Project Management Question Bank
for Exam preparation

Q2. While preparing your risk responses, you realize that you have not planned for unknown risk events. You need to make adjustments to the project to compensate for unknown risk events. These adjustments are based on your past project experience when unknown risk events occurred and knocked the project off track. What should you do?

1. Include a management reserve in the budget to try to compensate for the unknown risks, and notify management to expect unknown risks to occur.
2. Document the unknown risk items and calculate the expected monetary value based on probability and impact that may result from the occurrence.
3. Determine the unknown risk events and the associated cost; then, add the cost to the project budget as reserves.
4. With the stakeholders, determine a budget of the known risk budget to allocate to a management reserve budget.

Q3. You have four projects from which to choose one. Project A is being done over a six year period and has a net value (NPV) of US $70,000. Project B is being done over a three year period and has an NPV of US $30,000. Project C is being done over a five year period and has an NPV of US $40,000. Project D is being done over a one year period and has an NPV of US $60,000. Which project would you choose?

1. Project A
2. Project B
3. Project C
4. Project D

Q4. Which of the following statements regarding Resource Leveling and Resource Smoothing is correct:

1. Resource Smoothing can cause the original critical path to change, while Resource Leveling doesn’t alter the project’s critical path.
2. Both Resource Leveling and Resource Smoothing can alter the project’s critical path.
3. Neither Resource Leveling nor Resource Smoothing alters the project’s critical path.
4. Resource Leveling can cause the projects’ critical path to change, while Resource Smoothing doesn’t alter the project’s critical path.

Q5. 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.

Q6. If Project A has a net present value (NPV) of US $30,000 and project B has an NPV of US $50,000, what is the opportunity cost if project B is selected?

1. $23,000
2. $30,000
3. $20,000
4. $50,000

Q7. In your project you identified a risk; there is a chance you may lose a critical employee. You have identified an employee from another project to bring into your project if your team member leaves you. However, this employee is known for his bad behavior and creating trouble for other employees. In a monthly risk review, a stakeholder asks you what your strategy will be if this new team member creates a problem for you. You assured him that you are aware of it and you also have a plan for it. What kind of risk is the stakeholder discussing with you?

1. Residual risk
2. Secondary risk
3. Uncertainty
4. Primary risk

Q8. A project has a payback period of nine months. What does this mean?

1. It will take the project nine months to start incurring costs
2. The project will be complete in nine months
3. The first nine months of the project will provide profit to the company
4. It will take the project nine months to cover the investment and start generating revenue

Q9. You have been given a big project to complete. This is an important project for your company, therefore management does not want any delay in completion. As soon as the project charter is signed, you start identifying and categorizing stakeholders using various data representation tools. Which of the following tools will you not use here?

1. Brain writing
2. Stakeholder cube
3. Direction of influence
4. Salience model

Q10. At a critical milestone in development project, it is determined that implementation is two months behind schedule. The project manager is concerned that the root cause is lack of conformance to requirements in the design of the new billing system. More extensive measurements are taken to see if this is, in fact, the problem. Such measurements are:

1. Not needed. The schedule should be compressed
2. An example of Control Quality
3. Not going to show why the schedule is delayed
4. Part of integrated change control.