Project Management Question Bank
for Exam preparation

Q2. Communications under a contract should tend toward:

1. Formal written communication.
2. Formal verbal communication.
3. Informal written communication.
4. Informal verbal communication

Q3. 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

Q4. Which of the following is an output of the Create WBS process?

1. Scope baseline
2. Project scope statement
3. Decomposition
4. Requirements documentation

Q5. Three strategies that typically deal with negative risks or threats are:

1. Enhance, Share, and Accept
2. Transfer, Exploit, and Accept
3. Avoid, Transfer, and Exploit
4. Avoid, Transfer, and Mitigate

Q6. The project manager must identify ____________, determine their requirements, and then manage and influence those requirements to ensure a successful project.

1. Functional managers.
2. Stakeholders
3. Scope.
4. End users

Q7. Your company is undergoing a change in ownership and the new owners are looking at the total cost of a new product. Which of the following would BEST provide that information?

1. Estimate at completion
2. Life cycle cost
3. Earned value
4. Net present value

Q8. Which of the following BEST describes the primary use of project management software?

1. Managing a project
2. Creating and controlling a schedule
3. Creating a complete project management plan
4. Creating a work breakdown structure

Q9. As project manager, you are unable to allocate as much time to interact with your stakeholders as you would like. Which of the following stakeholders will you make it a priority to get to know?

1. The stakeholder who is an expert on the product of the project, but is not interested in implementing it in his department.
2. The manager of the department that will use the product of the project. She is known to be resistant to change.
3. The project sponsor, with whom you have successfully worked on many projects.
4. The department employee who is unfamiliar with the product of the project, but open to the positive impacts he believes the product will have on his work environment.

Q10. You have estimated the cost of your project by calculating the cost of each activity, adding them together to get the cost of a work package, and then you adding together the cost of all work packages. What kind of estimate are you using here?

1. Top down
2. Bottom up
3. Parametric
4. Ball park estimate