PMI PMI Certifications PMI-SP Questions & Answers

• Question 161:

  John is the project manager for his organization. Management has asked John to fast track his project in order to reach a particular date for the project completion. When John fast tracks the project what project management component must be updated to reflect this decision? Choose the best answer.

  A. Organizational process assets

  B. Cost management plan

  C. Resource calendars

  D. Risk register

  Correct Answer: D

  Fast tracking allows phases of the project to overlap and increases risk for the project. When new risks are introduced into the project they should be recorded in the risk register. Risk register is a document that contains the results of the

  qualitative risk analysis, quantitative risk analysis, and risk response planning. Description, category, cause, probability of occurring, impact on objectives, proposed responses, owner, and the current status of all identified risks are put in the

  risk register. Answer option B is incorrect. The costs do not change because of the new fast tracking requirement. Answer option C is incorrect. Resource calendars show the availability of project resources. Answer option A is incorrect.

  Organizational process assets are updated as a result of updating the risk register when you consider that the risk register will become part of the organizational process assets.

  However, this is not the best answer for this question.

• Question 162:

  Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen.

  

  If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

  A. $35,000

  B. $41,700

  C. $6,700

  D. $14,000

  Correct Answer: C

  To answer this question, you'll first need to calculate the contingency reserve. Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. The sum of the risk events equals the contingency reserve for the project. In this question, the value is $41,700. If Risk D happens, it'll cost the project $35,000. The difference of $35,000 and $41,700 is $6,700. Answer option A is incorrect. This is the impact of Risk Event D. Answer option D is incorrect. $14,000 is the risk event value of Risk Event D. Answer option B is incorrect. $41,700 is the amount of the contingency reserve.

• Question 163:

  Harry works as a project manager for BlueWell Inc. A risk that has been identified and analyzed in the project planning processes is now coming into fruition. Who among the following is responsible for implementing the risk responses or contingency plan?

  A. Risk owner

  B. Harry

  C. Project sponsor

  D. Subject matter expert

  Correct Answer: A

  The risk owner is the individual on the project team that is closest to the risk event. The risk owner can be an individual or an organization responsible for implementing risk responses or contingency plan. The risk owner should be

  empowered with the ability to respond to the risk as it was planned. Answer option B is incorrect. Harry is the project manager and likely would not be the risk owner as well. Answer option C is incorrect. The project sponsor authorizes the

  project but does not participate in execution of the project.

  Answer option D is incorrect. While a subject matter expert may be the risk owner on some occasions, he would not be the risk owner on every occasion.

• Question 164:

  Amy works as a project manager for BlueWell Inc. She is working on the SDI project, which has a BAC of $2,816,000. She is currently 20 percent complete with this project, though she should be 25 percent complete with the project work. The project has consumed $495,000 of the project budget to date. Management has asked her the project's Estimate To Complete (ETC) based on the current project performance. What is the ETC for this project?

  A. $1,312,504

  B. $1,979,952

  C. $1,541,544

  D. $2,474,952

  Correct Answer: B

  The estimate to complete is about knowing how much more money the project will need to complete its objectives. The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC- AC. The EAC is BAC/ CPI. Here it is, CPI = EV/AC = (0.20*2,816,000)/495,000 = 563200/495,000 = 1.1378 EAC = BAC/ CPI = 2,816,000/1.1378 = 2,474,952 (Approx) ETC = EAC - AC = 2,474,952 - 495,000 = 1,979,952 Answer options C and A are incorrect. These are not the valid answers for this question. Answer option D is incorrect. This is the estimate at completion based on the current project performance.

• Question 165:

  You work as a Project Manager for Tech Perfect Inc. You are looking for performance efficiencies of a project. The related key values are provided in the table below:

  

  What will be the cost variance (CV) of the project at the current point of time?

  A. +80

  B. -80

  C. -10

  D. +10

  Correct Answer: B

  According to the question, you are required to calculate the cost performance index (CPI) of the project. Cost variance (CV) is a measure of cost performance on a project. The variance notifies if costs are higher than budgeted or lower than budgeted. The cost variance is calculated based on the following formula: CV = Earned Value (EV) - Actual Cost (AC) A positive value means that spending is less than budgeted, whereas a negative value indicates that costs are higher than originally planned for the project. Now, putting the provided values in the formula: CV = EV - AC = 320 - 400 = -80 As the value of CV (which is 80) is negative, it shows that the costs are higher than that have been planned for the project. What is BCWP (or EV)? Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is the budgeted amount for the work actually completed on the schedule activity during a given time period. What is BCWS (or PV)? Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component. What is ACWP (or AC)? Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity. It is the cost of the work to date, including direct and indirect costs. AC is money that has actually been expended to date.

• Question 166:

  Terri is the project manager for her organization and she is working with her project team to develop the project schedule. She has identified the float in her project although some of the activities where float exists may be susceptible to risk in the project execution. She is also concerned that the critical path may change during the project if the risk events come into execution. What scheduling method is Terri using in this example?

  A. Critical chain method

  B. Risk analysis method

  C. Activity on the arrow method

  D. Critical path method

  Correct Answer: D

  Terri is using the critical path method in this example. The question acknowledges that Terri has identified float and the critical path, but it makes no mention of the availability of project resources - something the critical chain method focuses on. Critical Path Method, abbreviated CPM, or Critical Path Analysis, is a mathematically based algorithm for scheduling a set of project activities. It is an important tool for effective project management. It provides the following benefits: Provides the graphical view of the project. Predicts the time required to complete the project. Shows which activities are critical to maintain the schedule and which are not. CPM models the activities and events of a project as a network. Activities are depicted as nodes on the network, and events that signify the beginning or ending of activities are depicted as arcs or lines between the nodes. Answer option A is incorrect. The question does not indicate that Terri is concerned with the availability of project resources - as she would be if she were using the critical chain method. Answer option B is incorrect. The risk analysis method is not a valid scheduling technique. Answer option C is incorrect. Activity on the arrow method is not being described in this question.

• Question 167:

  What project management plan will document the time frame and frequency for the distribution of required information?

  A. Scope Management Plan

  B. Communications Management Plan

  C. Stakeholder Management Plan

  D. Schedule Management Plan

  Correct Answer: B

  The project's Communications Management Plan defines what information will be distributed, when it will be distributed, to whom it will be distributed, and the modality of the information. Answer option D is incorrect. The Schedule Management Plan defines the project work, when the project work will happen, resource utilization, and how the schedule will be monitored and controlled. Answer option C is incorrect. There is a stakeholder management strategy, but not a Stakeholder Management Plan. Answer option A is incorrect. The project's Scope Management Plan defines how the scope will be created, how the changes will be allowed, how the scope will be executed, monitored and controlled, and finally closed.

• Question 168:

  You are the project manager for the GRT Project in your organization. You have created your time duration estimates based on historical information, but the estimates are not holding true in your current project. Unfortunately, many activities are late. You have decided to create a PERT estimate with your project team for each of their activities. What is the formula used for PERT?

  A. O+M+P

  B. (O+M+P)/3

  C. (O+4M+P)/6

  D. Average of the estimates

  Correct Answer: C

  PERT uses the formula of (O+4M+P)/6 to predict the duration of the project activities and the overall project schedule. Three-point estimate is a way to enhance the accuracy of activity duration estimates. This concept is originated with the Program Evaluation and Review Technique (PERT). PERT charts the following three estimates: Most likely (TM): The duration of activity based on realistic factors such as resources assigned, interruptions, etc. Optimistic (TO): The activity duration based on the best-case scenario Pessimistic (TP): The activity duration based on the worst-case scenario The expected (TE) activity duration is a weighted average of these three estimates: TE = (TO + 4TM + TP) / 6 Duration estimates based on the above equations (sometimes simple average of the three estimates is also used) provide more accuracy.

  Answer option A is incorrect. This is not a valid formula. Answer option D is incorrect. This almost describes the three-point estimate, but does not answer the question about PERT. Answer option B is incorrect. This is the formula for the three-point estimate. Note the PERT, while similar, uses 4M and divides the result by six factors.

• Question 169:

  You are the project manager of the NHQ project. Your project has a budget of $1,258,456 and is scheduled to last for three years. Your project is currently forty percent complete though it should be forty- five percent complete. In order to reach this point of the project, you have spent $525,000. Management needs a performance report regarding the NHQ project. What is the planned value for this project?

  A. $566,305

  B. $1,258,456

  C. -$54,044

  D. $503, 382

  Correct Answer: A

  The planned value is the percent complete that the project should have done. In this instance, it is:

  Planned value = 45% of $1,258,456 =$566,305

  Answer option B is incorrect. This is the project budget. Answer option D is incorrect. $503,382 is the earned value for this project. Answer option C is incorrect. -$54,044 is the variance at completion for your project.

• Question 170:

  You work as the project manager for BlueWell Inc. You are recording the activity status for your project team's performance in the project. Based on the current performance your project is likely to be three months late. What type of communication should be generated based on this performance issue?

  A. Issue report

  B. Exceptions report

  C. Variance analysis

  D. Performance report

  Correct Answer: D

  A performance report is needed to communicate the variance between planned work and actual work. A performance report is made by the project team detailing activities, milestones, problems, accomplishments, and identified issues. Performance reports are used to report some key information as follows: Current status Scheduled activities Significant accomplishment for the period Forecasts Issues Answer option A is incorrect. An issue report is not the best answer for this scenario. Issues are recorded in the issue log and an issue owner is assigned. Answer option B is incorrect. An exceptions report is a tempting answer as this is an exception to the project. PMI does not use this terminology. Answer option C is incorrect. Variance analysis is the activity of reviewing the variance to determine why it exists.