EUPHRATES INSTITUTE OF SAFETY AND MANAGEMENT

PROFESSIONALS
No Abdullahi Adamu St, by first bank Nyanya Abuja
[email protected]
PROJECT MANAGEMENT PROFICIENCY CERTIFICATE
EXAMINATION (PMP) 90 MINUTES Date:23/7/2022
NAME___________________________

1. _____________ is typically not referred to as a buffer type in

critical chain project management

o Resource buffer
o Free buffer
o Feeding buffer
o Project buffer

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.

1. The first project is a process optimization which would

result in a cost reduction of $120,000 per year.

2. 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:

1. Year: $ 15, 000

2. Year: $125,000
3. Year: $220,000

Assumed is a discount rate of 5%' per year. Looking at the

present values of the benefits of these projects in the first 3
years, what is true?

o Both projects are equally attractive.

o The first project is more attractive by app. 7%.
o The second project is more attractive by app. 5%.
o The first project is more attractive by app. 3%.

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 20cm. The control
limits are 19.955cm and 20.045cm.

20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm,

19.963cm, 19.958cm, 19.962cm, 19.979cm, 19.959cm.

What should be done?

o The process is under control. It should not be adjusted

o A special cause should be investigated, the process should
be adjusted.
o The control limits should be adjusted.
o The measuring equipment should be recalibrated.
4. Your project management team includes two external
consultants each from a different company, you found that
repeated conflicts between the two consultants already slow
down project progress and jeopardize achievement of
objectives. I

Which stage of team development can be difficult to

overcome in such a situation?

o Storming from Forming, Storming, Norming, Performing

o Panic from Enthusiasm; Panic, Hope, Solution
o Kickoff from Assignment, Kickoff, Training, Communicating
o Frustration from Direction, Frustration, Cooperation,
Collaboration
5. During a project, earned value analysis is performed,
resulting in the following numbers:
EV: 523,000; PV: 623,000; AC: 643,000.
o CV: +120,000; SV: +100,000
o CV: +100,000; SV: +120,000
o CV: - 100,000; SV: -120,000
o CV: - 120,000; SV: -100,000

6. A project manager spent some days to create a multi-page

document, which he called project charter. The document
should have been issued by the project sponsor. The
sponsor found the document outsized and asked for a
condensed document.

Which of the following is usually not an element of the

project charter?

o The authority level of the project manager

o Detailed control account and work package descriptions
o The business need that the project was undertaken to
address
o High-level risks

7. A document called ____________ is created by decomposing

the project scope into smaller, more manageable elements.

o Scope Statement
o Network Logic Diagram
o Work Breakdown Structure
o Requested Change

8. Which of the following tools is used to create a risk management plan?

o Risk planning meetings

o Documentation reviews
o Data precision rankings
o Diagramming techniques
9. In order to speed up a project, you made a decision to fast-
track a phase currently performed with five team members,
and another one which was planned to begin in four weeks
time with another five team members.

Which of the following activities should you do first?

o Make sure that all exit criteria of the consecutive phase

have been met to ensure the flow of communications in a
team situation which is more complex by a factor of 2.
o Make sure that all entry criteria of the previous phase have
been met by planning and performing a phase gate meeting
to assess technical aptness.
o Make sure that all exit criteria of the previous phase have
been met by planning and performing a phase gate meeting
to assess technical performance.
o Restructure your team and delegate tasks in order to ensure
the flow of communications in a team with the number of
communication channels increased by a factor of 4.5.

10. A project manager has been asked to support an internal

project request by developing a business case,

What kind of information is the person expected to provide

in the document?

o The detailed information from a business standpoint to

determine whether bidding for the customer project will be
successful.

o The detailed information from a business standpoint to

determine whether bidding for the customer project will be
successful.

o The detailed information from a project management

standpoint to determine whether the project will be
successful.

o The detailed information from a technical standpoint to

determine whether the project will be successful.
o The necessary information from a business standpoint to
determine whether the project is worth the investment.

11. You found the following earned value analysis information a

project that was recently closed-out: SPI = 0.7, CPI = 1.0

o The project has been cancelled while it was executed. At

that time the project was behind schedule and on budget.

o The project's deliverables have all been finished. The project

came in behind schedule but on budget.

o The project's deliverables have all been finished. The project

came in ahead of schedule but on budget.

o The project's deliverables have all been finished. The project

came in on schedule but over budget.

12. Which should be included in a requirements management

plan?

o The document should trace requirements to project

scope/WBS deliverables.

o It should describe how requirements activities will be

planned, tracked, and reported.

o It should trace high-level requirements to more detailed

requirements.

o It should trace requirements to business needs,

opportunities, goals, and objectives.

13. In a traditionally drawn decision tree, a circle represents

_____________?

o A chance to which no expected monetary value can be

assigned so that a likely pay-off can not be shown.

o A decision to which no expected monetary value can be

assigned so that a likely pay-off can not be shown.
o A chance to which an expected monetary value may be
assigned to calculate the most likely pay-off.

o A decision to which an expected monetary value may be

assigned to calculate the most likely pay-off.

o Quality audit
o Deliverable Inspection
o Fixed price contract
o Service level agreement

14. A project management team has subcontracted work to a

service company. Which of the following tools is the best
choice to assure that this company will be able to meet the
quality requirements of the project?

15. With your team you are using judgment from subject matter
experts to identify and analyze project risks. There is a
small number of experts available, but some of them have
long been in a teacher student or manager-assistant
relationship.

Which of the following techniques can ensure best that

there' is no dominating opinion during an expert review?

o Peer review
o SWOT analysis
o Delphi technique
o Monetary value calculation

16. You are running a project for a customer based on a cost-

reimbursable contract with the following terms:

Target costs: $ 1,000,000

Fixed fee: $ 100,000
Benefit/cost sharing: $80, 000
Price ceiling: $ 1, 200, 000

Which is the PTA (= point to total assumption, break) of the

project?

o $1,300,000
o $1,500,000
o $80%
o $1,125,000

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 for the project
customer. Upon further investigation, he determines that
this occurred because there have been no other project
assignments open for these employees. The customer is
unaware of these facts.

What should the project manager

o Try to find some productive work for these staff members in

the project and leave them on the team.
o The best thing is to do nothing. The customer will not
realize the problem anyway.
o Try to find a responsible person for the over-assignment
who can be made accountable.
o Take the two people off the team immediately and arrange
for the refund of the excess charges to the customer.
18. Start dates in the following network logic diagram are
defined as early morning, finish dates are evening.
 If tasks are scheduled to begin at early start date, what is
true?

Day 16 – Day 21

o Activity B has a free float of 10 d.

o Activity B has a total float of 10 d.
o Activity A has a free float of 10 d.
o Activity A has a total float of 10 d.

Your project is executed with a globally spread virtual team. The

project progress has been found to be too slow. Which measure is
most likely to immediately speed up the project?

o Technical training for all team members

o Daily phone conferences and detailed reporting
o A team meeting at a location convenient to all team
members
o Collocation of team members at a suitable place
20. A project management team wants to procure some
customized products which are available in identical grade
and quality from many vendors. What should be included in
the procurement package to ensure that their offers win be
comparable?

o A statement of work describing the needs of the project in

sufficient detail to enable vendors to make suitable
proposals
o A statement of work specifying attributes and metrics of the
requested deliverables in detail to allow vendors submission
of bids

o The approved project scope statement, the WBS which

should be broken down to work package level and the WBS
dictionary

o The risk management plan and the reports from those risk
management reviews which have been made so far.

21. Which of the following becomes increasingly important in a

virtual team environment?
o Requirements engineering
o Communication planning
o Formal procurements closure
o Network diagramming
22. You are assigned as the project manager to a project which
is executed for a customer under FP contract. Your
customer informed you this morning that they insist on
certain "refinements" of the project scope.

You agree that the requested actions make really sense to

the project, but believe that they constitute a major change
increasing the project scope. What should you do next?

o Accept the request of the customer. Diligently document the

additional costs and working hours spent by yourself and
the team on the implementation of the change and invoice
these to the customer at appropriate rates.

o Perform earned value analysis to assess the current status

of the project and get all the numbers you need to
communicate the case to the change control board which
then will have to make the best decision regarding the
customer request.
 o Check the contract, the project charter, the scope statement
and other documents related to the project and the
contract. Implement ADR (alternative dispute resolution)
procedures if the conflict cannot be resolved otherwise.

o Talk to the project sales department and find a joint

solution with them how to best reject the request
considering the commercial and strategic value of the
customer to the organization you are working for.

23. A prime contractor in a customer project under CPFF

contract has run into unexpected technical problems. Fixing
them will require a lot of additional work to be done.
The company made a decision to book more staff and equipment
from their subcontractors in order to adhere to the agreed
timeline. The customer agreed to this decision.

What will most likely happen?

o The contractor's indirect costs will increase and the

customer's payment for them will increase, too

o The contractor's indirect costs will increase, but the

customer's payment for them will not increase.

o The contractor's indirect costs will not increase, but the

customer's payment for them will.

o Both the contractor's indirect costs and the customer's

payment for them will not increase,

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?

o Normal process variation is attributable to random causes

and sometimes also called "white poise”

o Special causes are easier to predict and handle than

random causes (also called common causes).
o Special causes are unusual events which are difficult to
foresee and often produce outliers.

o A process can be optimized to limit the bandwidth of

variations due to random causes.

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 statement is not true?

o Projects should never be executed without a valid, 'updated

and working project management plan.

o The consistency of the project management plan is

secondary because it is only the results that matter.

o 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.

o Poor planning and insufficient updating of project

management plans are common reasons for cost and time
overruns.

26. You want to perform active risk acceptance. What should

you do?

o Create contingency reserves in resources, money and time.

o Develop a plan to minimize impact in case that an identified
risk occurs.
o Develop a plan to minimize the probability of occurrence for
identified risks.
o Make additional resources available to speed up the project.
27. A project manager made 3-point estimates on a critical path
and found the following results:

Optimistic Most likely PessimisticPERT weighted average

Act A 12 15 24 16.0
Act B 8 9 14 9.7
Act C 15 19 27 19.7
Act D 10 14 28 15.7
Act E 17 20 35 22.0

Assuming ±3 sigma precision level for each estimate, what is the

standard deviation of the allover path?

o App. 4.2 days

o App. 5.2 days
o App. 6.2 days
o You can not derive the path standard deviation form the
information given

28. When do bidder conferences normally take place?

o After the contract has been awarded to keep alternatives

open.
o After submission of bid or proposal, but before contract
award.
o Prior to the submission of a bid or proposal by the bidder.
o After technical meetings with bidders to discuss contract
requirements.

29. What is defined by control limits?

o A measuring instrument solely used to describe process

capability. The process is found capable if the ±3 sigma
range is exceeded by not more than 0.3% of a tested sample
lot.

o The limits of the six sigma area on either side of a control

chart to plot measured values; data found outside the area
 are out of specification and can lead to rejection of an entire
batch.

o The area consisting of typically three standard deviations on

either side of a mean value of a control chart to plot
measured values found in statistical quality control

o The area consisting of typically three standard deviations on

either side of a mean value of a control chart to plot
measured values found in nullity assurance

33. Which of the following statement(s) on whistle blowing

is/are not true?

a. It is a 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 the company before following the "chain of
command" and discuss it with the immediate superior.
c. The consequences of whistle blowing are often extreme and
might include being branded as an owner of bad judgment,
layoff, civil action and imprisonment.
d. Carefully performed whistle blowing can lead to the end of
unethical business practices.

o
o b
o b, c
o c, d

34. Which of the following statements is true?

o Attribute sampling is the process of assessing whether

results conform to specifications or not. Prevention means
keeping errors out of the process by applying actions before
the process starts changing its input.

o Variables sampling means 'that the result is classified into

one of the 3 categories: "acceptable" "acceptable after
rework" - "rejected".
o Inspection is often mainly done to keep errors out of the
hands of the customer instead of as a means of process
control.

35. Which statement describes best why you should document

assumptions?

o Assumptions might prove to be wrong. Knowing which

assumptions were incorrect allows baseline adjustments in
case of project crisis.
o Assumption analysis is a valuable tool and technique to
explore the validity of assumptions during risk
identification.
o Assumptions limit the project management team's options
for decision making because they can not be controlled by
the team.
o In case of schedule or budget overruns, the documentation
of assumptions supports a clear assignment of
responsibility.

36. Which is normally not regarded as an element of cost of

quality?

o Maintenance cost
o Appraisal cost
o Failure cost
37. You have recently been assigned as a project manager to a
new B-O-T (build, operate, transfer) capital project.
Reviewing the initial documentation you found out that it
has been calculated with a very small margin during
operations of its, product for the shareholders. What should
you do?

o As you are not responsible for lifecycle costing, you don't

have to worry about operation profits. Focus on project
costs from initiation through handover.
o Ensure maximum profits by buying the best and cheapest
items, components and modules-potentially from a big
number of different suppliers-and integrating them.

o Create a realistic plan broken down to a sufficient level of

detail. Perform all risk management processes. Ensure real-
time communications with all stakeholders.

o Try to get a second project manager assigned to share

decision making and accountability to shareholders with the
person.

38. A project is handled by departments of an organization and

expedited by a project coordinator. Which of the following
statements is most likely to be true?

o The performing Organization is a weak matrix.

o The performing organization is doing "management by
projects
o The performing organization is a strong matrix.
o The performing organization is projectized.

39. You are project manager in a global project with a team

consisting of people from various countries. What can you
try to prevent misunderstandings due to cross-cultural
differences?

o Use all communication methods available that are suitable

for the team and follow up in writing when communicating
verbally. Remember that cultural and individual diversity
may help project teams solving unforeseen problems during
the course of the project.

o When you are about to form a team for your project, keep in
mind that some cultures are developed, others are more
pl1imitive. Some have values, some not. You should
consequently avoid choosing members from countries with
cultures that are not similar to your own,
o Cultural dilemmas can prevent any project from being
successful. They should therefore be smoothed or
suppressed so as to make sure that they cannot disrupt
project work. Your effort should concentrate on
communication that can help reach that goal.
o
o As norms regarding communication habits differ
significantly across various cultures, communicating
between people from different countries should only be done
using language.

40. Which statement on conflicts is true?

o Conflict resolution should focus on people, not issues.

o Conflict is natural and forces a search for alternatives.
o Conflict should always be handled in private and not in the
team,
o Too much openness is a common cause of conflict.
41. A change request in a project has been rejected some weeks
ago. Yesterday, the project manager found out that it
nevertheless has been implemented by the team members,
who knew of the change request, but not of the rejection.

In order to avoid such a situation, rejected change requests

should be consistently communicated to stakeholders
through which process?

o Report performance
o Verify scope
o Perform integrated change control
o Monitor and control risks
42. What is a trigger in project risk management?

o An expected situation causing an unidentified risk to occur

o A warning sign that a previously identified risk might be
occurring or has occurred
o An unexpected situation n identified risk to occur
o An unexpected situation causing an unidentified risk to
occur
43. According to the project plan, a contractor is scheduled to
deliver some software components today afternoon. A
regular payment is 'due to be made to this contractor
tomorrow.

You and your project team received a note this morning

informing you that the software delivery will be delayed by 2
weeks.

What should you do right now?

o You should delay the payment also for 2 weeks.

o You must immediately find a different contractor

o You should conduct a meeting with the contractor to resolve

the delivery issues before making the payment.

o You should make the payment and reschedule the project

plan.

44. In a software company a large number of simultaneously

performed projects utilize the same groups of human and
other resources.

Project A Project B Project C Project D Project E

Resource
Directory
What is the term commonly used this situation?

o Concurrent engineering
o Resource over-allocation
o Resource pooling
o Program management
45. What does the acronym RACI commonly stand for in project
management?

o Responsible, Accountable, to be Consulted to be Informed

o Remote, Attached, Connected, Integrated
o Risk Analysis and Caution Initiative
o Randomly Accessible Cash flow Information

46. You have used estimates made by your team members and
applied the critical path method to compute a network logic
diagram for your project. Then you found out that it cannot
be sufficiently optimized for scarce resources and fast
progress towards a given deadline. What should you do
next?

o Apply resource leveling heuristics to uncritical activities

only.

o Reduce estimates on duration and work efforts by an

adequate percentage.

o Apply Three-point estimation and critical chain project

management.

o Remove physical constrains and replace hard logic with soft

logic.

47. Liquidated damages (LDs) are contractually agreed

payments in order to…
o …give the contractor an incentive to meet an aggressive
schedule or challenging quality objectives.

o …penalize the contractor for late completion of a project or

failure to meet specifications.

o …cover the customer's costs caused by late completion or

failure to meet specifications by the contractor.

o …make a bid or proposal binding for the offered while the

customer has time to select among various bidders.

48. What should not be covered by a risk management plan?

o Roles and responsibilities for handling project risks

o Timing of project risk management activities
o The methodological approach used for risk management
o Individual risks and potential responses to them

49. You are assigned as the project manager to a project which

had a one-time cost variance in the past caused by
unexpected rework which has meanwhile been finished.

You perform earned value analysis and get the following results:
EV: 250,000; PV: 200,000; AC 275,000
BAC is 500,000.
What is right?

o EAC = 550,000
o EAC = 525,000
o EAC = 500,000
o EAC = 425,000
50. An estimation has been made that the construction of a
residential home a certain cost a certain amount per square foot
of what type of estimating?
o Analogous estimating
o Bottom-up estimating
o Top-down estimating
o Parametric estimating

51. What is true for prototypes? . .

o Prototyping causes significant costs and should be avoided

wherever possible.

o They are tangible and allow for early feedback on

requirements by stakeholders.

o Prototypes are mostly developed toward the end of a design

or build phase.

o Prototypes increase the risk of misunderstandings between

developers and users.

52. What is a constructive change?

o A change request that helps improving the project and its

product, service or result and is discussed generally in a
friendly style.

o A direction by the buyer or: an action taken by the seller

that the other party considers an undocumented change to
the contract.

o A field change or ad-hoc change mandated by the project

customer in a public construction project.

o A change request which will lead to the re-construction of

an older version of the project performance baseline by the
contractor.

53. Which of the following is generally not regarded to be a

motivator according to Frederick Herzberg?
o Working conditions and interpersonal relations
o Responsibility for enlarged task
o Interest in the task
o Recognition for achievement

54. What is true for modern project management? Project managers

need…
o ...to have a strict standing in negotiating
o ...to show experience in tricking business partners
o ...to be team players and facilitators instead of "bosses"
o ...to be strongly linked to local traditions

55. You are the project manager in an engineering project and

have recently signed a contract with a software vendor for
the development of a complicated control solution. The
software will be used to control machinery equipment which
your project team is currently developing. The contract is a
lump-sum contract. The contractor has target cost
estimated which seem rather low to you. Which of the
following statements is not true for this situation?

o It is the contractor's risk in this type of contract that their

profit may vanish if costs have been underestimated.

o This form of contract should only be chosen when all the

requirements for the building of the product are well-known
by all parties involved.

o In a fixed-price contract, change requests can cause issues

regarding additional time and extra costs for the changes to
be applied.

o It is likely that your organization may have to assume any

unexpected additional costs for the software development.

56. A review to determine whether of project activities comply

with organizational and project policies, processes, and
procedures is commonly called
o Quality auditing
o Inspection
o Quality testing
o Reject screening
57. Which of the following is true regarding the code of
accounts?

o It allows one to easily identify the breakdown level of the

item in the resource structure.

o It describes the coding structure used by the performing

organization to report financial information in its general
ledger.

o It is the collection of unique identifiers generally assigned to

WBS items.

o It defines ethical behavior in the project and the

responsibilities to the customer and the profession.

58. You are the manager of your company's project

management office. The company is running many
concurrent projects; most of them share a resource pool of
technical staff. Understanding how resources are utilized
across projects has been found essential to overall project
performance, including cost effectiveness and profitability.

This morning you received a message that the resource pool

members will be unable to perform as planned for the next
months because the overall work load has grown too high
and while delays are adding up, the morale of the staff is
going down.

o Ensure that quantitative information for all projects is being

made available in a uniform and reliable fashion and verify
that the project management methodology is adhered to.
Then consolidate the information to get an understanding of
the problems related with the use of shared resources.
o Implement an enterprise project management software
solution which is able to level the human resources across
the various projects and which has the capability to model
resource assignment on a percentage level thus optimizing
resource utilization for the overall organization.

o Do nothing related to the described problem unless you are

explicitly requested by the organizations upper
management. Supporting decision making on the level on
which project portfolio management is done, is not the
project management office's business.

o Evaluate project management software which supports

planning and scheduling across enterprise-wide project
portfolios. Avoid managing the availability of shared
enterprise resources for the projects run by an organization
because this is not the business of a project management
office.

59. You have been criticized that certain/specifications in your

scope statement do not pass the test for SMART objectives.
What are SMART objectives?

o Objectives specified in far more detail than necessary for a

execution of a successful project,
o Easily achievable objectives which help you reducing the
pressure on yourself and the team.

o Objectives that should be achieved in order to attain formal

recognition by both the customer and the project sponsor.

o Objectives that are described using specific, measurable,

assignable, realistic and time-related specifications.

60. You have been assigned as a project/manager to a software

project. While you and your teams are working on a WBS
(work breakdown structure), estimations for activity
durations based on the activity list vary significantly. Which
additional documents may help you clarify this situation?

o Milestone list and scope baseline.

o Project schedule network diagrams and human resource
plan.
o Activity cost estimates and scope baseline.
61. You are performing earned value technique on your project.
After budget approval, an additional and unexpected cost
item has been identified, which made the project more
expensive some weeks ago. The item has meanwhile been
paid by the project team, and it is expected that for the
remaining duration of the project, costs will be as budgeted.

In this case, which is the best formula to calculate EaC (Estimate

at Completion)?

o EaC = BaC - CV
o EaC = BaC / CPI
o C EaC = AC + BtC / CV
o You can not compute the EaC.

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
budgeted for today.

What do you think?

o The information given to you by the colleague is not

sufficient to assess project performance.

o The project will probably be completed with total costs

remaining under budget until the end.

o A significant cost increase during the further course of the

project will probably bring the costs back to baseline level.

o Original cost forecasting and budgeting for the project must

have been poor to allow this variance.

63. What is the meaning of a concept called the “Journey to

Abilene”?
o Project managers should visit their customers far more often
than what is usual in order to avoid misunderstandings and
bad emotions.

o International projects may have an increased need for

traveling which can lead to additional costs and troubles
with time zones.

o Committee decisions can nave the paradox outcome, that a

jointly made or approved decision is not desired by any
individual group member.

o A project is a temporary endeavor undertaken to create a

unique product, service or result. Repeating it would be
similar to making the same journey twice.

64. Which of the following statements describes best the

relationship between project phases and the project life
cycle?

o The project life cycle includes the time when the project is
performed and the expected product lifespan after that.

o In project management, the sequence of project phases and

phase gates is often referred to as project life cycle.

o The project life cycle is regarded as a sequence of project

activities while phases are defined to control overlapping
activities.

o The project life cycle describes how iterations of project

management processes are used when a project schedule is
developed.

65. Which is an appropriate order in most project situations for

the development of scope-related documents?

o 1. Project SOW (statement of work)

2. Project charter
3. Project scope management plan
4. Project scope statement,
 5. WBS (work breakdown structure) and WBS dictionary.

o 1. Work breakdown structure

2. Scope statement
3. Project charter
4. CSOW (contractual statement of work)
5. Contractual work breakdown structure

o 1. Feasibility study
2. Contract,
3. CWBS (contractual work breakdown structure),
4. Scope of work descriptions,
5. PID (project initiation document).

o 1. BOM (Bill of materials),

2. CAP (control account plan),
3. Project charter
4. Change management plan,
5. Scope baseline.

66. What is the S-curve in project management?

o A graph that is generated if a normal curve is integrated.

o A graph that is to be integrated to generate a normal curve.

o A metaphoric description of the short term uncertainties
that are present in every project

o The graph that describes the typical ,growth of earned value

during the course of the project

67. An output of the process Estimate activity resources is a

document called "activity resource requirements". It identifies the
types and quantities of resources...

o ...while the term resources is limited to equipment and

materials
o ...required for each activity in a work package
o ...while the term resources is limited to human resources.

68. What is not the purpose of configuration control when

configuration management is applied in a project?
o Verification that the configuration identification for a
configuration item is accurate, com pie and will meet
specified program needs.

o Ensuring that proposed and approved changes to

configuration items are fully analyzed.

o Ensuring that proposed and approved changes to

configuration items are fully documented

o Managing and controlling the frequently requested changes

to a project by applying agree rules.

69. Which statement describes best the meaning of the term

cost baseline?

o A cost baseline is always created by translating time-phased

cost information into cost d activity or work-package level.

o A cost baseline is an approved/time-phased budget that will

be used to measure and ml cost performance on the project.
o Data to draw a cost baseline can be easily generated and
updated as necessary from information related to actual
project cost.

o A cost baseline is usually displayed in the form of an inverse

S-curve drawn from the bE09 of the project until data date.

70. Which is not cumulated net income from an investment as a

given point in time or during a defined period?

o It defines the cumulated net income from an investment at a

given point in time or during a defined period.

o It includes investment, direct and indirect costs and may

include allowances for capital cost, depreciation, risk of
loss, and/or inflation.

o It is most commonly stated as a percentage of the

investment or as a dimensionless index figure.

o It is the time when cumulated net income is equal to the

investment.

71. A project sponsor requested earned value data on two

concurrent projects from the project managers. Both
projects are regarded as equally important and strategically
beneficial and have been finished by over 80%. He received
the following information:

Project A:
PV: $1,800,000
EV: $2,300,000
AC: $2,100,000
Project B:
PV: $2,000,000
EV: $1,500,000
AC: $1,600,000

The sponsor considers to shift some resources from project

A to project B to speed up the second project which is
currently behind schedule.
 What is the most likely outcome of such a measure?

o Changing team assignments during late course of a project

typically increases cost efficiency.

o Changing team assignments during late course of a project

typically increases time efficiency.

o According to the law of diminishing returns, the

consolidated cost variance of the two projects will decrease.

o According to the law of diminishing returns, the

consolidated cost variance of the two projects will increase.

72. Which of the following statements describes best the

relationship of quality and grade?

o Low grade is always a problem; low quality may be overcome

by a good rework and repair process. .

o Grade is a category or rank given to entities having different

functional requirements but the same need for quality.

o Both quality and grade can often be improved through

intelligent measuring, testing and examining.

o Low quality is always a problem as it bears on the ability of

an item to meet requirements; low grade may sometimes be
acceptable.

73. Network templates which contain only portions of a network

are often referred to as

o Sub-networks or fragment networks

o Subprojects
o Programs
o WBS items
74. What is the Internal Rate of Return (IRR) of a project?
 o The time period needed to pay back the investment from a
project when future income is discounted.

o The inherent discount rate or investment yield rate

produced by the project over a pre-defined period of time.

o The rate of negative risk that can be accepted for a project

without turning the expected net present value negative.

o The expected benefit from a project's deliverable calculated

as a percentage of the original investment over a specified
time period.

75. You just created the following network logic diagram to

describe the planned flow of activities for your project which
will start tomorrow:
FS FS FS+2d
FS + 25%

Start
Finical

FS FS+2d FS-60% FS

Which potential inconsistency in the diagram should you

solve right now?

o Activity E is open ended (a "dangle") in relation to the finish

milestone path convergence.

o Activity F is open ended in relation to the path divergence

after the start milestone.

o You cannot calculate a critical path when lags and/or leads

are calculated in percent.

o Activities E to F need another task drawn as a hammock to

calculate level of effort.