Project Management Question Bank
for Exam preparation

Q2. During construction of a new manufacturing facility in another country, one of your team members complains to you that the wage paid to the workers is below the acceptable wage in your home country. In this situation it is BEST to:

1. Pay the workers at the new facility the same wage as your country.
2. Pay the workers at the new facility a little less than the acceptable wage in your country
3. Pay the workers an appropriate wage for the country within which they work
4. Ignore the issue as you have not heard the workers complain

Q3. A cost performance plan contains a description of:

1. The project costs.
2. How resources are allocated.
3. The budgets and how they were calculated.
4. The WBS level at which earned value will be calculated.

Q4. You have a project with four activities as follows: Activity 1 can start immediately and has an estimated duration of one. Activity 2 can start after activity 1 is completed and has an estimated duration of four. Activity 3 can start after activity 2 is completed and has an estimated duration of five. Activity 4 can start after activity 1 is completed and must be completed when activity 3 is completed. The estimate for activity 4 is 10. What is the SHORTEST amount of time in which the project can be completed?

1. 10
2. 9
3. 18
4. 11

Q5. You are a project manager for a large consulting firm. Your superior has just asked for your input on a decision about which project your company should pursue. Project A has an internal rate of return (IRR) of 12 percent. Project B has a predicted cost ratio (BCR) of 1.3. Project C has an opportunity cost of US $75,000. Project D has a payback period of six months. If you had to choose based on this data, which project would you select?

1. Project

Q6. You are a senior project manager working for RETAMART, a retail shopping network that sells various consumer products. As part of the expansion plan approved by the board of directors, you are a project manager for a new plant. Due to transportation problems, the project has experienced delays; the Schedule Performance Index (SPI) is at 0.6 and the Cost Performance Index (CPI) is at 0.7. However, you expect some improvements over the next few weeks, which may increase the SPI to 1.1 and the CPI to 0.9. Which of the following statements is true if your anticipated changes materialize?

1. The project is overspent and behind schedule
2. The project is overspent but ahead of schedule
3. The project is on schedule and under budget
4. The project is under budget but behind schedule

Q7. A project manager has completed risk response planning. She as planning to go on to risk monitoring and control when she found out from another project manager that she forgot to do something important in this step. Which of the following did she forget?

1. She has not created an overall risk ranking for the project
2. She has not analyzed secondary risks
3. She has not created workarounds
4. She has not created a prioritized list of quantified risks.

Q8. If a risk has a 20 percent chance of happening in a given month, and the project is expected to last five months, what is the probability that this risk event will occur during the fourth month on the project?

1. Less than 1 percent
2. 20 percent
3. 60 percent
4. 80 percent.

Q9. You are a new project manager who has never managed a project before. You have been asked to plan a new project. It would be BEST in this situation to rely on ______ during planning to improve your chance of success.

1. Your intuition and training
2. Stakeholder analysis
3. Historical information
4. Configuration management

Q10. Your project is complete and the product is ready to be delivered. The client inspects the deliverable and accepts it. What process is this?

1. Close procurement
2. Close project
3. Validate scope
4. Verify scope