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Sample Questions Included: 

1. Most risk acceptance policies rely on a contingency allowance for the project. A contingency allowance is an amount of money the project will likely need in the contingency reserve based on the impact, probability, and expected monetary value of a risk event. Project KIL has risks A and B. A has 25% probability of occurring and a negative impact of -$50 while B has 45% probability of occurring and a negative impact of -$90. What is the expected monetary value (Ex$V) for risk A?

A. -$40.50
B. -$1250
C. -$12.50
D. $12.50

Answer: C
Explanation: The expected monetary value (Ex$V) for risk A is calculated by 0.25 x -$50 = -$12.50

2. Procurement planning is the process of identifying which part of the project should be procured from resources outside of the organization. Which of the following refers to market condition evaluation?

A. defines the project work and only the required work to complete the project
B. defines the details and requirements for acceptance of the project
C. needed to determine what products and services are available and from whom and on what terms and conditions they are available
D. used to rate and score proposals from the sellers

Answer: C
Explanation: An evaluation of the marketplace is needed to determine what products and services are available and from whom and on what terms and conditions they are available.

3. Christian Zininski is the project manager of LOP Project. During the procurement process, his project assistant identified that the project has to depend on three procurement sources: HUH Limited, JI Limited, and GIG Limited, which he described as an oligopoly. Which of the following best describes the project’s market for materials?

A. Only GIG Limited and HUH Limited want to contract with Christian’s performing organization, POLL Agency.
B. Only GIG Limited is the qualified seller that exists in the marketplace.
C. The performing organization, POLL Agency, prefers to contract with JI Limited only.
D. There are very few sellers and the actions of GIG Limited will have a direct effect on the other seller's prices and the overall market condition.

Answer: D
Explanation: Oligopoly: There are very few sellers and the actions of one seller will have a direct effect on the other seller's prices and the overall market condition.

4. Rose Hale is the project manager of Project UR. Rose signed a Cost-Reimbursable contract with Shirts, Ltd. regarding the procurement of pre-screened T-shirts to be used for Project UR. Which of the following describes a characteristic or possibility that may occur in this type of contract?

A. This contract may provide incentives for meeting or exceeding contract requirements such as meeting deadlines.
B. This agreement does not procure or specify a firm quantity of supplies (other than a minimum or maximum quantity) and that provides for the issuance of orders for the delivery of supplies during the period of the contract
C. The agreement defines a total price for the product the seller is to provide.
D. The agreement requires Rose’s firm to assume the risk of cost overruns.

Answer: D
Explanation: Cost-reimbursable contracts require the buyer to assume the risk of cost overruns.

5. While working on a highly sensitive computer project at Company W, Tori comes across a potential security leak in the system. If she is right, millions of records in the database have already been compromised, which will result in a press release causing a lot of negative press. If she is wrong, she risks losing the respect of her project team and stakeholders. What should Tori do according to the Code?
A. Tori is not obligated to do anything unless she is sure there is a problem.
B. Tori must disclosure her concerns clearly and succinctly to the project’s stakeholders as soon as possible.
C. Tori can quietly investigate the situation further.
D. Tori can hint to her manager that there may be a problem.
ANS: B
Explanation: According to the Code, Project Managers must report on projects accurately as possible, as well as report any possible legal violations immediately.

6. Cost-Reimbursable Contracts pay the seller for the product. In the payment to the seller there is a profit margin-the difference between the actual costs of the product and the sales amount. The actual costs of the product fall into two categories. Which of the following refers to indirect costs?

A. costs that have fixed and variable elements
B. costs attributed to the cost of doing business
C. costs of production that vary directly with output
D. costs of production that do not vary with output

Answer: B
Explanation: Indirect costs: costs attributed to the cost of doing business. Examples include utilities, office space, and other overhead costs.


7. As the project manager of the new Project XZA, you have to decide whether to create a new web application in-house or send the project out to a developer. The outsource developer you would use quotes the project cost at $175,000. Based on previous work with this company, you are 85% certain they will finish the work on time. Your in-house development team quotes the cost of the work as $165,000. Again, based on previous experience with your in-house developers, you feel 75%t certain they can complete the work on time. Which of the following quantitative risk analysis approaches should you use here?

A. Continuous probability distribution
B. Sensitivity analysis
C. Use the Decision Tree
D. Project Simulation

Answer: C
Explanation: Decision Tree: a method to determine which of two decisions is the best to make.

8. The project manager will rely on several pieces of information to prepare for team development. Which of the following corresponds to the image below?

 

 A. Project Plan
B. Responsibility Assignment Matrix (RAM)
C. Resource histogram
D. Staffing Management histogram

Answer: C.

Explanation: Management may also want to see a resource histogram so they may plan employees' time and activities accordingly.

9. Nina Gouldman is the project manager of Ken Publishing. She’s currently planning the communication requirements of a new project, Project Mag. When should she accurately assess stakeholder information needs?

A. At the middle phase of the project. Stakeholder demands during the first half of the project will accurately assess what kind of information stakeholders really need and how often they need it.
B. Right after the project has started. This will help Nina accurately estimate the kind of information that stakeholders actually need.
C. Early in the project, after evaluating the project constraints and assumptions.
D. Early in the project, before exploring communication modalities.

Answer: D.
Explanation: Accurately assessing stakeholder information needs must be completed early in the project, before exploring communication modalities.

10. The BAYAG Project Management Company designated Ken Toothe to be the project manager of the Pookey Project. Ken’s project team has identified BAYAG’s contractual obligations to the project’s sponsors as project constraints. What should Ken do in order to determine if extra resources will be needed to handle the communications in this project?

A. Call the sponsor’s company and inquire on the communication modalities they prefer to be used when communicating with them.
B. Evaluate BAYAG’s available communication channels
C. Send a notice to BAYAG’s communications office and remind them of their responsibilities regarding the communication requirements of the sponsor contract. Offer an extra hand if they need more communication resources for this obligation.
D. Evaluate the requirements of the contract against the demands of the project staff.

Answer: D
Explanation: The requirements of the contract should be evaluated against the demands of the project staff to determine if extra resources will be needed to handle the communications.

11. Durdo Schmitt is the project manager for 5 new projects. He is currently in the planning stage of risk management. After identifying all of the stakeholders in these 5 projects, he decided to rank the major stakeholders of the 5 new projects according to their expected risk tolerance functions. Which of the following stakeholders will have a low risk tolerance?

A. Orphaned children that will be entertained by Project FUN for Orphans (Creation of a new playground at the Gitamos Orphanage)
B. Single mothers who will rely on Project Sit (Free babysitting services or single mothers who work)
C. Members of a local little baseball league who will rely on Project Grass (Free baseball field set up services)
D. Death row convict and his/her family members who will depend on Project Death Row (Providing transportation for families and kin of death row convicts during the convict’s execution day)

Answer: D
Explanation: Choice D is a matter of life and death while the other choices are not.

12. Jordyn has just told her Project Manager that a sudden problem has come up between two critical project team members, although they are about to make a joint presentation to the sponsor. They are arguing over a situation that has little to do with the project, but each is convinced that he is absolutely right and the other is absolutely wrong. Jordyn asks the Project Manager to intervene, especially in light of the upcoming project presentation, but she throws her hands in the air and says: “I simply cannot deal with this right now!” What has she done?

A. She has made a compromise.
B. She has smoothed over the issue.
C. She has withdrawn.
D. She has solved the problem.

Answer: C
Explanation: Withdrawing involves walking away from the problem.


 

 

 

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