamination.
The team evaluates that the likelihood of the risk is very low. What should the project team do?

Choices:
A. Drop the alternative approach
B. Work out a mitigation plan
C. Procure an insurance against the risk
D. Plan all precautions to avoid the risk

Answer 6

Correct Choice: A

Explanation:
The organization’s reputation being at stake, the threshold for such a risk would be very low.

Mitigation plan against an environmental contamination would mean reducing the impact, which may not be
a plausible response.

Procuring an insurance against the risk would only transfer the monetary impact of the risk, and not the
intangible impact like, the reputation of the organization.

Planning precautions against the occurrence would still leave an opportunity of occurrence. This cannot be
completely avoided.

The best option would be to drop the approach – that is, complete avoidance of the risk.

Question 7

Question Statement:
The following three tasks form the entire critical path of the project network. The three estimates of each of
these tasks are tabulated below. How long would the project take to complete expressed with an accuracy of
one standard deviation?
Task    Optimistic     Most likely     Pessimistic
A                15                      25                 47
B                12                      22                 35
C                16                      27                 32

Choices:
A. 75.5
B. 75.5 +/- 7.09
C. 75.5 +/- 8.5
D. 75.5 +/- 2.83

Answer 7

Correct Choice: B

Explanation:

Choice B is the correct answer.

The critical path is the longest duration path through a network and determines the shortest time to
complete the project. The PERT estimates of the tasks listed are 27, 22.5 & 26. Therefore, the length of the
critical path of the project is 27+22.5+26 = 75.5.

The standard deviations of the estimates of the three tasks are determined as (P-O)/6 = 5.33, 3.83 & 2.67
respectively. The standard deviation of the total path is determined as Sq. root (sum of variances), where
variance = square of standard deviation.

***See the table at the bottom of this page***

Hence, standard deviation of critical path = Sq. root (28.44+14.69+7.11) = 7.09.

Hence choice B is correct while choices A, C and D are incorrect.

Question 8

Question Statement:
After a study of the work processes on a project, a quality audit team reports to the project manager that
irrelevant quality standards were being used by the project, which might lead to rework. What was the
objective of the project manager in initiating this study?

Choices:
A. Quality control
B. Quality planning
C. Checking adherence to processes
D. Quality assurance

Answer 8

Correct Choice: D

Explanation:
Determining validity of quality standards, followed by the project is a ‘quality assurance’ activity.

Compliance of work results to required specifications is a ‘quality control’ activity.

Determining quality standards is a ‘quality planning’ activity.

Question 9

Question Statement:
Which of the following provides the foundation for team development?

Choices:
A. Motivation
B. Organizational development
C. Conflict Management
D. Individual Development

Answer 9

Correct Choice: D

Explanation:
Individual development (managerial and technical) is the foundation of a team

Question 10

Question Statement:
Which of the following is NOT an input to project plan execution?

Choices:
A. Work authorization system
B. Project plan
C. Corrective action
D. Preventive action

Answer 10

Correct Choice: A

Explanation:
A Project plan is the basis of project plan execution and is a primary input.

Work authorization system is a tool used for orchestrating execution of various project tasks.

Whereas, Corrective and Preventive actions are inputs to the project plan execution process from various
controlling processes.

Question 11

Question Statement:
A project manager would find team development the most difficult in which form of organization?

Choices:
A. Weak Matrix organization
B. Balanced Matrix organization
C. Projectized organization
D. Tight Matrix organization

Answer 11

Correct Choice:
A
Explanation:
In a functional organization, the project team members have dual reporting to two bosses – the project
manager and the functional manager.

In a weak matrix organization, the power rests with the functional manager.

In a balanced matrix organization, the power is shared between the functional manager and the project
manager. A projectized organization is grouped by projects and the project manager has complete control
on the project and its team.

A Tight matrix organization refers to co-locating the project team and has nothing to do with a matrix
organization.

Therefore, a project manager would find it difficult to drive team development in a weak matrix
organization.

Question 12

Question Statement:
The project manager of a large multi-location software project team has 24 members, out of which 5 are
assigned to testing. Due to recent recommendations by an organizational quality audit team, the project
manager is convinced to add a quality professional to lead the test team at additional cost, to the project.

The project manager is aware of the importance of communication, for the success of the project and takes
this step of introducing additional communication channels, making it more complex, in order to assure
quality levels of the project.

How many additional communication channels are introduced as a result of this organizational change in the
project?

Choices:
A. 25
B. 24
C. 1
D. 5

Answer 12

Correct Choice:

Explanation:
Number of communication channels with “n” members = n*(n-1)/2

Originally the project has 25 members (including the project manager), which makes the total
communication channels as 25*24/2 = 300.

With the addition of the quality professional as a member of the project team, the communication channels
increase to 26*25/2 = 325.

Therefore, the additional channels as a result of the change, that is, 325-300 = 25.
Question 13

Question Statement:
Once the project is complete, the complete set of project records should be put in which of the following?

Choices:
A. Project Archives
B. Database
C. Storage room
D. Project Report

Answer 13

Correct Choice:
A

Explanation:
Project records should be prepared for archiving by the appropriate parties.

Question 14

Question Statement:
Which of the following is a common format for performance reporting?

Choices:
A. Pareto Diagrams
B. Bar charts
C. Responsibility Assignment Matrices
D. Control Charts

Answer 14

Correct Choice:
B

Explanation:
Common formats for Performance Reports are, bar charts (also called Gantt Charts), S-curves, histograms
and tables etc.

Question 15

Question Statement:
If the cost variance is positive and the schedule variance is also positive, this indicates the:

Choices:
A. Project is under budget and behind schedule
B. Project is over budget and behind schedule
C. Project is under budget and ahead of schedule
D. Project is over budget and ahead of schedule

Answer 15

Correct Choice:
C

Explanation:
Choice C is the correct answer.

Positive Schedule Variance means the project is ahead of schedule; Negative Cost Variance means the
project is over-budget.
Question 16

Question Statement:
During execution of a project, an identified risk event occurs that results in additional cost and time. The
project had provisions for contingency and management reserves. How should these be accounted for?

Choices:
A. Contingency reserves
B. Residual risks
C. Management reserves
D. Secondary risks

Answer 16

Correct Choice: A

Explanation:
The question is about correct accounting for risk events that occur and updating the reserves.

Reserves are meant for making provisions in cost and schedule, to accommodate for consequences of risk
events.

Risk events are classified as “unknown unknowns” or “known unknowns”, where “unknown unknowns” are
risks that were are not identified and accounted for, while “known unknowns” are risks that were identified
and provisions were made for them.

Provisions for “unknown unknowns” are in management reserves while those for “known unknowns” are
accommodated in contingency reserves. Management reserves are at the discretion of senior management
while the contingency reserves are at the project manager’s discretion.

Residual and secondary risks are remaining unmitigated risks and resultant risks of mitigation, respectively.
These are not reserves.

In this case, the risk event is one of the identified risks and therefore, ‘contingency reserve’ is the one
where the cost and schedule impact would be accommodated in.

Question 17

Question Statement:
Which one of the following is the last step of project closing?

Choices:
A. Client has accepted the product
B. Archives are complete
C. Client appreciates your product
D. Lessons learnt are documented

Answer 17

Correct Choice:
B

Explanation:
Archiving is the last step in the project closing.

Question 18

Question Statement:
Who should be involved in the creation of lessons learned, at closure of a project?
Choices:
A. Stakeholders
B. Project team
C. Management of the performing organization
D. Project office

Answer 18

Correct Choice:
A

Explanation:
‘Stakeholders’ include everyone who are actively involved in the project or whose interests may be affected
as a result of the project execution or completion.

The ‘project team’ creates the lessons learned on the project.

The role of the ‘project office’ depends on the function defined for it within the performing organization and
it could be either facilitating best practices for all projects or could constitute the project team.

As lessons learned should capture all variations and what could have been done better for future
deployment, ‘stakeholders’ should be involved in creation of lessons learned.

Question 19

Question Statement:
An organization has recently started outsourcing work to a low cost, high value, engineering center located
in a different country.

Which of the following should the project manager provide for the team as a proactive measure?

Choices:
A. A training course on the laws of the country
B. A course on linguistic differences
C. An exposure to the cultural differences
D. A communication management plan

Answer 19

Correct Choice:
C

Explanation:
Understanding cultural differences is the first step towards an effective communication amongst the project
team involving outsourced work from a different country. So, what is needed in this case is ‘an exposure to
the cultural differences’, which is being mentioned as choice C.

Choice A, that is, ‘a training course on the laws of the country’ is a subject of legal experts and not of the
project team.

Choice B, that is, ‘ a course on linguistic differences’ would not serve the purpose of understanding and
appreciating cultural differences, for better teaming.

Choice D, that is, ‘a communication management plan’ is a document that provides data gathering and
dissemination amongst stakeholders of the project. It is necessary for the project but does not help in
bridging communication gaps across different cultures.
Question 20

Question Statement:
While reviewing the progress, the project manager assesses that an activity has been missed out from the
implementation plan. A milestone, scheduled to be achieved within another week, would be missed with the
current implementation plan.

Which of the following is the next best action for the project manager in this situation?

Choices:
A. Report the error and the expected delay
B. Omit the status update on the milestone
C. Report the error and the planned recovery actions
D. Assess alternatives to meet the milestone

Answer 20

Correct Choice:
D

Explanation:
Choice D, that is, ‘assess alternatives to meet the milestone’ indicates confronting the issue with an attempt
to resolve the issue. Hence this would be the best approach.

Choices A and C, that is, ‘report the error and the expected delay’ or ‘report the error and the planned
recovery actions’ do not attempt to solve the problem.

An attempt to solve the problem is the next best thing to do in this situation, before reporting the issue
correctly.

Choice B, that is, ‘omit the status update on the milestone’ is unethical