Project Management Question Bank
for Exam preparation

Q2. Decision tree analysis is used to calculate the average outcome when the future includes scenarios that may or may not happen. What are a decision node’s inputs and outputs?

1. Input: Cost of each decision; Output: Probability of occurrence
2. Input: Cost of each decision; Output: Decision made
3. Input: Scenario probability; Output: Expected Monetary Value (EMV)
4. Input: Cost of each decision; Output: Payoff

Q3. Originally a project has seven activities: A, B, C, D, E, F, and G. Activities A, B, and D can start anytime. Activity A takes three weeks, activity B takes five weeks, and activity D takes 11 weeks. Activities A and B must be completed before activity C can start. Activity C takes six weeks to complete. Activities B, C, and D must be completed before activity E can start, and activity E takes two weeks. Activity F can start as soon as activity C completes and has duration of four weeks. Activity G takes three weeks and cannot start until activity E is completed. Activities F and G must be completed for the project to be completed. However, during project executing, a dependency was discovered between activities E and F. What is the BEST thing to do?

1. Tell management that the project will take longer than 18 weeks.
2. Redo schedule development
3. Call a team meeting and determine if crashing or fast tracking are possible solutions to meeting the original schedule
4. Call a meeting of stakeholders and communicate schedule risks.

Q4. If planned value (PV) is US $29,000, actual cost (AC) is US $32,000, and earned value (EV) is US $30,000, what is the schedule variance (SV)?

1. 0.938
2. $1,000
3. 1.034
4. ($2,000) 19

Q5. Your company took over the management of a project from another company that went out of business. To minimize disruptions related to the transition, your company hired a number of the employees from the other company. One of these employees has delivered a 300-page document a week ahead of schedule. However, while walking past his desk, you notice that his computer is displaying a document with the logo of his former employer. You suspect that some of his work may have been based on documentation that is the property of the other company. What do you do?

1. Report this to your project stakeholders immediately.
2. Determine if any materials belonging to the other company have been copied.
3. The copyright material is owned by the client, for whom you are working so this is not a copyright issue.
4. Do nothing. Because the company is now out of business, no one now owns the copyright on that material.

Q6. Which of the following is incorrect regarding a bidders conference?

1. Questions from each seller should be handled confidentially and not shared with other sellers.
2. No bidders should receive preferential treatment, even if they are part of the company's existing list of approved suppliers.
3. Bidder conferences should not involve individual face-to-face meetings.
4. All prospective sellers should be allowed to have a common understanding of the procurement.

Q7. You’ve been assigned to take over managing a project that should be half complete according to the schedule. After an extensive evaluation, you discover that the project is running far behind schedule, and that the project will probably take twice the time originally estimated by the previous project manager. However, the sponsor has been told that the project is on schedule. What is the BEST course of action?

1. Try to restructure the schedule to meet the project deadline
2. Report your assessment to the sponsor
3. Turn the project back to the previous project manager.
4. Move forward with the schedule as planned by the previous project manager and report at the first missed milestone.

Q8. A team member from research and development tells you that her work is too creative to provide you with a fixed single estimate for the activity. You both decide to use the average labour hours per installation from past projects to predict the future. This is an example of which of the following?

1. Parametric estimating
2. Three-point estimating
3. Analogous estimating
4. Monte Carlo analysis 48

Q9. The project status report is an example of which form of communication?

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

Q10. You are looking at the standard reports that the project management office has supplied, you see network diagrams and bar charts. In which of the following circumstances would you ALWAYS use a network diagram instead of a bar chart?

1. To track progress or to report to the team
2. To show logical relationships
3. In the Define Activities process
4. To report to senior management