Project Management Question Bank
for Exam preparation

Q2. A project manager gathered data to perform earned value calculations on his project. He used the results to report to management that the project is under budget and on schedule. After reporting this information, he discovered that the base figures he used in the calculations were incorrect, as they came from an old copy o the project line which had not been updated. What should he do now?

1. He should contact management to make them aware of the error, give the correct information, and explain how he made the mistake
2. He should contact management and tell them to expect some changes in the next reporting period, and that things are starting to look gloomy
3. He should use the correct figures to calculate the information when it is time for the next report and ignore the fact the he reported incorrect information.
4. He should tell management that the data he received from team members was incorrect and thus the report was not accurate.

Q3. A project manager first creates an assumption log during the Develop Project Charter process and records all project assumptions and constraints. During which of the following processes is the assumptions log updated and/or new assumptions and constraints added during the project execution?

1. Monitor and Control Project Work
2. Close Project or Phase
3. Direct and Manage Project Work
4. Collect Requirements

Q4. _______________ is the authorized budget for the work scheduled to be completed on an activity or WBS component.

1. Planned Value
2. Earned Value
3. Midpoint cost
4. Interim cost

Q5. The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This principle is also the:

1. 100 percent rule
2. 80/20 rule
3. Pareto's rule
4. Ground rule

Q6. What is the duration of a milestone?

1. Shorter than the duration of the longest activity
2. Shorter than the activity it represents
3. There is no duration
4. Same length as the activity it represents

Q7. Quality metrics used during the Control Quality process are defined during which process?

1. Plan Quality Management
2. Define Scope
3. Collect Requirements
4. Manage Quality

Q8. Each critical project communication requirement must be carefully analyzed. One good way is to use a communication model to design effective communications. What is the sequence of steps in a basic communication model?

1. Encode -> Decode -> Transmit -> Acknowledge -> Feedback
2. Encode -> Transmit -> Decode -> Acknowledge -> Feedback
3. Decode -> Encode -> Transmit -> Acknowledge -> Feedback
4. Encode -> Transmit -> Decode -> Feedback -> Acknowledge

Q9. Your company just won a major new project. It will begin in three months and is valued at US $2,000,000. You are the project manager for an existing project. What is the FIRST thing you should do upon hearing of the new project?

1. Ask management how the new project will use resources
2. Resource level your project
3. Crash your project
4. Ask management how the new project will affect your project.

Q10. You are managing a fund-raising golf tournament that has a hole-in-one contest. However, your company cannot afford to pay the $1,000,000 award if someone does get a hole in one, so it has elected to take out an insurance policy in the event someone does get lucky. This is an example of:

1. Sharing
2. Mitigation
3. Transference
4. Avoidance