Project Management Question Bank
for Exam preparation

Q2. 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

Q3. What do the buyer and seller have in common with regard to Control Procurements?

1. Both parties ensure that they meet their contractual obligations and that their own legal rights are protected.
2. Both parties have specific resources that can be idle.
3. Both parties have a contract change management plan.
4. Each party has its own project plan and legal team.

Q4. Your project is ahead of schedule but over budget. Therefore, you ask your team member to collect data and compare it with the cost baseline. Which of the following is not included in the cost baseline?

1. Contingency reserve
2. Activity cost estimation
3. Management reserve
4. Activity contingency reserve

Q5. Robert is managing a construction project. The project's client is responsible for the design, while Robert’s organization is responsible for the construction. There has been a 45-day delay on a couple of major structure designs. This delay can only be recovered through crashing and will cost $2 million in addition to the approved budget. Robert prepares a detailed report and emails it to the client. In this scenario, Robert’s email to the client is an example of:

1. Informal unofficial communication
2. Formal unofficial communication
3. Informal official communication
4. Formal official communication

Q6. What does the following sentence refer to? “The point where the benefits or revenue to be received from improving quality equals the incremental cost to achieve that quality.”

1. Quality control analysis
2. Marginal analysis
3. Standard quality analysis
4. Conformance analysis

Q7. You are trying to decide whether to lease or buy an item for your project. The daily lease cost is US $150. The investment cost to purchase the item is US $2,000, and the daily cost is US $50. In how many days will the lease cost be the same as the purchase cost?

1. 10
2. 15
3. 20
4. 25

Q8. You are a certified PMP, and the PMI has contacted you as part of an investigation it is conducting into allegations of improper conduct by your manager, who is also a PMP. A complaint has been filed stating your manager has received bribes related to a large procurement contract on another project. PMI has asked whether you could provide information regarding this situation. What should you do?

1. Confront your manager
2. Send PMI project documentation and emails related to the allegations to assist with their investigation
3. Notify the appropriate management immediately
4. Do nothing, citing a conflict of interest

Q9. Three items from the issue log have been assigned to a team member. However, no action has been taken by the agreed-upon due date. After three calls to the team member, the work is finally completed. Which of the following is the BEST preventive action to take NOW?

1. Remove the team member from the team if possible
2. Meet with the team member to uncover the reasons why there were problems
3. Make sure the action item list is distributed to all the right parties
4. Make sure items assigned in the action item list are accepted by the team members they are assigned to.

Q10. All of the following are inputs to the Determine Budget process EXCEPT:

1. Activity cost estimates
2. Work breakdown structure
3. Project scope statement
4. Project performance reviews.