Project Management Question Bank
for Exam preparation

Project Management- Q2. A project manager is meeting with a team member and says, “I know you want to become involved in meetings with the customer. Because of the performance on the project so far, I have rearranged things so you can become involved with the customer.” This is an example of:

1. Team performance assessment.
2. Reward power.
3. Team building
4. Project performance appraisals.

Project Management- Q3. You have one document which hierarchically categorizes labor, equipment, and materials, etc. This document is known as:

1. RBS
2. Resource calendar
3. RACI matrix
4. RAM chart

Project Management- Q4. 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

Project Management- Q5. All of the following are outputs of the Monitor and Control Project Work process EXCEPT:

1. Rejected change requests
2. Recommend corrective actions
3. Forecasts
4. Recommend defect repair

Project Management- Q6. There is a probability of 0.1 that a given risk will occur in a project. If it occurs, it will result in a loss of US $10,000. The insurance cost for this event is US $700, with a deductible amount of US $250. Should a rational project manager buy this insurance?

1. Yes, since $1,000 > $950.
2. Yes, since $1,000 > $700.
3. No, since the deductible amount changes the expected monetary value of the risk event.
4. No, since $1,250 > $1,000.

Project Management- Q7. You are working as a project manager for a wind-powered vehicle manufacturing project which is in its planning phase. You carefully gathered all your requirements from your key stakeholders and prepared a system requirements specification and project requirements specification. While presenting your specifications to the project team, an enthusiastic project team member started talking about the duration estimates for each activity. Which of the following statements indicates your response to your team member?

1. WBS creation and Schedule development must be done after estimating durations.
2. Schedule development and Costs estimation must be done before estimating durations.
3. Scope definition, WBS creation, Quality planning, and Communication planning must be done before estimating durations.
4. Scope definition, WBS creation, Activity definition, and Activity sequencing must be done before estimating durations.

Project Management- Q8. Which of these is not an input to the Control Procurements process?

1. Agreements
2. Change requests
3. Work performance data
4. Project management plan

Project Management- Q9. During Control risks process, the risk response owner should be:

1. Identifying which risks he/she wants to monitor
2. Controlling the identification of response strategies
3. Informing the project manager of any midcourse correction needed
4. Updating stakeholders of new strategies for mitigating risks.

Project Management- Q10. Lucy has recently been assigned as the project manager for a new shopping mall construction project. Since the project will span well over five years, Lucy is a bit hesitant to use the current market rates for estimating construction materials cost. The prices have been steadily increasing and the current market rates might not remain valid in the future. Which of the following techniques can Lucy apply to determine her project budget?

1. Conduct a trend analysis on the cost of materials and use that to extrapolate the cost of materials in the future.
2. Determine the cost of the project using current market rates and increase the total budget by some factor.
3. Compute the Net Present Value of the cost of materials and use that to determine the project budget.
4. Use Rolling Wave Planning to determine the budget as the project progresses.