Project Management Question Bank
for Exam preparation

Q2. 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.

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. The work breakdown structure can be BEST thought of as an effective aid for _________ communications.

1. Team
2. Project manager
3. Customer
4. Stakeholder 13

Q5. The Code of Ethics and Professional Conduct has as its foundation four values identified by practitioners from the global project management community. They are:

1. Respect, fairness, transparency, and freedom
2. Responsibility, transparency, fairness, and honesty
3. Respect, freedom, honesty, and transparency
4. Responsibility, respect, fairness, and honesty

Q6. Which of the following is a TRUE statement about a risk rating matrix?

1. It should be changed for every product
2. It should never be used on a large project
3. It should be standardized between projects
4. It should be developed by the project manager.

Q7. Which of the following BEST describes what a project charter may be used for when the work is being completed?

1. To make sure all the team members are rewarded
2. To help determine if a scope change should be approved
3. To assess the effectiveness of the change control system
4. To make sure that all the documentation on the project is completed

Q8. During a project, a team member tells you that a major risk identified by the team has occurred. However, it is not as serious as previously thought. What is the FIRST thing you should do?

1. Increase the quality standard
2. Present this finding to the project team and ask them to verify the team member’s finding
3. Investigate changing the contingency plan
4. Notify management

Q9. Which of the following allows a project management team to communicate all approved and rejected changes to the stakeholders consistently?

1. Configuration management system
2. Verification management system
3. Configuration status accounting
4. Change management board

Q10. Which of the following is a tool or technique of the Manage Stakeholder Engagement process?

1. Communication technology
2. Communication models
3. Communication standard
4. Communication skills