Project Management Question Bank
for Exam preparation

Q2. You are analyzing the risk in a project. You decide to do a sensitivity analysis to determine which risks have the most potential impact on the project. You consider using a tool to help compare the relative importance of variables that have a high degree of uncertainty with those variables that are more stable. One such tool is:

1. Beta Distribution
2. S-Curve
3. Control Chart
4. Tornado Diagram

Q3. 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.

Q4. Based on the chart, if the duration of activity F changes to 8, what is the effect on the project?

1. There is no effect on the critical path
2. The duration of the critical path becomes 16
3. The critical path changes
4. Activity A is now on the critical path

Q5. Your team has built an exotic sports car for a wealthy client. The project team verified every deliverable against the quality requirements, and the client accepted. Now the project manager is arranging for the car delivery. This is part of which process group?

1. Closing
2. Monitoring and Controlling
3. Planning
4. Execution

Q6. Communication is the key to the success of a project. As the project manager, you have three stakeholders with whom you need to communicate. As such, you have six channels of communication. A new stakeholder has been added that you also need to communicate with. How many communications channels do you have now?

1. 7
2. 10
3. 12
4. 16

Q7. Anne is the project manager of a project. She has evaluated certain responses from prospective sellers and wants to select a contract model that will transfer risk to the seller. Which of the following should she select in order to achieve this?

1. Time and Material contract
2. Fixed price contract
3. Cost-Plus-Fixed-Fee contract
4. Cost-Plus-Incentive-Fee contract

Q8. Anthony is currently managing a bridge construction project. The project is in the execution phase. During the planning phase of the project, Anthony developed a comprehensive stakeholder engagement plan for the project. However, the frequency of plan review has not yet been defined. How often should Anthony review the stakeholder engagement plan?

1. On a monthly basis
2. The stakeholder engagement plan cannot be reviewed during the execution of the project.
3. On a weekly basis
4. On a regular basis; Anthony needs to decide the frequency.

Q9. Which of the following is not an input to the Direct and Manage Project Work process?

1. Approved Change Requests
2. Consultants
3. Project Management Plan
4. Project files from prior projects

Q10. If the probability of one event occurring does not affect the probability of another event occurring, the events are:

1. False events
2. Mutually exclusive
3. Statistically independent
4. Just in-time.