PMI-PBA Mock Exam Lite - 8 Flashcards
You are leading the business analysis activities for a software development project. As your first deliverable, you need to submit your business analysis plan for approval. You have identified your business analysis activities and now have to estimate expected durations and cost. Which of the following techniques can be used for the estimation of duration and cost for your business analysis activities using historical data from similar projects?
Analogous estimation
Analogous estimation is a technique for estimating the duration or cost of an activity or portfolio component, program, or project using historical data from an item having similar characteristics. [The PMI Guide to Business Analysis, page 387]
A project team is currently investigating an issue on your project. The team wants to setup a visual management tool to track and monitor the work in progress and to understand scheduling demands of the project. Which of the following tools will you recommend to be used?
Kanban board
Kanban boards are visual management tools that help manage the flow of the project work and scheduling demands. None of the other choices are visual management tools. [PMBOK® Guide 6th edition, page 117]
Your project sponsor has asked you to establish a digitized workflow to facilitate requirements review and approval process on your project. Which of the following tools should you deploy to meet this request?
Requirements management tool
Requirements management tools allow requirements and other product information to be captured and stored in a repository. These tools help maintain audit trails and perform version control to assist with change management. These tools also facilitate review and approval processes thorough workflow functionality. [The PMI Guide to Business Analysis, page 260]
Your organization wants to implement a new workflow management system. You can either have this system developed in-house (option A) or you can acquire this from a vendor (option B). Option A has an NPV of $100,000 and a payback period of five years, while the option B has an NPV of $85,000 and a payback period of two years. If the management’s risk tolerance is low, which option will you select?
Option B since the payback period is two years
If you disregard the risk, option A is more favorable as it has a higher NPV. However, since the management’s risk tolerance is low, option B must be selected as its payback period is shorter. [The PMI Guide to Business Analysis, page 90]
Which of the following graphical tools shows a team’s progress by showing the number of story points remaining in the project?
Release burndown chart
A release burndown chart shows a team’s progress by showing the number of story points remaining in the project. The vertical axis shows the number of story points remaining and the iterations are shown across the horizontal axis. [The PMI Guide to Business Analysis, page 131]
Recently one of the strategic organizational projects was declared unsuccessful. You have been asked to conduct an investigation of this and uncover the root cause behind the failure. You find out that the key driver for failure was scope creep. Which of the following could be the root cause behind the scope creep?
The product team did not track the project using a traceability matrix.
A traceability matrix is a grid that links product requirements from their origin to the deliverables that satisfy them. The matrix can support linkages among many different types of objects, providing a mechanism for tracking product information through the project and product life cycles. Establishing these links manages scope creep by ensuring that only relevant product information is incorporated into the solution. All the rest of the choices are irrelevant to the problem at hand. [The PMI Guide to Business Analysis, page 261]
You are considering using brainstorming technique for an upcoming elicitation workshop. What could be a major reason behind this consideration?
Identifying high-level business requirements.
Since this is an elicitation workshop, the goal can be nothing but eliciting product requirements. Developing the cost estimates and identifying the critical path is the job of the project manager. Further brainstorming cannot be used to validate a business case. [The PMI Guide to Business Analysis, page 165]
You are in charge of a troubled project. The project includes producing widgets for your customer. You collected production data to help identify the causes of defects in the overall process. Which technique should you use to analyze this data to determine the main source of defects?
Fishbone diagram
Cause-and-effect diagrams, also known as fishbone diagrams, why-why diagrams, or Ishikawa diagrams, break down the causes of the problem statement into discrete branches, helping to identify the main or root cause of the problem. [PMBOK® Guide 6th edition, Page 293]
You are developing a business analysis guide for a client organization to help it standardize its business analysis processes and methods. Once the stakeholders on a project have been identified, especially on large projects, the next step is to group these stakeholders. All of the following are acceptable ways to group project stakeholders EXCEPT:
Grouping by project scope
Stakeholders should be grouped based on their characteristics. Stakeholder groupings can be structured by similar interests, common needs, level of importance, by roles, motivations, complexity level, location or many other stakeholder qualities. Grouping by project scope doesn’t make any sense. [Business Analysis for Practitioners: A Practice Guide, page 44; The PMI Guide to Business Analysis, page 115-116]
Your organization is considering investing in an ERP solution. It will take two years to build the system using in-house resources. The total upfront cost is $1,000,000. It is expected that if the solution is implemented, it will decrease the operational costs by $100,000 by the end of each operational year. The system is expected to be in operation for at least 15 years. What is the payback period of the investment?
12 years
The payback period is the time needed to recover an investment. For this scenario, the payback period is 12 years; 2 years of development time + 10 years to recover the initial investment. [The PMI Guide to Business Analysis, page 90]
You are conducting Solution Evaluation for a recently released security management system for your organization. Some of the benchmarking information needed to evaluate the system is critical for the Solution Evaluation but is not useable by the system itself. What is the disadvantage of obtaining this additional information?
Additional cost
If the information is critical for Solution Evaluation, this need to be obtained. There might be some cost disadvantages there but this cannot be ignored. All other options are irrelevant. [The PMI Guide to Business Analysis, page 279]
You are a lead business analyst on an enterprise system migration project. The project manager has asked you to collect and document product requirements and share with the technology vendor after validation from the stakeholders. Which of the following is not a suitable way to express the product requirements?
Burndown chart
A burndown chart is a graphical representation of work left to do versus time. This cannot be used to document product requirements. The rest of the choices are all acceptable forms of requirements documentation. [The PMI Guide to Business Analysis, page 9]
A traceability matrix connects or traces links between items. A business analyst can repurpose the traceability matrix to analyze models to ensure that they are complete. All the following are valid applications of a traceability matrix EXCEPT:
Comparing the business problems to the identified root causes.
Comparing the business problems to the identified root causes is carried out during a typical root cause analysis and the results are typically displayed on a fishbone diagram. A traceability matrix is generally not suitable for this exercise. All the rest of the choices are valid examples of the use of a traceability matrix. [The PMI Guide to Business Analysis, page 196]
You are helping an organization mature its business analysis processes. The organization has a history of reacting to business problems as they come rather than defining a strategy and initiating projects based on the strategy. Which of the following business analysis processes first provide assurance that new initiatives are aligned with organizational strategy?
Needs Assessment processes
Needs Assessment processes guide the investment decisions made by organizations. Processes from the Needs Assessment knowledge area are used to ensure that new initiatives align with organizational strategy. [The PMI Guide to Business Analysis, page 57]
The banks in the Ukraine have raised the annual interest rates sharply to 30 percent. You have the option to invest your money either in Ukrainian banks or to build a small factory for a client. The total cost of building the factory will be $12 million but it will spread evenly over one year ($1 million payable by the end of each month for the next 12 months). The client will make a payment of $3.9 million at the end of each quarter from the start of the project. Which of the following is the best option (if you are only considering the return on investment)?
Invest the money in the bank for a year
In this scenario you are considering investing your money in the bank or building a factory. Since all transactions are not happening at the same point in time, we need to discount the cash flows and then determine the return on investment. Since the bank is offering a 30% annual interest rate (the opportunity cost if you decide to build the factory), you need to discount all the cash flows for the factory project by 2.5% (30% / 12) on a monthly basis. The discount formula is: Present Value (PV) = Future Value / (1 + interest rate)^period. Let’s use this formula to determine the net present value of all cash outflows: Month 1: PV = 1,000,000/(1+2.5%)^1 = 975,610 Month 2: PV = 1,000,000/(1+2.5%)^2 = 951,814 Month 3: PV = 1,000,000/(1+2.5%)^3 = 928,599 Month 4: PV = 1,000,000/(1+2.5%)^4 = 905,951 Month 5: PV = 1,000,000/(1+2.5%)^5 = 883,854 Month 6: PV = 1,000,000/(1+2.5%)^6 = 862,297 Month 7: PV = 1,000,000/(1+2.5%)^7 = 841,265 Month 8: PV = 1,000,000/(1+2.5%)^8 = 820,747 Month 9: PV = 1,000,000/(1+2.5%)^9 = 800,728 Month 10: PV = 1,000,000/(1+2.5%)^10 = 781,198 Month 11: PV = 1,000,000/(1+2.5%)^11 = 762,145 Month 12: PV = 1,000,000/(1+2.5%)^12 = 743,556 Adding these up we get the total PV of outflows = 10,257,765 Now let’s calculate the PV of all inflows using the same formula: Quarter 1: PV = 3,900,000/(1+2.5%)^3 = 3,621,538 Quarter 2: PV = 3,900,000/(1+2.5%)^6 = 3,362,958 Quarter 3: PV = 3,900,000/(1+2.5%)^9 = 3,122,841 Quarter 4: PV = 3,900,000/(1+2.5%)^12 = 2,899,868 Adding these up we get the total PV of inflows = 13,007,204 The return on investment (today) = (13,007,204 - 10,257,765)*100 / 10,257,765 = 27% Since the bank is offering an annual 30% return on investment, it is advisable not to undertake the project and leave the money in the bank account. [PMBOK® Guide 6th edition, Page 34, https://www.mathsisfun.com/money/net-present-value.html]
Procurement statement of work (SOW) is a narrative description of the products or services to be delivered by the vendor. It usually references all the following except:
The business case
The procurement statement of work (SOW) does not usually reference the business case. The business case may contain cost sensitive information that may not be made available to a wider audience. The rest of the choices are valid components of a procurement statement of work. [PMBOK® Guide 6th edition, Page 477]
You have just taken over the reins of a troubled project that is required to automate a complex organizational workflow. The business analyst on the project defined the current-state and the future-state process maps and documented the functional and non-functional requirements. The technical architect on the project was happy with these and used these as inputs to the system architecture design blueprint. However, once these artifacts were shared with the developers you got a strong pushback in regards to completeness and accuracy of the project scope and requirements. This led to multiple revisions to the requirements and change of requirements management approaches which further exacerbated the situation. The developers don’t seem confident that the documented requirements reflect true business requirements and collectively define the project scope. In order to get to the root cause of this problem, what should you look for first?
Find out if an approved scope management plan exists that was socialised and agreed by all key stakeholders.
A Scope Management Plan documents how the project and product scope will be defined, validated, and controlled. It appears that multiple requirements management approaches have been tested on the project without proper change control. This leads to a basic question; doest an agreed and approved scope management plan exits? If the answer to this question is a yes, then further investigations will be required to identify the root cause of the problem. [PMBOK® Guide 6th Edition, Page 134]
A steadily declining burndown chart indicates that?
The velocity is constant.
A burndown chart shows a team’s progress by showing the number of story points remaining in the project. The vertical axis shows the number of story points remaining and the iterations are shown across the horizontal axis. A steadily declining burndown chart indicates that the velocity is constant; the same number of story points are being delivered in each project iteration. [The PMI Guide to Business Analysis, page 131, 148]
You are leading the business analysis activities for an ERP implementation project. This is a major project that is expected to take two years to complete. You have recently circulated your project’s situation statement to the key stakeholders. To your surprise, the project stakeholders look confused and seem to have different ideas of the situation. What risk will get introduced if this issue is not handled at this stage and project work progresses?
A wrong solution might be identified.
If the situation statement is not properly understood, or if the stakeholders have a different idea of the situation, there is a risk that a wrong solution will be identified. All other options are irrelevant to the issue presented. [The PMI Guide to Business Analysis, page 59]
You are leading business analysis activities on a process automation project. In order to define the stakeholder engagement and communication approach, you need to understand the stakeholders needs and requirements. You can utilize several elicitation techniques to determine stakeholder engagement and communication approach EXCEPT:
Persona analysis
Persona analysis is a stakeholder analysis technique that can help you understand the stakeholders, their needs, and requirements better. However, this is not an elicitation technique. [The PMI Guide to Business Analysis, pages 125, 126]