EXAM 1 PMP Preparation Course

1. You have been assigned to a project in which the objectives are to direct customer calls
to an
interactive voice response system before being connected to a live agent. You are in
charge of the
media communications for this project. You report to the project manager in charge of this
project and the VP of marketing, who share responsibility for this project. Which
organizational
structure do you work in?
A. Functional organization
B. Weak matrix organization
C. Projectized organization
D. Balanced matrix organization

2. You have been assigned to a project in which the objectives are to expand three miles of
the
north-south highway through your city by two lanes in each direction. You are in charge of
the
demolition phase of this project, and you report to the project manager in charge of this
project.
You have been hired on contract and will be released at the completion of the demolition
phase.
What type of organizational structure does this represent?
A. Functional organization
B. Weak matrix organization
C. Projectized organization
D. Balanced matrix organization

3. Which of the following is true?

A. Discounted cash flow analysis is the least precise of the cash flow techniques, because it
does
not consider the time value of money.
B. NPV is the least precise of the cash flow analysis techniques, because it assumes
reinvestment
at the discount rate.
C. Payback period is the least precise of the cash flow analysis techniques, because it does
not
consider the time value of money.
D. IRR is the least precise of the cash flow analysis techniques, because it assumes
reinvestment
at the cost of capital.

4. You are a project manager for Zippy Tees. Your selection committee has just chosen a
project
you recommended for implementation. Your project is to manufacture a line of miniature
stuffed bears that will be attached to your company’s trendy T-shirts. The bears will be
wearing
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the same T-shirt design as the shirt they’re attached to. Your project sponsor thinks you’ve
really
impressed the big boss and wants you to skip to the manufacturing process right away.
What is
your response?
A. Agree with the project sponsor because they are your boss, and they have a lot of
authority
and power in the company.
B. Require that a preliminary budget be established and a resource list be put together to
alert
other managers of the requirements of this project. This should be published and signed by
the other managers who are impacted by this project.
C. Require a project charter be written and signed off on by all stakeholders before
proceeding.
D. Suggest that a preliminary scope statement be written as this will outline the objectives
of the
project and greatly assist in the development of the scope statement in the Planning
processes
5. Which of the following is true regarding the project charter?
A. The project charter should be published under the name of a manager external to the
project.
B. The project charter should be published under the project sponsor’s name.
C. The project charter should be published under the name of the project manager.
D. The project charter should be published under the name of the project champion.

6. Your project depends on a key deliverable from a vendor you’ve used several times
before with
great success. You’re counting on the delivery to arrive on June 1. This is an example of
a/an
___________________.
A. Constraint
B. Objective
C. Assumption
D. Requirement

7. What limits the options of the project team?

A. Technology
B. Constraints
C. Deliverables
D. Assumptions

8. Your company provides answering services for several major catalog retailers. The
number of
calls coming into the service center per month has continued to increase over the past 18
months.
The phone system is approaching the maximum load limits and needs to be upgraded.
You’ve
been assigned to head up the upgrade project. Based on the company’s experience with
the vendor
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who worked on the last phone upgrade project, you’re confident they’ll be able to assist
you
with this project as well. Which of the following is true?
A. You’ve made an assumption about vendor availability and expertise. The project came
about due to a business need.
B. Vendor availability and expertise are constraints. The project came about due to a
business need.
C. You’ve made an assumption about vendor availability and expertise. The project came
about due to a market demand.
D. Vendor availability and expertise are constraints. The project came about due to a
market
demand.

9. You are a project manager for Giraffe Enterprises. You’ve recently taken over for a
project manager
who lied about his PMI certification and was subsequently fired. Unfortunately, he didn’t
create a project charter or a preliminary scope statement. You are ready to elaborate the
deliverables
and requirements of the project and know that you can use one of the following in place
of the charter or preliminary scope statement. Which one can you use?
A. Business justification
B. Product scope description
C. Strategic plan
D. Expert judgment

10. All of the following are benefits of meeting quality requirements except which one?
A. An increase in stakeholder satisfaction
B. Less rework
C. Low turnover
D. Higher productivity

11. Which of the following describes the cost of quality associated with scrapping, rework,
and
downtime?
A. Internal failure costs
B. External failure costs
C. Prevention costs
D. Appraisal costs

12. The quality management plan documents how the project team will implement the
quality policy.
It must address all of the following except which one?
A. Quality control
B. Quality checklists
C. Quality assurance
D. Continuous process improvement

13. You work for a furniture manufacturer. You’re project is going to design and produce a
new
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office chair. The chair will have the ability to function as a normal chair and also the ability
to
transform its occupant into an upright, kneeling position. The design team is trying to
determine
the combination of comfort and ease of transformation to the new position that will give
the
chair the best characteristics while keeping the costs reasonable. Several different
combinations
have been tested. This is an example of which of the following tools and techniques of
Quality
Planning?
A. Benchmarking
B. Quality metrics
C. COQ
D. DOE

14. Which of the following best characterizes Six Sigma?

A. Stipulates that quality must be managed in
B. Focuses on process improvement and variation reduction by using a measurement-
based strategy
C. Asserts that quality must be a continuous way of doing business
D. Focuses on improving the quality of the people first, then improving the quality of the
process
or project

15. Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest
might prevent
your equipment from arriving on time. She wanted to give you a heads-up and asked that
you return the call. Which of the following statements is true? (Choose the best answer.)
A. This is a trigger.
B. This is a contingency plan.
C. This is a residual risk.
D. This is a secondary risk.

16. You are constructing a probability and impact matrix for your project. Which of the
following
statements is true?
A. The probability and impact matrix multiplies the risk’s probability by the cost of the
impact
to determine an expected value of the risk event.
B. The probability and impact matrix multiplies the risk’s probability—which fall from 0.0 to
1.0— and the risk’s impact and then adds them together to determine a risk score.
C. The probability and impact matrix multiplies the risk’s probability by the expected value
of
the risk event to determine a risk score based on a predetermined threshold.
D. The probability and impact matrix multiplies the risk’s probability by the risk impact—
which both fall from 0.0 to 1.0—to determine a risk score.

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17. Your stakeholders have asked for an analysis of the cost risk. All of the following are
true except
for which one?
A. Monte Carlo analysis is the preferred method to use to determine the cost risk
B. Monte Carlo analysis is a modeling technique
C. A traditional work breakdown structure can be used as an input variable for the cost
analysis
D. A cost breakdown structure can be used as an input variable for the cost analysis

18. Your hardware vendor left you voicemail saying that a snowstorm in the Midwest will
prevent
your equipment from arriving on time. You identified a risk response strategy for this risk
and
have arranged for a local company to lease you the needed equipment until yours arrives.
This
is an example of which risk response strategy?
A. Transfer
B. Acceptance
C. Mitigate
D. Avoid

19. All of the following are elements of inputs of the Risk Identification process that you
should
evaluate except for which one?
A. Assumptions analysis
B. Historical information
C. Roles and responsibilities
D. Industry information

20. Which logical relationship does the PDM use most often?
A. Start-to-finish
B. Start-to-start
C. Finish-to-finish
D. Finish-to-start

21. You have been hired as a contract project manager for Grapevine Vineyards. Grapevine
wants you
to design an Internet wine club for its customers. Customers must register before being
allowed to
order wine over the Internet so that legal age can be established. You know that the
module to verify
registration must be written and tested using data from Grapevine’s existing database.
This new
module cannot be tested until the data from the existing system is loaded. You are going to
hire a
vendor to perform the programming and testing tasks for this module to help speed up the
project
schedule. Since they’ll have access to your customer list and potentially other trade
secrets, you’ll
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asked them to sign a nondisclosure agreement. This is an example of which of the
following?

A. Standard form
B. Organizational process asset
C. Fixed cost contract
D. Procurement documents

22. You are the project manager for BB Tops, a nationwide toy store chain. Your new
project
involves a creating a prototype display at several stores across the country. You are using
a RACI
chart to display individuals and activities. What does RACI stand for?
A. Responsible, accountable, consult, inform
B. Responsible, assignment, control, inform
C. Resource, activity, control, identify
D. Resource, accountable, consult, identify

23. This process can directly influence the project schedule.

A. Human Resource Planning
B. Plan Purchases and Acquisitions
C. Activity Sequencing
D. Plan Contracting

24. You are the project manager for BB Tops, a nationwide toy store chain. Your new
project
involves a creating a prototype display at several stores across the country. You are hiring
a contractor
for portions of the project. The contact stipulates that you’ll pay all allowable costs and
an 8 percent fee over and above the allowable costs at the end of the contract. All of the
following
describe this type of contract except for which one?
A. CPPC
B. CPIF
C. CPF
D. Cost reimbursable contract

25. Which of the following statements is true regarding the critical path?
A. It should never be compressed.
B. It allows for looping and branching.
C. The critical path technique is the same as PERT.
D. It’s the duration of all tasks with zero float.

26. You are a project manager for Move It Now trucking company. Your company
specializes in
moving household goods across the city or across the country. Your project involves
upgrading

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the nationwide computer network for the company. Your lead engineer has given you the
following
estimates for a critical path activity: 60 days most likely, 72 days pessimistic, 48 days
optimistic. What is the weighted average or expected value?
A. 54
B. 66
C. 60
D. 30

27. You are a project manager for Move It Now trucking company. Your company
specializes in
moving household goods across the city or across the country. Your project involves
upgrading
the nationwide computer network for the company. Your lead engineer has given you the
following
estimates for a critical path activity: 60 days most likely, 72 days pessimistic, 48 days
optimistic. What is the standard deviation?
A. 22
B. 20
C. 2
D. 4

28. If you know expected value is 500 and the standard deviation is 12, you can say with
approximately
a 95 percent confidence rating which of the following?
A. The activity will take from 488 to 512 days.
B. The activity will take from 464 to 536 days.
C. The activity will take from 494 to 506 days.
D. The activity will take from 476 to 524 days.

29. If your expected value is 110 and the standard deviation is 12, which of the following is
true?
A. There is approximately a 99 percent chance of completing this activity in 86 to 134
days.
B. There is approximately a 68 percent chance of completing this activity in 98 to 122
days.
C. There is approximately a 95 percent chance of completing this activity in 98 to 122
days.
D. There is approximately a 75 percent chance of completing this activity in 86 to 134
days.

30. Receivers in the communication model filter their information through all of the
following
except ___________________ .
A. Culture
B. Knowledge of subject
C. Conflict
D. Language
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31. You’ve promised your team two days of paid time off plus a week’s training in the
latest technology
of their choice if they complete their project ahead of schedule. This is an example of
which of the following?
A. Achievement Theory
B. Expectancy Theory
C. Maslow’s Theory
D. Contingency Theory

32. Your team is split between two buildings on either side of town. As a result, the team
isn’t very
cohesive because the members don’t know each other very well. The team is still in the
storming
stage because of the separation issues. Which of the following should you consider?
A. Corrective action
B. Collocation
C. Training
D. Conflict resolution

33. Which conflict resolution technique do project managers use most often?
A. Smoothing
B. Norming
C. Confronting
D. Forcing

34. You are a fabulous project manager, and your team thinks highly of you. You are well
respected
by the stakeholders, management team, and project team. When you make decisions,
others follow
your lead as a result of which of the following?
A. Referent power
B. Expert power
C. Legitimate power
D. Punishment power

35. When working in a matrixed environment, all of the following are true regarding the
Manage
Project Team process except for which one?
A. Communication methods and issue logs are used to create performance appraisals,
provide
feedback, and track issues.
B. Managing project teams in a matrix environment is often a critical success factor for
the project.
C. It’s the project manager’s responsibility to make certain this dual reporting relationship
is
managed effectively.
D. Loyalty issues may arise when managing projects in a matrixed environment.

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36. You are preparing project performance appraisals and have decided you’d like each
team member
to get feedback regarding their performance from several sources, including peers,
superiors,
and subordinates. Which of the following is true?
A. This is called 360-degree feedback and is part of the input to the organizational project
performance
appraisals, which is part of the organizational process assets updates input of the
Manage Project Team process.
B. This is called 360-degree feedback and is considered part of the team performance
assessment
input of the Manage Project Team process.
C. This is called 360-degree feedback and is considered part of the work performance
information
input of the Manage Project Team process.
D. This is called 360-degree feedback and is part of the project performance appraisals tool
and
technique of the Manage Project Team process.

37. You are performing actions such as reporting and comparing actual project results
against the
project management plan, analyzing performance data and determining if corrective or
preventive
action should be recommended, documenting all appropriate product information
throughout
the life of the project, gathering and recording project information, and monitoring
approved change requests. Which process are you performing?
A. Performance Reporting
B. Manage Stakeholders
C. Monitor and Control Project Work
D. Perform Quality Assurance

38. You are collecting information regarding project progress and project accomplishments
and
reporting it to the stakeholders. You will manage these communication needs and resolve
issues
using the communication management plan as your guideline. Which of the following is
true?
A. You are using the Performance Reporting process, which involves reporting project
progress
and accomplishments to the stakeholders. You are using the performance information
gathering
and compilation tool, which is used in conjunction with the communications management
plan, to coordinate and report information.
B. You are using both the Performance Reporting and Manage Stakeholders processes,
which
are both part of the Project Communications Management knowledge area.

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C. You are using the communications method (an input) and issue logs (a tool and
technique)
of the Manage Stakeholder process.
D. You are creating performance reports and recommended corrective actions, which are
both
outputs of the Performance Reporting process.

39. You are working on a project and discover that one of the business users responsible
for testing
the product never completed this activity. She’s written an e-mail requesting that one of
your
team members drop everything to assist her with a problem that could have been avoided
if she
would have performed the test. This employee reports to a stakeholder, not to the project
team.
All project team members and stakeholders are collocated. Since your team needs her to
also
participate in an upcoming test, you decide to do which of the following?
A. You decide to record the issue in the issue log and bring it up at the next status
meeting.
Everyone can benefit from understanding the importance of stakeholders fulfilling their
roles and responsibilities on the project.
B. You decide to record the issue in the issue log and then phone the stakeholder to
explain
what happened. You know speaking with the stakeholder directly is the most effective
means for resolving issues.
C. You decide to have a face-to-face meeting with the stakeholder because this is the most
effective
means for resolving issues with them.
D. You decide to e-mail the stakeholder and explain what happened in a professional
manger
because this is the most effective means for resolving issues with them.

40. You are working on a project and discover that one of the business users responsible
for testing
the product never completed this activity. She’s written an e-mail requesting that one of
your
team members drop everything to assist her with a problem that could have been avoided
if she
would have performed the test. This employee reports to a stakeholder, not to the project
team.
You estimate that the project may not be completed on time as a result of this missed
activity.
All of the following are true except for which one?
A. You should recommend a corrective action to bring the expected future project
performance
back into line with the project management plan because of this employee’s failure to
perform
this activity.
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B. You should recommend a preventive action to reduce the possibility of future project
performance
veering off track because of this employee’s failure to perform this activity.
C. You’ve created a forecast, an output of the Monitor and Control Project Work process,
using past performance to predict what the project’s future condition may look like.
D. You may have to request a change to the project schedule as a result of this missed
activity.

41. You do not expect the types of variances that have occurred on the project to date to
continue.
If BAC = 800, ETC = 275, PV = 300, ACC = 200, EV = 250, and CPIC = 1.25, what is the
EAC?
A. 640
B. 750
C. 600
D. 550

42. You know that BAC = 375, PV = 300, AC = 200, and EVC = 250. Variances that have
occurred
on the project to date are not expected to continue. What is the ETC?
A. 75
B. 50
C. 125
D. 150

43. You expect the types of variances that have occurred on the project to date to
continue. If BAC
= 800, ETC = 275, PV = 300, ACC = 200, EV = 250, and CPIC = 1.25, what is the EAC?
A. 640
B. 750
C. 600
D. 550

44. You know that BAC = 500, PV = 325, ACC = 275, CPI = .9. and EV = 250 and that you
are experiencing
atypical variances. Variance at completion tells you which of the following?
A. 25
B. –52
C. 52
D. –25

45. You know that BAC = 500, PV = 325, ACC = 275, and EVC = 250 and that you are
experiencing
typical variances. What is ETC?
A. 227.3
B. 250
C. 274.7
D. 525
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46. Your project progressed as planned up until yesterday. Suddenly, an unexpected risk
event
occurred. You quickly devised a response to deal with this negative risk event using which
of the
following outputs of Risk Monitoring and Control?
A. Risk management plan updates
B. Workarounds
C. Corrective action
D. Additional risk identification

47. The outputs of the Close Project process include all of the following except for which
one?
A. Administrative closure procedure
B. Formal acceptance
C. Lessons learned
D. Closed contracts

48. You have collected the work performance information for your project to be included in
the
project archives. What is the purpose of the work performance information?
A. The work performance information is used as part of the formal acceptance process to
verify
contract expenditures.
B. The work performance information is used to determine the status of project activities
and
make certain the project goals and objectives are met.
C. The work performance information is included in the project archive documentation
after
its accuracy is confirmed.
D. The work performance information is used as historical information for future projects
that
are similar in scope to this project.

49. Your project was just completed. Due to some unfortunate circumstances, the project
was delayed,
causing cost overruns at the end of the project. Which of the following statements is true?
A. You should document the circumstances as lessons learned.
B. You should pay particular attention to archiving the financial records for this project.
C. Your project ended due to starvation because of the cost overruns.
D. You should document the circumstances surrounding the project completion during the
Scope Verification process.

50. Your project was just completed. Due to some unfortunate circumstances, the project
was
delayed, causing cost overruns at the end of the project. This information might be useful
on
future projects in all of the following activities except for which one?
A. Cost estimating
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B. Allocating resources
C. Product verification
D. Activity estimating

51. Your project was just completed, accepted, and closed. As is customary for your
organization,
you conduct a post-implementation audit. The purpose of this audit includes all of the
following
except for which one?
A. Evaluating project goals and comparing them to the project’s product
B. Reviewing successes and failures
C. Documenting the acceptance of the work results
D. Documenting possible improvements for future projects

52. Life seems to be going very well for your close friend, a fellow PMP. She’s taken a trip
to France,
bought a new car, and stocked her wine cellar with a half-dozen expensive bottles of wine,
all
within the last six months. After a few cocktails one evening, she tells you her secret. The
vendor
she’s working with on the $4 billion project she’s managing has given her all of these items
as
gifts. Which of the following should you do? (Choose the best answer.)
A. You tell your friend these gifts probably aren’t appropriate and leave it at that.
B. You and your friend have a long conversation about the gifts and she decides to return
them
(with the exception of the trip) and not accept any more gifts in the future.
C. You’re happy for your friend and say nothing.
D. Your friend doesn’t see a problem with accepting these gifts at all. You know this is a
conflict
of interest situation and should be reported as a PMP Code of Professional Conduct
violation.

53. As a project manager, you know that the most important activity to ensure customer
and stakeholder
satisfaction is which of the following?
A. Documenting the requirements
B. Documenting the performance measurements
C. Reporting changes and updating the project plan and other project documents where
appropriate
D. Reporting project status regularly and in a timely manner

54. As a PMP, you will be required to comply with the PMP Code of Professional Conduct.
This
code refers to all of the following except which one?
A. Reporting conflicts of interest
B. Reporting experience and PMP status truthfully
C. Complying with the stakeholder requirements
D. Complying with the rules and standards of foreign countries
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55. You are a contract project manager working with the State of Bliss. Your latest project
involves
rewriting the Department of Revenue’s income tax system. One of the key stakeholders is
a huge
movie buff, and she has the power to promote you into a better position at the conclusion
of this
project. She’s discovered that one of her favorite superstars lives in the State of Bliss and
therefore
must file income tax returns in that state. She asks you to look up the account of this
movie
star. What is the most appropriate response?
A. Report her to the management team.
B. Refuse to comply with the request, citing conflict of interest and violation of confidential
company data.
C. Look up the information she’s requested. Since the data is considered part of the
project,
there is no conflict of interest.
D. You believe that tax records are public information, so you comply with the request.

56. You are the project manager for a custom home-building construction company. You
are working
on the model home project for the upcoming Show Homes Tour. The model home includes
Internet connections in every room and talking appliances. You are working on the cost
budget
for this project. All of the following statements are true except which one?
A. This process assigns cost estimates to project activities, including risks and contingency
plans.
B. The cost baseline will be used to measure variances and future project performance.
C. This process assigns cost estimates for expected future period operating costs.
D. The cost baseline is the expected cost for the project.

57. Which of the following is displayed as an S curve?

A. Gantt
B. Cost baseline
C. Critical path
D. Schedule baseline
58. Contract documentation is an input to both the Close Project and Contract Closure
processes.
Contract documentation might include all of the following except for which one?
A. Supporting documents
B. Contract changes
C. Financial documents
D. Procurement audit documents

59. Procurement audits review which of the following?

A. The procurement process from Procurement Planning through Contract Administration
B. The contract administration process from Solicitation Planning through Contract
Administration
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C. The procurement process from Procurement Planning through Contract Closure
D. The contract administration process from Solicitation Planning through Contract Closure

60. You are a project manager working on gathering requirements and establishing
estimates for the
project. Which process group are you in?
A. Planning
B. Executing
C. Initiating
D. Monitoring and Controlling

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