Project Management Question Bank
for Exam preparation

Q2. You are a project manager for a major telecommunications network upgrade with a net present value (NPV) of US $10,000,000. You are heavily dependent on a third party vendor for your project and your contract office informs you that there is a 30 percent chance that the vendor will go out of business at the end of the quarter. If that occurs, your project will incur a US $3,000,000 cost overrun due to rework. There is also a 30 percent chance that a new legislation will pass that will decrease government oversight of your team's work. If this legislation passes, you estimate that your project will save US $1,600,000 in time delays. Lastly, your technical lead indicates that there is 20 percent chance that a new software package will be available by month end that could save US $1,800,000 in testing time. If available, the software will cost US $500,000 to procure, install and train. What is the total expected monetary value of these three risk events?

1. $60,000
2. $1,640,000
3. $5,900,000
4. $160,000 88

Q3. Your project team is having a dispute with a vendor about whether a specific task is within the project’s scope. The scope statement does not provide implementation-level details that could resolve this dispute. There is no WBS, however, because the project sponsor insisted that the project be started right away without pausing to create standard project planning documentation. Who is at fault?

1. The project manager
2. The project sponsor
3. The project stakeholders
4. The project vendor

Q4. As the project manager, you are about to start the define scope process. You have the project charter and the organizational process assets list. Because there are no change requests in your project at this point, what must you have before you begin?

1. Product analysis
2. Requirements documentation
3. Updates to project documents
4. WBS

Q5. Using the chart, the resource for activity A is assigned to an additional, more important, project. As a result, the resource will not be able to devote as much time to your project. Activity A will now take 10 weeks. How does this affect the project?

1. There are three critical paths.
2. The project will be delayed
3. The project is riskier
4. Activity D will be delayed

Q6. The primary customer of a project has requested an application change during user testing. As project manager, how should you BEST address this issue?

1. Develop a risk mitigation plan.
2. Create a formal change request.
3. Inform the project sponsor of changes to scope, cost and schedule.
4. Ensure the scope change compies with all relevant contractual provisions.

Q7. A trend report was given to the project manager, who reacted to the report by investigating what activity or activities had not been done, but should have been done, to date. What did the report show?

1. Actual cost was below planned and schedule progress was less than planned
2. The cost performance index (CPI) was 0.8 and the schedule performance index (SPI) was 1.2.
3. The budget at completion (BAC) was higher than planned
4. The schedule performance index (SPI) was 1.3 and the estimate at completion (EAC) was greater than planned.

Q8. The probabilistic analysis of the project is an input to which part of the risk management plan?

1. Identify Risks
2. Perform Qualitative Risk Analysis
3. Perform Quantitative Risk Analysis
4. Plan Risk Responses.

Q9. In managing project communications, what should the project manager keep in mind?

1. Communication skills are most important during project executing.
2. The receiver is responsible for making sure communications are clear.
3. Only the team members need to be concerned about communication with each other.
4. A choice must be made about how to communicate properly.

Q10. What is the difference between expected monetary value and net present value?

1. Expected value is the estimated value of the work actually accomplished and net present value is the value of the work to be done.
2. Expected value is the value it takes to recover your investment and net present value is the value of money.
3. Expected value is the probability times impact of an opportunity and net present value is the benefits less costs over many time periods.
4. Expected value is the estimated value of risk response plans and net present value helps determine the value of investments.