Initiating Test 1

Question 1

Which of the following tools and techniques would we be the least likely to use in scope development?
(A) Brainstorming
(B) Interviews
(C) Cost-benefit analysis
(D) Facilitated workshops

Answer 1

Correct answer(s): C / Student selected: C
 Scope development, the 2nd task in Project Initiating may use brainstorming, interviews and facilitated workshops. While cost-benefit analysis might be used in scope development to compare alternative ways of delivering the scope, it is not commonly used.

Question 2

A project manager is making Order of Magnitude cost estimates which is done: (114)
(A) when detailed information is available
(B) when little if any information is available
(C) in the execution phase
(D) with information from past projects

Answer 2

Correct answer(s): B
 Order of magnitude estimates are developed during the initiation phase when little if any information is available to use in estimating. They are the least accurate of the estimates we make

Question 3

In a functional organization, executives are considering a number of different projects to launch in the coming fiscal year. One of the executives suggests calculating NPVs for each project and another argues that EPV would be a better measure to use. What is the difference?
(A) Net present value is a method of discounting cash flow back to the present while EPV is used only to measure earned present value once a project has been launched
(B) Net present value deals only with the interest rates and duration while EPV deals with expected present value and the probability of different project outcomes
(C) Net present value is used in project management and expected present value is used in weather forecasting
(D) Net present value discounts cash flows back to the present so projects of different durations can be compared

Answer 3

Correct answer(s): B
 Net present value is a financial technique for discounting project cash flows of different durations so they can be fairly compared. Expected present value is a way of comparing alternative project results and require that you estimate the probability that each of the potential results will occur. Several questions have correct facts, as is the best explanation

Question 4

The initiation process requires all of the following except: (344)
(A) consideration of corporate strategy
(B) Schedules and budgets
(C) management decision making
(D) examination of business needs

Answer 4

Correct answer(s): B
 While we may make order of magnitude estimates of cost and duration the schedule and budget are developed in planning not initiation.

Question 5

You are the PM in a large, projectized organization and have a project team of 80 people. You have completed the business case, high-level scope description and order of magnitude estimates of cost and duration. What is the next thing you should work on?
(A) Assumptions analysis
(B) Stakeholder identification
(C) Develop the project charter
(D) Identify risks and constraints

Answer 5

Correct answer(s): B
 From the information provided in the question, you have the business case and scope statement (which in this case includes the OOM cost and duration estimates). The next task to begin work on is stakeholder identification.

Question 6

You are the PM for a project that spans 3 different departments with over 70 project team members. You are compiling a document that includes the information you have already developed along with the project’s stakeholders, including the project’s scope, major deliverables, stakeholder requirements, risks, assumptions and business justification. What task are you working on?
(A) Define Scope
(B) ID Stakeholders & Expectations
(C) ID Risks, Assumptions & Constraints
(D) Develop Project Charter

Answer 6

Correct answer(s): D
 The project’s scope, major deliverables, stakeholder requirements, risks, assumptions and business justification are all pieces of the project charter. The charter details the measurable results of the project, appoints the PM and authorizes the project and the use of resources.

Question 7

Completing the risk register in stages as we move through risk analysis, response planning, and risk monitoring and controlling is an example of: (3407)
(A) Progressive elaboration
(B) Qualitative analysis
(C) Root cause identification
(D) Assumption analysis

Answer 7

Correct answer(s): A
 Progressive elaboration is a process in which we add details and information as the project progresses.

Question 8

What must be in place before the project manager and team can complete the scope statement? (040)
(A) Business case
(B) Work Breakdown Structure
(C) Baseline
(D) Project plan

Answer 8

Correct answer(s): A
 The scope statement is an output of the Define High-level Scope task. The only choice that is an input of that task is the business case.

Question 9

Final acceptance criteria of the product of the project should be established in ____________________.
(A) In the Collect Requirements
(B) In the Define Scope
(C) Monitoring & Control
(D) Verify deliverables

Answer 9

Correct answer(s): B
 We establish the acceptance criteria for the entire project when we define the scope during initiation. That provides a clear target for the project planning process

Question 10

The project charter can include many items but one purpose is always paramount and that is to: (1001)
(A) Establish the relationship of the client to the project manager
(B) Authorize the project and give the project manager authority to use organizational resources.
(C) State the goals of the project
(D) Describe the relationship to the contractors of the project

Answer 10

Correct answer(s): B
 The charter is issued by the sponsor signaling organizational approval to start planning and authorizes the project manager to use organizational resources.

Question 11

In which process group do we examine alternative ways of accomplishing project objectives? (359)
(A) Initiating
(B) Executing
(C) Closing
(D) Planning

Answer 11

Correct answer(s): A
 We consider alternative ways of meeting project deliverables when we develop the business case, define the scope and then detail the charter. In the planning domain we are working with the already defined scope and deliverables.

Question 12

Scope definition techniques include all of the following except: (035)
(A) Product analysis
(B) Expert judgment
(C) Alternatives identification
(D) Compiling a list of constraints and assumptions

Answer 12

Correct answer(s): D
 This is a tricky question. Constraints and assumptions are an input to define scope from the project charter developed earlier and they are included in the scope statement which is an output of define scope.

Question 13

The scope statement is used in the following tasks except: (009)
(A) Develop Project Charter
(B) ID Stakeholders & Expectations
(C) ID Risks, Assumptions & Constraints
(D) Project Assessment & Feasibility

Answer 13

Correct answer(s): D
 The scope statement is an output of Define High-level Scope and it is an input to the remaining Initiating tasks. The scope statement is not an input to Project Assessment & Feasibility as that task happens before Define High-level Scope.

Question 14

An information systems (IT) project manager distributed a document to the stakeholders which described the software to be developed, performance standards it would meet, the users it would serve, their performance using it and the installation timeline and cost. The document was an example of a: (014)
(A) product description
(B) project scope
(C) charter
(D) WBS

Answer 14

Correct answer(s): B
 The product description does not contain budget or schedule estimates. The charter authorizes the project and gives the PM authority. The WBS is a listing of activities or work packages so project scope is the best answer because it can contain all these elements.

Question 15

The purpose of the scope statement includes all of the following except: (036)
(A) provides a basis for future project decisions
(B) establishes a contract between the project team and the customer
(C) sets criteria for determining if a project or phase has been completed successfully
(D) establishes project constraints and assumptions

Answer 15

Correct answer(s): D
 This is another tricky question. Constraints and assumptions is the most correct. The scope statement gets the project constraints and assumptions from ID Risks, Assumptions & Constraints which is created in the initiation process. The scope statement doesn't establish the constraints and assumptions but it may modify them.

Question 16

# Define scope does NOT use which of the following inputs: (034)
 (A) Business case
 (B) Requirements documentation
 (C) Organizational process assets
 (D) The change control system

Answer 16

Correct answer(s): D
 All of the items listed except the change control system are used to develop the project scope statement. Change control processes occur during controlling not initiating

Question 17

What is the range of accuracy for the OOM estimates?
(A) -5% to + 10%
(B) -10% to +15%
(C) -25% to +75%
(D) -50% to +50%

Answer 17

Correct answer(s): D / Student selected: B
 Typically, order of magnitude estimates have a range of -50 to +50% of the actual cost.

Question 18

The project scope should be well defined and approved by: (003)
(A) the project team
(B) the head of Human Resources
(C) the customer
(D) stakeholders

Answer 18

Correct answer(s): D
 The best answer is stakeholders because that term includes all the other choices and more plus it communicates PMI’s® approach of the broad consideration of stakeholders’ objectives and requirements.

Question 19

You take over as project manager on a project which is significantly over budget and late. What is the first thing you should do? (844)
(A) conduct a risk identification and analysis
(B) review the schedule overruns
(C) review the cost overruns
(D) meet with the sponsor about the problems

Answer 19

Correct answer(s): A
 The PMBOK® says, "Identify risks is an iterative process because new risks may evolve or become known as the project progresses through its life cycle.”

Question 20

You have just finished your project charter presentation for your boss and 3 senior VPs in your organization. They gave you the approval to proceed with project planning. Which of the following would not have been included in your project charter presentation?
(A) Project plan
(B) Project success criteria
(C) High-level cost and duration estimates
(D) Measurable business results

Answer 20

Correct answer(s): A
 The criteria we will use to determine if our project is a success, order of magnitude cost and duration estimates and measurable business results can all be components of our project charter. The project plan is not correct as it is issued at the end of the Planning domain. At this point, we are still in the Initiating domain.

Question 21

You are the PM in a strong matrix organization and you just walked into the conference room, ready to meet with 10 members of the project team. 30 minutes into the meeting, you have already discussed the stakeholder risk tolerances and assumptions documented as part of our scope statement. You are now discussing the risk categories that were provided to you by your company’s project management office. What task are you working on?
(A) Define Scope
(B) ID Risks, Assumptions & Constraints
(C) Develop Charter
(D) ID Stakeholders

Answer 21

Correct answer(s): B
 From the information in the question, we know we have the stakeholder risk tolerances and assumptions from the scope statement which tells us we’ve completed ID Stakeholders and Develop Scope. The third piece of information in the question is that the PMO has given us a list of risk categories to use. Risk categories are a tool used in ID Risks, Assumptions & Constraints, which is the final detail we can use to narrow down the correct answer…ID Risks, Assumptions & Constraints.

Question 22

You have completed the project assessment and feasibility study and are reviewing it in a meeting with your boss, the customer, and team members from marketing, operations and human resources. The customer looks to you, the project manager, and asks you what’s next. What should you say?
(A) It’s time for us to work on defining the scope of the project
(B) We need to identify as may project stakeholders as possible
(C) With so many stakeholders gathered together, we should begin the risk identification
(D) We’re here to present the project charter and get approval to proceed with planning

Answer 22

Correct answer(s): A
 After the Project Assessment & Feasibility have been completed, the next task to work on is Define High-Level Scope. When we know what the scope is, we can identify who is affected by that scope and those are our stakeholders

Question 23

ID Risks, Assumptions and Constraints precedes all of the following tasks except? (838)
(A) Develop project charter
(B) Present & secure charter approval
(C) Define scope
(D) Risk management Plan

Answer 23

Correct answer(s): C
 Define Scope occurs prior to ID Risks, Assumptions & Constraints. All the other tasks occur either later in Initiating or during Planning. ID Risks, Assumptions & Constraints requires the scope statement, which is produced in Define Scope.

Question 24

Which of the following would not be used as project selection criteria?
(A) Legal/regulatory compliance
(B) Financial benefit
(C) Strategic alignment
(D) Negotiation and facilitation

Answer 24

Correct answer(s): D
 The first three choices may be criteria we use to select a project. Negotiation and facilitation are techniques to use to persuade stakeholders or gather information, they are not selection criteria.

Question 25

In a functional organization, executives are considering a number of different projects to launch in the coming fiscal year. One of the executives suggest that to calculate NPV’s for each of the project and another argues that EPV would be a better measure to use. What is the difference
(A) Net present value is a method of discounting cash flow back to the present while EPV is used only to measure earned present value once a project has been launched
(B) Net present value deals only with the interest rates and duration while EPV deals with expected present value and the probability of different project outcomes
(C) Net present value is used in project management or as expected present value is used in weather forecast
(D) Net present value discounts cash flows back to the present so projects of different durations can be compared

Answer 25

Correct answer(s): B
 Net present value is a financial technique for discounting project cash flows of different durations so they can be fairly compared. Expected present value is a way of comparing alternative project results and require that you estimate the probability that each of the potential results will occur. Several questions have correct facts, as is the best explanation

Question 26

When is the latest that the PM should start to participate in the project management process for a large low technology project in a matrix organization? (020)
(A) Initiating
(B) Project Planning
(C) Executing
(D) Control Scope

Answer 26

Correct answer(s): A
 The project manager has an important role to play in the project from the beginning in initiation and should participate in the project assessment and feasibility for the study and then carry-on in the business case and the preparation of the project charter

Question 27

You and the project sponsor walked out of the executive steering committee meeting and exchanged exhausted but pleased looks. The meeting had been intense and the executives on the steering committee had many questions about the charter you had prepared before approving the project. What should you want the sponsor to work on next?
(A) The statement of work
(B) Stakeholder identification
(C) Gathering requirements from the stakeholders
(D) Defining project scope

Answer 27

Correct answer(s): C
 During initiation, the sponsor with the help of the project manager, develops a business case, Scope, IDs stakeholders, ID's risks and prepares and presents the charter which, if approved triggers project planning. Once that approval has been secured we begin gathering requirements.

Question 28

Stakeholder management includes all of the following except: (526)
(A) Identifying stakeholder information requirements
(B) Identifying stakeholders
(C) Negotiating “extras” for each stakeholder
(D) controlling stakeholder expectations

Answer 28

Correct answer(s): C
 A project manager works with stakeholders to identify their needs not to provide extras beyond the scope.

Question 29

To select and approve projects, management may use a variety of methods including: (039)
(A) Cost/benefit analysis
(B) Work Breakdown Structure
(C) Statement of Work
(D) Baseline

Answer 29

Correct answer(s): A
 The WBS and the SOW are used later in the process as is the baseline. The methods of selection in the PMBOK® include; benefit/cost analysis, scoring models and constrained optimization models.

Question 30

You are the PM in a projectized organization. Your sponsor, who is also your boss, has asked you to develop the business case. What task are you working on?
(A) Project Assessment & Feasibility
(B) Define Scope
(C) ID Stakeholders
(D) ID Risks

Answer 30

Correct answer(s): A
 The business case is one of the outputs of the Project Assessment & Feasibility task, the first in Project Initiation.

Question 31

You walk into a meeting room where your boss, the project sponsor, and 3 employees of the organization sit waiting. You begin the meeting by distributing the business case, feasibility study and Order of Magnitude cost & duration requirements. All three documents will be needed in today’s meeting. What task are you working on?
(A) Develop project charter
(B) Identify stakeholders
(C) Estimate cost
(D) Develop high-level scope

Answer 31

Correct answer(s): D
 The business case, feasibility study and Order of Magnitude cost & duration requirements are all inputs to our project scope statement.

Question 32

You are the PM for a project that spans 3 different departments with over 70 team members. You have are using the information you and the project team have completed in in your presentation scheduled for tomorrow. You will cover identification of the project’s stakeholders, the project’s scope, major deliverables, stakeholder requirements, risks, assumptions, constraints and business justification and project charter. What task will you do tomorrow?
(A) Define Scope
(B) ID Stakeholders & Expectations
(C) Develop Project Charter
(D) Present & Secure Charter Approval

Answer 32

Correct answer(s): D
 The project’s scope, major deliverables, stakeholder requirements, risks, assumptions and business justification are all inputs to the project charter. The question states you have completed your charter. The next step is to present the charter and secure approval to proceed with planning.

Question 33

You are working on a small project in your department for your boss. You and two co-workers comprise the project team. Your boss has given you a project to fix all the problems in the customer history system. What should you begin work on next?
(A) Define a clear scope
(B) Identify stakeholders
(C) Develop the business case
(D) Risk ID

Answer 33

Correct answer(s): C
 On even the smallest project we want to develop a business case that clarifies what the project will produce for the organization

Question 34

When an organization is applying its project selection criteria, it is in the process of: (047)
(A) vendor evaluation
(B) deciding how to evaluate new project requests
(C) evaluating projects against a pre-established criteria to decide which projects should be approved
(D) determining the characteristics of projects

Answer 34

Correct answer(s): C
 The organization applies its pre-existing project selection criteria during initiation to decide if projects should be authorized.

Question 35

A complete scope statement should include all the following except: (016)
(A) justification for the project
(B) detailed budget information
(C) relationship between the product/service being created and the business need
(D) strategic alignment with corporate objectives

Answer 35

Correct answer(s): B
 We cannot produce detailed budget information until we have the WBS which follows from the scope statement.

Question 36

A project should support the performing organization’s long-term goals which are described in the: (311)
(A) Operational plan for the current year
(B) Procedures manual
(C) Strategic plan
(D) Mission statement

Answer 36

Correct answer(s): C
 The strategic plan and company strategy need to be considered during the project initiation process.

Question 37

Which of the following is NOT a technique used in project selection? (038)
(A) linear programming
(B) constrained optimization
(C) benefit measurement
(D) Critical path method

Answer 37

Correct answer(s): D
 CPM or the critical path method is usually used in Develop Schedule not project selection.

Question 38

The objectives of a project are fully described in: (006)
(A) the statement of work
(B) a five level project/work breakdown structure
(C) scope statement
(D) the request for proposal

Answer 38

Correct answer(s): C
 The scope statement fully describes the project's objectives and desired end results.

Question 39

An executive in your organization contacts you and asks for your advice on a statement of work the executive has written for a new project. The executive asks you to review the SOW and also asks what should be worked on now:
(A) Stakeholder identification and the business case
(B) Stakeholder identification
(C) Networking with other company executives
(D) Development of a generalized project schedule

Answer 39

Correct answer(s): A
 Stakeholder identification and the business case is the best answer because both of those things should be worked on simultaneously during project initiation. Stakeholder identification is a good answer but adding the business case is the best answer.

Question 40

You returned to your desk after attending a weekly department meeting. You sat down and started looking over the documentation you have already developed for your current project to develop a new product for the company. The documentation you have already produced includes cost-benefit analysis, revenue forecast and cost estimates. You are ready to assemble all the data into your final task deliverable. Which task are you working on?
(A) Present & Secure Charter Approval
(B) Project Assessment & Feasibility
(C) Estimate Costs & Create Budget
(D) Plan Procurements

Answer 40

Correct answer(s): B
 Cost-benefit analysis, revenue forecasting and cost estimates are components of the business case which is produced in Project Assessment & Feasibility.

Question 41

You are the PM in a balanced matrix organization with a project team of 35. You are currently working to identify the project risks, assumptions and constraints. Which of the following would you not use?
(A) Assumptions from scope statement
(B) Documentation reviews
(C) Issue logs
(D) Project charter

Answer 41

Correct answer(s): D
 As the question states, we are working on identifying project risks, assumptions and constraints. The assumptions we documented when we developed the scope statement are a good place to start. We also would review risk documentation from previous projects as well as the issue logs we created when we ID’d stakeholders. The project charter is created after we ID risks so that is not available yet.

Question 42

You are working on your project charter with 3 members of your project team. The charter presentation is scheduled for one week from today. Which of the following would you not use?
(A) OPA
(B) Stakeholder analysis
(C) Statement of work
(D) Authority matrix

Answer 42

Correct answer(s): D
 The OPA, stakeholder analysis and statement of work are all inputs or tools we use to develop our project charter. The authority matrix is a chart we may develop during planning.

Question 43

You have gathered information on the project’s cash outflows and the timing of the benefits it will produce. Which of the following would you not be able to calculate at this point?
(A) Cost-benefit ratio
(B) Return on investment
(C) Payback period
(D) Accelerated depreciation

Answer 43

Correct answer(s): D
 Using the data from our cost-benefit analysis we can calculate several ratios including the cost-benefit ratio, return on investment, return on asset & payback period. Accelerated depreciation is an accounting technique used for tax returns and we could not calculate it from the project data mentioned in the question.

Question 44

A project manager and the team have identified 123 risks in their project as well as triggers for 76 of them. What is the next thing the project manager and team should do? (843)
(A) conduct a brainstorming session to identify ways to mitigate these risks
(B) consult other stakeholders to complete the risk identification process
(C) decide which risks can be insured
(D) begin qualitative risk analysis

Answer 44

Correct answer(s): B
 The project manager has to involve the stakeholders as well as the team in the identify risks process. That’s the only way to be reasonably certain that the risk identification is comprehensive.

Question 45

You’ve just created the scope statement. What tools did you use?
(A) Alternatives identification, product analysis, expert judgment
(B) Alternatives identification, group creativity techniques, facilitated workshops
(C) Product analysis, questionnaires, expert judgment
(D) Expert judgment, alternatives identification, interviews

Answer 45

Correct answer(s): A
 The project scope statement is developed using 4 tools and techniques

• expert judgment
• product analysis
• alternatives identification
• facilitated workshops