(Test Bank) PMP Certification Latest Fall 2022 Exam Bank Answers Correct & Explained.

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PMP Certification Latest Fall 2022 Exam Bank_ answers correct & explained. A project team is in the process of estimating the types and quantities of resources required to perform each activity. Which of the following activities will NOT be done by the team during this process? A. Estimate the type and quantity of resource required to perform each activity B. Go through the past data and lessons learned from previous projects C. Study the organization policies and procedures regarding staffing D. Identify and show network dependency in the project activities - Correct Option: D EXPLANATION The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities pro cess. During the initiating stage, which of the following elements will be identified to meet the project goals? A. Key deliverable B. Stakeholders C. Quality D. Vendors - Correct Option: A EXPLANATION Even though the identification of stakeholders and potential sellers happens as part of initiating phase through the "identify stakeholders" process, this will not help to meet the project goals. Key deliverables help in meeting the project goals. Quality identification happens during planning. A car manufacturing company conceptualized a new car that will be more fuel efficient, ergonomically designed, and that satisfies the latest safety regulations. This car was recently launched and has now moved into full -fledged production. This is an examp le of: A. Operation, as the company is into car manufacturing, which is an ongoing process B. Project, as this car was conceptualized, designed, and has now been launched C. Project, as it has clear scope and requirements in terms of safety compliance, fue l efficiency, etc. D. Operation, as this activity didn't create a unique product - Correct Option: B EXPLANATION This is a typical scenario where project intersects with operation during product life cycle. Notice the word launched. All the activities be fore launch of the vehicle are part of a project, which is a temporary activity with a well -defined unique output. Once the car moves to production, it becomes an ongoing operation for the company. When is the cost highest in the project life cycle? A. At the initiating phase B. During planning C. Midway during the project D. During closure - Correct Option: C EXPLANATION Project cost peaks in the middle of the project as maximum resources are utilized during this phase. Project cost is low at the beginn ing, peaks midway, and drops rapidly as the project draws to an end. Initiating, planning, and closing are not part of the project life cycle and are process groups. As a part of Stakeholder Management, a Project Manager can follow all of these management practices, EXCEPT: A. Identify all the stakeholders and capture them in the project team directory B. Ensure that stakeholders' expectations are met and gain support for the project C. Give preference to stakeholders over customers in case of conflict of interest D. Communicate all relevant information about the project to stakeholders - Correct Option: C EXPLANATION In case of conflict of interest, it should generally be resolved in favor of the customer or organization who would use the project's produ ct or service. After a high -level management meeting, the manager chairing the meeting asks the Project Manager to document and communicate the action items to all the stakeholders. The Project Manager is part of a ______________ organization structure. A. Balanced Matrix B. Weak Matrix C. Strong Matrix D. Tight Matrix - Correct Option: B EXPLANATION The Project Manager is part of a weak matrix organization and is playing the role of project expeditor. The project expeditor acts primarily as staff assis tant and communication coordinator. The expeditor personally cannot make or enforce decisions. Which of the following activities is part of the initiating phase? A. Develop stakeholder management plan B. Conduct benefit analysis with stakeholders to valid ate project alignment with organizational strategy and expected business value C. Validate Scope D. Conduct kick -off meeting - Correct Option: B EXPLANATION This task has newly been added to the examination content outline. Options (A) and (D) are part o f planning. Option (C) is part of Monitoring and Controlling. A Project Manager has just been assigned to a project. He is involved in creating a document that would formally authorize the project and capture initial requirements of the stakeholders. What is the output of this process? A. Project Management Plan B. Project Statement of work C. Project Charter D. Business case - Correct Option: C EXPLANATION The Project Charter formally authorizes the project and provides the Project Manager with the authority to apply resources to project activities. Although the project sponsor may create the project charter, it is recommended that the Project Manager partic ipate in the development of the project charter. Options (b) and (d) are inputs to the process of developing the project charter. Please refer to sPMBOK® Guide - Sixth Edition: Project Integration Management page 75. Which of the following statements DOES NOT describe the essence of Integration Management in the context of Project Management? A. Balancing of competing objectives and the exploration of alternative actions B. The processes and activities needed to identify, define, combine, unify, and coordi nate process and project management activities within the Project Management Process Group C. Integrating different components from the development cycle to create the final deliverable D. Managing interdependencies among Project Management knowledge areas - Correct Option: C EXPLANATION Integrating different components from a development cycle to create a final deliverable is an example of Software integration management used in software development projects. During this software integration phase, compo nents from different development modules are integrated into one product and tested. However, integration management involves making choices about resource allocation, trade -offs among competing objectives, and managing interdependencies among project mana gement knowledge areas, i.e., options (a), (b) and (d). Please refer PMBOK® Guide - Sixth Edition Project Integration Management, page 69. A Project Manager is going through the Project Statement of Work provided by the project sponsor. Which of the follo wing will NOT be a part of this document? A. Business Need B. Product Scope Description C. Strategic Plan D. Performance Measurement Baseline - Correct Option: D EXPLANATION Performance Measurement Baseline is a part of the project management plan. Refer PMBOK® Guide - Sixth Edition Project Integration Management, page 88, Project Procurement Management, page 477. You are the Project Manager of a project for which a prototype was recently delivered. The sponsor of the project calls you and gives you an o verall estimate for the project. This form of estimate is known as ____ A. Analogous Estimate B. Parametric Estimate C. Heuristic Estimate D. Three Point Estimate - Correct Option: A EXPLANATION Analogous Estimate (also called Top down approach) is a form of Expert Judgment. It uses estimations from previous similar activities to estimate future durations. The accuracy of estimates derived using this method depends on the correctness of historical information, similarity of the historical projects (here a prototype project), and expert judgment. A Project Manager who has just been assigned to a new project has been asked by his sponsor to come up with an initial cost estimate called a Rough Order of Magnitude (ROM). This would typically fall in which range? A. -50% to +100% B. -25% to +75% C. -10% to +15% D. -100% to +50% - Correct Option: B EXPLANATION The Rough Order of Magnitude estimate (ROM) is usually done in the initial stages of the proje ct, when limited information is available. The budgeted estimate will be in the range of -10% to +25%, and the definitive estimate will be in the range of -5% to +10%. In a meeting, the Sponsor has discussed three projects with you: Project A with Net Present Value of $55,000 and a payback period of 5 years; Project B with Net Present Value of $95,000; and Project C with payback period of 10 years. He provides you with additional information about the projects and intends to assign you as the Project Manag er for the selected project. As a Project Manager, you are NOT expected to: A. Conduct project selection methods to select one of the three projects discussed with you by the sponsor to evaluate feasibility of new products and services B. Proceed to select the project with higher NPV C. Engage in deceitful practices D. Participate in the project selection method - Correct Option: C EXPLANATION Per the new examination content outline, the project manager participates in the development of the project chart er. There are three projects A, B, and C. NPV for projects A, B , and C are $50,000, $ 80,000, and $ 40,000 respectively. In a meeting, the management unanimously has chosen projects A and C. What is the opportunity cost of the project? A. 80000 B. 130000 C. 90000 D. 0 - Correct Option: A EXPLANATION Opportunity cost is the cost of giving up the opportunity by selecting a project(s) over another. Here, Project B is not selected. A project is in the initiating stage, and the Project Manager is identifying project communication constraints. Which of the following could be a valid constraint? A. The project could face high attrition rate B. Management and customer expect detailed for mal status reports on the project C. Project team members would be required to work from different geographical locations D. Many stakeholders of the project would not be able to attend the planned project kick-off meeting - Correct Option: C EXPLANATION Constraints always limit project team options. Option (a) is a known risk, and (b) and (d) can be addressed under stakeholder management by drawing consensus on the report format and rescheduling the meeting date. A Project Manager is responding to a bus iness proposal from an overseas company. Which of the following should he refer to as a guide to understand the business practice(s) that are allowed and discouraged? A. Procurement documents, including contract statement of work B. Organization policies a nd procedures C. Project Charter D. PMI code of Professional Conduct - Correct Option: B EXPLANATION A Project Manager is an expert in control. Legal (as well as Purchasing) experts will provide guidance about business decisions one would make in a forei gn country. The PMI® Code of Ethics (1.1.3) states, ®We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.®. Option (b) is better. Which of the following is NOT a project? A. Campaigning for an election B. Family Weekend drives to sea coast C. Writing an autobiography about project management experience D. Preparing for PMP® examinations - Correct Option: B EXPLANATION A project is a temporary endeavor undertaken to create a unique product, service, or result. Family weekend drive is an ongoing activity and is not a project. You have been assigned to a large construction project, and you are in the "Initiating" process group. You have identified the project stakeholders using a stakeholder analysis tool and defined the high -level scope of the project. During these activities, you have identified a key project limitation regarding the project location. What is the BEST option for you in this situation? A. Document the project limitation as a project constraint B. Discuss the project constraint with the project sponsor and the customer C. Document the project limitation as a project constraint and propose an implementation approach to the sponsor and customer, if required D. Ignore the project constraint and work toward getting approval for the project charter - Correct Option: C EXPLANATION The PMI® Code of Ethics (1.1.3) states, ®We provide accurate information in a time ly manner.® The project is not yet approved, and this limitation could keep it from being approved. You could select (b), which allows you to just provide information and reports, but active management of the project requires you to confront the limitation and facilitate its resolution quickly. The Project Manager is participating in the development of a project charter by gathering and analyzing the stakeholders' requirements and ensuring that the project scope, milestones, and deliverables are documented correctly. Which of the following is NOT achieved by the sponsor's approval of the project charter? A. Formalizing the authority assigned to the Project Manager B. Gaining commitment of the stakeholders C. Gaining acceptance for the project by the stakeho lders D. Ensuring formal acceptance of the deliverables by the customer - Correct Option: D EXPLANATION The Project Charter is approved by the sponsor and the customer (if required). It formalizes the authority assigned to the Project Manager and helps t he Project Manager gain commitment and acceptance for the project. Option (d) is correct in this scenario as formal acceptance of the project deliverables is part of the 'Validate Scope' process and is performed during the Monitoring and Controlling proces s group. Which of the following is NOT an input to the "Plan Stakeholder Management" Process? A. Project Management Plan B. Stakeholder Register C. Stakeholder Management Plan D. Enterprise Environmental Factors - Correct Option: C EXPLANATION Stakeholder management plan is an OUTPUT, not an input to the process. John has been assigned to a project recently, and he is in the process of documenting the project charter with the project sponsor. Which of the following MUST he include in the Projec t Charter? A. Project purpose or justification B. Positive risks C. Budget estimates D. Risk analysis - Correct Option: A EXPLANATION According to PMBOK® Guide - Sixth Edition, Sec 4.1.3.1 Page 81, the project description must be included in the project charter. Options C and D, budget estimates and risk analysis may be included in some project charters, if required. As a Project Manager of a large project with hundreds of stakeholders, which of the following is the BEST course of action? A. Incorporate needs of only important stakeholders B. Incorporate needs of all stakeholders C. Ask your manager to manage the stakeholders D. Eliminate some of the stakeholders - Correct Option: B EXPLANATION The Project Manager is required to identify all the stakeho lders and incorporate the requirements of every stakeholder. As part of Stakeholder Analysis, it is important to prioritize the needs of key stakeholders to ensure efficient use of effort to communicate with them and manage their expectations. Which of th e following is NOT a classification model? A. Power/Influence grid B. Power/Impact grid C. Power/Interest grid D. Influence/Impact grid - Correct Option: B EXPLANATION All of the other options are classification models used to prioritize stakeholders' needs. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the multiple classification models. You are the Project Manager of a software telecom developme nt project. You and your team are working together to create a billing software. Which quadrant of the Power/Influence Grid will the person(s) be responsible for sign -off of the deliverables? A. Keep Informed B. Monitor C. Manage Closely D. Keep Satisfied - Correct Option: C EXPLANATION Since the person responsible for sign -off will have a lot of power and his interest in the project will be high, he will fall in the 'Manage Closely' quadrant, that is, High Power High Interest grid. Refer PMBOK® Guide - Sixth Edition, page 512 for more information on the Power/Influence Grid. You are the Project Manager of a project in which team members have dual reporting structure. In addition to reporting to you, they also report to their functional manager. Also, the team members are expected to do the project work along with department work. You are working in which form of organization? A. Functional B. Projectized C. Tight Matrix D. Matrix - Correct Option: D EXPLANATION These are the characteristics of a matrix organization where team members have dual reporting structure, and the teams work in their respective functional areas while performing project work. Tight matrix has nothing to do with organization structure. It simply denotes keeping the project team in the vicinity. Please refer to PMBOK® Guide - Sixth Edition, page 47. You are a Project Manager of an ambitious project in an organization. Although you have successfully managed many critical projects before, this is a new organization and you are working on this technology for the first time. However, you hear that the company has proven expertise on the technology and has also done a similar project in the past. In this situation, what is the BEST option available to you? A. Approach the Project Manager from the earlier project and take his inputs B. Obtain historical records and guidance from the Project Management Office (PMO) C. Involve Stakeholders and take their opinion and expertise on the project D. Continue to manage the project by your instincts until there is a major issue - Correct Option: B EXPLANATION Obtain historical records and guidance from the PMO. Though all the options except (d) reflect proactive nature of the Project Manager and is appropriate, the best option is to go through historical records from the PMO. It will help you to get an objective and systematic assessment of past projects in the organization. Remember, a project management office plays a critical role by providing ce ntralized management of the projects and access to policies, templates, lessons learned, and historical records of projects. You are managing a large and complex project which is in the planning stage. After assessing the detailed project requirements wit h the stakeholders, you ask the team to create a Work Breakdown Structure (WBS). However, since most of the team is new, you decide to brief them on some rules of creating a WBS. Which of the following statements is INCORRECT about a Work Breakdown Structu re? A. WBS is a list of specific activities used to accomplish the deliverables B. WBS includes only work needed to create deliverables. Hence, work not in WBS is not part of the project C. Lower -level WBS components are a decomposed result of the upper -level WBS components D. WBS allows better estimation of cost, risk, and time - Correct Option: A EXPLANATION WBS is a list of specific activities used to accomplish the deliverables. Work Breakdown Structure (WBS) is a deliverable -oriented hierarchical dec omposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope. Hence, it is NOT a list of specific activities used to accomplish the deliverable s. How the work is completed (activities) can vary and change throughout the project, but deliverables cannot change without a change request. For more information on Work Breakdown Structure (WBS), please refer to PMBOK® Guide - Sixth Edition Project Scop e Management, page 156. You are a Project Manager for an infrastructure development project, and the project involves building a multi -storey building. You have submitted your project estimates for cost and duration to the client. You also inform the buye r that the estimates would be true provided there is an 8ft foundation built on the site already. What does this statement describe in your project? A. Risk B. Constraint C. Assumption D. Mandatory Dependency - Correct Option: C EXPLANATION This is an as sumption you have made about the usability of existing foundation to derive the project estimates. An assumption, by definition, is a statement that is assumed to be true and from which a conclusion can be drawn. There may be external circumstances or even ts that must occur for the project to be successful. These are categorized under project assumptions. This is not a risk as there is no element of uncertainty involved. Risk, by definition, is an event which may or may not occur in the future. If it occurs , it can positively or negatively affect the project. There is also no justification to believe that this is a project constraint, as constraints usually limit project options and are outside the control of the project team. Pre -existence of a foundation f or building a multi -storey building is also not an example of Mandatory Dependency (option d). You are the Project Manager of a large and complex project. Your project team has finished creating a Work Breakdown Structure for the project. However, some of the team members are still not sure of the kind of work included in each of their work packages. Which of the following documents would you suggest they go through? A. Project scope statement B. Project Management Plan C. Work Break Structure (WBS) Dictionary D. The Product Scope document - Correct Option: C EXPLANATION A Work Break Structure (WBS) Dictionary accompanies a Work Breakdown Structure and provides a description of the work to be done for each WBS package. It provides more detailed descriptions of the WBS components, such as work description, schedule milestones, schedule activities, resources required, cost estimates, quality requirements, acceptance criteria, etc. The project scope statement contains detai ls about the scope of the project, but it is at a much higher level and will not be helpful in this situation. You are a Project Manager. In the process of sequencing activities for your project, you create a schedule network diagram that uses boxes calle d nodes to represent activities and connects them with arrows to represent logical relationships between them. What is this popular scheduling diagram known as? A. Precedence Diagramming Method (PDM) B. Arrow Diagramming Method (ADM) C. Program Evaluation and Review technique (PERT) D. Graphical Evaluation and Review Technique (GERT) - Correct Option: A EXPLANATION The Precedence Diagram Method, also known as Activity -On-Node, is a tool for scheduling activities in a project plan and constructing a projec t schedule network diagram that uses boxes, referred to as nodes, to represent activities and connects them with arrows that show the dependencies. As a Project Manager, you are in the process of identifying and documenting relationships among project act ivities. You are using the Precedence Diagramming Method (PDM). Which of the following relationships are you UNLIKELY to use for this purpose? A. Finish to Start (FS) B. Finish to Finish (FF) C. Start to Start (SS) D. Start to Finish (SF) - Correct Option: D EXPLANATION You are in the process of documenting Sequence Activities, which define four kinds of dependencies or logical relationships between project activities. Start to finish (SF) relationship, which denotes completion of successor activity, depe nds on initiation of predecessor activity. For example, activity A may have a start -to-finish relationship with activity B; this implies that B doesn't finish before A starts. This relationship is rarely used and uncommonly found in real life situations. A n example could be a call center environment where the previous shift doesn't finish until the next one starts. As a Project Manager, you are estimating the duration of your project activities using PERT (Program Evaluation and Review Technique). For a particular project activity, your Optimistic estimate is 14 days, Pessimistic estimate is 47 days, and Most Likely estimate is 27 days. What should be the expected duration of this activity? A. 28.17 B. 31 C. 43 D. 36 - Correct Option: A EXPLANATION PERT allows the estimator to include three estimates: optimistic, pessimistic, and most likely. The expected duration i s calculated using the equation: Expected Duration = [P + 4(ML) + O]/6, where P is the pessimistic estimate, ML is the most likely estimate, and O is the optimistic estimate. Using this method, the correct answer comes out to be 28.167 days or 28.17 days. Sub network or fragment network templates are most useful when the project has MANY: A. Mandatory Dependencies B. Discretionary Dependencies C. Undefined Variables D. Identical or nearly identical deliverables - Correct Option: D EXPLANATION Sub network or fragment network templates are part of project schedule network template. It can be used to expedite the preparation of networks of project activities, especially when a project includes several identical deliverables. As a Project Manager, you have c reated a Resource Breakdown Structure (RBS) for your project. Which of the following statements is NOT TRUE about Resource Breakdown Structure (RBS)? A. It is a hierarchical structure of resources B. It is used for estimating resource utilization C. It is used for organizing and reporting project schedule D. It has resources grouped by category and type - Correct Option: B EXPLANATION Resource Calendars, not RBS, are used for Resource Utilization. Resource Breakdown Structure (RBS) is focused on creating a hierarchical list of the resources, both significant and seemingly redundant, that are involved in the project. Every hierarchical level lists a number of resources that are needed for carrying out various kinds of project -related activities. Every kind of resource is further divided into a number of categories or resource -types to help classify them. A Project Manager is managing a project that has constraints on the availability of required resources throughout the project. He needs to rearrange the schedule in such a way that a constant number of resources are used each month. Which of the following techniques should the Project Manager use to achieve this? A. Fast Tracking B. Crashing C. Leveling D. Lagging - Correct Option: C EXPLANATION Resource leveling is a technique that allows one to adjust the start and end dates to accommodate the demand an d supply of resources. Refer Page 211, PMBOK® Guide - Sixth Edition. A project team is in the process of estimating the types and quantities of resources required to perform each activity. Which of the following activities will NOT be done by the team dur ing this process? A. Estimate the type and quantity of resource required to perform each activity B. Go through the past data and lessons learned from previous projects C. Study the organization policies and procedures regarding staffing D. Identify and sh ow network dependency in the project activities - Correct Option: D EXPLANATION The project team is in the process of Estimating Activity Resources, and the activities provided as options (b) and (c) are done as part of this process. Option (d), which involves creating a schedule network diagram to display project schedule activities and logical relationship between them, is part of the Sequence Activities process. Which estimate technique does the Program Evaluation and Review Technique (PERT) use to de fine the approximate range of activity costs? A. Earned Value Technique B. Parametric Estimation Technique C. Three Point Estimate Technique D. Historical Information - Correct Option: C EXPLANATION Program Evaluation and Review Technique (PERT) calculates an expected activity cost using the weighted average of the three estimates, that is, (Most Likely+ Optimistic+ Pessimistic)/3. Most likely is the approximate realistic scenario, that is, the cost o f the activity given the resources likely to be assigned, their productivity, and realistic expectations of availability. Optimistic is the best -case scenario, that is, the activity duration is based on a best -case scenario of what is described in the most likely estimate. Pessimistic is the worst -case scenario, that is, the activity duration is based on a worst -case scenario of what is described in the most likely estimate. Your project team is involved in estimating the cost of the project as a part of p roject cost management. Which of the following tools and techniques will NOT be applicable for this purpose? A. Cost Benefit Analysis B. Reserve Analysis C. Cost of Quality D. Alternatives Analysis - Correct Option: A EXPLANATION Reserve Analysis, option (B), is an analytical technique to determine a reserve for budget, estimated costs and funds for the project. It is an important technique in the process of estimating costs. Option (C), Cost of Quality is the sum of all costs a company invests into the r elease of a quality product and can be used to prepare cost estimates. Option (D), Alternatives Analysis can also be used as a technique to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project. However, Cost Benefit Analysis is a technique that compares positive factors or benefits with negative ones to determine the net result of doing the action. It is a popular technique for selecting projects but will not be useful during cost e stimation at the activity level. Please refer to PMBOK® Guide - Sixth Edition Project Cost Management, page 245 for more details. The common term for an authorized time -phased budget, which includes the Budget at Completion (BAC), used to measure cost per formance, and displayed in the form of an S-curve is: A. Earned Value B. Cost Performance Index C. Cost Baseline D. Project Budget - Correct Option: C EXPLANATION Cost Baseline provides a yardstick against which you can measure cost performance. Please r efer PMBOK® Guide - Sixth Edition, Cost Baseline page 254 for the definition of cost baseline. A project team is in the process of identifying quality requirements and standards for the project. It is documenting how the project will demonstrate complianc e. The team has referred to organizational process assets and is using tools like statistical sampling and control charts. Which process of Quality Management is the project team performing? A. Plan Quality Management B. Perform Quality Assurance C. Perfor m Quality Control D. Manage Project Team - Correct Option: A EXPLANATION Notice the words "identifying quality requirements and standards." This is a part of quality planning. So, the project is in Plan Quality Management process in the planning phase. Please refer to PMBOK® Guide - Sixth Edition Project Quality Management page 277. Which of the following is true with respect to Plan Cost Management? A. Develop the high -level budget B. Develop the cost management plan C. Develop the budget plan D. Develop both budget plan and cost management plan - Correct Option: B EXPLANATIO N In the latest examination content outline, budget plan is replaced with cost management plan. Option (a) is part of Initiating. Which of the following is an example of external failure cost? A. Cost of testing B. Cost of training C. Cost of documentati on D. Warranty cost - Correct Option: D EXPLANATION Warranty cost is the only cost which belongs to the category of external failure cost. Training and documentation are prevention costs. Testing is appraisal cost. Please refer to PMBOK® Guide - Sixth Ed ition Project Quality Management, Cost of Quality page 282. A project team is ahead of its schedule, and its SPI and CPI are currently 1.4 and 1.2 respectively. The Project Manager and the team are brainstorming about the scope of the next milestone deliv ery. They have found that including an additional feature would enhance the usability of the product and can be compressed in the current schedule. What should the project team do next? A. Add this feature in the next release as long as it doesn't affect t he delivery date B. Go through the change management and analyze the impact of this additional feature C. Discuss it with the project sponsor D. Drop this feature as it is gold plating and the customer does not need it - Correct Option: D EXPLANATION PMI® does not recommend gold plating, and this additional feature is definitely not part of the requirement in the contract. Though it does not affect delivery, it may involve costs or additional risk, so option (a) is not justified. The best option would be to first evaluate the impact of this additional feature and then discuss it with the customer. Since that is not a choice, (d) is the best answer.