Pmp questions and answers series #3
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The document provides insights into project management principles and communication strategies, emphasizing the importance of stakeholder engagement and risk mitigation. It covers various project management topics, including conflict resolution techniques, project charter responsibilities, and financial concepts like internal rate of return and economic value added. The content is structured around a series of questions and answers aimed at reinforcing knowledge in these areas.
Pmp questions and answers series #3
- 1. AMAN VATS PMP® Program and Project Management Professional. Techno-Functional Engineer, serving since 1987. TESOL Certified Trainer. Objective of Channel is to Unleash the Knowledge through Sharing. Project Management Technical Tips Current Affairs Health and Home Making BusinessVLOGSocial With Supporting Explanation
- 2. D is the correct answer. (N*(N-1))/2 (10*(10 - 1)) / 2 = 45 How many communication channels will be required in a project in which 10 individual are participating? A 46 days B 9 Days C 14 Days D 45 Days 1
- 3. A is the correct answer. PV = FV / ( 1 + r) ^ n It is to calculate Present Value where FV equals the future value of cash flows, r equals the interest rate, and n equals the number of time period What is formula for The value of future cash flows in today’s dollars. A PV = FV / ( 1 + r) ^ n B FV = PV / ( 1 + r) ^ n C PV = FV / ( 1 + n) ^ r D None of the Above 2
- 4. A is the correct answer. You have 'Mitigated' the risk - by having the trainees trained you have created a Risk response strategy. Should this team member go on leave the trainees would execute the task. As a manager on a project your key outlook is to ensure that the project delivers within the scheduled timelines. For some time now the project work is proceeding smoothly with a CPI and SPI a perfect 1. One of your team members approaches you and indicates that she might possibly need a long vacation on account of personal grounds. She indicates this could possibly occur in two months from now. You look up the schedule and as luck would have it - this team member happens to be scheduled to execute activities which are on the critical path - and her absence in two months time would cause a delay in schedule. You decide to take some action and ask the team member to start regular knowledge transfers to a couple of trainees. Your thought is though the trainees would be relatively inexperienced they would more than make up for it with two people rather than one person to perform these tasks should this team member need to go on leave. What did you just do A Mitigate the Risk B Avoid the Risk C Transfer the Risk D Accept the Risk 3
- 5. D is the correct answer. All of the above are stakeholders in a Project Project Stakeholders are defined as: A Individuals and organizations who use the project's product B Individuals and organizations whose interest may be positively or negatively affected as a result of project execution or successful project completion C Individuals and organizations who provide the financial resources D All of the above 4
- 6. A is the correct answer. It is important that you do not compromise when working on a conflict. Compromise often leads to polarization. So it is best to be collaborative and find a win-win situation What is the best technique to handle a conflict? A Collaborative B Compromise C Strategic D All of the Above 5
- 7. A is the correct answer. It is Project Manager Who is responsible for the creation of the final project plan? A Project Manager B Team Leader C Sponsor D Project Team 6
- 8. D is the correct answer. Channels of communication: Upward communication (vertically or diagonally): For higher management Downward communication (vertically or diagonally): For higher management Lateral communication (horizontally): For peers Which statement is true about Channels of communication? A Upward communication (vertically or diagonally): For higher management B Downward communication (vertically or diagonally): For higher management C Lateral communication (horizontally): For peers D All of the above 7
- 9. D is the correct answer. Note that choosing this option entails paying up a stiff penalty for delay in deliveries - but a Project manager must always uphold the tenets of Professional and Social Responsibility Your company had won a large project for setting up a chemical factory for your client. It has been a tough and grueling year and the final delivery has been shipped. It consists of the Core Reactor along with the agitator that was designed and manufactured in your premises and is now shipped to the clients site. The contract includes stiff penalties for a delay even by a single day. You now received a call indicating that the local authorities have held up the reactor outside the city limits. Certain additional documentation is required which would delay the delivery of the reactor thereby incurring heavy penalties. Your companies on site representative indicates that should the authorities be paid some money the reactor would be released and would then reach on time. What should you do ? A Do nothing B Plead with the authorities to release the consignment C Pay the incentive to the authorities to release the consignment D Provide the additional documentation which though would cause a delay in deliveries and penalties - but do not pay an incentive 8
- 10. A is the correct answer. The statement defines IRR. The rate of return after the external factors affecting cash flow (for example, interest or cost of capital, and inflation) have been deducted is called as ________? A Internal Rate of Return B Interim Rate of Return C International Rate of Return D Now of the above 9
- 11. A is the correct answer. Means task is completed. Zero Schedule Variance (SV) means the task is ______. A Completed B Not Started C Running Fine D Wrongly Calculated 10
- 12. A is the correct answer. The correct answer is Scope Verification which deals with verifying that what was delivered was what was required As a manager on a project you have identified and created the WBS and WBS Dictionary. You also plan to ensure that each deliverable gets the blessings of your stakeholders and sponsors. Which process are you planning to perform? A Scope Verification B Perform Quality Control C Control Scope D Define Scope 11
- 13. B is the correct answer. A work package is the lowest level of a work breakdown structure. What is the lowest level in a work breakdown structure? A Project task B Work package C SOW D None 12
- 14. A is right answer PMI discusses procurement focusing on the buyer or seller relationship PMI discusses procurement focusing on the ______ relationship. A Buyer or seller B Vendor or seller C Purchasing D Selling 13
- 15. C is right answer This is a tricky one - the question is asking who is responsible for the Project charter definition.The charter's definition is always done by the Business stakeholders who envision expenditure and understand the business value. Who is responsible for the definition of the Project Charter ? A Project Manager B The Project team C Business Stakeholders D PMO 14
- 16. A is correct answer. It is called EVA (Economic Value Add) The profit earned by the organization after the cost of capital has been subtracted is known as ___________ A Economic Value Add (EVA) B Profit Ratio C Project Profitability D Cost Vs Profit analysis 15
- 17. A is correct answer. All change requests are made against a project plan that has the project baseline. Change requests are made against the ____________? A Project baseline B SOW C Charter D Executive summary 16
- 18. A is correct answer. In the Direct and Manage Project Work process, approved changes are implemented but monitoring of those changes is part of monitoring OR controlling project work Which of the following activity is not performed as part of the Direct and Manage Project Work process? A Monitor implementation of approved changes B Validate deliverables C Staff, train, and manage the project team D Manage risks and implement risk responses 17
- 19. A is correct answer. This explains BCR (BENEFIT COST RATIO) What is the ratio that looks at the financially quantifiable benefits expected from the project and weighs them against the cost of achieving those benefits. If the benefits outweigh the costs, then the project can be given the go-ahead A Benefit Cost Ratio B IRR C Cost Analysis D Benefits Analysis 18
- 20. C is correct answer. Determine Budget: Allocating the value of the overall cost estimate to individual work items, in order to establish a cost baseline for measuring project performance Allocating the value of the overall cost estimate to individual work items, in order to establish a cost baseline for measuring project performance is called ______. A Resource planning B Estimate Costs C Determine Budget D Control Costs 19
- 21. A is correct answer. This is an example of Confronting - since you set up a discussion and solve the problem. By solving the problem there is no difference of opinion and hence it is the best possible way of conflict resolution Your development lead and QA lead are into an altercation regarding the quality of code deliverables. Both feel the fault lies at the other end which is causing Bad quality. You decide to understand the details and get into a meeting with both of them. On subsequent discussion it becomes apparent that both the development and qa teams do not have a sound understanding of what is required. It turns out that the Requirements itself were not clearly defined. This is an example of ? A Confronting B Smoothing C Forcing D Compromise 20