Exam questions Flashcards
Which of the following represents a knowledge area typically not done in the Executing Process Group?
A. Integration
B. Risk Management
C. Quality Management
D. Human Resources Management
B
The processes found in the Risk Management Knowledge Area are typically not done in the executing process. They are typically only done in Planning and Monitoring & Controlling.
All the following will update the Risk Register from Perform Qualitative Risk Analysis process except:
a) List of potential risk responses
b) Causes of risk
c) Priority list of risks
d) Trends in qualitative risk analysis
A.
The list of potential responses is identified in the Identify Risk process. The risk register contains this update already before starting qualitative risk analysis.
How many processes are included in Project Communications Management?
A. 3
B.4
C.5
D.6
C.
- Identify Stakeholders;
- Plan Communications;
- Distribute Information;
- Manage Stakeholder Expectations;
- Report Performance
Using the following information, determine the total price to be paid by the customer. This is a cost-plus incentive fee contract. The share ratio is 80/20, THE TARGET COST IS 150,000 the price ceiling is 180,000. The target profit is 10,000. The actual cost of the project was 140,000
A. 140,000
B. 150,000
C. 180,000
D. 152,000
D.
TC=150,000 TP=10,000 AC=140,000 Savings 10,000. Contractor share of saving is 20%x10,000= 2,000
TP= TP+Incentive =12,000
TOTAL PRICE PAID= 12,000+140000=152,000
You are working on a project when the customer demands an early release of the project deliverable ahead of schedule which may be a risk to the project. To meet this demand, you need to start using the most talented resources in the organization. Which risk response are you dealing with? A. Accept B.Mitigate C. Aviod D. Exploit
D. Exploit
An exploit is a positive risk strategy where the organization wishes to ensure the opportunity is realized. If you meet customer demand, the chances of getting more business are higher.
A key responsibility of the project manager is to ensure the proper adaptation of the project management processes and coordinate the process phases through the project life cycle. This involves balancing the basic aspects of scope, cost, and schedule in addition to managing quality, communication, and customer satisfaction. How can the role of the project manager be best described in a single word?
A. Integrator
B.Leader
C. Communicator
D. DIfferentiator
A. Integrator.
The role of a project manager is a combination of all the above options, but the one that is most critical to the project’s success is that of an integrator. As described in the question, a project manager is expected to integrate the project management processes and coordinate the process phases throughout the project management life cycle to ensure all areas of the project come together to successfully deliver the project.
The ability of an organization to invite or take the risk to make it an opportunity is called ______.
A. Risk seeker
B. Utility function
C. Risk averse
D. Risk neutreal
The ability of an organization to invite or handle risk is called a utility function. It uses the principle of utility theory.
As a project manager, you need to determine the expected value of the decision to build a new plant. The cost of building the plant is $120 million. There are two probable outcomes. A 60% chance of a strong market, which will result in a $200 million reward, and a 40% chance that there will be weak demand, resulting in a $90 million reward. What is the expected monetary value of this decision?
A.36
B.48
C.12
D.60
The decision to build a new plant would cost $120 million. There are two possible outcomes associated with it. There is a 60% chance that there will be a strong demand for your product, which will result in a 200 million dollar reward or payout. The net path value for that scenario is $200-$120 million, or $80 million. There is a 60% probability that strong demand will occur. 60% of $80 million equals $48 million in expected value. There is a 40% chance that there will be weak demand for your product, which would result in a $90 million reward or payout. $90 million minus $120,000 equals $30 million. The net path value is -$30,000. 40% * 30 million =-$12 million. The expected value of this decision is -$12 million. Adding the $48 million and the -$12 million will result in an expected monetary value of the decision of $36 million.
What are the three elements that characterize Project risk?
A.Severity of impact, duration of impact, and cost of impact
B.Identification, type of risk category, and probability of impact
C.Risk, probability, and impact
D.Occurrence, frequency, and cost
C
As the project manager of a critical project, you need to manage project risk intentionally and methodically, so you have assembled only the project team. Using a risk rating matrix, they identified 32 potential project risks, determined what would trigger these risks, and rated and ranked each risk. In addition, you have reviewed and verified all documented assumptions from the project team, and you have verified the sources of data used to identify and rate risks. You are continuing to move through the risk management process. What have you forgotten to do?
A.Conduct a Monte Carlo simulation
B.Determine which risks are transferable
C.Determine the overall riskiness of the project
D.Involve other stakeholders
The risk management process requires input from all key stakeholders, including the project team. The use of a stakeholder register provides the proper identification of stakeholders and their input.
Which of the following contract types does not encourage the seller to control costs and, as a result, places the greater risk on the buyer?
A.Cost exclusive
B.Cost Plus Fixed Fee
C.Cost Plus Incentive Fee
D.Cost Plus Percentage of Cost
D.
The cost-plus-percentage-of-cost or CPPC contract transfers all costs to the buyer, and any increase in costs results in an increase in the fee to the seller. It also incentivizes the seller to be inefficient. This places a significant risk on the buyer and requires close cost management.
You are managing an information technology project. A technical specialist on your team, after an informal meeting with a low-ranking customer representative working on the project, determines that a simple alteration would be a great addition to the project. The scope has already been approved by you and the sponsor, and a change control process is in place. The technical specialist installs the change with no negative effect on the project schedule and at no additional cost. What management action should be taken?
A.The technical specialist should be recognized for exceeding customer expectations without affecting project cost or schedule
B.The project manager should add a task to the project plan with no additional scheduled time and note that there was no increased budget
C.The technical specialist should be informed their actions were not authorized and was inconsistent with the change management plan
D.The project manager should create a change control form, and have the customer sign-off, since the change has already been made
C
The change control process should be followed by everyone on the project team. Failure to manage change effectively can result in significant scope creep and serious implications, additional risk, and liability.
A project team with a CPI of 0.78 is looking for options to reduce cost. Choose the best option from the following.
A.Reduce a test cycle, in the System Testing phase
B.Reduce scope by cutting down non- essential features
C.Add more resources to expedite the schedule
D.Revisit estimates and eliminate risks; re- estimate
D
Option (c) wouldn’t reduce cost. Option (a) and (b) would always have a negative effect as they compromise on quality or scope. Of all the available options, (d) is the one with the minimum negative effect.
For your project, you are working on a procurement-related area to outsource some work packages. While doing so, you decide to go for a fixed-price contract. What is the disadvantage of a fixed-price contract?
A.Less work for buyer to manage
B.Seller has a strong incentive to control costs
C.Buyer knows the total price at project starts
D.Final cost may be more than a cost reimbursable contract because contractors have to inflate the price to cover their risk
D
All options are advantages of a fixed price contract except D.
Which of the following options comes under the project management risk category?
A.Regulatory
B.Funding
C.Requirements
D.Estimating
Estimating comes under project management, Regulatory comes under external, funding comes under internal, and requirements comes under technical
Which of the following statements about the relationship between the product life cycle and the project life cycle is correct?
A.Project lifecycle and product life cycle are same
B.Product life cycle is initiating, planning, executing, monitoring, control, and closing
C.Product life cycle consists of multiple project life cycle
D.Project life cycle consists of multiple product life cycle
C
Which statement regarding the RACI model is true?
A.We can have multiple accountable people for a single activity.
B.We can only have one accountable person for a single activity.
C.We can only have one responsible person for a single activity.
D.We can have multiple people in charge, multiple people accountable, multiple consultants, and multiple people informed about a single activity.
B.
The process of reviewing all change requests, approving changes, and managing changes to deliverables, organizational process assets, project documents, and project management plans and communicating their disposition is called ________.
A.Change control system
B.Perform integrated change control
C.Work authorization system
D.Risk management
Integrated change control through CCB takes care of all these activities.
As a project manager, you have been asked by the customer to give an overview of the project status using milestone charts. Which of the following statement about milestone charts is NOT true?
A.Milestones usually have zero duration.
B.Milestone charts are similar to bar charts but only show major points or events.
C.Milestone charts can be used to capture the status of a project schedule.
D.Milestones are used to define the phases of a project.
D.
Milestone charts capture the major milestones in the project, which represent the beginning or completion of a deliverable, work package, phase, or project. A milestone is a zero-duration activity, and these charts are commonly used to present project status to senior management or a customer. Milestones do not define the phases of a project-this is defined by the project lifecycle.
Which of the following statement is true regarding the role of the risk owner and the risk action owner?
A.Both are the same.
B.The person responsible for ensuring that an appropriate response is selected and implemented is the risk owner, whereas the risk action owner is responsible for carrying out approved risk actions.
C.The person responsible for ensuring that an appropriate response is selected and implemented is the risk action owner, whereas the risk owner is responsible for carrying out approved risk actions.
D.A risk owner is called a risk actionee.
B.
The risk owner ensures the risk is implemented. The risk action owner executes or implements the decided action. A risk action owner is called a risk actionee.
Which option is true regarding sigma values?
A.1 sigma is 68.2%, 2 sigma is 95.4%, 3 sigma is 99.7%, and 6 sigma is 99.99%.
B.2 sigma is 68.2%, 2 sigma is 90.4%, 3 sigma is 99.7%, and 6 sigma is 99.99%.
C.3 sigma is 68.2%, 2 sigma is 95.4%, 3 sigma is 97.7%, and 6 sigma is 99.99%.
D.4 sigma is 60.2%, 2 sigma is 95.4%, 3 sigma is 99.7%, and 6 sigma is 99.99%.
A.
A project manager would like to inform everyone in a distributed team to update their time cards every Monday evening. What is the best way to communicate this expectation?
A.Formal written
B.Informal written
C.Formal verbal
D.Informal verbal
B.
Informal written communication: the project manager will likely send an email reminder to everybody, which represents informal written communication.
You have just been informed that a preferred vendor will be utilized on an upcoming project. There had been concern over the type of contract to be used and the risk involved. Which one of the following contracts would be preferred by the vendor?
A.Time and materials contract
B.Fixed price incentive fee contract
C.Lump sum contract
D.Cost plus fixed fee contract
A
A time and material contract is a risk to the buyer because the seller may not do the work in a reasonable time or try to control the cost of material. It is normally used for small projects.
There are many types of project documents created during the project life cycle. Many of them contain information concerning project-related risks. Which of the following would most likely NOT be one of them?
A.Resource Breakdown Structure
B.Source selection criteria
C.Project charter
D.Risk register
C.
The Resource Breakdown Structure displays the necessary activity resources by category and type. It does not display risk information. Source selection criteria can contain risks assigned to the seller. Project charter can contain high level risks, and Risk register is a primary risk document.
While preparing the identify risks, you decide to review the risk plan one final time to see if it is well prepared. Which of the following would NOT be helpful if found in the risk plan while preparing to identify risks?
A.Risk urgency information
B,Revised stakeholder tolerances
C.Predetermined PIM
D.Risk definitions
A. Risk urgency
Risk urgency information would be updated to the risk register after qualitative risk analysis.
Which of the following would be a true statement regarding the use of checklists for risk identification?
A.Previous experience will not contribute to the checklist development
B.An exhaustive checklist can be practical
C.Regular maintenance is a consideration
D.Check lists provide a more generalized list of risks
C
Regular maintenance is required for a checklist to be accurate and tailored to each project. The other choices are false statements.
While working with the project team during risk identification, you instruct one of the team members to use force field analysis on the next set of risks. Which one of the following is the best description of force field analysis?
A.This tool analyzes the elements of a system that cause it to fail by themselves or in combination with other
B.This tool determines what a project areas might be most sensitive to a risk’s impact
C.This tool compares the variables for change and the variables against change
D.This tool helps determine if your process is in control
C
This is the best description of force field analysis. Option A is FMEA, Option B is sensitivity analysis, and Option D is a reference to a control chart.
The project team is reviewing the risks in the risk register. They find a risk that may require more time to complete due to resource constraints. So, they calculate the time necessary to complete this scheduled activity and network path with reserve analysis. Which of the following is a likely outcome?
A.An assumption
B.A contingency budget
C.A project buffer
D.A negative schedule variance
C
A project buffer is used to protect a resource constraint critical chain within the schedule.
The project team is reviewing sources of potential risks for a project in the planning phase. They are reviewing the cost and quality management plans to spot potential sources of risk. Which of the following might be a source of quality risk that is related to cost?
A.The cost of conformance
B.The cost of nonconformance
C.The cost of inspections
D.The cost of quality training
b
The cost of nonconformance is most closely associated with quality failures. It is the risk of additional time, money, and resources for failing to meet the quality standards. This is reflected in the quality plan during planning for a potential source of risk.
Your project team is currently performing a round of risk identification on a small project just before you begin execution. Which of the following is the best example of what will happen next?
A.PIM scores will be assigned, and risk responses will be developed
B.PIM scores will be assigned, and risk definitions will be determined
C.Risk impact values will be determined, and risk responses will be developed
D.Risk impact values will be determined, and risks will be controlled
A
After risk identification, each risk will be assessed in qualitative analysis and given a PIM score. With a small project, it is not required to conducted further analysis, and risk responses can be developed and assigned to each risk. Option B is incorrect as definitions should have been defined in the risk plan. Options C and D skipped qualitative analysis.
