600 Risk Questions PDF

Which of the following is an example of theory X?
A. Self-led project teams

B. Micromanagement
C. Team members able to work on their own accord
D. Earned value management
B. Theory X states that workers have an inherent

dislike of work and will avoid it if possible. With
regards to this theory, micromanagement is a
method used to make certain workers complete their
work. A and C are actually examples of McGregor’s
theory Y. D is incorrect because EVM is not directly
related to McGregor’s theory of X and Y. For more
information, see the PMBOK, Section 9.1.2.3.
• There are five outputs of the risk monitoring
and controlling process. Which one of the
following is NOT an output of the process?
A. Organizational process assets updates
B. Risk register updates
C. Vendor contracts
D. Change requests
Answer: C
• You are the project manager of the KJH Project and are working
with your project team to plan the risk responses. Consider that
your project has a budget of $500,000 and is expected to last six
months. Within the KJH Project you have identified a risk event that
• has a probability of .70 and has a cost impact of $350,000. When it
comes to creating a risk response for this event what is the risk
exposure of the event that must be considered for the cost of the
risk response?
• A. The risk exposure of the event is $245,000.
• B. The risk exposure of the event is $500,000.
• C. The risk exposure of the event is $350,000.
• D. The risk exposure of the event is $850,000.
• Answer: A
• You are preparing to start the qualitative risk analysis
process for your project. You will be relying on some
organizational process assets to influence the process.
Which one of the following is NOT a probable reason for
relying on organizational process assets as an input for
qualitative risk analysis?
• A. Studies of similar projects by risk specialists
• B. Risk databases that may be available from industry
sources
• C. Review of vendor contracts to examine risks in past
projects
• D. Information on prior, similar projects
• Answer: C
• Virginia is the project manager for her organization. She has
hired a subject matter expert to interview the project
stakeholders on certain identified risks within the project.
The subject matter expert will assess the risk event with
what specific goal in mind?
• A. To determine the level of probability and impact for
each risk event
• B. To determine the bias of the risk event based on each
person interviewed
• C. To determine the probability and cost of the risk event
• D. To determine the validity of each risk event
• Answer: A
• You are the project manager of the NHQ Project for your
company. You have completed qualitative and quantitative
analysis of your identified project risks and you would now
• like to find an approach to increase project opportunities
and to reduce threats within the project. What project
management process would best help you?
• A. Monitor and control project risks
• B. Create a risk governance approach
• C. Create the project risk register
• D. Plan risk responses
• Answer: D
• Kelly is the project manager of the BHH project for her
organization. She is completing the risk identification
process for this portion of her project. Which one of
the following is the only thing that the risk
identification process will create for Kelly?
• A. Risk register
• B. Risk register updates
• C. Change requests
• D. Project document updates
• Answer: A
• John is the project manager of the NHQ Project for his
company. His project has 75 stakeholders, some of which
are external to the organization. John needs to make
certain that he communicates about risk in the most
appropriate method for the external stakeholders. Which
project management plan will be the best guide for John to
communicate to the external stakeholders?
• A. Risk Response Plan
• B. Risk Management Plan
• C. Communications Management Plan
• D. Project Management Plan
• Answer: C
John works as a project manager for ABD project. He and
his team, are working on the
following activities:
Relative ranking or priority list of project risks
Watchlists of low priority risk
Trends in Qualitative Risk Analysis results
On which of the following processes is John working on?
• A. Perform Qualitative Risk Analysis
• B. Plan Risk Management
• C. Plan Risk Responses
• D. Perform Quantitative Risk Analysis
• What risk identification technique allows
participants to identify the project risks and to
• remain anonymous?
• A. Influence diagrams
• B. Assumptions analysis
• C. Surveys
• D. Delphi technique
• Answer: D
1. Which of the following fit the category of
external risks?
A. Project delays, budget under-runs,

movement of city utilities
B. Regulatory, currency changes, taxation
C. Natural disasters, regulatory, design
D. Inflation, design, social impact
Answer: B
2) Decision trees are best used for :
A. Determining the interaction of the
amount at stake and the expected value
B. Association of the probabilities with the
risk events
C. An illustration of how to see the
interactions between decisions and the
associated events
D. A flow chart which determines the
standard deviation of the risk event
Answer: C
3) The total Value of risk that is calculated for a
project is found by
A.Multiplying the sum of each the risk times
the amount at stake
B.Calculating the cumulative sum of the
probability for each risk and multiplying
this value times the consequence of
occurrence of the risk events
C.Cannot be calculated since all risks are not
know
D.The amount of project reserves available
Answer: B
4) A situation in which one of two or more risk events
will follow an act, but the precise nature of these
events may not be known and the probabilities of
their occurring cannot be objectively assigned, is the
definition of
A. certainty
B. uncertainty
C. risk
D. risk adversity
Answer: B
5) Andrew has joined as the Project Manager of
a project. One of the project documents
available to Andrew lists down all the risks in a
hierarchical fashion. What is this document
called?
A. Risk Management Plan.

B. List of risks.
C. Monte Carlo diagram.
D. Risk Breakdown Structure.
Answer: D
6) Beta is the Project Manager of a Road
construction project. During a project review,
Beta realizes that one particular risk has
occurred. To take appropriate action against
risk that has happened, Beta needs to refer to
which document?
A. Risk response plan

B. Risk management plan
C. Risk breakdown structure
D. Risk register
Answer: D
7) Andrew is a Project Manager for Green Valley
project. A risk management plan has been
prepared for the project. Which of the following
should Andrew do next?
A. Perform Qualitative risk analysis

B. Perform Quantitative risk analysis
C. Identify Risks
D. Plan Risk responses
Answer: C
8) John Strauss is a Project Manager for a
reforestation project. To identify the risks
involved, John sends a questionnaire to gather
inputs from experts. Which technique is John
using?
A. Delphi technique
B. Interviews
C. Brain storming
D. Documentation review
Answer: A
9) Which of these is not a valid response to positive
risks?
A. Exploit
B. Mitigate
C. Enhance
D. Share
Answer: B
10) During which stage of Risk planning are risks
prioritized based on probability and impact?
A. Identify Risks
B. Plan Risk responses
C. Perform Qualitative risk analysis
D. Perform Quantitative risk analysis
Answer: C
• Probabilistic Analysis of a project, probability
of achieving cost and time objectives and
trends in Quantitative Risk Analysis results
are done during _______.
1.Perform Qualitative Risk Analysis
2.Perform Quantitative Risk Analysis
3.Plan Risk Management
4.Identify Risks
Correct Answers are : 2

• The risks of financial gain or loss are called
_________.
1.Business Risks
2.Financial Risks
3.Organizational Risks
4.Functional Risks

• You are a project manager of a project. How
you determine whether it is better to make a
product or buy a product?
1.Decision Tree Analysis
2.ROI Analysis
3.Ishikawa Diagram
4.All of the above

• Some risks that are output of ________ will be
the candidates for further study.
1.Perform qualitative risk analysis
2.Perform quantitative risk analysis
4.Identify Risks
Explanation : Some risks that are output of
Qualitative Risk Analysis will be the candidates for
further study during the Quantitative Risk
Analysis.
• What should not be covered by a risk
management plan?
• Roles and responsibilities for handling project
risks .
• Timing of project risk management activities
• The methodological approach used for risk
management
• Individual risks and potential responses to
them
What is a trigger in project risk management?
• An expected situation causing an
unidentified risk to occur.
• A warning sign that a previously identified risk
might be occurring or has occurred .
• An unexpected situation causing an identified
risk to occur
• An unexpected situation causing an
unidentified risk to occur
You want to perform active risk acceptance. What
should you do?
• Create contingency reserves in resources, money
and time.
• Develop a plan to minimize impact in case that an
identified risk occurs.
• Develop a plan to minimize the probability of
occurrence for identified risks.
• Make additional resources available to speed up
the project.
In a traditionally drawn decision tree, a circle represents
___________
• a chance to which no expected monetary value can be
assigned so that a likely pay-off can not be shown.
• a decision to which no expected monetary value can
be assigned so that a likely pay-off can not be shown.
• a chance to which an expected monetary value may
be assigned to calculate the most likely pay-off.
• a decision to which an expected monetary value
may be assigned to calculate the most likely pay-off.
Which of the following tools is used to create a
risk management plan?
• Documentation reviews
• Data precision rankings
• Diagramming techniques
• Risk planning meetings
• You are a project manager of a project.
Customer has requested a change which will
increase the project risk. What is your NEXT
step?
1.Analyze the impact of the change.
2.Report to Senior Management.
3.Report to Sponsor.
4.Change the Risk Management Plan.
1) Expert power is the power that comes from the amount of
knowledge a person has obtained in a specific area. This type of
power is:
A. Critical to a project manager because the PM has to have as much

or more knowledge than any of the team members to make sure
the project is completed successfully
B. Used by the PM to influence upper management and the critical
stakeholders
C. Important if the project manager wants to maintain the respect of
the project team
D. Used sparingly if at all by the PM because the PM cannot stay
current on all areas of expertise and also manage the project
Answer: D
2) To successfully manage a project, the PM
must play both a manager and leadership role.
In the manager role the PM will do all but
which of the following:
A. Develop procedures
B. Align people
C. Produce results for stakeholder
D. Focus on the organization and its structure
Answer: B
3) Which form of power is the LEAST effective
from the project manager's viewpoint in
terms of influencing functional managers?
A. Formal power
B. Expert power
C. Penalty power
D. Referent power
Answer: C
4) All of the following can be used to document
team member roles and responsibilities
EXCEPT:
A. Hierarchical-type Organizational Chart

B. Matrix-based Responsibility Chart
C. Text-oriented Format
D. Functional Chart
Answer: D
5) Resource Breakdown Structure is an example
of:
A. Hierarchical-type Organizational Chart

B. Responsibility Assignment Matrix
C. Text-oriented Format
D. Functional Chart
Answer: A
6) Which of the following is not true for a
Responsibility Assignment Matrix (RAM):
A. Defines what project team is responsible for

each WBS component
B. Defines what project member is responsible for
each activity
C. Text description of roles, responsibilities,
authorities
D. Defines all people associated with each activity
Answer: C
7) Building a virtual team for a project will limit
the usability of which of the following tools
and techniques for Team Development:
A. Team Building
B. Establishing Ground Rules
C. Co-Location
D. Reward and Recognitions
Answer: C
8) The belief that management's high levels of
trust, confidence and commitment to workers
leads to high levels of motivation and
productivity on the part of workers is a part of
which motivation theory?
A. Theory Y
B. Theory Z
C. Theory X
D. Contingency Theory
Answer: B
9) A document or tool which describes when and
how human resources will be brought onto
and taken off the project team is called a:
A.Staffing Management Plan

B.Responsibility Assignment Matrix (RAM)
C.Organizational Breakdown Structure (OBS)
D.Resource Assignment Chart
Answer: A
10) You have just been assigned as the project
manager of a 15 year, 200 trillion dollar project
to marry the first couple on Mars. In addition to
buying a wedding present, you will probably
want to describe which type of project
organization in your management plan?
A. Functional
B. Expeditor
C. Matrix
D. Projectized
Answer: D
1. Most of the project manager's external
communication links consist of:
A. Written documents
B. Oral communication
C. Horizontal contact
D. Informal contact
Answer: A
2) The process of communication contains four
major parts. Which part is the vehicle or
method used to convey the message?
A. Sender
B. Message
C. Medium
D. Receiver
Answer: C
3) The contemporary view of conflict is that:
A. Conflict is bad
B. Conflict is caused by trouble makers
C. Conflict should be avoided
D. Conflict is often beneficial
Answer: D
4) Approximately what percentage of the project
manager's time is spent in some form of
communication, such as: conferences, meetings,
writing memos, reading and preparing reports,
and talking with project team members, upper
management, and all other stalk holders?
A. 20%
B. 70%
C. 90%
D. 45%
Answer: C
5) Which of the following process is not included
in project communication knowledge area?
A. Documenting Project Closure

B. Plan Communications
C. Distribute Information
D. Managing Stakeholder Expectations
Answer: A
6) Which of the following is not an example of
formal communication?
A. Contract
B. email
C. Project status report
D. Status meeting
Answer: B
7) You are a project manager of a project and want to
report the actual project result and the planned
status. You should use?
A. Forecasting report
B. Trend reports
C. Status report
D. Variance report
Answer: D
8) In the communication process, "noise" is the
word used to describe factors and forces
inhibiting the exchange of information
between two or more parties. Noise includes
all of the following but __________
A. Culture
B. Language
C. Traditional way of doing things
D. Loud talking
Answer: D
9) Project managers must write correspondence to
many individual parties who are project
stakeholders. The most important aspect of the
project manager's correspondence is to ensure
__________:
A. The grammar is correct
B. The format is correct for the message
C. The message is clearly conveyed
D. The delivery of the message is made within 24
hours
Answer: C
10) Emails and voice mails are example of
______.
A. Interactive Communications
B. Pull Communication
C. Push Communication
D. Noise
Answer: C
• You are the project manager of the PLN Project. The team
members are somewhat “afraid” of you as project manager
because they see you as management. They know that a
negative review from you about their project work will impact
their yearly bonus. This is an example of which of the
following?
A. Formal power
B. Coercive power
C. Expert power
D. Referent power
• B. When the project team is afraid of the power the project
manager yields, this is called coercive power. A, C, and D are
incorrect because they describe assigned, referential, and
technical power over the project, respectively. For more
information, see the PMBOK, Section 9.4.2.
You are the project manager of the MMB Project. The president of the company
has spoken to the project team and told them of the confidence and respect
he has in you to lead the project to a successful completion. The project
manager has what type of power on this project?
A. Formal power
B. Coercive power
C. Expert power
D. Halo power
• A. The company president has assigned you to the position of the project
• manager, so you have formal power. B is incorrect because coercive power
• is the fear associated with the project manager. C is incorrect because expert
• power is derived from the project manager’s experience with the technology
• being implemented. D is also incorrect; halo power is not a viable answer to
• the question. For more information, see the PMBOK, Section 9.4.2.
Management has approached Tyler, one of your project team members.
Tyler is a database administrator and developer whose work is always on
time, accurate, and of quality. He also has a reputation of being a “good
guy” and is well liked. Because of this, management has decided to move
Tyler into the role of a project manager for a new database administration
project. This is an example of which of the following?
A. Management by exception
B. The halo effect
C. Management by objectives
D. McGregor’s theory of X and Y
• B. The halo effect is the assumption that because the person is good at a
• technology, he would also be good at managing a project dealing with
that said technology. A, C, and D are all incorrect because these do not
describe the halo effect. For more information, see the PMBOK, Section
9.4.2.
Which problem-solving technique is the best for most project
management situations?
A. Confronting
B. Compromising
C. Forcing
D. Avoiding
• A. Confronting is the best problem-solving technique because it
meets the problem directly. B is incorrect; compromising requires
both sides on an argument to give up something. C is incorrect;
forcing requires the project manager to force a decision based on
external inputs, such as seniority, experience, and so on. D is also
incorrect; avoiding ignores the problem and does not solve it. For
more information, see the PMBOK, Section 9.4.2.3.
• Harold is an outspoken project team member. All of the project team members
respect Harold for his experience with the technology, but often, things have to go
in Harold’s favor or things do not go well. During a discussion on a solution, a
project team member waves her arms and says, “Fine, Harold, do it your way.” This
is an example of which of the following?
• A. A win-win solution
• B. A leave-lose solution
• C. A lose-lose solution
• D. A yield-lose solution
D. When Harold always has to win an argument and team members begin to
give in to Harold’s demands simply to avoid the argument rather than finding
an accurate solution, this is a yield-lose situation. A is incorrect because both
parties do not win. B is incorrect because the project team member did not
leave the conversation, but instead ended it. C is incorrect; a lose-lose is a
compromise where both parties give up something. For more information,
see the PMBOK, Section 9.4.2.3.
You are the project manager for the GBK Project. This project affects a line
of business, and the customer is anxious about the success of the project.
Which of the following is likely not a top concern for the customer?
A. Project priorities
B. Schedule
C. Cost
D. Personality conflicts
• D. Personality conflicts are likely a concern for the customer, but are not as
important as project priorities, schedule, and cost. The customer hired
your company to solve the technical issues. A, B, and C are all incorrect
because these are most likely the top issues for a company in a project of
this magnitude. For more information, see the PMBOK, Section 9.4.2.3.
Which theory believes that workers need to be involved with the
management process?
• A. McGregor’s theory of X and Y
• B. Ouchi’s theory Z
• C. Herzberg’s theory of motivation
• D. Expectancy theory
• B. Ouchi’s theory Z states that workers need to be involved with
the management process. A is incorrect; McGregor’s theory of X
and Y believes that X workers don’t want to work and need
constant supervision; Z workers will work if the work is
challenging, satisfying, and rewarding. C is incorrect; Herzberg’s
theory of motivation describes the type of people and what
excites them to work. D, the expectancy theory, describes how
people will work based on what they expect in return. For more
information, see the PMBOK, Section 9.4.2.
• ___________________ states that as long as workers are
rewarded they will remain productive.
• A. McGregor’s theory of X and Y
• B. Ouchi’s theory Z
• C. Herzberg’s theory of motivation
• D. Expectancy theory D. The expectancy theory describes
how people will work based on what they
• expect in return. If people are rewarded because of the
work they complete, and they like the reward (payment),
they will continue to work. A, B, and C are all incorrect
because these theories do not accurately describe the
scenario presented. For more information, see the
PMBOK, Section 9.4.2.3.
• You are the project manager for Industrial Lights Project. You have been hired by
your organization specifically because of your vast experience with the
• technology and with projects of this nature. The project team is aware of your
experience. You likely have what type of power on this project?
A. Formal power
B. Coercive power
C. Expert power
D. Referent power
C. You, the project manager, have expert power on this project because of your
experience with the technology and with projects that are similar in nature. A,
B, and D are all incorrect. These project management powers do not accurately
describe the scenario. Formal power is appointed power. Coercive power describes
fear of the project manager. Referent power describes power by association and
personal knowledge. For more information, see the PMBOK, Section 9.4.2.
• There have been too many disagreements within two
team-members in your project over the design of a
particular product. You would like to incorporate the
best features of the two designs. You also want to
create an environment that avoids conflicts and
emphasizes similarities. The conflict handling mode
you would like to implement is:
• Choice 1 Smoothing
• Choice 2 Compromising
• Choice 3 Confrontation
• Choice 4 Withdrawal
• Correct Choice : 1
You are in the build phase of a Build-Operate-Transfer (BOT) project, which
has run into several unanticipated problems. Several risks have surfaced
which you had not anticipated earlier. The project is over-budget and
significantly behind
schedule. What should you do?
Choice 1 Create updates to risk response plan
Choice 2 Create a revised project plan
Choice 3 Perform risk audits
Choice 4 Perform updated risk identification and analysis
Correct Choice : 4
Justification :
Results from earned value analysis may indicate potential deviation of the
project at completion from cost and schedule targets. When a project
deviates significantly from the baseline, updated risk identification and
analysis should be performed.
Which of the following statements about quality control is not accurate?
Choice 1 Prevention refers to keeping errors out of the process, whereas
inspection refers to keeping errors out of the hands of the customer.
Choice 2 Attribute sampling determines whether the result conforms or not,
and variables sampling determines the degree of conformity.
Choice 3 Tolerances refer to specified range of accepted results and control
limits refer to thresholds, which can indicate whether the process is out of
control.
Choice 4 Quality control is only performed in Monitoring and Controlling
process.
Correct Choice : 4
Justification :
Quality control is performed throughout the project.
• You are annoyed with your team members because of
their constant disagreements. You ask them to stop
arguing and do
• the work the way in which you want it to be done. The
conflict handling approach you are following is:
• Choice 1 Smoothing
• Choice 2 Forcing
• Choice 3 Confrontation
• Choice 4 Withdrawal
• Correct Choice : 2
In your project, you want to determine which risks have the most potential impact on
the project. So, you examine the extent to which the uncertainty of each project
element affects the objective being examined when all other uncertain elements
are held at their baseline values. This is an example of:
Choice 1 Risk response planning
Choice 2 Expected monetary value analysis
Choice 3 Sensitivity analysis
Choice 4 Simulation
Correct Choice : 3
Justification :
Sensitivity analysis helps to determine which risks have the most potential impact on
the project. It examines the extent to
which the uncertainty of each project element affects the objective being examined
when all other uncertain elements are
held at their baseline values.
In managing risks for your project, you examine the extent to which the uncertainty of
each project element affects the objective being examined when all other
uncertain elements are held at baseline values. This helps to:
Choice 1 Get a qualitative analysis of the risk.
Choice 2 Determine which risks may have impact on the project.
Choice 3 Translate the uncertainties at a detailed level into potential impact on
objectives expressed at the level of the total
project.
Choice 4 Determine the implication of choosing one alternative over the other.
Correct Choice : 2
Justification :
the project. It examines the extent to
which the uncertainty of each project element affects the objective being examined
when all other uncertain elements are
held at their baseline values.
Your company is a pioneer in the construction industry. The government recently
floated a tender for setting up a new airport. Since you do not have all the
requisite skills within the company, you enter into a joint venture with a leading
airport construction company to bid jointly for the government contract. This is an
example of:
Choice 1 Risk exploitation
Choice 2 Risk sharing
Choice 3 Risk enhancing
Choice 4 Risk mitigating
Correct Choice : 2
Justification :
Strategies for positive risks or opportunities (share): Sharing a positive risk involves
allocating some or all of the ownership to a third party who is best able to capture
the opportunity for the benefit of the project. Examples of sharing actions include
forming risk-sharing partnerships, teams, special-purpose companies, or joint
ventures, which can be established with the express purpose of taking advantage
of the opportunity so that all parties gain from their actions.
As part of Perform Quantitative Risk Analysis process, you, as a project manager, have already
done a sensitivity analysis, created decision trees and done a project simulation using Monte
Carlo technique. However, when you show your results to your manager, she is not happy.
She thinks that your analysis is not acceptable because:
Choice 1 Monte Carlo simulations are not a standard methodology used in the company for risk
quantification.
Choice 2 The quantitative value of identified risks is too high.
Choice 3 You have not performed risk audits as part of your project.
Choice 4 You have not conducted an interview with the project stakeholders and subject matter
experts.
Correct Choice : 4
Justification :
Interviewing techniques draw on experience and historical data to quantify the probability and
impact of risks on project objectives. The information needed depends upon the type of
probability distributions that will be used... Documenting the rationale of the risk ranges and
the assumptions behind them are important components of the risk interview because they
can provide insight on the reliability and credibility of the analysis.
Reference: PMBOK® Guide Fourth Edition, Page Number:296
:
Option 1: This may or may not be true. There is nothing in the question which suggests that
Monte Carlo Analysis should
not be used and this is a standard tool for Perform Quantitative Risk Analysis process.
Option 2: A high quantitative value of risks does not render the Quantitative Risk Analysis process
unacceptable.
Option 3: This refers to a tool and technique in Monitor and Control Risk (not Quantitative) Risk
Analysis process.
Option 4: This is the correct answer. Since a risk interview was not conducted, the results of
Perform Quantitative Risk Analysis process will not be dependable.
In the Executing phase of a project, a project manager should ideally
be:
Choice 1 Coaching
Choice 2 Directing
Choice 3 Authoritarian
Choice 4 Supportive
Correct Choice : 1
• Justification :
• Given below are the different leadership styles adopted by the
project manager during various phases of the project: During
Initiating phase of the project, the leadership style will be Directing.
During Planning, Executing, Monitoring and Controlling phases of
the project, the leadership style will be Facilitating and Coaching.
• During Closing phase, the leadership style will be Supportive.
You are the project manager for GHB Project. You have served as a project
manager for your organization for the past 10 years. Practically all of your projects
come in on time and on budget. The project team has worked with you in the past,
and they consider you to be an expert project manager. They also like working with
you. Given all of this, you likely have what type
of power on this project?
A. Formal power
B. Coercive power
C. Expert power
D. Referent power
D. This is referent power because the project team knows the project manager
personally. A and B are incorrect choices; these do not describe the scenario. C
is incorrect; expert power does not deal with the ability to lead and complete
a project, but it focuses on being an expert with the technology that the
project deals with. For more information, see the PMBOK, Section 9.4.2.3.
Which of the following is an example of coercive power?
A. A project manager who has lunch with the project team every Thursday
B. A project manager who will openly punish any team member who is late
with an activity
C. A project manager who has worked with the technology on the project for
several years
D. A project manager who is friends with all of the project team members
• B. Coercive power is the formal authority a project manager yields over
• the project team. A is incorrect; only referent power may come through
• lunch meetings. C is incorrect; experience is expert power. D is incorrect;
• interpersonal relationships are examples of referent power. For more
• information, see the PMBOK, Section 9.4.2.3.
Mike is the project manager for a project with a very tight schedule. The project is
running late, and Mike feels that he does not have time to consider all the possible
solutions that two team members are in disagreement over. He quickly decides to
go with the team member with the largest amount of seniority. This is an example
of which of the following?
A. Problem solving
B. Compromising
C. Forcing
D. Withdrawal
C. Forcing happens when the project manager makes a decision based on factors
that are not relevant to the problem. Just because a team member has more
seniority does not mean this individual is correct. A, B, and D are incorrect choices.
A, problem solving, is not described in the scenario. B, compromising, happens
when both parties agree to give up something. D, withdrawal, happens when a
party leaves the argument. For more information, see the PMBOK, Section 9.4.2.3.
Of the following, which one is an example of noise?
A. Fax machine
B. Ad-hoc conversations
C. Contractual agreements
D. Distance
• D. Noise is anything that interferes with the transmission
and understanding of the message. Distance is an example
of noise. A, a fax machine, is an example of a decoder. B is
incorrect; ad-hoc conversations are informal
conversations. C, contractual agreements, are a type of
formal communication. For more information, see the
introduction to Chapter 10 in the PMBOK.
• You are the project manager for the JHG Project. Management has requested that
you create a document detailing what information will be expected
from stakeholders and to whom that information will be disseminated.
Management is asking for which one of the following?
A. The roles and responsibilities matrix
B. The scope management plan
C. The communications management plan
D. The communications worksheet
C. Management is requesting a communications management plan,
which details the requirements and expectations for communicating
information among the project stakeholders. A is incorrect, since a rolesand-
responsibilities matrix depicts who does what and who makes which
decisions. B, the scope management plan, is also incorrect because this
plan explains how changes to the scope may be allowed, depending on the
circumstances. D is not a valid choice for the question. For more information,
see the PMBOK, Section 10.1.
Which of the following will help you, the project manager, complete
the needed communications management plan by identifying the
stakeholders’ communication needs?
A. Identification of all communication channels
B. Formal documentation of all communication channels
C. Formal documentation of all stakeholders
D. Lessons learned from previous similar projects
• D. Lessons learned and historical information from a previous
project are ideal inputs to communications planning. A, B, and C
are incorrect because these choices do not fully answer the
question. Lessons learned from previous, similar projects are the
best tool to identify stakeholders’ requirements for
communication. For more information, see the PMBOK, Section
10.1.1.2.
You are the project manager for the KLN Project. You had 19
stakeholders on this project and have added three team members
to the project. How many more communication channels do you
have now compared to before?
A. 171
B. 231
C. 60
D. 1
C. The question asks how many more communication channels exist.
You’ll have to calculate the new value, which is 231, and then
subtract the original value, which is 171, for a total of 60 new
channels. A is incorrect. 171 is the original number of
communication channels. B is incorrect because this value reflects
the new number of communication channels. D is not a valid
choice. For more information, see the PMBOK, Section 10.1.2.1.
A memo has been sent to you, the project manager, the
project team members, and the project customers from the
project sponsor. In this instance, who is the encoder?
A. Project sponsor
B. Project manager
C. Project team members
D. Project customers
• 6. A. The project sponsor is the source of the memo, since
this is the sender of the message. B, C, and D are all
recipients of the memo, not the sender,so they cannot be
the source of the message. For more information, see the
• introduction to Chapter 10 in the PMBOK.
• Of the following, which term describes the pitch and tone of an
individual’s voice?
A. Paralingual
B. Feedback
C. Effective listening
D. Active listening
• A. Paralingual is a term used to describe the pitch and tone of one’s
voice. B, feedback, is a request to confirm the information sent in
the conversation. C, effective listening, is the ability to understand
the message through what is said, facial expressions, gestures,
tone, pitch, and so on. D, active listening, is the process of
confirming what is understood and asking for clarification when
needed. For more information, see the PMBOK, Section 10.2.2.1.
What percentage of a message is sent through nonverbal
communications, such as facial expressions, hand gestures,
and body language?
A. Greater than 50 percent
B. 30 to 40 percent
C. 20 to 30 percent
D. 10 to 20 percent
• A. Greater than 50 percent of a message is sent through
nonverbal communications. B, C, and D are incorrect. For
more information, see the introduction to Chapter 10 in
the PMBOK and the section titled “Examining
Communication Factors and Technologies” in this chapter.
• Why should a project team complete lessons-learned
documentation?
A. To ensure project closure
B. To show management what they’ve accomplished on the
project
C. To show the project stakeholders what they’ve
accomplished on the project
D. To help future project teams complete their projects more
accurately
• C. Lessons learned takes place throughout the project life
cycle, not just at the end of the project or its phases. A, B,
and D are incorrect choices. For more information, see the
PMBOK, Section 10.2.2.4.
• You are the project manager for the PMU Project. Your project has
13 members. You have been informed that next week your project
will receive
• the seven additional members you requested. How many channels
of communication will you have next week?
A. 1
B. 78
C. 190
D. 201
• C. The project currently has 13 team members, and next week,
seven additional team members will come aboard, thus making a
total of 20 team members. Using the formula N (N – 1) / 2, where N
is the number of identified stakeholders, the communication
channels equal 190
Frances is the project manager of the LKJ Project. Which of the
following techniques will she use to create the risk management
plan?
A. Risk tolerance
B. Status meetings
C. Planning meetings
D. Variance meetings
• C. Planning meetings are used to create the risk management
plan. The project manager, project team leaders, key stakeholders,
and other individuals with the power to make decisions regarding
risk management attend the meetings. Choices A, B, and D are
incorrect, since these choices do not fully answer the
• question.
• You are the project manager of the GHK Project. You and the manufacturer have
agreed to substitute the type of plastic used in the product to a slightly thicker
grade should there be more than 7 percent error in production. The thicker plastic
will cost more and require the production to slow down, but the errors should
diminish. This is an example of which of the following?
A. Threshold
B. Tracking
C. Budgeting
D. JIT manufacturing
A. An error value of 7 percent represents the threshold the project is allowed to
operate under. Should the number of errors increase beyond 7 percent, the
current plastic will be substituted. B is incorrect, since tracking is the
documentation of a process through a system or workflow or the documentation
of events through the process. C, budgeting, is also incorrect. D, JIT manufacturing,
is a scheduling approach to ordering the materials only when they are needed in
order to keep inventory costs down. For more information, see the PMBOK,
Section 11.5.2.1.
An organization’s risk tolerance is also known as what?
A. The utility function
B. Herzberg’s theory of motivation
C. Risk acceptance
D. The risk-reward ratio
• A. The utility function describes a person’s willingness to
tolerate risk. B is incorrect. Herzberg’s theory of motivation
is a human resources theory that describes motivating
agents for workers. C is also incorrect. Risk acceptance
describes the action of allowing a risk to exist because it is
deemed low in impact, low in probability, or both. D, the
risk-reward ratio, is incorrect. This describes the potential
reward for taking on a risk in the project.
The customers of the project have requested additions to the project scope. The
project manager notifies you that additional risk planning will need to be added to
the project schedule. Why?
A. The risk planning should always be the same amount of time as the activities
required by the scope change.
B. Risk planning should always occur whenever the scope is adjusted.
C. Risk planning should only occur at the project manager’s discretion.
D. The project manager is incorrect. Risk planning does not need to happen at every
change in the project.
B. When the scope has been changed, the project manager should require risk
planning to analyze the additions for risks to the project’s success. A is incorrect.
The scope changes may not require the same amount of time as the activities
needed to complete the project changes. C is incorrect because risk planning
should not occur at the project manager’s discretion. Instead, it should be based
on evidence within the project and the policies adopted in the risk management
plan. D is also incorrect. When changes are added to the project scope, risk
planning should occur. For more information, see the PMBOK, Section 11.6.1.3.
Which one of the following best describes the risk register?
A. It documents all of the outcomes of the other risk
management processes.
B. It’s a document that contains the initial risk identification
entries.
C. It’s a system that tracks all negative risks within a project.
D. It’s part of the project’s project management information
system (PMIS) for integrated change control.
• A. The risk register documents all of the outcomes of the
other risk management processes. B, C, and D are all
incorrect definitions of the risk register. For more
• information, see the PMBOK, Section 11.2.3.1.
You are the project manager for a project that will create a new and improved
Web site for your company. Currently, your company has over eight million users
around the globe. You would like to poll experts within your organization with a
simple, anonymous form asking about any foreseeable risks in the design,
structure, and intent of the Web site. With the collected information, subsequent
anonymous polls are submitted to the group of experts. This is an
example of _________________________________.
A. Risk identification
B. A trigger
C. An anonymous trigger
D. The Delphi Technique
D. An anonymous poll that allows experts to freely submit their opinion
without fear of backlash is an example of the Delphi Technique. A, B, and C
are incorrect. These choices do not accurately answer the question. For more
information, see the PMBOK, Section 11.2.2.2.
A table of risks, their probability, impact, and a number
representing the overall risk score is called a
____________________________.
A. Risk table
B. Probability and impact matrix
C. Quantitative matrix
D. Qualitative matrix
• B. A table of risks, their probability, and impact equate to a risk
score in a risk matrix. A is incorrect, since it does not fully answer
the question. C and D are incorrect because a risk matrix can be
used in both quantitative and qualitative
• risk analyses. For more information, see the PMBOK, Section
11.3.2.2.
In your project, you want to determine which risks have the most potential impact on
the project. So, you examine the
extent to which the uncertainty of each project element affects the objective being
examined when all other uncertain
elements are held at their baseline values. This is an example of:
Choice 1 Risk response planning
Choice 3 Sensitivity analysis
Choice 4 Simulation
Correct Choice : 3
Justification :
the project. It examines the extent to which the uncertainty of each project
are held at their baseline values. Reference: PMBOK® Guide Fourth Edition, Page
298
You are in the build phase of a Build-Operate-Transfer (BOT) project, which
has run into several unanticipated problems. Several risks have surfaced
which you had not anticipated earlier. The project is over-budget and
significantly behind schedule. What should you do?
Choice 1 Create updates to risk response plan
Choice 2 Create a revised project plan
Choice 3 Perform risk audits
Choice 4 Perform updated risk identification and analysis
Correct Choice : 4
Justification :
Results from earned value analysis may indicate potential deviation of the
project at completion from cost and schedule targets. When a project
deviates significantly from the baseline, updated risk identification and
analysis should be performed.
• As part of Perform Quantitative Risk Analysis process, you, as a project manager,
have already done a sensitivity analysis, created decision trees and done a project
simulation using Monte Carlo technique. However, when you show your results to
your manager, she is not happy. She thinks that your analysis is not acceptable
because:
Choice 1 Monte Carlo simulations are not a standard methodology used in the
company for risk quantification.
Choice 4 You have not conducted an interview with the project stakeholders and
subject matter experts.
Correct Choice : 4
Justification :
Interviewing techniques draw on experience and historical data to quantify the
probability and impact of risks on project objectives. The information needed
depends upon the type of probability distributions that will be used...
Documenting the rationale of the risk ranges and the assumptions behind them
are important components of the risk interview because they can provide insight
on the reliability and credibility of the analysis. Reference: PMBOK® Guide Fourth
Edition, Page Number:296
As part of Perform Quantitative Risk Analysis process, you, as a project manager, have
already done a sensitivity analysis, created decision trees and done a project
simulation using Monte Carlo technique. However, when you show your results
to your manager, she is not happy. She thinks that your analysis is not acceptable
because:
Choice 1 Monte Carlo simulations are not a standard methodology used in the
company for risk quantification.
Choice 4 You have not conducted an interview with the project stakeholders and
subject matter experts.
Correct Choice : 4
Justification :
Interviewing techniques draw on experience and historical data to quantify the
probability and impact of risks on project objectives. The information needed
depends upon the type of probability distributions that will be used...
Documenting the rationale of the risk ranges and the assumptions behind them
are important components of the risk interview because they
can provide insight on the reliability and credibility of the analysis.
In managing risks for your project, you examine the extent to which the uncertainty of
each project element affects the objective being examined when all other
uncertain elements are held at baseline values. This helps to:
Choice 1 Get a qualitative analysis of the risk.
Choice 2 Determine which risks may have impact on the project.
Choice 3 Translate the uncertainties at a detailed level into potential impact on
objectives expressed at the level of the total
project.
Choice 4 Determine the implication of choosing one alternative over the other.
Correct Choice : 2
• Justification :
• Sensitivity analysis helps to determine which risks have the most potential
impact on the project. It examines the extent to which the uncertainty of each
project element affects the objective being examined when all other uncertain
elements are held at their baseline values.
• Reference: PMBOK® Guide Fourth Edition, Page Number:298
Your company is a pioneer in the construction industry. The government recently
floated a tender for setting up a new airport. Since you do not have all the
requisite skills within the company, you enter into a joint venture with a leading
airport construction company to bid jointly for the government contract. This is an
example of:
Choice 1 Risk exploitation
Choice 2 Risk sharing
Choice 3 Risk enhancing
Choice 4 Risk mitigating
Correct Choice : 2
Justification :
Strategies for positive risks or opportunities (share): Sharing a positive risk involves
allocating some or all of the ownership to a third party who is best able to capture
the opportunity for the benefit of the project. Examples of sharing actions include
forming risk-sharing partnerships, teams, special-purpose companies, or joint
ventures, which can be established with the express purpose of taking advantage
of the opportunity so that all parties gain from their actions.
In your project, you identified disaster situations (e.g. floods, earthquakes, etc.) as
potential risks. The project sponsor suggested that, at the project level, no steps
could be taken to deal with such risks and recommended creation of a contingency
reserve (with 5% of the project budget) which could be used in case of disaster
situations. This is an example of:
Choice 1 Risk mitigation
Choice 2 Risk acceptance
Choice 3 Risk avoidance
Choice 4 Bad policy decision
Correct Choice : 2
Justification :
Accept: This strategy is adopted because it is often not possible to eliminate all threats
from a project. This strategy indicates that the project team has decided not to
change the project management plan to deal with a risk, or is unable to identify
any other suitable response strategy... The most common active acceptance
strategy is to establish a contingency reserve, including amounts of time, money,
or resources to handle the risks. Reference: PMBOK® Guide Fourth Edition, Page
Number:304
In Plan Risk Management, you define how to conduct risk management activities for a project
because careful and explicit planning enhances the probability of success for the subsequent
risk management processes. In this context, what will you NOT do when you Plan Risk
Management?
Choice 1 Identify Risks
Choice 2 Establish an agreed-upon basis for evaluating risk
Choice 3 Ensure that the degree, type, and visibility of risk management are commensurate with
both the risks and the importance of the project
Choice 4 Provide sufficient resources and time for risk management activities
Correct Choice : 1
Justification :
Planning risk management processes is important to ensure that the degree, type, and visibility
of risk management are commensurate with both the risks and the importance of the
project to the organization. Planning is also important to provide sufficient resources and
time for risk management activities, and to establish an agreed-upon basis for evaluating
risks.
Reference: PMBOK® Guide Fourth Edition, Page 276 PMstudy.com comments: Risk
identification (Identify Risk process) is not done during Plan Risk Management process.
In Plan Risk Management, you define how to conduct risk management activities for a project because
careful and explicit planning enhances the probability of success for the subsequent risk
management processes. In this context, what will you NOT do when you Plan Risk Management?
Choice 2 Establish an agreed-upon basis for evaluating risk
Choice 3 Ensure that the degree, type, and visibility of risk management are commensurate with both
the risks and the
importance of the project
Choice 4 Provide sufficient resources and time for risk management activities
Correct Choice : 1
Justification :
Planning risk management processes is important to ensure that the degree, type, and visibility of risk
management are commensurate with both the risks and the importance of the project to the
organization. Planning is also important to provide sufficient resources and time for risk
management activities, and to establish an agreed-upon basis for evaluating risks.
Reference: PMBOK® Guide Fourth Edition, Page 276
You are a retail company which routinely buys goods from foreign countries. Since
currency fluctuation is an important risk, you keep all other factors constant and
try to find out how much your project will be impacted if the currency rate
fluctuates by 5%, 10%, 20% or 25%. This helps you determine appropriate risk
response. This can also be effectively shown using:
Choice 1 Beta probability distributions
Choice 3 Tornado diagram
Choice 4 Simulation
Correct Choice : 3
Justification :
the project. It examines the extent to which the uncertainty of each project
are held at their baseline values. One typical display of sensitivity analysis is the
tornado diagram, which is useful for comparing relative importance and impact of
variables that have a high degree of uncertainty to those that are more stable.
A documented direction to perform an activity that can reduce the
probability of negative consequences associated with
project risks is called:
Choice 1 Corrective action
Choice 2 Preventive action
Choice 3 Defect repair
Choice 4 Risk mitigation
Correct Choice : 2
Justification :
Preventive action: A documented direction to perform an activity
that can reduce the probability of negative consequences
associated with project risks. Reference: PMBOK® Guide Fourth
Edition, page 92
When your company buys computers from Dell, you also pay extra for a three
year warranty which ensures that any manufacturing defects will be taken
care of by Dell. The risk response strategy used is:
Choice 1 Exploit
Choice 2 Avoid
Choice 3 Mitigate
Choice 4 Transfer
Correct Choice : 4
Justification :
Transfer. Risk transfer requires shifting some or all of the negative impact of a
threat, along with ownership of the response, to a third party…
Transference tools can be quite diverse and include, but are not limited to,
the use of insurance, performance bonds, warranties, guarantees, etc.
Kelly, a new project manager in your organization, is ready to enter into a
contract with a buyer for supply of ball bearings, but is unsure of the type
of contract she should select. Which type of contract represents the
highest risk to the seller?
Choice 1 Cost reimbursable plus incentive
Choice 2 Fixed- price
Choice 3 Fixed price plus incentive
Choice 4 Cost- reimbursable
Correct Choice : 2
Justification :
Fixed price contracts involve setting a fixed total price for a defined product
or service to be provided. Sellers are under highest risk as fixed-price
contracts are legally obligated to complete such contracts, with possible
financial damages, if they do not. Reference: PMBOK® Guide Fourth
Edition, page 322
In your project, you could use all the following strategies for
opportunities EXCEPT:
Choice 1 Exploit
Choice 2 Contingent
Choice 3 Share
Choice 4 Accept
Correct Choice : 2
Justification :
Strategies for positive risks or opportunities: Three of the four
responses are suggested to deal with risks with potentially positive
impacts on project objectives. The fourth strategy, accept, can be
used for negative risks or threats as well as positive risks or
opportunities. These...are exploit, share, enhance, or accept.
You are a project manager and have just discovered a risk in your
project that requires an immediate corrective action.
During which Project Risk Management Process is this action
performed?
Choice 1 Plan Risk Management
Choice 3 Perform Qualitative Risk Analysis
Choice 4 Monitor and Control Risks
Correct Choice : 4
Justification :
Monitor and Control Risks is the process of implementing risk respose
plans, tracking identified risks, monitoring residual risks, identifying
new risks, and evalulating risk process effectiveness throughout the
project. Reference: PMBOK® Guide Fourth Edition, Page 308
The Project manger is concerned about potential
risks occurring as a result of performance
deviations from the baseline. What should the
project manager do?
A. Perform risk audits.
B. Conduct technical performance
measurement.
C. Perform variance and trend analysis.
D. Reassess all risks
Which of the following is an output of
performing risk monitoring and control
activities?
A. The development of contingency Plans
B. Recommended preventive actions
C. Risk related contractual agreements
D. Changes to the project management
Plan
• How is earned value analysis used in Project
risk management?
A. As part of risk identification

B. As part of Quantitative risk analysis.
C. As part of Risk response Planning
D. As part of risk monitoring & Control
• The purpose of risk metrics on a project is to:
A. Give the Project manager an additional means
of measuring success on the project.
B. Measure the responses of individual risk owners
and determine who is most effective.
C. Measure how risk tolerance and threshold
change throughout the organization during the
project.
D. Create reports in the format required by
management.
• Which of the following techniques uses
earned value analysis to determine whether
any deviations exist?
A. Option Risk audits.
B. Variance & trend Analysis
C. Technical Performance measurement.
D. Reserve Analysis
• Three project team members are involved in a dispute over
which system the project will use to manage
troubleshooting tickets. The project manager walks in and
immediately observes a department head attempting to
resolve the conflict. The department head repeatedly tries
to get the three to agree to some type of resolution. What
conflict resolution technique is the department head using?
•
A. Confronting.
B. Compromising
C. Forcing.
D. Smoothing
• You are the project manager of a project heading
the development of a government simulation
program. The risk management team has just
wrapped up a project meeting where the
outcome of risk activities were reported and
added to the risk register. What process is the
project currently in?
A. Plan Risk Management.
B. Perform Quantitative Risk Analysis.
C. Plan Risk response.
D. Monitor and Control Risks.
• A key stakeholder approached the risk manager
for an update on the effectiveness of the risk
response plans. The risk manager tells him that
he’s in luck; analysis of the results has just been
completed. What analysis is the risk manager
most likely referring to?
A. Variance and trend Analysis.
B. Risk Audits.
C. Reserve Analysis.
D. Risk reassessment.
• Updates to the organizational process assets
as a result of the monitor and control risks
process include all of the following except:
A. Lessons learned.
B. Data on actual costs and durations of project
activities.
C. Documented preventive actions.
D. Final version of the risk register.
• All of the following are characteristics of the
Delphi technique Except:
•
A. Utilizes feedback of experts.
B. Helps to reach consensus quickly.
C. Helps reduce bias in the data.
D. Allows for participation in a group setting.
• The Monitor and Control risks process usually
results in all of the following outputs Except:
A. Updates to the risk register.
B. Change requests.
C. Approved corrective actions.
D. Updates to the risk management Plan.
One of your offsite project team members just called to inform
you, the project manager, that the air conditioning system has
just shut down after temperature reached a high of 120 F. The
project manager is responsible for equipment maintenance used
by the project. Unfortunately, he also reported that when
attempting to turn on the backup generator as the plan
indicated, it also failed. What has just occurred?
A. A trigger.
B. A residual risk.
C. A secondary risk.
D. A contingency risk.
Risk is the Equipment shutting down and system is the breaking of the air
conditioning system and generator.
•
• As the project manager for a fortune 500 company,
Stephen is responsible for making sure that risks are
managed tightly for all of his projects. During the planning
stage of his most recent project, Stephen put together a
risk management team that will strictly focus on
management of pure risks. The risk management team is
likely to focus on all of the following risks except:
a. A Economic shift
b. Theft
c. Legal liability.
d. Property damage
• A Key stakeholder of the project approaches the project manager to
inquire about a report that was due the previous day. According to
the stakeholder , a status update was expected of the risks on the
watchlist. The project manager checks the appropriate plan and
confirms that the report is not due for another week. What plan did
the project manager referred?
A. The risk management plan.

B. The risk register.
C. The risk resource plan.
D. The procurement management plan.
The risk management plan includes information on the format and
frequency of risk related reports, as well as how the outputs of the
process will be documented ,analyzed and communicated to the
appropriate individuals.
Which will be the most reliable tools &
technique to be used review historical data
A. Delphi Technique
B. Brainstorming - Biasing of results
C. Interviewing. – Duplicate risks
D. Expert judgment – Biasing of results
• All of the following are included within the risk
management plan except:
A. Approach to performing risk management
activities.
B. Risk categories
C. Contingency plans
D. Estimate costs for risk activities for the Project.
• What are the some of the responsibilities of a risk audit
team.
a) To define policies, ensure standards are being followed

and document lessons learned.
b) To make sure that all risks are identified , adequate plans
are in place , and all team members are performing.
c) To make sure that all risks are identified, adequate plans
are in place and risk owners understand their roles.
d) To ensure risk owners understand their roles, document
lessons learned, and rank risks in each project
• Which process involved overseeing the entire
risk management process for consistency and
continuous improvement
A. Monitor and control risks.
B. Plan risk management
C. Risk analysis
D. Risk governance
• Why does the risk governance board create
metrics for risk management.
A. Metrics show how detailed the plan is.

B. Metrics define the level of acceptable risk.
C. Metrics are used to measure how project work is
performing against the plan.
D. Metrics define how well the project manager is
doing.
• Which of the following is an example of the
avoidance risk response strategy?
•
A. The team member does not know how to do the
work, so training is scheduled.
B. The team member keeps adding extra features to
the product.
C. The team member causes a lot of problems so is
removed from the project.
D. The team member is so over-allocated that he cannot do the
work assigned
• If you have to provide one off update to the
Sponsor after completing the Risk Management
what would it contain?
A. Risks, Response, Results of Monte Carlo
Analysis
B. Risk, Response , Results of Probability and
Impact Matrix
C. Risk, Response, Results of Risk Urgency
Assessments.
D. Risk, Response , Results of Data Quality
Assessments
• Mathew is a Project Manager for software
migration at a bank. A major risk that has been
identified is attrition of resources. As a strategy to
respond to this risk, Mathew, with support from
Senior Management, provides good increments
to his tem members. What type of risk response
is Mathew following?
A. Accept
B. Avoid
C. Transfer
D. Mitigate
• You have just updated the last risk on the risk
register with their affects on meeting the project
objectives. What would be the most likely next
process to start?
•
A. Monitor and Control Risks.
B. Perform Qualitative Risk Analysis.
C. Perform Quantitative Risk Analysis.
D. Plan Risk Response.
• PERT uses what type of probability
distribution?
A. Beta
B. Uniform
C. Continuous
D. Lognormal
• Graphical representations of situations
showing causal influences, time ordering of
events, and other relationships among
variables and outcomes is also referred to as
• a. Cause-and-effect diagrams
• b. System flow charts
c. Influence diagrams
d. Tornado diagram
• A risk manager will most likely display the
results of sensitivity analysis using:
• a. A cause and effect diagram

• b. A tornado diagram
• c. An influence diagram
• d. A Histogram
• As the project manger, it is your responsibility to
determine which areas of the project are most
exposed to the effects of uncertainty. This aids in
the development of risk responses that are
effective. What technique are you most likely to
use to conduct this type of analysis?
A. Risk data quality assessment.
B. Risk urgency assessment.
C. Risk categorization.
D. Modeling & simulation.
In your project, you can use all the following
Tools and Techniques for Risk Response Planning
EXCEPT:
a. Strategies for negative risks or threats
b. Contingent response planning
c. Strategy for threat and opportunities
d. Strategy for residual risks
Your project team has identified several potential risks on your
current project that could have a significant impact if they
occurred. The team examined the impact of the risks by keeping
all the uncertain elements at their baseline values. What type of
diagram will the team use to display this information?
A. Fishbone diagram
B. Tornado diagram
C. Influence diagram
D. Process flowchart
• Which process group identified risk is
categorized?
A. Risk Management Plan
B. Identify risk.
C. Risk Qualitative risk analysis process.
D. Risk Quantitative risk analysis process
Andrew has joined as the Project Manager of a
project. One of the project documents available to
Andrew lists down all the risks in a hierarchical
fashion. What is this document called?
a.Risk Management Plan.

b.List of risks.
c.Monte Carlo diagram.
d.Risk Breakdown Structure.
Andrew has joined as the Project Manager of a
project. One of the project documents available to
Andrew lists down all the risks in a hierarchical
fashion. What is this document called?
a.Risk Management Plan.

b.List of risks.
c.Monte Carlo diagram.
d.Risk Breakdown Structure.
d. HIERARCHICAL DESCRIPTION OF RISKS IS CALLED RISK BREAKDOWN
STRUCTURE.
Which of the following statements is true about
risks?
a.When evaluating risks their impact should be
considered, however probability of occurrence is
not important.
b.Risks if they happen always have negative
impact and not positive.
c.Risk register documents all the risks in detail.
d.Risk response plan is another name for Risk
Management Plan.
Which of the following statements is true about
risks?
a.When evaluating risks their impact should be
considered, however probability of occurrence is
not important.
b.Risks if they happen always have negative
impact and not positive.
c.Risk register documents all the risks in
detail.
d.Risk response plan is another name for Risk
Management Plan.
e.The risk register is initially created during the
Identify Risk process and updated with all the details
about the risk in the other risk planning processes.
Beta is the Project Manager of a Road
construction project. During a project review, Beta
realizes that one particular risk has occurred. To
take appropriate action against risk that has
happened, Beta needs to refer to which
document?
a.Risk response plan

b.Risk management plan
c.Risk breakdown structure
d.Risk register
Beta is the Project Manager of a Road
construction project. During a project review, Beta
realizes that one particular risk has occurred. To
take appropriate action against risk that has
happened, Beta needs to refer to which
document?
a.Risk response plan

b.Risk management plan
c.Risk breakdown structure
d.Risk register
During which stage of Risk planning are risks
1. Identify Risks
2. Plan Risk responses
3. Perform Qualitative risk analysis
4. Perform Quantitative risk analysis
During which stage of Risk planning are
modeling techniques used to determine
overall effects of risks on project objectives for
high probability, high impact risks?
• Identify Risks
• Plan Risk responses
• Perform Qualitative risk analysis
• Perform Quantitative risk analysis
Andrew is a Project Manager for Green Valley
project. A risk management plan has been
prepared for the project. Which of the
following should Andrew do next?
A. Perform Qualitative risk analysis
B. Perform Quantitative risk analysis
C. Identify Risks
D. Plan Risk responses
John Strauss is a Project Manager for a
reforestation project. To identify the risks
involved, John sends a questionnaire to gather
inputs from experts. Which technique is John
using?
A. Delphi technique
B. Interviews
C. Brain storming
D. Documentation review
Mathew is a Project Manager for software
to his team members. What type of risk response
A. Accept
B. Avoid
C. Transfer
D. Mitigate
Mathew is a Project Manager for software
to his team members. What type of risk response
A. Accept
B. Avoid
C. Transfer
D. Mitigate
Overtime associated with the execution effort of
a project is estimated at 120 hours with
probability 0.5, 250 hours with probability 0.6,
and 300 hours with probability 0.3. What is
the monetary value of the amount of
overtime?
1.300 hours
2.670 hours
3.250 hours
4.100 hours
Overtime associated with the execution effort of a project is
estimated at 120 hours with probability 0.5, 250 hours with
probability 0.6, and 300 hours with probability 0.3. What is
the monetary value of the amount of overtime?
1.300 hours
2.670 hours
3.250 hours
4.100 hours
• A is the correct answer. The Monetary Value of the amount

of overtime is (120 x 0.5) + (250 x 0.6) + (300 x 0.3) = 300
hours.
Probabilistic Analysis of a project, probability
of achieving cost and time objectives and
trends in Quantitative Risk Analysis results are
done during _______.
1.Perform Qualitative Risk Analysis
2.Perform Quantitative Risk Analysis
4.Identify Risks

The risks of financial gain or loss are called
_________.
1.Business Risks
2.Financial Risks
3.Organizational Risks
4.Functional Risks
You are a project manager of a project. How you
determine whether it is better to make a
product or buy a product?
1.Decision Tree Analysis
2.ROI Analysis
3.Ishikawa Diagram
4.All of the above
You are a project manager of MKTG project. The customers of
the project have requested additions to the project scope.
You have to do additional risk planning and need to add it
to the project schedule. Why is so?
1.Risk planning should always occur whenever the scope
is adjusted.
2.Risk planning should only occur at the project manager's
discretion.
3.Risk planning does not need to happen at every change in
the project.
4.None of the above
During the execution of a project, a risk is
identified by a team member. This newly
identified risk is currently not in the Risk Register.
As a Project Manager, what is the first action you
would take after being notified of the risk?
• a) Discuss the risk with the team to ascertain the
impact and probability of the risk
• b) Analyze the risk.
• c) Hold a meeting with the team leads to
determine dependency and secondary risks.
• d) Update the Risk Register
B. When the Project Manager is notified of a risk, it is her
responsibility to analyze the risk and take it further. She can ask
for more details from the team, if required. However, the first
action will always be to analyze the risk.
Your project has met with an unexpected problem. The
supply of a critical component of your final product is
delayed by 25 days. You need to show an alpha prototype
of the product in 15 days. You’ve called a brainstorming
team meeting to determine if you can deliver this limited
version without the critical component. What are you
trying to create?
a) A risk management plan
b) A risk mitigation strategy
c) A workaround
d) An updated scope baseline
Your project has met with an unexpected problem. The
supply of a critical component of your final product is
delayed by 25 days. You need to show an alpha prototype of
the product in 15 days. You’ve called a brainstorming team
meeting to determine if you can deliver this limited version
without the critical component. What are you trying to
create?
a) A risk management plan
b) A risk mitigation strategy
c) A workaround
d) An updated scope baseline
By looking at the Decision Tree on the
right , which decision would you take
a) Build the new software.

b) Buy the new software.
c) Staying with the legacy software
d) None of the above.
Build the new software: $ 2,000,000 * 0.4

= $ 800,000
Buy the new software: $ 2,000,000 * 0.05
= $ 100,000
Staying with the legacy software: $
2,000,000 * 1 = $ 2,000,000
Now, add the setup costs to each
Expected Monetary Value:
Build the new software: $ 500,000 + $
800,000 = $ 1,300,000
Buy the new software: $ 750,000 + $
100,000 = $ 850,000
Staying with the legacy software: $
100,000 + $ 2,000,000 = $ 2,100,000
Which of the following processes has the Risk
Register as the primary output?
a) Perform Qualitative Risk Analysis
b) Monitor and Control Risks
c) Plan Risk Management
d) Identify Risks
After conducting a SWOT Analysis, you have determined that a
business deal is worth pursuing. You are required to use Agile
development practices. In your company, there is no expertise in
Agile development. Hence, you partner with another organization
that specializes in Agile development. This is an example of:
a) Sharing a Positive Risk

b) Mitigating a Negative Risk
c) Exploiting a Positive Risk
d) Accepting a Negative Risk
A. This is an example of responding to an opportunity (positive risk).
There are four strategies to respond to positive risks.
• During which stage of risk planning are risks
• a) Perform Qualitative Risk Analysis
• b) Monitor and Control Risks
• c) Plan Risk Management
• d) Identify Risks
If the cost of insurance is $10,000, the value of the
property is $100,000, and the probability of loss
is ten percent, then the insurance is ________.
• a) the same as the cost of the probable loss and
there is no advantage
• b) desirable because it will cost less than the
probable losses
• c) undesirable because it costs more than the
probable losses
• d) none of the above
A project audit team discovered that a
project did not have a risk register. Which
phase under the Risk Management
knowledge area has likely been missed out or
improperly done?
1. a. Identify Risks
2. b. Perform Risk Assessment
3. c. Plan Risk Responses
4. d. Plan Risk Management
2. Lois is a project manager managing a town-
development project. She has set up a series of
interviews with various stakeholders to gather
some experiential (i.e., personal experience) and
historical information on risks. Which phase is
this likely to happen in?
a. Perform Qualitative Risk Analysis
b. b. Plan Risk Responses
c. c. Understand Risks
d. d. Perform Quantitative Risk Analysis
3. Which of the following models describes
stakeholders based on their power, urgency,
and legitimacy?
a. Influence / Impact Grid
b. Power / Influence Grid
c. Power / Interest Grid
d. Salience Model
Generally speaking, in what project phase are risk and opportunity
greater than the amount at stake by the widest margin?
Initiation
Describe the difference between an internal risk and an external
risk.
An internal risk is under the control or influence of the project
team; external is beyond control or influence.
What is purpose of a risk management plan? What should it
include?
To document the procedures that should be used to manage risk
throughout the project. It should include the risk identification and
risk quantification; how contingency plans will be implemented;
how reserves will be allocated.
What is a reserve? A provision in the project plan to mitigate cost
and/or schedule risk. Management reserves are for “unknown
unknowns” and contingency reserves are for “known unknowns”.
What are the two most common types of management
reserves? How are they used?
Cost and Schedule, used to reduce the chance of overruns in either
area
When is the highest risk impact generally occur?
During Implementation and Close-out – the Amount at Stake is
high though risk has decreased. Risk is highest during Initiation and
Planning.
Who is ultimately responsible for identifying and managing risk?
Project manager
You are finding it difficult to evaluate the exact cost consequences of
risks.
You should: Evaluate them on a qualitative basis. In what
circumstance would you have to update the Risk Response Plan?
If a risk occurs and has a greater impact on the project than what
was anticipated. (part of Risk Monitoring and Control)
What should be done after competing/updating the Risk Response
Plan? Add tasks to the WBS
How do you address unknown risks?
By applying a general contingency based on past experience
What is a known-unknown risk?
Risk that can be identified as possibly happening (e.g. Flood if a
business is located in a flood zone)
Which is least risk phase of a project ?
1. Planning
2. Closing
3. Execution
4. Control
correct is :1
Explanations :
The Planning phase is the phase with the least
risk attached.
Because you have not committed the major part
of your project.
You are the project manager of a Project. Which
of the following techniques will you use to
create the risk management plan?
1. Planning meetings
2. Status meetings
3. Variance meetings
4. Risk tolerance
correct is :1
A person's willingness to tolerate risk is known
as __________?.
1. The utility function
2. Risk acceptanc
3. The risk reward ratio
4. Scope Statement.
correct is :1
A risk trigger is also called __________?
1. A warning sign
2. A delay
3. A cost increase
4. None of the above
correct is :1
A risk is ____________ occurrence that has a
positive or a negative effect on a project .
1. Known
2. Uncertain
3. Known
4. Potential
A table of risks, probability of risks, impact, and
a number representing the overall risk score is
called a ________.
1. Risk table
2. Risk matrix
3. Qualitative matrix
4. Quantitative matrix
correct is :2
The Risk Register is initiated during
__________phase?
1. Risk Identification
2. Risk Management Planning
3. Qualitative Risk Analysis
4. None of the above
correct is :1
Most subjective Quantitative Risk Analysis Tools
and Techniques are :
1. Interviewing and Expert judgment
2. Probability distributions
3. Decision Tree Analysis
4. Simulation
correct is :4
• Reserve analysis is a tool /technique in all of
the following processes EXCEPT:
• A. Cost budgeting
• B. Activity resource estimation
• C. Risk monitoring and control
• D. Activity duration estimation
• E. Cost estimation
• Answer: B
• You are in process of numerically analyzing the
effects of identified risks. Which of the following
are NOT tools/ techniques you can use in the
process?
• A. Sensitivity analysis
• B. Reserve analysis
• C. Expected monetary value analysis
• D. Modeling and simulation
• E. Decision tree analysis
Your project sponsor has asked you to produce a Risk Management
Plan for your current project. Which of the following best describes
how you should tailor the plan to your project?
A. The plan must include the predefined risk management policies as
they relate to the organization
B. The plan must ensure that the level of details and risk
management efforts are commensurate with the level of risk and
importance of the project
C. The plan must be predefined templates as defined by the
organization
D. The plan must include the predefined roles and responsibilities as
they relate to risk management.
• Answer: B
• Monte Carlo analysis is a form of what type of
analysis?
• A. Critical path method
• B. Schedule compression
• C. What-if scenario analysis
• D. Resource-leveling
• E. Critical chain method
• Answer: C
• Which of the following are NOT inputs to the
risk identification process?
• A. Historical information
• B. Risk categories
• C. Risk management plan
• D. Risk thresholds
• You are in process of identifying and documenting
project risks. You are using various information
gathering techniques to identify the project risks. All of
the following are information gathering techniques
EXCEPT:
• A. Diagramming techniques
• B. SWOT analysis
• C. Root cause identification
• D. Delphi techniques
• E. Interviewing
• Answer: A
• Which of the following statements are FALSE regarding
Monte Carlo analysis?
• A. Monte Carlo is used to determine potential project
outcomes by simulating the project under different
scenarios
• B. Monte Carlo analysis used expected value (EV)
calculations as one of its inputs
• C. Monte Carlo analysis can be used during the Schedule
Development and Quantitative Risk Analysis process
• D. Monte Carlo is simulation technique that can help
quantify risks associated with the project
•
• Answer: B
• You are in process of defining how to plan and execute
the risk management activities for your project. Which
of the following statements are false?
• A. The output of this process is risk management plan
• B. The inputs to this process includes the project
scope statement, project management plan, and the
risk register
• C. The tools/ techniques of this process are planning
meetings and analysis
• D. None of the choices are correct
• Answer: B
• 10. You are the project manager responsible for developing a new
online line bill payment system for a utility company. You are
expected to complete the project within the next year. You are
currently in the process of identifying and evaluating a number of
risks quantifying their impacts and identifying their probability of
occurrence. You would like to use a tool that will determine the
highest expected value for the various scenarios. Which of the
following tools should you use?
• A. Monte Carlo simulation
• B. Decision tree analysis
• C. Ishikawa diagrams
• D. Critical path method
• E. Risk Data Quality Assessment
• Answer: B
The risk register is an input to all of the following
processes EXCEPT:
• A. Risk response planning

• B. Risk monitoring and control
• C. Risk identification
• D. Qualitative risk analysis
• E. Quantitative risk analysis
• Answer: C
• 12. Assumptions analysis, checklist analysis, and
risk diagramming techniques are tools/
techniques of which of the following processes?
• A. Risk identification
• B. Qualitative risk analysis
• C. Risk management planning
• D. Quantitative risk analysis
• E. Risk monitoring and control
• Answer: A
• You have been recently hired to be a project manager at a
bio-tech company to develop a new drug to treat
pancreatic cancer. The drug has been under development
and clinical testing for past 5 years. The FDA is currently
reviewing the clinical data in order to determine weather
the drug has any serious side effects. If the FDA does NOT
approve the drug, the project will be in trouble. This is an
example of which type of risks?
• A. Organizational risk
• B. Fore majeure risk
• C. Project management risk
• D. External risk
•
• 14. You are currently in process of prioritizing risks by
their impact and probability of occurrence. The risk
register updates from this process include all of the
following EXCEPT:
• A. Root cause of risks
• B. Low priority risks
• C. Risks group by categories
• D. Risks requiring responses in the near term
• E. Priority list of project risks
• Answer: A
You are in process of analyzing the effects of
identified risks. Which of the following is the
LEAST helpful input?
A. Project scope statement
B. Risk register
C. Performance reports
D. Risk management plan
• You are the project manager at an auto manufacturer. Due to the recent
rise in the cost of petroleum, the market demand for hybrid cars with high
fuel efficiency ahs increased. Your company has identified the multi-billion
dollar market opportunity for highly fuel efficient vehicles. However, your
organization does not have enough resources and expertise to exploit this
opportunity. Hence, your organization has decided to identify the qualified
candidates. Which of the following best describes the type of strategy you
are using to deal with this market
• opportunity?
• A. Share
• B. Acceptance
• C. Exploit
• D. Enhance
• E. Avoidance
• Answer: C
• Which of the following risks should be
classified as a force majeure risks?
• A. Resource conflicts with other projects
• B. Shifting legal/ regulatory environment
• C. Poor allocation of time and resource
• D. Floods/ hurricanes
• Answer: D
Which of the following processes involves
developing necessary procedures to mitigate
threats to the project from the project risks?
• A. Risk management planning
• B. Risk identification
• C. Risk monitoring and control
• D. Risk response planning
1) For a healthier project , how will Monte Carlo
Histogram bar , look
a) Will be wider
b) Will be narrow
c) Will be flat
2) Which among the given historical analysis
technique gives most reliable data as given
below:
a) Expert judgment
b) Brainstorming
c) Delphi Technique
d) Affinity Diagram
• 21. Which of the following statements are true
regarding risk response audits?
• A. Risk audits are not necessary on small projects
• B. Risk audits should be performed by an
outside party
• C. Risk audits consists of performing the
contingency plan
• D. Risk audits are unplanned responses to
emerging risks that were previously unidentified
• Answer: B
You are in the process of tracking identified
risks, monitoring residual risks, and executing
the risk response plans. Which of the
following tools/ techniques are you LEAST
likely to use during this process?
• A. Risk audits
• B. Reserve analysis
• C. Variance and trend analysis
• D. Assumptions analysis
• Which of he following best describes the risks
that still remain after avoidance , transfer, or
mitigation responses have been implemented?
• A. Contingency risks
• B. Tertiary risks
• C. Residual risks
• D. Secondary risks
• Answer: C
All of the following are types of strategies that
one can use to deal with risks with upside
opportunity EXCEPT:
• A. Transfer
• B. Enhance
• C. Exploit
• D. Accept
• E. Share
• Answer: A
• You are the project manager responsible for renovating a 70-year
old office building. You intend to hire an outside construction firm
to seismic retrofit the building in order to make that the building
can with stand large earthquakes. You are in the process of
selecting a contract type best suited for this project. You would like
to select a contract type that transfers the risks onto the seller for
any cost risk and nonperformance issues. Which contract type
should you choose?
A. CPPC contracts
B. CPFF contracts
C. Cost reimbursable contracts
D. T&M contracts
E. Fixed price contracts
• Answer: E
• You are currently in the process of prioritizing
risks by their impact or probability of occurrence.
Which of following tools/ techniques are LEAST
useful?
• A. Risk categorization
• B. Root cause identification
• C. Risk urgency assessment
• D. Risk data quality assessment
• E. Probability impact matrix
• Answer: B
• The risk register is initiated in the Risk Identification process
and further updated in the Qualitative Risk analysis and
Quantitative Risk analysis processes. Which of the following
are NOT risk register updates as part of the Quantitative
Risk Analysis process?
• A. Prioritized list of qualified risks
• B. Residual risk that remain after planned responses are
executed
• C. Probabilistic analysis of the project
• D. Trends in quantitative risk analysis results
• E. Probability of achieving cost and time objects
• Answer: B
• The risk register describes all the identified risks.
Which of the following is NOT included as part of
the risk register?
• A. Risk description, category, cause
• B. Risk-related contractual agreements
• C. Proposed responses, owners, current status
• D. Probability of occurrence, impact on objectives
• Answer: B
• All of the following statements are TRUE regarding modeling and
simulation EXCEPT:
• A. Simulation is tool/ technique of Quantitative Risk Analysis
• B. Modeling and simulation are recommended for use in cost and
risk analysis because they are more powerful and les subject to
misuse than EMV analysis
• C. Simulation is a technique that computes the project cost or
schedule over multiple iterations using random value selected from
distribution of possible costs or duration values
• D. From schedule risk analysis, a simulation can use the ADM
schedule as its model
• E. Fro risk analysis, a simulation can use the project WBS or cost
breakdown structure as its model
• Answer: D
34. Which of the following statements are true regarding the
Risk Breakdown Structure?
A. The Risk Breakdown Structure describes the format and
content of the risk register
B. The Risk Breakdown Structure represents a hierarchally
organized representation of identified project risks
arranged by the magnitude of the risk
C. The Risk Breakdown Structure identifies all elements of risk
activities that will be documented and audited
D. The lowest level of the Risk Breakdown Structure can be
used as risk checklist
• Answer: D
• 38. Which of the following are outputs of the
Risk Management Planning process?
• A. Residual risk
• B. Overall risk planning
• C. Risk management plan
• D. Checklists
• Answer: C
• Which of the following best describes project
funds that are held in reserve to account for and
offset known risks, such as project scope risks,
schedule risks, cost or quality risks?
• A. Contingency reserve
• B. Secondary risk
• C. Residual risk
• D. Contingency plan
• Answer: A
• What would be the most effective method to quantify a risk that was ranked with a high
impact and medium probability to review and discuss with your sponsor?
• A: Expected monetary value.
• B: Utility theory.
• C: Sensitivity analysis.
• D: Probability analysis.
• C is correct: Sensitivity analysis helps to determine which risks have the most potential
impact on the project. T typically you would perform for variables which are likely to have a
major impact on project performance in terms of cost, time, or economic return. It is a
simple method of analyzing the impact of potential risk and its results are easy for project
stakeholders to understand. Tornado charts are often used to visually depict the
sensitivities.
• Note the disadvantage: it does not lend itself well to assessing combination of risk and how
they might affect a project. Furthermore the sensitivity diagram does not provide an
indication of anticipated probability of occurrence of the risk event.
• A is incorrect: EMV is a method to determine which decision to take by factoring in the risks
associated with each possible decision.
• B is incorrect: Utility theory is stakeholder risk tolerance level. i.e. risk adverse, risk taker or
risk neutral.
• D is incorrect: Probability analysis is a qualitative method not quantitative method.
• You have just attended a meeting with the Netcon Incorporated executives
and learned they are considering the introduction of two new software
products to the market. The result of this meeting is the company has four
options regarding these two new software products: Introduce neither
product, introduce product 1 only, introduce product 2 only, or introduce
both products. Research and development costs for product 1 is $180k
and for product 2 is $150,000. There is no associated costs with the status
quo. The marketing department has provided a forecast of expected sales
revenue for both products in the Canadian market based on the
probabilities of realizing a strong, fair and weak trend in the economy for
the upcoming year at 0.30, 0.50, and 0.20, respectively. From the view
exhibit button (top right hand corner) what option from a risk perspective
would you recommend the executives approve?
• A: Product 1 only.
• B: Both Products.
• C: Product 2 only.
• D: Insufficient data to decide best option to recommend to the executives.
• B is correct: Both products have the biggest gain at $151k. Product 1 gain
is $124k and Product 2 gain is $113k. There are 2 parts to this equation:
multiply each dollar value by the probability of it occurring, sum up for
EMV and then for each option deduct the Research and Development
costs to determine the option with the biggest gain.
• Product 1: $304k EMV minus R & D costs of $180k total gain $124k.
• Often a project manager can attract quality
resources to their project simply because of the
reputation he/she has in the organization. This
reputation has been earned and is a function of
knowledge, skills, success, qualification and
personal qualities. These are known as what
types of power?
• A: Formal / Legitimate.
• B: Expert / Referent.
• C: Penalty / Coercive.
• D: Charismatic / Technical.
• Perform quality control includes a number of
activities and techniques within a project that
ensure that the organization's quality objectives
are being met. Which of the following is not
considered part of the quality control process?
• A: Quality audits.
• B: Continually monitoring processes.
• C: Identifying and eliminating problem causes.
• D: Use of statistical process control to reduce
process variability and increase efficiency.
• If a risk event has an 80% chance of occurring with a gain of $10,000, what
does a dollar value of $8,000 represent?
• A: The value of the risk.
• B: The decision tree analysis.
• C: The expected monetary value of the risk.
• D: The dollar value to be added to the contingency reserve for this risk.
• The $8,000 represents the Expected Monetary Value of the risk. To
calculate the EMV in risk project management you need to follow 3 steps:
• 1. Assign a probability of occurrence for the risk. In this case 80%.
• 2. Assign monetary value of the impact of the risk when it occurs. In this
case $10,000.
• 3. Multiply Step 1 and Step 2. In this case $10,000 x .8 equals $8,000 or
the EMV.
• A change control board is:
• A:An informal or formal group of team members responsible for
changes to the project.
• B:Senior management or a company steering committee.
• C:A formally constituted group of stakeholders responsible for
approving or rejecting changes to the project baselines.
• D:A hassle to getting the real project work completed.
• Change Control Boards are usually used on larger, more formal
projects.
• They are beneficial during the integrated change control as they are
a formally recognized group of experts responsible for evaluating,
approving or rejecting changes to the project with all results being
officially recorded.
• A histogram ordered by frequency of
occurrence that reflects the vital few and
trivial many is called a:
• A: Statistical histogram.
• B: Control chart.
• C: Quality chart.
• D: Pareto diagram.
• Project management offices "boost" the organizational
efficiency. Which of the following statements is least
true about PMOs?
• A: They do not exist in functional organizations.
• B: They usually are established to formalize and
standardize practices, processes, and operations.
• C: They often fill an administrative support role in
which it assists with data and time-intensive tasks such
as scheduling, planning, change control, and reporting.
• D: Project offices have the potential to add layers of
bureaucracy which may hamper agile performance and
reduce organizational buy-i
Control charts are used to routinely monitor quality. When using control
charts, control limits are chosen so that almost all of the data points will
fall within these limits as long as the process remains in-control. What is
the horizontal line in the middle of the chart referred to?
• A: Mean.
• B: Specification limit.
• C: Data point.
• D: Upper and lower control
All control charts have three basic components: a centerline, usually the
mathematical average of all the samples plotted, upper and lower
statistical control limits that define the constraints of common cause
variations and performance data plotted over time.
The purpose of making control charts is to look at variation, seeking special
causes and tracking common causes. Special causes can be spotted using
several tests: 1 data point falling outside the control limits
6 or more points in a row steadily increasing or decreasing
7 or more consecutive points in a row on one side of the centerline
14 or more points alternating up and down
• During quality control you are reviewing several statistical charts.
One chart clearly reflects a single point of the process is out of
statistical control. What is the least true statement about this
control chart?
• A: It is very likely that a source of special cause variation is present.
• B: Having a point outside the control limits is the most easily
detectable out-of-control condition.
• C: The likelihood of having a single data point out of control by
chance is only about 1 in 1,000.
• D: This chart exhibits only common cause variation.
• Common cause variations would reflect all points within the
upper control limits (UCL) and the lower control limits (LCL). The
fact that the control chart has one data point outside the control
limits leads to a special cause variation is present.
• Many people confuse the project management process
groups with the project life cycle phases. Which of the
following reflects the difference between these 2 terms?
• A: The project life cycle is created based on the top level of
the work breakdown structure.
• B: The project life cycle is longer.
• C: The project life cycle only applies to some projects.
• D: The project life cycle defines the beginning and end of a
project.
• The project life cycle defines the beginning and end of a
project while the project management processes describe,
organize and complete the work of the project.
• Your team is planning responses to the risks that were
identified and analyzed already. What would not be
required to do now during this process?
• A: Identify secondary risks.
• B: Determine fallback plans.
• C: Determine residual risks.
• D: Verify project information.
• D is correct: It would be too late in the process to be
verifying project information. This should be done
during the Identify Risk process.
• A project manager has made a change to the project plan. What is
the next action to accomplish?
• A: Hold a meeting with the core team to communicate the change.
• B: Update the project plan and distribute according to the
communication plan guidelines.
• C: Evaluate the impact to the project.
• D: Request change control board involvement.
The question states the PM has made a change to the project plan.
Since the plan has been updated, all the key stakeholders already
know about it and the next step would be to communicate the plan
to the core team thus A is the correct answer.
B: states to update the project plan. This was already done as stated
in the question.
• Specific results from lessons learned include all of the
following except:
• A: Update of the lessons learned knowledge base.
• B: Improved business skills.
• C: Updating the statement of work to reflect training and
learning requirements.
• D: Overall product and service improvements.
• Some specific results from lessons learned include:
• update of the lessons learned knowledge base, input to
the knowledge management system, updated corporate
policies, procedures and processes, improved business
skills, overall product and service improvements, updates
to the risk management plan.
• To ensure that a team member has correctly received a
communicated message and understands the project work
to be accomplished, the project manager should:
• A: Repeat the requirements and ask for a commitment.
• B: Get feedback and evaluate the end results of the work.
• C: Repeat the requirements and use active listening.
• D: Employ active listening and ask for feedback.
• A, B and C will not ensure that the message is understood
as intended. Only by employing active listening and
focusing on the team member's response and asking
him/her to feedback to you what they understand as the
requirements, will you be sure that they understand what
they are expected to accomplish.
• As the risk prime for all the technical risks, you have
called a meeting with a few experts with both software
and hardware expertise to assess the impact of the
technical risks reflected in the risk register. What risk
management process are you most likely in?
• A: Monitor and Control Risks.
• B: Perform Qualitative Risk Analysis.
• C: Perform Quantitative Risk Analysis.
• D: Plan Risk Response.
• B is correct: You are conducting a risk probability and
impact assessment which is a TnT of the Perform
Qualitative Risk Analysis process.
• The best description of what the Distribute Information
process includes is:
• A: Implementing the communication management plan.
• B: Responding to expected requests for information.
• C: Implementing the communication management plan and
responding to unexpected requests for information.
• D: Implementing the communication management plan
and responding to expected requests for information.
• The key distinguishing word here is "unexpected" requests
for information.
• Distribute information is all about implementing the
communications plan as well as responding to unexpected
requests from various stakeholders
During which process of risk management
would you complete a risk rating matrix of the
risks?
• A: Identify Risks.
• B: Perform Qualitative Risk Analysis.
• C: Plan Risk Management.
• D: Perform Quantitative Risk Analysis.
• You are reviewing several control charts with the quality control
team. One of the charts reflects seven data points in a row on one
side of the mean. What action should be taken based on these
results?
• A: Additional statistical sampling.
• B: Adjust the chart to reflect the new mean.
• C: Investigate the cause.
• D: This is the rule of seven and can be ignored.
• This is the rule of 7 - which refers to non-random data points
grouped together in a series that total seven on one side of the
mean. The rule of seven tells you, that although none of these
points are outside of the control limits, they are not random and
the process is indeed out of control. Chances of this happening are
1.56%. This type of situation should be investigated to determine
the cause of the variation.
• As project manager you need to assess the quality of your project. One of
your team members suggests you measure each door for both height and
width to verify they are all within spec. You explain to the team member
this would not be a cost effective way to verify the quality and suggest:
• A: Benchmarking.
• B: A sample.
• C: A control chart.
• D: A Pareto diagram.
• "Sampling": The objective is to reduce the cost of quality control by
selecting a portion to sample since 100% inspection is very expensive
and time consuming, and may not lead to zero defects anyways. This
process significantly reduces cost of quality but the team must be
knowledgeable in sampling concepts and statistics.
• Sampling determines if large batches of product should be accepted or
rejected without having to test every single item produced.
• As project manager you need to assess the quality of your project. One of
your team members suggests you measure each door for both height and
width to verify they are all within spec. You explain to the team member
this would not be a cost effective way to verify the quality and suggest:
• A: Benchmarking.
• B: A sample.
• C: A control chart.
• D: A Pareto diagram.
• "Sampling": The objective is to reduce the cost of quality control by
selecting a portion to sample since 100% inspection is very expensive and
time consuming, and may not lead to zero defects anyways. This process
significantly reduces cost of quality but the team must be knowledgeable
in sampling concepts and statistics.
• Sampling determines if large batches of product should be accepted or
rejected without having to test every single item produced
Your team uses statistical sampling to estimate the mean value of
the quality characteristic of your product. A quantitative measure of
precision of this estimation is standard error. Which one of the
following statements is true?
• A: Standard error increases when sample size increases.
• B: Standard error decreases when sample size increases.
• C: Standard error and sample size are not correlated.
• D: Standard error is the mean value of the quality characteristic.
• Standard error = standard deviation / sqrt(n). It decreases when
sample size n increases.
• Standard error = standard deviation / sqrt(n). It decreases when
sample size n increases.
• The following are Distribute information methods except:
• A: Electronic communications and conferencing tools.
• B: Inputting data into a spreadsheet.
• C: Project meetings.
• D: Hard-copy document distribution
Distribute information is information collection, sharing and distribution to
project stakeholders in a timely manner across the project life cycle.
Project information can be distributed using a variety of methods
including:
Project meetings, hard-copy document distribution, manual filing systems
and shared-access electronic databases
Electronic communication and conferencing tools, such as e-mail, fax, voice
mail, telephone, video and Web conferencing and Web publishing
Electronic tools for project management, such as Web interfaces to
scheduling and project management software, meeting and virtual office
support software, portals and collaborative work management tools.
• The term "progressive elaboration" refers to:
• A: Letting the team members make scope
changes without customer approval.
• B: Adding detail to project deliverables as the
project moves from phase to phase.
• C: Constantly changing project scope.
• D: Learning curve.
• A structured means to analyze the inputs to a process for
identification of the causes of errors is called:
• A: A cause-and-effect diagram.
• B: Pareto diagram.
• C: Design of experiments.
• D: Statistical process control.
• The cause and effect diagram is used to explore all the potential or
real causes (or inputs) that result in a single effect (or output).
Causes are arranged according to their level of importance or detail,
resulting in a depiction of relationships and hierarchy of events. This
can help you search for root causes, identify areas where there may
be problems, and compare the relative importance of different
causes.
• What is not considered an example of an
enterprise environmental factors?
• A: Historical project files.
• B: Enterprise facilities.
• C: Culture of the company.
• D: Marketplace conditions.
• You are reviewing the stakeholder register and
see 5 stakeholders are identified as risk averse.
These stakeholders are:
• A: Risk Takers.
• B: Prefer to avoid project risks.
• C: Will be ok with certain categories of risk but
not all categories.
• D: Will make their decisions about risk with a
balance between the payoff and their level of
satisfaction.
• You have just been hired to set up a PMO in a new up and coming
technology company. You are working with an existing employee to
define the roles of the new PMO. What should not be included as a
role for the PMO?
• A: Provide centralized project communications among project
managers, sponsors and various other project stakeholders.
• B: Provide resource alignment of project team members.
• C: Authorizing the project charters.
• D: Measure the effectiveness of corrective action taken on projects.
C is correct: The project charter is authorized by the sponsor not the
PMO. All other choices are possible roles the PMO can provide.
• Companies that practice good project management practices will
maintain good organizational process assets. The historical records
will be key in planning projects because:
• A: You will be much more efficient during the Identify Risk process
by using the risk register from a previous project.
• B: This is the official documents for the company policies and
procedures related to project management.
• C: You will be able to reuse all the templates from another project
saving many hours of effort.
• D: They include the documented lessons learned from previous
and similar projects which potentially you can benefit from for
your project
• D is correct: is the best statement related to historical records as
it describes the value for referencing these records.
• Almost 50% of the 42 processes are
completed during the planning process. Of the
following processes, which is not completed
during the planning process?
• A: Acquire project team.
• B: Plan Risk Responses.
• C: Create WBS.
• D: Develop Schedule.
• The scope management processes involves all of
the following except:
• A: Continuous validation to ensure all the work is
completed.
• B: Saying no to work not included in the project
or not part of the project charter.
• C: Giving the customer more than expected.
• D: Controlling what is and what is not in the
project
• During which stage of a project is the gap
between opportunity and the amount at stake
the greatest?
• A: Concept.
• B: Execute.
• C: Develop.
• D: Finish.
• During the concept stage of a project life cycle,
opportunities are the highest and the amount at
stake is the lowest.
• Henrich works as a full-time Project Manager AT Star
Enterprises. Although he is the PM he does not have full
authority over the project funding. What type of organization
structure does Star Enterprises have?
• A: Functional.
• B: Tight Matrix.
• C: Balanced Matrix.
• D: Strong Matrix.
C is most correct answer.
A is incorrect since a project manager's role is part-time in a
Functional Organization. B is not a type of structure. A tight
matrix indicates that project personnel are located close
together, also called co-location.
D is incorrect since a project manager has considerable
authority in a Strong Matrix.
• Mable has just been hired as a Program Manager at a
software development company that provides customized
software for various clients. Which choice below best
describes what Mable will most likely be managing?
• A: A group of software developers who are designing a new
software program.
• B: A collection of projects and programs that are grouped
together to meet strategic business objectives.
• C: A group of related projects managed in a coordinated
way.
• D: A group of quality team members who will brainstorm
methods to improve the quality process.
• You are the project manager for a software development project for
a start-up software company. The project charter is complete and
the scope management plan is underway. You learn that the new
widget is scheduled for release in July from the sales team. This is
contrary to early fall which is the charter milestone that the
developers will be following when sharing the schedule detail.
While you appreciate that the sales team are eager to get to
market, what do you do next?
• A: Tell the developers about the changed rollout date .
• B: Do nothing, sales always jumps the gun.
• C: Review stakeholder management plan.
• D: Verify software rollout date with the Sponsor, and inform sales
about the rollout date.
• The organizations' projects, depend on the availability of
web based, integrated training environments for use by
curriculum developers, trainers, and students. These
environments are examples of:
• A: Best practices.
• B: Enterprise environmental factors.
• C: Organizational process assets.
• D: Project resources.
• B is correct: Enterprise environmental factors include
commercial databases, project management information
systems (PMIS). C wrong: Organizational process assets are
plans, policies, procedures and lessons learned.
• Nathan, who works for one of the vendors, has just requested a
new data development to support web based training for the
enterprise. He has been told by his management that the data must
be ready for training next month and has asked you to ensure that
this deadline is met. Your next step is to:
• A: Start to create data as requested.
• B: Develop a project charter for the new data project.
• C: Contact the portfolio manager to determine if the vendors'
request aligns with enterprise strategies.
• D: Ask for additional information about the deadline.
• C is correct: Per the PBMOK "...projects can help achieve the
organizational goals when they are aligned with the organization's
strategy."
• The success or failure of a project is
determined during which process?
• A: Planning.
• B: Execution.
• C: Initiation.
• D: Close.
• Which of the following is not a characteristic of a
project?
• A: Unique.
• B: Catalyst for change.
• C: Phased deliverables.
• D: Linear Process.
A,B,C are all correct definitions of project
characteristics. D: Project processes are not done
in order (linear)
• Which of the following is not used during
initiation of a project?
• A: Project statement of work.
• B: Operational process assets.
• C: Project management plan.
• D: Project charter.
Answers A, B and D are all inputs from either of the
2 initiating processes (develop project charter &
identify stakeholders). C does not occur until the
planning processes.
• Trevor's project is in its execution phase and he knows from
experience that deviations can and will occur to the
baselines. Which PMBOK Guide process group is mainly
concerned with the collection of management processes
that support the ongoing project implementation and
provide project guidance?
• A: Direct and manage project execution.
• B: Monitor and control project work.
• C: Perform integrated change control.
• D: Monitoring and controlling process group.
• D is correct: Monitoring and controlling process group
consists of those processes required to track, review, and
regulate the progress and performance of the project.
• You have just been hired as the project manager (PM) for a new software
development company. This new company is a start up with a hand full of
software developers with no formal policies or procedures existing for
project management. Your boss has asked you to leverage your experience
in managing software projects to establish a project methodology for your
new company. As PM you will:
• A: Elicit the knowledge of your team and reference the PMI PMBOK Guide
as it describes a generally recognized project methodology you should use
on all projects.
• B: Elicit the knowledge of your team and apply a tailored project
methodology you have used in the past for software development.
• C: Strictly follow the PMI PMBOK Guide as it describes a generally
recognized project methodology you should use on all projects.
• D: Investigate and purchase the most appropriate project management
software from a reputable business that would best suit your company's
requirements.
• All of the following take place as part of
project initiating processes except:
• A: Develop Charter.
• B: Define Scope
• C: Develop business case.
• D: PM is assigned.
You are reviewing the critical path and see your project requires
more testers in July and August than you believe you might be able
to negotiate from the functional managers since this is the busiest
test period due to other project schedules. You decide to call a local
company that will provide qualified testers on a time and material
bases. What risk response are you using?
A: Exploit.
B: Transference.
C: Acceptance.
D: Contingency planning
Transference places the ownership and responsibility of the risk
onto a third party. It usually involves payment of some type of
insurance premium to the party assuming the risk.
• What is not a true statement about the Perform
Qualitative Risk Analysis process?
• A: Addresses individual risks descriptively.
• B: Prioritizes individual risks for subsequent
analysis.
• C: Assesses the discrete probability of occurrence
and impact on objectives if it does occur.
• D: Identifies risks with greatest effect on overall
project risk.
Your call center project is almost completed. As the project
manager in a Projectized organization, what is your biggest concern
as you enter the project closeout?
A: Team members may become overly concerned with their own

specialized areas, leading to conflicts among them.
B: Communicating to upper management the overall project status.
C: You will have extra pressure from the customer.
D: The team is not focused on completing the project.
250
Your call center project is almost completed. As the project
manager in a Projectized organization, what is your biggest concern
as you enter the project closeout?
A: Team members may become overly concerned with their own

specialized areas, leading to conflicts among them.
B: Communicating to upper management the overall project status.
C: You will have extra pressure from the customer.
D: The team is not focused on completing the project.
What is not a true statement about the Perform Qualitative Risk Analysis process?
A: Addresses individual risks descriptively.
B: Prioritizes individual risks for subsequent analysis.
C: Assesses the discrete probability of occurrence and impact on objectives if it does

occur.
D: Identifies risks with greatest effect on overall project risk.
A, B and C are all true statements of the qualitative risk process. D is a true statement
for the quantitative risk process.
You have just been appointed project manager of a project that is approved to start the
planning phase and the team has already been chosen by upper management. The
best way to begin communications with the team and set appropriate expectations is
to:
A: Send a formal letter to each team member outlining project objectives,

requirements from the team and the schedule.
B: Schedule a kick-off meeting to present project objectives and solicit input from the
team on how to achieve them.
C: Schedule a briefing session to present objectives and direct how they will be met.
D: Meet individually with each team member to determine how they intend to
contribute to the project objectives.
B is the most effective way of getting the team to buy in to project objectives and
commit to their achievement.
You have been hired for a short term contract to assist with setting up a PMO. You
meet with one of the department managers Judi, who is working on grouping her
department's projects which all have unique objectives into subcategories such as
Inventory Control, Purchasing and Vendors. Judi believes this will assist her in project
prioritization and more effective project reporting to upper management. What is
Judi attempting to create?
A: PMIS.
B: Portfolio.
C: Sub-projects.
D: Program.
Your team has created several documents that serve as historical records for future
projects. These historical documents are archived:
A: Throughout the project.
B: Before the end of planning.
C: Before the end of execution.
D: During closure.
The archiving of project records is an administrative closure procedure completed

during the close project process.
Lucky you, have just inherited a project that senior management considers "out of
control". All management can tell you is the client is not a happy camper, and the
budget and schedule are not good. What concerns you the most about this new
project of yours'?
A: Documentation to date on this project is minimal.
B: The project is over budget and behind schedule.
C: The unhappy client.
D: Your management is looking for rapid and visible action on this project to rectify
the problems.
You know you are brought into a project that is out of control. You immediately start
to assess what "out of control" means by asking management to identify the
problems. The fact that they can not pinpoint or isolate any problem and simply
state over budget and behind schedule, immediately flags to me there is little if any
documentation. Without documentation, a.k.a. project plan there is no control, no
way to satisfy the client, no way to action. What can we action if there is no plan?
Bottom line, documentation is a key process in project management and when it is
not done sufficiently we are very concerned and need to take action immediately.
You have been asked by your local PMI chapter to be a guest speaker at the next
chapter meeting. Since your passion is "risk" you have decided to speak on the topic
of project risk related to your most recent completed project. In reference to risk
management, when the outcome of the decision is not known in advance, it is the
definition of:
A: Certainty.
B: A risk.
C: Uncertainty.
D: A known-unknown.
What is the most important reason to analyze the network diagram from a risk
management perspective?
A: It shows where paths diverge.
B: It visually displays where the dependencies are.
C: It reflects all the task work required to complete the project.
D: It shows where paths converge.

What is the most important reason to analyze the network diagram from a risk
management perspective?
A: It shows where paths diverge.
B: It visually displays where the dependencies are.
C: It reflects all the task work required to complete the project.
D: It shows where paths converge.

Barriers to communication may include all of the following except:
A: Poorly defined communication channels.
B: Lack of contingency reserve.
C: Inappropriate level of detail or frequency of communication.
D: Language barriers - technical or cultural.
A contingency reserve is a means of reducing the risk of time or money overruns for
a project. Contingency reserve is not related to communications.
Barriers to communication may include all of the following except:
A: Poorly defined communication channels.
B: Lack of contingency reserve.
C: Inappropriate level of detail or frequency of communication.
D: Language barriers - technical or cultural.
A contingency reserve is a means of reducing the risk of time or money overruns for
a project. Contingency reserve is not related to communications.
Your risk assessment has a high probability that you will have a schedule overrun
due to insufficient resources available to you on the critical path. You start to look at
the costs and the effect on the schedule of contracting externally with a company
that are experts in testing which is where the resource limitation will occur the
most. What tool and technique best describes what you are doing?
A: Benefit/cost analysis.
B: Design of experiment.
C: Benchmarking.
D: Product analysis.
Design of experiment: An analytical technique which identifies factors which
influence specific variables in a project. Very useful to identify which variables
(such as cost and schedule trade-offs) have the most influence on overall project
outcomes to help determine an optimal solution. In this case, what effect will the
hiring of external resources vs. internal resources have on the budget and reduce
the risk of a schedule overrun since external resources should be more readily
available than the limited internal resources. Benefit/cost analysis: This technique
is more applicable to the overall financial measures or return on investment the
project will produce.
Nominal group technique, Root cause analysis and Assumption Analysis are all tools
of:
A: Identifying risks.
B: Qualifying risks.
C: Responding to Risks.
D: Quantifying Risks.
Group decision making may be prone to failure if symptoms of what phenomenon
are present?
A: Group talk.
B: Groupthink.
C: Loose matrix
D: Strong matrix
Nominal group technique, Root cause analysis and Assumption Analysis are all tools
of:
A: Identifying risks.
B: Qualifying risks.
C: Responding to Risks.
D: Quantifying Risks.
Para linguistics and metacommunication usually refer to what type of
communication?
A: Nonverbal.
B: Multilingual.
C: Bilingual.
D: Interpretive.
Para linguistics and metacommunication refer to nonverbal forms of communication

such as gestures, posture, facial expressions, tone of voice etc. This type is
especially important when you find yourself in a cross-cultural project environment.
What is not a true statement about the Perform Quantitative Risk Analysis process?
A: Uses project models for cost and schedule.
B: Predicts likely project outcomes based on combined effects of the risk.
C: Assesses the discrete probability of occurrence and impact on objectives if a risk

event does occur.
D: Identifies risks with greatest effect on overall project risk.

You are ending the close out of the feasibility phase of your high tech project. The
lessons learned is part of the check list of "tasks to complete". A lesson learned is
best completed by the:
A: Team.
B: Stakeholders.
C: Project Manager.
D: Sponsor.
Organizational learning is complex in that we learn at many levels simultaneously.
Some leading experts in organizational learning, believe that managers of
competitive organizations often find themselves in situations where relative
position with regard to a competitor matters. This possible competitive advantage
through enhanced learning is the essence of the study of experience and learning
curves. The experience curve theory states that as:
A: Cumulative production decreases, time and costs associated with that production
lower at a constant and predictable rate.
B: Cumulative production doubles, time and costs associated with that production
increase at a constant and predictable rate.
C: Cumulative production doubles, time and costs associated with that production
increase randomly.
D: Cumulative production doubles, time and costs associated with that production
lower at a constant and predictable rate.
Also referred to as the "learning curve theory" with the underlying concept that
costs and labour effort will decrease the more we repeat the same work tasks.
Specifically, each time a company doubles their output, cost and time savings are in
the neighbourhood of 10 to 30%.
Matrix charts are used to illustrate the roles and responsibilities of individuals on a
project when performing Human Resource planning. One common matrix
illustration is the Responsibility Assignment Matrix, also known as the RAM. A
popular type of RAM is the RACI chart. Another type of RAM that is used in practice
is the:
A: RONALD chart
B: ADIL chart
C: PARIS chart
D: ROCCI chart
The PARIS chart is another popular means to illustrate roles and responsibilities.
Much like the RACI chart, we list the work packages on each row and the roles on
each column. We then assign the value P (Participate), A (Accountable), R (Review),
I (Input), S (Signoff) in each cell of the chart.
You have just completed a response to the prioritized risks in the risk register. Prior
to proceeding to risk monitoring and control what should you do?
A: Create a final overall risk ranking for the project.
B: Develop workarounds.
C: Analyze the secondary risks.
D: Determine the urgency of the risks based on your responses.

You have just updated the last risk on the risk register with their affects on meeting
the project objectives. What would be the most likely next process to start?
A: Monitor and Control Risks.
B: Perform Qualitative Risk Analysis.
C: Perform Quantitative Risk Analysis.
D: Plan Risk Response.

Risk owners provide the most input to the risk process called:
A: Identify Risk.
B: Plan Risk Management.
C: Plan Risk Response Planning.
D: Perform Quantitative Risk Analysis.

Risk owners provide the most input to the risk process called:
A: Identify Risk.
B: Plan Risk Management.
C: Plan Risk Response Planning.

A process whose control chart shows 9 sample averages within the control limits
and one outside is considered:
A: Out of control and should be investigated to determine the cause of the

variation.
B: A random event that needs no investigation until more points are outside limits.
C: No cause for concern since 90% is within limits.
D: Movement of the process average and should be investigated.
If any of the data points are outside the limits, the process is considered out of
control and should be investigated.
You have just returned from an eventful holiday vacation and a note has been left
on your desk to contact your client. The company you work for provides project
management services on contract for software development initiatives and your
client has asked to cancel the project. Unfortunately, your client's business
outlook is bleak and there are no funds available to continue any project
activities. As project manager, what should you do:
A: Contact senior management and determine how the legal department should
treat the request.
B: Inform your project team that they may pack up and move onto other
initiatives.
C: Begin to document the reasons for termination.
D: Ask the client how you can trim the scope in hopes to realign the budget with
whatever funds the client has remaining.
You have just returned from an eventful holiday vacation and a note has been left
on your desk to contact your client. The company you work for provides project
management services on contract for software development initiatives and your
client has asked to cancel the project. Unfortunately, your client's business
outlook is bleak and there are no funds available to continue any project
activities. As project manager, what should you do:
A: Contact senior management and determine how the legal department should
treat the request.
B: Inform your project team that they may pack up and move onto other
initiatives.
C: Begin to document the reasons for termination.
D: Ask the client how you can trim the scope in hopes to realign the budget with
whatever funds the client has remaining.
The closing processes include:
A: Generating, gathering, and disseminating information to formalize a phase or

project completion.
B: Collecting and disseminating performance information.
C: Completing and settling contracts and excluding resolution of any open items.
D: Ensuring the project will satisfy the needs for which it was undertaken.
The project closing processes include all the activities required to formally
establish the project or project phase is completed. It includes the updates to
the organizational process assets.
Generally speaking the detail and frequency of performance reporting increases:
A: For executive management.
B: When risk increases.
C: With contractors.
D: With team members.
In general the detail and frequency of reporting decreases the higher up you are
reporting. In the case of risk reporting - the riskier the project is, the more detail
and frequency you will need to report at all levels.
Generally speaking the detail and frequency of performance reporting increases:
A: For executive management.
B: When risk increases.
C: With contractors.
D: With team members.
In general the detail and frequency of reporting decreases the higher up you are
reporting. In the case of risk reporting - the riskier the project is, the more detail
and frequency you will need to report at all levels.
Project termination responsibilities include all of the following except:
A: Modify project quality standards to reflect those actually implemented.
B: Oversee preparation of final invoices for the client.
C: Redistribute personnel, materials, equipment, and other resources.
D: Record and archive all legal project documents.
B, C and D are all activities that would be conducted during project termination.
A: Modifying quality standards, if applicable would have been conducted during
the quality assurance process.
Which approach or process will assist the most at increasing project opportunities
and reducing threats to a project?
A: Create a risk governance approach.
B: Plan Risk Responses.
C: Monitor and Control Risks.
D: Risk management plan.
B is correct: Plan Risk Response is the process that ensures we enhance the
opportunities and reduce the threats to the risks identified and analyzed in the
previous processes.
previous processes.
You are a Program Manager responsible for the health of 5 projects currently
underway. You have asked each Project Manager to report on the current status
of their projects, using the Earned Value Technique. At the last quarterly project
audit, you discover that one PM is reporting overly optimistic status on one
project, and it is in worse shape than is reported. The project is a mission-critical
one to the organization and if it continues at the current pace, the final delivery
date will be missed, leading to serious consequences for the company. What is
your immediate response?
A: Have a one-on-one meeting with the PM to understand why his Earned Value
reports are off, determine the actual status, and monitor the PM moving forward
to ensure it doesn't happen again.
B: Immediately replace the PM with a more experience PM.
C: Meet with the PM, work with the PM to devise and execute a plan to get the
project back on track, and inform the sponsor.
D: Cancel the project as it is clear it will not deliver.



Constructive team roles include which of the following?
A: Gate Keeper, Harmonizer and Recognition Seeker.
B: Encourager, Harmonizer and Withdrawer.
C: Harmonizer, Initiator and Devil's advocate.
D: Summarizer, Harmonizer, and Initiator.
Constructive and destructive team roles indicate how your attitude effects
overall team development. A constructive team role is one that helps team
development and a destructive one is that which hampers team development.
Constructive team roles are:
1. Initiator - let's do this
2. Information seeker - don't we have better information?
3. Information giver - My experience has been that...
4. Encourager - Mary, that was very helpful
5. Clarifiers - I believe we are saying that....
6. Gate Keeper - We have not heard Elizabeth's opinion on this issue yet. What
do you think, Elizabeth?
7. Harmonizer - I believe that we are all saying the same thing
8. Summarizer - I feel that we can now reach an agreement
When is the earliest time we can start to close the project?
A: At the end of each project phase.
B: At the end of the project.
C: When a contract has been completed.
D: During the scope verification process as this results in formal acceptance.
Close Project activities should be conducted at the end of each project phase
and not delayed until the very end of the project.

A control chart for a major project process shows that seven consecutive data
points of the nine sample averages are trending downward within the control
limits. What is indicated by this phenomenon?
A: The process average is moving to the lower values and needs to be corrected.
B: The process is showing an abnormal trend and should be investigated.
C: No action is required because the points are still within the control limits.
D: The process is out of control and should be investigate.
An abnormal trend is formed when seven or more consecutive data points reflect
a steadily increasing or decreasing pattern over time.
You are reviewing several project contracts for overall performance reporting to
determine the earned value techniques to be used for performance reporting.
One of the contracts scope of work contains a repetitive process. Since this
contract entails 70% of the total project work, which earned value reporting
technique would be the best to use?
A: Apportioned.
B: Line of Balance (LOB).
C: 50/50.
D: Milestone.
Line Of Balance (LOB) is an earned value technique for collecting, measuring and
presenting facts relating to time, cost and accomplishment - all measured against
a specific plan. It shows the process, status, background, timing and phasing of
the project activities. The manufacturing of parts and the assembly of units in a
factory are two candidates for the use of LOB. The LOB itself is a graphic device
that enables a manager to see, at a single glance, which of the many activities
that make up a complex operation are "in balance". He /she can determine
whether those which should have been completed at the time of the review
actually are completed and whether any activities scheduled for future
completion are lagging behind schedule.
There are 2 core close-out processes - close project and close procurement. What
is the key difference between these 2 processes?
A: Close procurement uses the term procurement audit and close project uses
the term admin closure.
B: Close procurement occurs first, followed by close project.
C: Close procurement usually has less documentation than close project.
D: Close project is completed only once at the end of the project while contract
close is completed at the end of every phase.
It's important you understand the differences between the 2 close out
processes. Contract closeout performs an audit of procurement, is completed at
the end of the contract when both parties have met their contractual
agreement and prior to the final project close of the entire project. Close project
performs a detailed lessons learned document, a complete set of indexed
records and may be completed at the end each phase and at the end of the
project.

One of the quality control procedures is to measure the response time of the
support team to the testers who have questions about the new system user
manual. Since this is a commercial application, there will be many testers located
in various parts of the world and you anticipate several hundred e-mails from the
testers. What approach will you consider to measure the results?
A: Design of experiment.
B: Benchmarking.
C: Attribute sampling.
D: Variable sampling.
Since the question focuses on the response time, the answer is D, variable
sampling. The response time from the support team may vary from 1 hour to 3
days depending on the time zone and could be plotted as a range (or
distribution) on a histogram. If the control measurement was simply to ask -
"do the testers like or dislike the user manual" it would be possible to use
attribute sampling.
The 2 closing processes - close procurement and close project both involve:
A: Product verification.
B: Kick-off meetings.
C: Audits.
D: Performance reporting.
Formal acceptance is an output to both admin and contract close-out.

In the field of Neuro-Linguistic Programming (NLP), studies on how individuals
prefer to accept and retain new information into their heads have been
conducted for years. Although these categories could be broken down further,
they tend to fall into three. Which of the following is not one of the three?
A: Visual.
B: Auditory.
C: Kinesthetic.
D: Electronic.
The 3 types are: Visual¾-¾ intake by seeing, Auditory¾- intake by hearing,
Kinesthetic -¾ intake by doing and touching. Each learner may have any
combination of these three. Some might fall strongly into one category, some
have no preference difference between two, and some are equally able to intake
with all three.
In the field of Neuro-Linguistic Programming (NLP), studies on how individuals
prefer to accept and retain new information into their heads have been
conducted for years. Although these categories could be broken down further,
they tend to fall into three. Which of the following is not one of the three?
A: Visual.
B: Auditory.
C: Kinesthetic.
D: Electronic.
The 3 types are: Visual¾-¾ intake by seeing, Auditory¾- intake by hearing,
Kinesthetic -¾ intake by doing and touching. Each learner may have any
combination of these three. Some might fall strongly into one category, some
have no preference difference between two, and some are equally able to intake
with all three.
During a procurement audit of a software development project, you discover that
the value of the contract to the vendor has increased substantially. There were no
incentives, fees or milestones in place to limit the risk to you (the customer). This
is an example of what type of contract?
A: CPPC.
B: FFP.
C: CPIF.
D: CPFF.
A correct: CPPC - cost plus percentage of the cost contract is a type of Time and
Materials contract that puts no limitations on the seller. In addition, all the risk is
assumed by the purchaser. For this reason, these types of contracts are not valid
for Federal contracts. C and D incorrect: CPIF - cost plus incentive fee and CPFF -
cost plus fixed fee contracts place some limit on the contract cost and share the
risk between buyer and seller.
A seller agrees to perform a service to furnish supplies for a lump sum amount.
The advantage of this type of contract to you as the project manager is:
A: Cost risk is higher.
B: Cost risk is lower.
C: There is little risk.
D: Risk is shared by all parties.

Lump sum amount is often referred to as a fixed price contract. It has a fairly
defined scope of work and places the greatest degree of risk on the seller with
the least amount of risk on the buyer.
Project risk can be defined as the cumulative effect of the probability of
_________ that will adversely or positively affect the project objectives.
A: most likely events
B: uncertain events
C: stakeholder tolerances
D: the frequency of events

You are managing an R & D project that overlaps two universities and a
government agency. A high-ranking government official associated with this
project asks you to include a minor addition, arguing that the "university crowd"
would not even notice this. This would require significant amount of work and
may stretch the budget to the limits. What should you do?
A: Use funds from the budget reserve to cover the costs.
B: Ask for more funds from the project sponsor.
C: Hide the new addition from the "university crowd".
D: Follow the integrated change control process.

Every requested change must be either approved or rejected by an authority
within the project management team - the change control board.
You are managing an R & D project that overlaps two universities and a
government agency. A high-ranking government official associated with this
project asks you to include a minor addition, arguing that the "university crowd"
would not even notice this. This would require significant amount of work and
may stretch the budget to the limits. What should you do?
A: Use funds from the budget reserve to cover the costs.
B: Ask for more funds from the project sponsor.
C: Hide the new addition from the "university crowd".
D: Follow the integrated change control process.

Every requested change must be either approved or rejected by an authority
within the project management team - the change control board.
A major financial institution has asked you to develop a cheque reconciliation
application. The application will need to process over 1 million cheques a day. You
need to process these in a nightly batch window of only 6 hours. You meet with
your application architects and discuss various configuration scenarios - i.e.
server size, CPU requirements, DASD, and network dependencies. Your goal is to
optimize performance in order to meet the 6 hour window time constraint.
Which technique are you applying?
A: Delphi.
B: Parametric.
C: Analytical Design.
D: Design of Experiments
Design of experiments uses statistical methods to balance certain factors
resulting in the most favourable outcome. It is a systematic approach to
investigation of a system or process. A series of structured tests are designed in
which planned changes are made to the input variables of a process or system.
The effects of these changes on a pre-defined output are then assessed.
If a project manager has developed a contingency plan, which risk response
strategy is being applied?
A: Avoidance
B: Mitigate
C: Acceptance
D: Transference
You are analyzing the schedule risk for your project using the Monte Carlo
Simulation. What is not true about the Monte Carlo simulation?
A: It will tell you the probability of completing the project on any specific day.
B: It uses the PERT formula.
C: It will tell you the probability of completing the project for any specific amount
of cost.
D: It will tell you the probability of any task actually being on the critical path.
The Monte Carlo simulation uses the multipoint estimates optimistic, most
likely and pessimistic - but does not use the Pert weighted values which is the
optimistic, plus 4 times the most likely plus the pessimistic over 6.
Project management continues to be a hot topic and is becoming more influential
on a daily basis. Many organizations have already realized the benefits of project
management and simply require process implementation support and mentoring.
Project management provides organizations with a methodology to:
A: Become more efficient and effective in accomplishing goals that cannot be

handled well by the traditional structure.
B: Manage high-risk repetitive work.
C: Provide clients with multiple points of contact.
D: Provide guidance in accomplishing repetitive activities.

Globalization has forced companies and societies to become Projectized. They
must be faster, better and cheaper to survive. In this new internet speed world, it
is imperative to create high compression of time to reduce the total time taken
from initiating a concept to its realization. This is why project management as a
formal discipline is emerging as the key area of growth. Project management
helps organizations meet their customers' needs by standardizing routine tasks
and reducing the number of tasks that could potentially be forgotten. It ensures
that available resources are used in the most effective and efficient manner,
provides senior executives insight into "what is happening" and "where things are
going" within their organization.
Project management continues to be a hot topic and is becoming more influential
on a daily basis. Many organizations have already realized the benefits of project
management and simply require process implementation support and mentoring.
Project management provides organizations with a methodology to:
A: Become more efficient and effective in accomplishing goals that cannot be

handled well by the traditional structure.
B: Manage high-risk repetitive work.
C: Provide clients with multiple points of contact.
D: Provide guidance in accomplishing repetitive activities.

Globalization has forced companies and societies to become projectized. They
must be faster, better and cheaper to survive. In this new internet speed world, it
is imperative to create high compression of time to reduce the total time taken
from initiating a concept to its realization. This is why project management as a
formal discipline is emerging as the key area of growth. Project management
helps organizations meet their customers' needs by standardizing routine tasks
and reducing the number of tasks that could potentially be forgotten. It ensures
that available resources are used in the most effective and efficient manner,
provides senior executives insight into "what is happening" and "where things are
going" within their organization.
Configuration management does not:
A: Control changes to functional and physical characteristics of an item or a

system.
B: Record and report changes to any functional and physical characteristics of an

item or a system.
C: Allow automatic approval of changes.
D: Audit items and systems to ensure conformance to requirements.
Allowing automatic approval of changes is a function of the change control

system, not configuration management. CM is any documented procedures used
to apply technical and administrative direction and surveillance to:
Basic steps (4). 1. Identify functional and physical characteristics of item or
system 2. Control any changes to such characteristics
3. Record and report the change and its' implementation status
4. Audit the items and system to verify conformance
Basic objective (3)
1. Screen user requests
2. Keep track of accepted changes
3. Update the development process
Configuration management does not:
A: Control changes to functional and physical characteristics of an item or a

system.
B: Record and report changes to any functional and physical characteristics of an

item or a system.
C: Allow automatic approval of changes.
D: Audit items and systems to ensure conformance to requirements.
Allowing automatic approval of changes is a function of the change control

system, not configuration management. CM is any documented procedures used
to apply technical and administrative direction and surveillance to:
Basic steps (4). 1. Identify functional and physical characteristics of item or
system 2. Control any changes to such characteristics
3. Record and report the change and its' implementation status
4. Audit the items and system to verify conformance
Basic objective (3)
1. Screen user requests
2. Keep track of accepted changes
3. Update the development process
Which of the following activities would be conducted during the planning process?
A: Charter
B: Work performance information.
C: Develop final project plan and performance measurement baselines.
D: Acquire the team.
A is output from the initiating process group.B and D are outputs from the
executing process group.
"Schedule compression" means:
A: Using time management techniques to shorten the length of the project

without changing the scope.
B: Analyzing the project plan to identify work tasks that could be done in parallel
without adding resources.
C: Moving resources from the non critical path to the critical path.
D: Removing items from the scope document to complete the project sooner.
Schedule compression is a T n T used during schedule development to shorten the

overall schedule. There are 2 types: Crashing and Fast tracking.
You are reviewing the overall project funding and see there is funds allocated to
both the management and contingency reserves. What is the difference between
management reserves and contingency reserves?
A: Contingency reserves are not included in the baseline whereas management

reserves are.
B: Contingency and management reserves are basically the same and treated the
same for approval to spend.
C: Contingency reserves are for project risks identified, whereas management

reserves are for unplanned changes to the scope.
D: Contingency reserves are managed by senior management whereas

management reserves are managed by the project manager.
Standard "Shewhart" control charts assume that the distribution of sample means
is:
A: Normal and uniform.
B: Normal and discrete.
C: Normal and symmetrical.
D: Discrete and symmetrical.

Normal distribution is always symmetrical. The concept that 68% of the
observations fall within 1 standard deviation of the mean, 95% of the observations
fall within 2 standard deviations of the mean, that is, and 99.7% of the observations
fall within 3 standard deviations of the mean; is used to set control limits on the X-
bar chart and is true for and based on the assumption that the underlying
distribution is normal.
You are reviewing a decision tree diagram reflecting a risk event has an 80% chance
of occurring, with a potential gain of $10,000. Another value of $8,000 is
represented. What does the value of $8,000 represent?
A: Reserve amount required.
B: Present value.
C: Expected monetary value.
D: Contingency budget.
Expected monetary value (EMV) is a mathematical formula that can help make
comparisons between a range of uncertain outcomes. It is the probability x the
outcome. In this example there is an 80% chance the outcome will be $10,000. 80
x 10,000 equals an EMV of $8,000.
Which of the following choices indicates that a project has a burn rate of .833?
A: The PV is 100 and the EV is 120.
B: The ACWP is 100 and the BCWP is 120.
C: The EV is 100 and the PV is 120.
D: The BCWP is 100 and the BCWS is 120.
This is definitely a tough formula question that you may not have been exposed to
even if you are familiar with earned value formulas! The term "burn rate" from a
project management perspective determines the rate at which hours allocated to
a project are being used. It helps to identify when work is going out of scope, or
when efficiencies are being lost. Specific to earned value management, the burn
rate is calculated via the formula, 1/CPI, where CPI stands for Cost Performance
Index, which is equal to Earned Value(BCWP) / Actual Cost(ACWP).
Which of the following best describes a functional organization:
A: Most of the employee's are involved in project work.
B: Each employee has more than one supervisor.
C: Project managers have considerable authority.
D: The project manager's role is more of a coordinator or expeditor than a

manager.
The latest summary status report reflects your project is behind schedule by a solid
week. Of course your project has high visibility within the organization and is
completely date-driven. Project implementation is still 2 months away and you are
fairly confident you can recover the slippage over the next 4 or 5 weeks. You need
to attend the executive monthly project status meeting on Monday. What should
you report on the project status?
A: On target. This is small slippage and there is still plenty of time to recover.
B: On schedule. Most project plans are not accurate to less than one or two weeks.
C: Report the project one week behind schedule and include the action plans to
bring the project back on schedule.
D: Report the project one week behind schedule and then issue a new report next
week showing the problem fixed.
As the project manager working on a new software release project, a team member
has just brought to your attention a risk that has occurred that was not reflected in
the risk register. What should be your first course of action?
A: Schedule a meeting to determine the work around.
B: Inform management and communicate the new risk to the team.
C: Communicate your planned response to the sponsor.
D: Use the existing reserves to manage this risk.
This is an unplanned risk since it was not reflected on the risk register which you
should first evaluate and determine the appropriate work around.
An approved change request impacting scope is:
A: Any change in the technical specifications.
B: Any change in project team members.
C: Any modification to the agreed-upon project scope baseline, as defined by the

approved project scope statement, WBS and WBS dictionary.
D: Part of the work performance information.
An approved change request impacting project scope is any modification to the

agreed-upon project scope baseline, as defined by the approved project scope
statement, WBS and WBS dictionary
Which of the following is not considered an information gathering technique to use
during the Identify Risks process?
A: Delphi technique.
B: Root Cause Analysis.
C: Interviewing.
D: Documentation reviews.
D is correct: Documentation reviews is a tool and technique of the Identify Risks

process and not considered an information gathering technique.
Which of the following is not considered an information gathering technique to use
B: Root Cause Analysis.
C: Interviewing.
D: Documentation reviews.
D is correct: Documentation reviews is a tool and technique of the Identify Risks

process and not considered an information gathering technique.
For one month, you track the delivery times of your product shipped by VIA rail. The
daily results fluctuate between 10 minutes late or early however 2 of the delivery
days were late by over an hour each due to snow conditions. The 2 delivery days
that were more than an hour late would be attributed to:
A: Random causes.
B: Common causes.
C: A flaw in the overall delivery process.
D: Special causes.
Special causes are unusual events such as a snow storm not inherent in the
process itself. Random causes, maintenance problems are normal process
variations.
You are attending a kick-off meeting with approximately 13 participants. The project
manager starts the meeting with defining the roles and responsibilities for each of
the participants. You observe one of the members is giving body signals which is
generally associated with a feeling of uncertainty. What body signal would you most
likely be observing?
A: Clenched fists or crossed arms.
B: Scratching head or face.
C: Bending forward.
D: Rubbing hands.
Body language of scratching the head or face is generally associated with
uncertainty or risk. A: Clenched fists or crossed arms is associated with a defensive
attitude.C: Bending forward is associated with interest. D: Rubbing is associated
with expectation
You are the PM in charge of running a Mix Martial Art (MMA) pay-per-view in
London, Ontario. This is the first MMA pay-per-view of its kind in this city. Tickets
will be sold at a first come first serve basis, with a flat fee of $25 a piece. One of
your responsibilities is to determine the location in which the event will be held.
There is a 45% chance that you can procure an outdoor venue for the event. If the
outdoor event is chosen, there is a 15% chance the event will be cancelled due to
rain. The outdoor venue has a capacity of 60,000 seats. If the indoor event is
chosen, there is 95% chance that the event would be a success, but this would
result in a 20% reduction in sales. What is the approximate probability that the
event will be held outdoors and in good weather?
A: 85%.
B: 0.38
C: 0.25
D: 0.52
45% x 85% = 38.25%
You are the PM in charge of running a Mix Martial Art (MMA) pay-per-view in
London, Ontario. This is the first MMA pay-per-view of its kind in this city. Tickets
will be sold at a first come first serve basis, with a flat fee of $25 a piece. One of
your responsibilities is to determine the location in which the event will be held.
There is a 45% chance that you can procure an outdoor venue for the event. If the
outdoor event is chosen, there is a 15% chance the event will be cancelled due to
rain. The outdoor venue has a capacity of 60,000 seats. If the indoor event is
chosen, there is 95% chance that the event would be a success, but this would
result in a 20% reduction in sales. What is the approximate probability that the
event will be held outdoors and in good weather?
A: 85%.
B: 0.38
C: 0.25
D: 0.52
45% x 85% = 38.25%
Sensitivity Analysis can be used in risk analysis to:
A: Estimate the effect of change of one project variable on the overall project
objectives.
B: Help to determine the risk tolerance acceptance level adopted by senior

management.
C: Help to complete the risk urgency assessment.
D: Can be conducted using the Monte Carlo technique.

The risk management plan generally includes all of the following except?
A: Revised stakeholders' tolerances.
B: Reporting formats.
C: Definitions of risk probability & impact.
D: Likely cost of risk occurrence.
The risk management plan describes how risk management will be structured and
performed on the project. It does not address the cost of individual risk
occurrences.
A project life cycle:
A: Has a fixed number of phases.
B: Always includes a control phase.
C: Has phases with the same amount of time allocated to each.
D: Has phases that are customized to suit project needs.

A control chart for a major project process shows that seven of the nine sample
averages are 'hugging' the lower control limit. What is indicated by this
phenomenon?
A: No action is required because the points are still within the control limits.
B: The process is out of control and should be investigated.
C: The process average has moved to the lower values and needs to be corrected.
D: No action is required until all points are hugging the limit.
A correction is required because even a slight change would move the data points
outside of the lower limit.
Which of the 7 main statistical processing charts determines possible causes of
potential problems and actual problems?
A: Flow charts.
B: A fishbone diagram.
C: A control chart.
D: Scatter diagram
The cause and effect diagram or "fishbone" is the brainchild of Kaoru Ishikawa, who
pioneered quality management processes in the Kawasaki shipyards, and in the
process became one of the founding fathers of modern quality management.¾ The
cause and effect diagram is used to explore all the potential or real causes (or
inputs) that result in a single effect (or output). Causes are arranged according to
their level of importance or detail, resulting in a depiction of relationships and
hierarchy of events. This can help you search for root causes, identify areas where
there may be problems, and compare the relative importance of different causes.
Causes in a cause and effect diagram are frequently arranged into four major
categories. While these categories can be anything, you will often see: manpower,
methods, materials, and machinery (recommended for manufacturing)
equipment, policies, procedures, and people (recommended for administration and
service).
You are leading a project team of 11 very senior chemical analysts. The client has
agreed to accept a cost variance in order to add one additional senior analyst to the
team so the project date can be advanced by one month. How many more
communication channels does this add to your current team?
A: 12
B: 11
C: 78
D: 66
Do not forget to count yourself as part of the team.

N(n-1)/2 where n is the number of team members.
12*11 = 132 /2 = 66:
13*12= 156/2 = 78
Difference is 12.
You are reviewing the results and trends of a project that has had recurring
problems with cost performance. It is just a matter of time before management is
going to request a meeting to review the project status. What is a well known
method that will enable you to evaluate the cost performance of this project and
present the results to upper management?
A: Determine the CPI.
B: Determine the SPI.
C: Determine the EAC.
D: Determine the ETC.
The CPI (cost performance index) will identify how much is being produced for
every dollar spent on the project. I.e. we are only getting 90 cents for every dollar
we are spending on the project. To calculate the CPI: Earned value divided by the
actual costs to date. Remember an indicator of 1 or more is good. Less than 1 you
are in trouble.
You have just been contracted to be the project manager for a large telephone
switching centre upgrade involving approximately 58,000 existing telephone lines.
You have been a PM on many similar projects of this size and know there will be
significant data record validation prior to conversion to the new technology. Your
new boss informs you the project is approximately 25% into the planning phase.
What is the first thing you should do?
A: Review the Gantt chart for the progress to date.
B: Schedule a status meeting with the team leaders and ask for their individual
project status reports. It's best to get the information face to face with the team.
C: Stop all tasks until you have had the chance to review the project charter to
ensure the scope is sufficiently defined.
D: Read the project charter, plans and current team status reports
This is a good situational question that emphasizes the value of a project charter
and regular performance reporting. Before you meet with the team you should be
knowledgeable on all the project documentation.
You are reviewing the 3 month cumulative earned value progress report for a
software development project. The indicators reflect an SPI of .87 and a CPI of .94.
What is the more likely explanation for why this occurred?
A: The schedule has been "crashed" resulting in an increase to the budget.
B: At least one task has taken more time than expected.
C: Less experienced resources are being assigned to complete the project work to
date.
D: The leasing of the server hardware was more expensive than expected.
Both the budget and the schedule are running behind since the indices are less than
"1". The best answer that would negatively affect both the time and cost would be
"C" since typically less experienced resources would take longer to complete
activities resulting in an increase to the budget. B: A task could take longer than
originally planned without necessarily increasing the costs since the task may not
start when planned.
Your project scope entails the production of 100 hand held math games to be
produced in 5 weeks to meet the prototype milestone marketing has mandated.
Your BAC is $10,000. It is now the beginning of week 3 and your status report
reflects actual costs to date of $2,000 with 40 handhelds successfully built. What
statement below should be included in your status report?
A: Your project is right on target.
B: The project is under budget by $2,000 and on schedule.
C: The project is on budget.
D: The project is producing $2 of work for every dollar spent. In order to calculate
the schedule and cost project status, you need to analyze the information provided
and determine the budgeted dollar values for the planned (PV) and the earned (EV).
And of course we need to know what the actual cost (AC) is which the questions
provides as $2,000.
You are working in the PMO when your immediate boss has asked you for your best
recommendation on how we can reduce the risk to the seller, from proposals
received from within the organization. You respond:
A: We should request all proposals to be under a fixed price contract.
B: Have the purchasing department review all the proposals to ensure they are
compliant with outside industry practices.
C: Ensure a project manager assists in the creation of the estimates provided in the
proposal.
D: Add contingency to both the cost and schedule to accommodate for delays and
budget overruns.
C is correct: Assigning a project manager to assist in the proposal estimates will
help to make the estimates much more reliable as effective project management
tools such as a WBS, conduct risk analysis and various estimating techniques based
on the complexity of the activities would be utilized.
The statistical limits for process or product variation are called:
A: Specification limits.
B: Tolerances.
C: UCL and LCL.
D: Quality standards.
The statistical limits for process or product variation are called:
A: Specification limits.
B: Tolerances.
C: UCL and LCL.
D: Quality standards.
You have received anonymous complaints that the status meetings are dragging on
past the one hour mark. Your project team is comprised of a dozen project leads
and one such lead seems to be disrupting the flow of communication on a frequent
basis. Given the size of the project, access to information is critical and you rely on
all project leads to provide the necessary updates in a timely manner. The project
lead in question is not complying with your expectations. What destructive team
role is this individual exhibiting:
A: Topic Jumper
B: Devil's Advocate
C: Blocker
D: Withdrawer
What is the name or title of the individual on the project team responsible to
monitor the risk triggers and manage the risk response in the event the risk does
occur?
A: Project Manager.
B: Team Leader for the risk category.
C: Sponsor.
D: Risk owner.
D is correct: The risk owner which is identified in the risk register for each risk is
the person ultimately responsible to watch for risk triggers and to manage the risk
response. This person can be the project manager, team leader, risk action owner
or any other appr0priate stakeholder.
As the Director of the PMO for a large call centre, you meet monthly with your
project managers to review upcoming risks for all new technology projects
underway. One project being reviewed is at the half way completion mark and the
project manager has identified 9 risks that are "yellow" ranking. What does this
mean?
A: These risks have yet to assessed for their priority ranking.
B: These risks will be added to the watch list.
C: These risks are ranked as high priority.
D: These risks are ranked as moderate priority.

D is correct: The risk probability and impact (P/I) matrix can be color coded as
green for low risks, yellow for moderate risks, and red for high risks.
Monte Carlo analysis is a form of what type of analysis?
A. Critical path method
B. Schedule compression
C. What-if scenario analysis
D. Resource-leveling
You are the project manager responsible for developing a new online line bill
payment system for a utility company. You are expected to complete the project
within the next year. You are currently in the process of identifying and
evaluating a number of risks quantifying their impacts and identifying their
probability of occurrence. You would like to use a tool that will determine the
highest expected value for the various scenarios. Which of the following tools
should you use?
A. Monte Carlo simulation
B. Decision tree analysis
C. Ishikawa diagrams
D. Critical path method
Answer: B
You have been recently hired to be a project manager at a bio-tech
company to develop a new drug to treat pancreatic cancer. The drug has
been under development and clinical testing for past 5 years. The FDA is
currently reviewing the clinical data in order to determine weather the drug
has any serious side effects. If the FDA does NOT approve the drug, the
project will be in trouble. This is an example of which type of risks?
A. Organizational risk
B. Fore majeure risk
C. Project management risk
D. External risk
Answer: D
You are the project manager at an auto manufacturer. Due to the recent rise in the
cost of petroleum, the market demand for hybrid cars with high fuel efficiency ahs
increased. Your company has identified the multi-billion dollar market opportunity
for highly fuel efficient vehicles. However, your organization does not have enough
resources and expertise to exploit this opportunity. Hence, your organization has
decided to identify the qualified candidates. Which of the following best describes
the type of strategy you are using to deal with this market
opportunity?
A. Share
B. Acceptance
C. Exploit
D. Enhance
Answer: C
Which of he following best describes the risks that still remain after
avoidance , transfer, or mitigation responses have been
implemented?
A. Contingency risks
B. Tertiary risks
C. Residual risks
D. Secondary risks
Answer: C
You are the project manager responsible for developing a new hybrid engine
for a major auto manufacturer. You are in the process of developing the project
schedule and would like to identify the project risks and associated risk
response plans. Where would you be able to retrieve this information?
A. Activity list
B. Risk attributes
C. Organizational process assets
D. Project management plan
Answer: D
Quality control includes a number of activities and techniques within a project that
ensure that the organization's quality objectives are being met. Which of the
following is not considered part of the quality control process?
A: Quality audits.
B: Continually monitoring processes.
C: Identifying and eliminating problem causes.
D: Use of statistical process control to reduce process variability and increase

efficiency.
Quality audits are part of the quality assurance process.

A FPI contract has a target cost of $150k, a target fee of $25k, sharing ratio of 60/40,
ceiling price of $180k and actual costs of $145k. What is the target price of this
contract?
A: It's the point of total consumption.
B: 175000
C: 180000
D: 172000
B Correct: The target price for a FPI contract is the total of the target cost and
target fee. In this case: $150k plus $25k is $175k.
D Incorrect: $172k is the total contract price payout. AC 145 + TF 25 = 170 + 40% of
underage 5 is 2k for a total of $172k.
You are the project manager for a software company developing wireless mobile
application. You are currently in the Risk Identification process where you are trying
to identify and document all the risks that might impact your project. You have
assemble your experts in one room for face-to-face discussion. You intend to use a
face-to-face group judgment technique in which participants generate silently, in
writing, responses to a given question/problem; responses are collected and posted,
but not identified by author, for all to see; responses are openly clarified, often in a
round-robin format, further iterations may follow; and a final set
of responses is established by voting/ranking. Which technique are you using?
A. Brainstorming
B. Assumption analysis
C. Norming group technique
D. Delphi technique
Answer: C
Which of the following statements are false regarding sensitivity analysis?
A. Sensitivity analysis is a tool used in quantitative risk analysis
B. Sensitivity analysis is useful for determining the relative importance of
variables that have a high degree of uncertainty to those that have low
uncertainty
C. Sensitivity analysis helps determine which risks have the most potential impact
on the project
D. Sensitivity analysis examines how variations and uncertainty of individual
project element impacts the project objective, assuming all other project element
are varied concurrently
Answer: A
You are a project manager at an utility company. Due to the recent rise in the
cost of petroleum, the market demand for cheaper, alternate forms of energy
have grown exponentially. Your company has identified, a multibillion dollar
market opportunity for alternate forms of energy.
However your organization does not have enough resources and expertise to
exploit this market opportunity. Hence your organization has decided to form
joint ventures and risk sharing relationship with various other utility companies
to coordinate research and development activities. Which of he following best
describes the best strategy you are using with this market opportunity?
A. Enhance
B. Share
C. Avoidance
D. Exploit
Answer: B
The risk register describes all identified risks.
Which of the following is? not including as a part
of risk register?
A. Probability of occurrence, impact on objectives
B. Reporting formats, tracking
C. Proposed responses, owners, current status
D. Risk description, category, causes
Answer: B
Which of the following describes how the various risk
management processes will be implemented,
monitored, and controlled throughout the project and
describes the criteria that are used to establish the
risk threshold?
A. Workaround plans
B. Residual risks
C. Risk management plans
D. Checklists
Answer: C
You are a project manager at a project company developing wireless mobile
applications. You are currently in the risk identification process, where you are trying
to identify and document all risk that might impact the project.
You have assembled your experts both from inside and outside the company. You have
asked them to make a anonymous questionnaire to identify the potential risks of the
project. The experts will then mail back the questionnaire directly to you. Once you
have received the Feedback, you intend to organize the responses in order to compile
a final list of potential project risks. Which of the following best describes the
techniques are you using?
A. Normal group technique
B. Assumption analysis
C. Delphi technique
D. Brainstorming
Answer: C
Mary is the project manager of the HGH Project for her company. She and her
project team have agreed that if the vendor is late by more than ten days they will
cancel the order and hire the NBG Company to fulfill the order. The NBG Company
can guarantee orders within three days, but the costs of their products are
significantly more expensive than the current vendor. What type of a response
strategy is this?
A: Expert judgment
B: Contingent response strategy
C: External risk response
D: Internal risk management strategy
What are the tools and techniques of the Quantitative Risk Analysis
process?
A. Checklists, flowcharting, interviewing
B. Interviewing, sensitivity analysis, decision tree analysis,
simulation
C. Checklists, sensitivity analysis, decision tree analysis, information
gathering techniques
D. Interviewing, checklists, assumptions analysis, risk probability
impact
B. The Quantitative Risk Analysis process has four tools and

techniques: interviewing, sensitivity analysis, decision tree analysis,
and simulation. For more information.
As part of your project, you have identified a significant risk of cost overrun on a
software component that is integral to the product. Which represents the BEST
strategy in dealing with this risk?
A. Outsource the software development.
B. Insure the cost.
C. Double the estimate.
D. Eliminate the need for this component.
A. Outsourcing the software development could allow you to cap the cost. 'B' is not a
good choice because costs for development such as this cannot be insured in a cost-
effective manner. 'C' is not correct because doubling the estimate does not deal with
the root of the problem. It only arbitrarily changes the estimate. 'D'
is incorrect because you cannot simply eliminate every high risk component in the
real world.
What is the BEST source of information about potential risk on your project?
A. Computer risk analysis.
B. Interviews with team members from other projects.
C. Historical records from similar projects.
D. Your own experience in this industry.
C. Historical records from similar projects would provide you with the best
source of information on potential risks. 'A', 'B',and 'D' are all good inputs or
tools, but they would not be as pertinent or helpful as the records from other
similar projects. Historical information gets brought into your planning
processes as an organizational process asset.
Your company is beginning a new building project and has assigned you the
role of project manager. During the first few meetings with stakeholders you
become aware of several risks that are of concern to the project sponsor. The
topic of risk management, however, has yet to be addressed. What is the first
thing you should do to address the project risks?
A. Develop a risk management plan.
B. Identify project risks.
C. Plan responses to project risks.
D. Determine how risks will be controlled.
A. You should develop the risk management plan. A risk management plan
will outline how all risk planning activities and decisions will be approached.
Methods of identification, qualification, quantification, response planning,
and control will all follow the development of the risk management plan.
You are managing a project to set up data servers to support a website for an
enterprise customer. The location for the servers has been chosen close to the
customer due to their requirements. However, this location is prone to natural
disasters, such as hurricanes and flooding. You have decided to install some extra
servers in another city that will act as backup if a disaster happens. This is an
example of which of the following?
A. Risk avoidance
B. Risk mitigation
C. Risk acceptance
D. Risk transfer
Answer: B B is correct because building redundancy into a system is an example of
mitigating the risk.
A problem occurs in the design of a grocery cart. In this case it is determined that the
wheel will wear out much quicker in areas of heavy snow and ice because the salt will
corrode the wheel bearings. Using sealed bearing wheels will significantly increase cost,
and it is deter-mined that the carts themselves will be rusty and damaged at about the
same time the wheel bearings begin to fail. By injecting the wheel bearings with a high
temperature grease the life of the wheel bearings is increased considerably. The project
recommends using the high temperature grease. This is called:
a. Risk acceptance.
b. Risk avoidance.
c. Risk mitigation.
d. Risk deflection.
Answer: c Risk mitigation is the process of reducing a risk to acceptable levels. In risk
mitigation the risk has either a reduced impact or probability or both. This reduces the
risk severity to levels below the risk tolerance.
The project has done its risk analysis. In the process of risk identification the
project team has determined that there are risks that will probably happen that
have not been identified or evaluated except by noting that other projects of this
type have historically had a certain amount of risk discussed in the lessons learned
of the project. This project team should set aside money to handle these risks in
which financial category?
a. Risk management fund
b. Contingency budget
c. Management reserve
d. Emergency fund
Answer: c Management reserve is funds set aside to manage unidentified risks.
PMI refers to these as the ‘‘unknown unknowns.’’ When the management
reserve is used,it is moved from the management reserve to the cost or schedule
baseline.
A project manager observes that in one part of the project several activities are
being completed late. All of these activities have several days of free float
associated with them. These are early warnings of the risk that the project will be
late in completion. They are called:
a. Risk triggers.
b. Warning messages.
c. Risk forecasts.
d. Schedule risks.
Answer: a Risk triggers, sometimes called risk symptoms, are indications that a
risk is about to occur. In this example there is a risk that the project will be
delayed. There is a warning that this will occur because several activities are
now overdue for completion. They do not affect the project schedule yet, but if
this trend continues the project will be late.
A project manager and her project team are analyzing risk in their project. One of
the things that they might do to help identify potential risks or opportunities
would be to review:
a. The project budget.
b. The goals and objectives of the project.
c. Lessons learned from other similar projects.
d. The monetary value of changes for similar projects.
Answer: c The lessons learned document from other similar projects can be a
great help in determining the new risks associated with this project. Many
times risks repeat themselves from one project to another. This makes the
lessons learned document very important for all projects.
You are the project manager of the NHQ Project for your company. You have
completed qualitative and quantitative analysis of your identified project risks and
you would now like to find an approach to increase project opportunities and to
reduce threats within the project. What project management process would best
help you?
A. Monitor and control project risks
B. Create a risk governance approach
C. Create the project risk register
D. Plan risk responses
Answer: D
Frank is the project manager of the NHQ project for his company.
Frank is working with the project team, key stakeholders, and several
subject matter experts on risks dealing with the new materials in the
project. Frank wants to utilize a risk analysis method that will help
the team to make decisions in the presence of the current
uncertainty surrounding the new materials. Which risk analysis
approach can Frank use to create an approach to make decisions in
the presence of uncertainty?
A. Monte Carlo Technique
B. Qualitative risk analysis process
C. Quantitative risk analysis process
D. Delphi Technique
Answer: C
You’re managing a project to fulfill a military contract. Your project team is
assembled, and work has begun. Your government project officer informs you
that a supplier that you depend on has lost the contract to supply a critical part.
You consult your risk register and discover that you did not plan for this. What’s
the BEST way to handle this situation?
a) Consult the probability and impact matrix
b) Perform quantitative and qualitative risk analysis
c) Recommend preventive actions
d) Look for a new supplier for the part
19. Answer: D You’ve got an unplanned event that’s happened on your project.
Is that a risk? No. It’s a project problem, and you need to solve that problem.
Your probability and impact matrix won’t help, because the probability of this
happening is 100%—it’s already happened. No amount of risk planning will
prevent or mitigate the risk. And there’s no sense in trying to take preventive
actions, because there’s no way you can prevent it. So the best you can do is
start looking for a new part supplier.
At his Indonesia-based software manufacturing company, Daniel realizes
that risk management has become more important as the company
continues to evolve. He needs to begin the process of incorporating risk
management into all of his new projects. What is the first step in using a
WBS as an effective tool for risk management?
❑ A. Determine the probability of occurrence of risks.
❑ B. Review WBS elements and segment into risk events.
❑ C. Further define high-risk areas in the WBS.
❑ D. Include contingency activities in the WBS.
Answer B is correct. Answers A, C, and D are incorrect because they are
done after risk events are identified.
You are a project manager working on a software development project. You’ve
developed the risk management plan, identified risks, ad determined risk
responses for the risks. One of the risks you identified occurs, and you
implement the response for the risk. Then another risk occurs as a result of the
response you implemented. What type of risk is this called?
Trigger Risk
Residual Risk
Secondary risk.
Mitigated risk.
Answer C: Secondary risks occur as a result of the implementation of a
response to another risk.
The project manager of a large project meets several times with the client for
the project. During the meeting the project manager judges that the client
has a very low risk tolerance. This means that the client will probably:
a. Be willing to take large risks to make large profits.
b. Be unwilling to take large risks to make large profits.
c. Will understand when risks happen on the project.
d. Will not understand when risks happen on the project.
Answer: b Risk tolerance is the measure of the client to take risks. A client
with a low risk tolerance will not be willing to take very many or large risks
even though they may produce considerable opportunities to make large
profits.
A project manager is dealing with risk analysis on a software development
project. There is a risk that the module that creates the most important report
that the system will create will not work properly and will require 200 person-
hours to correct. The project manager decides to do nothing about this risk.
Which of the following risk strategies is the project manager employing?
a. Acceptance
b. Avoidance
c. Mitigation
d. Deflection
Answer: a Risk acceptance is doing nothing about the risk until it happens. This
is done with risks that are below the risk tolerance level.
The project manager has critical parts that are needed for the project. If the first
order of parts is delivered late, the project will be late delivering a critical deliverable
to the customer. The seller that has been selected to make these parts for the
project has been used in the past and historically has failed to deliver on time 10% of
the time. Another vendor can be found that has the same delivery record. The
project manager decides to divide the order between the two vendors in hopes that
at least one of them will deliver on time. What is the probability that at least one of
the vendors will deliver on time?
a. .81
b. 1.8
c. .99
d. 1.0
Answer: c The probability is that at least one of the sellers will deliver the parts on
time. This is the same as saying either vendor A or B must deliver. This is the
addition rule in probability. The probability that the first seller will deliver is .9. The
probability that the second seller will deliver is also .9, but the second seller
delivering on time is only of consequence if the first seller fails to deliver on time,
or .1. The calculation is then .9 + (.1x .9) =.99.
You are managing the construction of a data center, but the location is in an area
highly prone to earthquakes. In order to deal with this risk, you have chosen a type of
building and foundation that is particularly earthquake resistant. 'This is an example
of:
A. Risk transfer.
B. Risk avoidance.
C. Risk mitigation.
D. Risk acceptance.
C. The best answer here is risk mitigation since you are taking steps to lessen the risk.
'A' is incorrect because you are not transferring the risk to anyone else. 'B' is incorrect
because you would need to relocate in order to completely avoid the risk of
earthquake. 'D' is incorrect because you are not merely accepting the risk - you are
taking steps to make it less severe.
You are currently on a 3-week vocation in Australia. You’ve decided to rent a
car as your means of transport around the country. Driving in a foreign country
can be potentially a risky activity as you are unfamiliar with the terrain. Hence,
the probability of being involved in an accident is higher. You are very
concerned with regards to the financial liability incurred if you were involved in
an accident. As a project manager, you are aware of various techniques used to
respond to understand risks. You would like to apply your risk management
knowledge to reduce the risks associated with your driving. Which of the
following is the BEST example of risk
transference?
A. Be extra careful while driving defensively
B. Avoid driving, use public transportation instead
C. Accept the risk associated with driving
D. Buying auto insurance
Answer: D
You are currently on a 3-week vocation in Australia. You’ve decided to rent a car
as your means of transport around the country. Driving in a foreign country can
be potentially a risky activity as you are unfamiliar with the terrain. Hence, the
probability of being involved in an accident
is higher. As a project manager, you are aware of various techniques used to
respond to understand risks. You would like to apply your risk management
knowledge to reduce the risks associated with your driving. Which of the
following is the BEST example of risk avoidance?
A. Accept the risk associated with driving
B. Be extra careful while driving defensively
C. Buying auto insurance
D. Avoid driving, use public transportation instead
Which of the following processes involves ensuring that risk plans are
properly executed?
A. Risk monitoring and control
B. Risk response planning
C. Risk identification
D. Risk management planning
Answer: A
Which of the following best describes secondary
risks?
A. Risks that still remain after implementing a risk
response
B. Risk that arise due to quality issue
C. Risk that come about as a direct result of
implementing a risk response
D. None of the choices are correct
During project executing, a previously unidentified risk has just occurred. This risk
will negatively effect the outcome of the project.Which of the following is best to
perform next?
A. Alert the management team
B. Develop the contingency plan
C. Perform the risk audit
D. Create a work around
Answer: D
Which of the following best describes project funds that are held in reserve to
account for and offset known risks, such as project scope risks, schedule risks,
cost or quality risks?
A. Contingency reserve
B. Secondary risk
C. Residual risk
D. Contingency plan
Answer: A
Analysis of the errors occurring during a phase of your project indicates that 75%
are caused by operator error, 15% by substandard material and 10% by unknown
factors. You decide to focus on improving operator training. In doing so, you are
applying:
A: The corporate human resource policy.
B: Project management common sense.
C: Quality management.
D: The Pareto principle.

What % of a message is conveyed through words?
A: 7%.
B: 55%.
C: 38%.
D: 10%.
Surprisingly, words account for only 7%. 55% of the meaning of a message is
through facial expressions and body language; while 38% is through vocal tones.
A: 7%.
B: 55%.
C: 38%.
D: 10%.
You have decided to respond to one of your project risks by buying insurance. What
will this risk response not protect against?
A: Secondary risks.
B: Theft.
C: Loss.
D: Flooding.
A: 7%.
B: 55%.
C: 38%.
D: 10%.
There is a well known heuristic that 80% of the problems usually stem from 20% of
the causes. This is a concept of:
A: Crosby.
B: Deming.
C: Tachugi.
D: Pareto.
Remember the concept "worry about the major few, not the trivial many".
Vilfredo Pareto, an economist, determined 80% of the wealth was controlled by
20% of the population. Pareto charts are used to display the Pareto principal in
action by arranging data so that the few vital factors that are causing most of the
problems reveal themselves. Concentrating improvement efforts on these few
will have a greater impact and be more cost-effective than undirected efforts.
What is the key to understanding Herzberg's theory of motivation?
A: He only enhances Maslow's theory.
B: He describes satisfaction and dissatisfaction.
C: That money can both satisfy and motivate.
D: Hygiene factors relate to the work environment while motivators relate to the
work itself
.
General management skills provide much of the foundation for building project
management. What are not considered general management skills?
A: Leading and communicating.
B: Negotiating and problem solving.
C: Influencing the organization.
D: Negotiating and technical aptitude.
Leading: establishing direction; aligning people; motivating Communicating:

exchange of information - how, what, when, Negotiating: many issues, many times,
throughout the project Problem Solving: involves problem definition - determine
causes and symptoms and decision making - analyzing the problem Influencing the
organization: getting things done
According to standard statistical control rules, if the data results reflect 7
consecutive data points on either side of the mean, this tells you:
A: That the process is out of control.
B: That the process is in control.
C: That there is an abnormal trend which bears investigation.
D: That the process is cyclical

You are an experienced construction project manager and know there are usually
risks associated with the weather, cost of construction material, and labour turmoil
that you should factor into your budget. On your current construction project which
is adding a new wing to the downtown hospital you have identified the following
risks: Risk 1 - Weather: There is a 25% chance of torrential downfall that will delay
the construction by two weeks which will, in turn, cost the project $80,000. Risk 2 -
Construction Material: There is a 10% probability of the price of construction
material decreasing based on the forecasted currency fluctuations which will save
the project $100,000. Risk 3 - Labour Turmoil: There is a 5% probability of
construction coming to a halt if the workers go on strike. The impact would lead to a
loss of $150,000. Using the EMV risk technique, how much should you add or
decrease to the budget to accommodate these 3 risks?
A: $17,500.
B: $18,500.
C: $27,500.
D: $130,000.
The EMV is the sum of all the probabilities times the expected gain or loss of the
outcome. For this example:
Risk 1 - Weather: 25% x $80,000 is an EMV of a loss of -$20,000.
Risk 2 - Construction prices: 10% x $100,000 is an EMV gain of $10,000.
Risk 3 - Labour Turmoil: 5% x $150,000 is an EMV gain of -$7,500.
Total of Risk 1 -$20,000 plus Risk 2 $10,000 plus Risk 3 -$7,500 is $17,500.
The graphic display of results over time of a process used to determine the state of
a process are called:
A: Fishbone diagrams.
B: Control charts.
C: Pareto charts.
D: Histograms.
Control charts are used to determine if a process is in control. It should not be

adjusted if it is in control, however changes to the process can be made to provide
process improvements.
Lucky you, have just inherited a project that senior management considers "out of
control". All management can tell you is the client is not a happy camper, and the
budget and schedule are not good. What concerns you the most about this new
project of yours'?
A: Documentation to date on this project is minimal.
B: The project is over budget and behind schedule.
C: The unhappy client.
D: Your management is looking for rapid and visible action on this project to rectify
the problems.
Statistical quality control is the method used to measure variability in a product or
process under evaluation. The two major systems used in statistical quality control
are:
A: Process control charts and acceptance sampling.
B: Scatter and Ishikawa diagrams.
C: Pareto and histogram charts.
D: Checklists and graphs.

previous processes.
underway. You have asked each Project Manager to report on the current status of
their projects, using the Earned Value Technique. At the last quarterly project audit,
you discover that one PM is reporting overly optimistic status on one project, and it
is in worse shape than is reported. The project is a mission-critical one to the
organization and if it continues at the current pace, the final delivery date will be
missed, leading to serious consequences for the company. What is your immediate
response?
reports are off, determine the actual status, and monitor the PM moving forward to
ensure it doesn't happen again.

If a project has been Chartered and is determined to be mission-critical, the best
option is the one that protects the project. Answer C is the most likely to protect
the project. A project may be cancelled, but only with the Sponsor's and Executive
approval.
previous processes.
All of the following are outputs from performance reporting except:
A: Trend analysis results.
B: "S" curves, histograms, bar charts, and tables.
C: Performance reports.
D: Resolved issues.
Resolved issues are outputs from the Manage Stakeholder process.

A control chart for a major project process shows that seven of the nine sample
averages are 'hugging' the lower control limit. What is indicated by this
phenomenon?
A: No action is required because the points are still within the control limits.
B: The process is out of control and should be investigated.
C: The process average has moved to the lower values and needs to be corrected.
D: No action is required until all points are hugging the limit
A correction is required because even a slight change would move the data points
outside of the lower limit.
You have just been contracted to be the project manager for a large telephone
switching centre upgrade involving approximately 58,000 existing telephone lines.
You have been a PM on many similar projects of this size and know there will be
significant data record validation prior to conversion to the new technology. Your
new boss informs you the project is approximately 25% into the planning phase.
What is the first thing you should do?
A: Review the Gantt chart for the progress to date.
B: Schedule a status meeting with the team leaders and ask for their individual
project status reports. It's best to get the information face to face with the team.
C: Stop all tasks until you have had the chance to review the project charter to
ensure the scope is sufficiently defined.
D: Read the project charter, plans and current team status reports.
According to standard statistical control rules, if the data results reflect 7
consecutive data points on either side of the mean, this tells you:
A: That the process is out of control.
B: That the process is in control.
C: That there is an abnormal trend which bears investigation.
D:That the process is cyclical.
An abnormal trend is formed when 7 or more consecutive data points reflect a

steadily increasing or decreasing pattern over time.
B: Negotiating and problem solving.

causes and symptoms and decision making - analyzing the problem
Influencing the organization: getting things done
B: Negotiaing and problem solving.

causes and symptoms and decision making - analyzing the problem
Influencing the organization: getting things done
You are getting ready to present your project status to your sponsor next week. You
are reviewing the contingency reserve variance which is tracking well within the
thresholds you set. This contingency reserve is:
A: spent only with management's approval.
B: shared by the project team as they need.
C: to be spent on specific risks identified in the risk register.
D: for unplanned risks when they occur.
C is correct: Contingency reserves are included in the original project baseline for
potential risks that do occur as identified in the risk register. A incorrect:
Management approval is required to spend management reserve which is for
unplanned risks that may occur.
You are getting ready to present your project status to your sponsor next week. You
are reviewing the contingency reserve variance which is tracking well within the
thresholds you set. This contingency reserve is:
A: spent only with management's approval.
B: shared by the project team as they need.
C: to be spent on specific risks identified in the risk register.
D: for unplanned risks when they occur.
C is correct: Contingency reserves are included in the original project baseline for
potential risks that do occur as identified in the risk register. A incorrect:
Management approval is required to spend management reserve which is for
unplanned risks that may occur.
Your sponsor has made it very clear she will pay for the project but wants it as soon
as possible. Your sponsor is considered to be:
A: Risk adverse.
B: Authoritarian.
C: Risk accepting.
D: Unreasonable
Finally after one month of working at your new company you are assigned your first
project and have started applying the many project management practises you have
learned from past projects. You are reading the scope statement in detail to
evaluate the complexity of the project from a risk perspective to determine if this is
a typical project or atypical project this company has experience with. What risk
management process are you most likely in?
A: Perform Qualitative Risk Analysis.
B: Perform Quantitative Risk Analysis.
C: Plan Risk Response.
D: Identify Risks.
A is correct: The scope statement is an input to the Perform Qualitative Risk
Analysis process. Review of the scope statement will determine the complexity of
the project work to assess the uncertainty in more detail.
Your risk analysis involving your project scope reflects your project has a 70%
chance of completing the scope by a specified date with an 80% chance of receiving
approval for the scope by a certain date. Based on this data, what is the probability
of both events occurring?
A: 75%.
B: 80%.
C: 50%.
D: 56%.
One event will not happen unless the other event occurs. We calculate by
multiplying the probability of event 1 by the probability of result 2. In this case
.80 x .70 for 56% probability of occurrence.
You are the PM on a major pipeline project which has been chartered to carry crude
oil from the city port to various processing plant across the province. Portions of the
pipeline are shared with each processing plant, and custom software will be built to
manipulate the numerous dampers within the pipes to direct oil to the proper
location. A special quality focus is placed on this project as any malfunction in the
dampers could potentially cause a pipeline backup. This could result in crude oil
escaping the pipes and leaking into the environment. You call a meeting with your
developers and civil engineers and begin to graphically represent the interaction of
failures and other events within the pipeline system. This technique is known as :
A: Disaster Prevention Analysis
B: Cause & Effect Analysis
C: Biohazard Analysis
D: Fault Tree Analysis

Fault tree analysis is a failure analysis in which an undesired state of a system is
analyzed. This analysis method is mainly used in the field of safety engineering to
quantitatively determine the probability of a safety hazard.
Simply put, FTA is a method for discovering the root causes of failures or potential failures. FTA
then helps you understand how to fix or prevent the failure.
FTA is an analysis that starts with a top-level event, like a service outage. You then work it
downward to evaluate all the contributing faults, and the causes of faults, that may ultimately
lead (or have led) to its occurrence. You use the fault tree diagram to identify
countermeasures to eliminate the causes of the failure.
FTA requires nothing more complex than paper, pencil, and an understanding of the service at
hand. You will need accurate Configuration Information (CI) contextual information in order to
get the most value from FTA. The following 6 simple steps can help you resolve tough design
issues or problems quickly and easily.
A person who has been working as a project expeditor for the past three years has
just been named as project manager for a construction project in a neighbouring
state. The construction crew has worked together for a number of years. One of the
project manager's tasks is to pursue all of the historical risk information available,
but he doesn't have enough time to access all available sources. The project
manager would be best served by relying LEAST on which of these sources?
A: Project files.
B: Published benchmarking reports.
C: Lessons learned databases.
D: Project team knowledge.

The project team's knowledge will fade over time thus answers A, B and C are
much more reliable sources of historical data to spend your efforts on.
You are the risk manager responsible for the launch of the new 2011 product line
for the European division. You have met several times with project team members
to identify and analyze the various risks associated with the launch. You are now
working on responding to the risks and updating the risk register to forward to the
project manager. The level of detail you and your team should include/update in the
risk register is based on:
A: Predetermined project risk governance.
B: A set of historical information found in the organizational process assets.
C: Corresponding priority ranking for each risk.
D: A specific response to each risk identified.

C is correct: The risk register should be updated to the level of detail that
corresponds to the priority ranking which is usually the moderate to high risks. Low
priority risks are placed on a "watchlist" for ongoing monitoring.
Your company hired you to manage a hardware project and you have contracted out
a large portion of the development to a contracting firm. Almost half way through
your project, you learn that this contracting firm is entering bankruptcy. The
director of the contracting firm assures you that the situation will not affect your
project. As a project manager, what should you do first?
A: Contact your company legal team to research the options to handle this
situation.
B: Stop all the payment to the contracting firm until this threat is fully assessed.
C: Call for an urgent meeting with your senior management to inform them about
the threat.
D: Quickly perform additional risk response planning to control the threat on this
situation.
D is correct: As a project manager, you should first plan for the new threats this
situation poses. A might be another correct answer, but this is not the first thing
you should do as a project manager. B incorrect: You cannot simply withhold
payment if you are in contract with another company. C incorrect: A project
manager should deal with the problem first and not escalate to senior
management.
The five basic quality concepts deal with:
A: Zero defects, doing the right thing right the 1st time, the next recipient in the
process is treated as customer, continuous improvement process and process
capability.
B: Inspecting for errors, zero defects, acceptance sampling, control charts, and
cause and effect diagrams.
C: Doing the right thing right the first time, waste elimination, audits, walkthroughs,
and continuous improvement.
D: Planning, assurance, monitoring, controlling, and taking corrective action.
These 5 concepts are the keys to modern quality management.

A risk response which involves eliminating a threat is called:
Mitigation
Deflection
Avoidance
Transfer
A contingency plan is executed when:
A risk is identified
An identified risk occurs
When a workaround is needed
All of the above
Which of the following techniques accounts for path convergence and generally
estimates project durations more accurately?
CPM
PERT
Schedule simulation
Path convergence method
When should a risk be avoided? When the risk event has a low probability of
occurrence and low impact
When the risk event is unacceptable -- generally one with a very high probability
of occurrence and high impact
When it can be transferred by purchasing insurance
A risk event can never be avoided
The one document that should always be used to help identify risk is the: Risk
Management Plan
WBS
Scope Statement
Project Charter
Risks are accepted when:
A. You develop a contingency plan to execute should the risk event occur
B. You accept the consequences of the risk
C. You transfer the risk to another party
D. You reduce the probability of the risk event occurring
E. a and b
An example of risk mitigation is:
Using proven technology in the development of a product to lessen the probability
that the product will not work
Purchasing insurance
Eliminating the cause of a risk
Accepting a lower profit if costs overrun
a and b
A person who has been working as a project expeditor for the past three years has
just been named as project manager for a construction project in a neighbouring
state. The construction crew has worked together for a number of years. One of the
project manager's tasks is to pursue all of the historical risk information available,
but he doesn't have enough time to access all available sources. The project
manager would be best served by relying LEAST on which of these sources?
A: Project files.
B: Published benchmarking reports.
C: Lessons learned databases.
D: Project team knowledge.

The project team's knowledge will fade over time thus answers A, B and C are
much more reliable sources of historical data to spend your efforts on.
In summing probability distributions what is the formula for Mean?
Mean = (a + m + b) / 2
Mean = (a + m + b) / 3
Mean = (a + m + b) / 1
Mean = (a + m + b)3
In beta distributions using PERT approximations what is the formula for Variance?
Variance = [(b - a) / 6] / 2 2
Variance = [(b - a) / 6] / 3 3
Variance = [(b - a) / 6] 3
Variance = [(b - a) / 6] 2
When summing the probability distributions if the distributions are skewed to the
__________, the project mean will always be significantly higher than the sum of
the most likely estimates.
Right
Left
Middle
Not skewed
Risks classified as unknown (i.e., those which cannot be identified or evaluated):
Should be deflected to the contracting officer
Should be handled via contingency allowances
Should be ignored since they cannot be identified
Should be ignored, since they are not covered in the Project Risk Assessment
Risks can be divided into two basic types: business risk and pure (or insurable risk).
Of the following, which one(s) fall(s) under business risk?
Liability Loss
Direct property loss
Profit loss
Personnel-related loss
The type of contract (payment mechanism) chosen for a project is of the degree of
risk associated with completing that project. For a firm fixed price contract,
payment for risks:
Is accomplished by paying the actual costs to the contractor
Is accomplished by paying the contractor for his cost plus a fixed fee (profit)
Is an undisclosed contingency in the contractor's bid
Is accomplished by paying for the budgeted costs of dealing with as predicted in the
Project Risk Assessment
Total Project Risk
1. should not be calculated for small project
2. is the probability of each project event times the sum of the consequences of
individual project risk events
3. is the cumulative sum of the probability of each individual project risk event
times the consequences of occurrence of that risk event
Risk event probability is determined as:
The total number of possible events divided into the expectation or frequency of
the risk event
The number of times the risk event may occur
The fraction of the total project tasks which may be affected by the risk event
The total number of possible events divided into the consequences of the risk event
Final risk quantification and modeling normally considers the impacts of all risks
combined and:
Translated the impacts into economic terms for analysis
Concentrated on schedule impacts
May not consider safety and environmental impacts
A and B
A and C
40. Sensitivity Analysis can be used in risk analysis to:
1. Substitute for uncertainty analysis in risk quantification
2. Estimate the level of risk aversion adopted by management
3. Estimate the effect of change of one project variable on the overall project
4. A and B
Many companies self-insure against some risks. Problems which can arise from self-
insurance include
1. failure to reserve funds to handle worst-case scenarios (low probability events)
resulting in sever financial damage to the company
2. stiff competition from insurance companies
3. confusion of business risks with insurable risks
4. A and C
Final risk quantification and modeling normally considers the impacts of all risks
except possibly those due to producibility
reliability
affordability
acceptability
Risk event is the precise description of what might happen to the _________ of the
project. manager
detriment
schedule
Budget
In the risk management context, mitigation and deflection are moth means of
_________ the risk to the _________ objectives.
1. improving; client's
2. increasing; project's
3. decreasing; sponsor's
4. decreasing; project's
Contingency planning is a means to _________ risks to the project through a formal

process and provide the resources to meet the risk events.
address
classify
assign
resolve
Suppose a project manager is negotiating with a subcontractor to provide the
installation and integration of a computer system with data links. The data links
must access three different computer protocols and provide a common data
communication. This integration of the data protocols has never been
accomplished. Since both are attempting to avoid any risk, the project manager
would like to a award a _________ contract, while the subcontractor would like to
sign only a _________ contract.
a) letter; formal
b) fixed-price; cost-plus
c) cost-plus; fixed-price
d) no-fault; no-obligation
Suppose a project manager is negotiating with a subcontractor to provide the
installation and integration of a computer system with data links. The data links
must access three different computer protocols and provide a common data
communication. This integration of the data protocols has never been
accomplished. Since both are attempting to avoid any risk, the project manager
would like to a award a _________ contract, while the subcontractor would like to
sign only a _________ contract.
a) letter; formal
b) fixed-price; cost-plus
c) cost-plus; fixed-price
d) no-fault; no-obligation
Suppose a project manager of a research and development contract is charged with
building a new radar antenna for an aircraft. The weight is limited to 12 pounds in
the specification. This represents a major weight reduction over current systems,
which weigh in excess of 26 pounds. Before starting the project, the project
manager should __________.
1. attempt to cancel the cost-plus contract because the antenna just cannot be
built to the specification
2. ignore the situation because no one has said the antenna cannot be built to
specification
3. assess the probability of failing to meet the specification
4. start work immediately to get most of the hardware fabricated so it can be
weighed to determine the actual weight of the completed antenna
Suppose the project manager is evaluating the bids of two vendors. Each vendor
offers to sell similar electronic components, which are integrated at the vendors
site. To avoid the most risk, the project manager views items such as the vendor's
__________.
1. price, sales volume, and profit margin
2. price, promised delivery, and inspection schedule
3. personnel policies, personnel training program, and price
4. price, experience, and delivery means
5. experience, personnel skills, and material control procedures
Suppose the project manager must submit a summary risk assessment to the
director of project managers. The assessment is to be made for each component of
a new electronics system. The project manager submits the following:
Component A - Low Risk

Component B - Medium Risk
Component C - Moderate Risk
Component D - High Risk
Component E - Medium Risk
Suppose the project is set at $2,300,000 for the total project. Some work that must
be accomplished has not been identified in the initial planning. The most
appropriate source of funds to cover this work is the __________.
management reserve
contingency reserve
slush fund reserve
sinking fund
corporate profit
Suppose the project manager is planning courses of action to develop the strategy
for the project. Courses "A" and "B" are both feasible options and can be
implemented. Senior management has directed that risk be considered, but there is
a need to maximize the profit on this project. A decision tree is used as a valid
means for selecting the most profitable option. Course "A" has a potential profit of
$27,500 with a probability of 0.75 success. Course "B" has a potential profit of
$20,800 with a probability of 0.90 success. The course of action that should be
selected is __________.
1. Course "A" because it has a higher profit potential
2. Course "B" because it has a higher probability of success
3. Course "A" because it has an expected value of $36,667 when the probability is
factored into the decision
4. Course "A" because it has an expected value of $1,905 more than Course "B"
5. Either course because there is no difference in expected value
Suppose the project has many hazards that could easily injure one or more persons
and there is no method of avoiding the potential for damages. The project manager
should consider __________ as a means of deflecting the risk. abandoning the
project
buying insurance for personal bodily injury
establishing a contingency fund
establishing a management reserve
not acknowledging the potential for injury
The primary characteristic that distinguishes external and internal risk areas is the
__________.
1. magnitude of the impact on the project
2. project manager's perception of risk
3. technical nature of the project
4. use of more or fewer subcontractors
5. project manager's ability to influence the risk
There are two general categories of risk areas, internal and external. Examples of
external risk areas are __________.
1. schedule delays, cost overruns, and changes in technology
2. regulatory, project completion, and taxation
3. natural disasters, regulatory, and design
4. currency rates, design, and social impact
5. inflation rates, performance, and schedule delays
In the area of legal risks, there are two reasons for licensing of projects. One reason
is for revenue generation by the community, while the other is for __________.
1. harassment of the project manager
2. bureaucratic interest in the project
3. public safety of the product
4. monitoring of the project schedule
5. identification of the project manage
During the conduct of impact analysis for any risk, the individual performs
screening. Screening is for the purpose of determining whether the risk is
__________ the project.
1. within or outside the scope of
2. a contingency item for
3. significant enough to adversely affect
4. realistic and treatable during implementation of
5. all of the above
74. Suppose a project of $1.5 million has an adverse event that has a probability of
0.07 of occurrence and a potential loss of $15,000. This represents an expected
negative value of __________.
1. $10,500
2. $1,050
3. $105
4. $15,000
5. cannot be determined from the available data
The assigned values of risk for a project is best accomplished through a structured
methodology that ensures all project elements are evaluated. The project tool
that is best suited for the structured analysis of the project risk is the
__________. contract
1. specification
2. statement of work
3.work breakdown structure
4. linear programming diagram
During the assessment of the risk to attempt to quantify the probability of failure
and the amount of potential loss, the project manager uses the __________
personnel to make the estimates. engineering
A. marketing
B. experienced
C. planning
D. project
You work with several full-time project managers in a software company who share
1 administrative person. Typically the company undertakes 8-10 projects per year,
utilizing approximately 25% of the company's employees, however these employees
do not report to you. This organization structure can best be described as a:
A: Functional.
B: Strong matrix.
C: Projectized.
D: Balanced matrix.
We can rule out functional and weak matrix organization types since there is a
group of full time project managers. Since the project staff work 25% on the
project, the only one that accomplishes this restriction is a balanced matrix.
Tim is the project manager for a project that involves the production of a new line
of computer software that is used to track and manage designated substance (Dub)
information found with in buildings. Tim is having regular bi-weekly meetings with
his team. He had his team do a first cut on its view of what risks affect the project.
What should Tim do next?
A: Involve stakeholders in a 2nd review and then develop risk responses.
B: Develop risk responses.
C: Document the risks and file them in the project file.
D: Involve stakeholders in a 2nd review and then people not directly involved in
the project for a final, unbiased review.
D is correct because involving stakeholders & non project members is key in

developing an unbiased analysis of risk.
You are trying to obtain estimates for the duration of building a shed and you ask
the contractor to provide you with an estimate for the duration. He explains that
best case, it will take 1 day; however, based on past experience it usually takes 2
days. Knowing that the weather is quite uncertain at this time of year, there is often
a delay, resulting in the task taking 5 days. Based on the high level of uncertainty in
this effort, what would be the expected duration of this task?
A: =(1+4*2+5)/6
B: =(1+5)/2
C: =(1+2+5)/3
D: 5
Since the task has a high level of uncertainty, it is best to use the PERT non-
weighted to take the emphasis off of the most likely. (P + ML + O)/6
Updates to the risk register after the Perform Qualitative Risk Analysis process
include:
A: Contracts; secondary risks; P/I ratings.
B: Triggers; secondary risks.
C: List of potential risk responses.
D: Watchlists of low-priority risks; risks grouped by categories.
D is correct: Watchlists of low-priority risks; risks grouped by categories are all

updates to the Perform Qualitative Risk Analysis process.
B incorrect: Triggers and secondary risks are identified during the Plan Risk
Responses process. C incorrect: List of potential risk responses is identified during
the Identify Risks process.
According to the PMBOK Guide definition of contingency reserve, which of the
following is a false statement about contingency reserves?
A: Contingency reserve may be accounted for as a result of a response to the risk

response strategy to actively accept a risk.
B: Contingency reserves can be developed by using quantitative analysis methods.
C: Contingency reserves can only be expressed in a fixed number.
D: Contingency reserves are for unplanned but potentially required changes that
can result from risks identified in the risk register.
Contingency reserves can be expressed in both a % of the estimated cost or

schedule and/or a fixed number.
Environmental factors and technical issues are examples of:
A: Risk categories.
B: Risk Policies.
C: Enterprise environmental factors.
D: Risk constraints.
These could be examples of high level risk categories that could be found on risk
checklist or risk breakdown structure.
Which of the following is considered an information gathering technique to use
A: Documentation reviews.
B: SWOT Analysis.
C: Root Cause Analysis.
D: Cause and Effect Diagram.
C is correct: Examples of information gathering techniques are: brainstorming,

Delphi technique, interviewing and root cause analysis.
Alana works in the PMO and one of her main responsibilities is to develop policies
and templates for projects to ensure consistency throughout the organization. She
is working on creating the template for the risk management plan. Under the P/I
section she has decided to use a rating scale that uses numbers .1 .3 .5 .7 .9 . What
type of scale is this?
A: Cardinal and Non-linear.
B: Ordinal.
C: Cardinal and Linear.
D: Continuous
C is correct: Cardinal/quantitative scales assign numeric values and can be either
linear such as this example .1 .3 .5 .7 .9 or non linear such as: .05 .1 .2 .4 .8.
A is not correct: Cardinal non linear would be .05 .1 .2 .4 .8.
B is not correct: Ordinal/qualitative scales are rank-ordered values, such as, very
low, low, moderate, high, and very high.
You have just attended a meeting with the Netcon Incorporated executives and learned they
are considering the introduction of two new software products to the market. The result of
this meeting is the company has four options regarding these two new software products:
Introduce neither product, introduce product 1 only, introduce product 2 only, or introduce
both products. Research and development costs for product 1 is $180k and for product 2 is
$150,000. There is no associated costs with the status quo. The marketing department has
provided a forecast of expected sales revenue for both products in the Canadian market based
on the probabilities of realizing a strong, fair and weak trend in the economy for the upcoming
year at 0.30, 0.50, and 0.20, respectively. From the view exhibit button (top right hand corner)
what option from a risk perspective would you recommend the executives approve?
A: Product 1 only.
B: Both Products.
C: Product 2 only.
D: Insufficient data to decide best option to recommend to the executives.
B is correct: Both products have the biggest gain at $151k. Product 1 gain is $124k and
Product 2 gain is $113k. There are 2 parts to this equation: multiply each dollar value
by the probability of it occurring, sum up for EMV and then for each option deduct the
Research and Development costs to determine the option with the biggest gain.
Product 1: $304k EMV minus R & D costs of $180k total gain $124k.
Product 2: $263k EMV minus R & D costs of $150k total gain $113k.
Both Products: $481k EMV minus R & D cost for both products $330k total gain $151k.
A major process in project integration management is:
A: Perform Integrated change control.
B: Initiation.
C: Sequence Activity.
D: Define Scope.
Project integration management includes the processes required to ensure that

the various elements of the project are properly coordinated. It involves making
trade-offs among competing objectives and alternatives to meet or exceed
stakeholder expectations. There are 6 processes: Develop project charter,
Develop project management plan, Direct and mange project execution,
Monitor and control project work, Perform integrated change control and Close
project or phase.
During quality control you are reviewing several statistical charts. One chart clearly reflects a
single point of the process is out of statistical control. What is the least true statement about
this control chart?
A: It is very likely that a source of special cause variation is present.
B: Having a point outside the control limits is the most easily detectable out-of-control
condition.
C: The likelihood of having a single data point out of control by chance is only about 1 in 1,000.
D: This chart exhibits only common cause variation.
Common cause variations would reflect all points within the upper control limits
(UCL) and the lower control limits (LCL). The fact that the control chart has one
data point outside the control limits leads to a special cause variation is present.
Your team is planning responses to the risks that were identified and analyzed already. What
would not be required to do now during this process?
A: Identify secondary risks.
B: Determine fallback plans.
C: Determine residual risks.
D: Verify project information
D is correct: It would be too late in the process to be verifying project information. This
should be done during the Identify Risk process.
Specific results from lessons learned include all of the following except:
A: Update of the lessons learned knowledge base.
B: Improved business skills.
C: Updating the statement of work to reflect training and learning requirements.
D: Overall product and service improvements.
Some specific results from lessons learned include:

update of the lessons learned knowledge base, input to the knowledge management system,
updated corporate policies, procedures and processes, improved business skills, overall
product and service improvements, updates to the risk management plan.
To ensure that a team member has correctly received a communicated message and
understands the project work to be accomplished, the project manager should:
A: Repeat the requirements and ask for a commitment.
B: Get feedback and evaluate the end results of the work.
C: Repeat the requirements and use active listening.
D: Employ active listening and ask for feedback.
A, B and C will not ensure that the message is understood as intended. Only by employing
active listening and focusing on the team member's response and asking him/her to
feedback to you what they understand as the requirements, will you be sure that they
understand what they are expected to accomplish.
As the risk prime for all the technical risks, you have called a
meeting with a few experts with both software and hardware
expertise to assess the impact of the technical risks reflected in
the risk register. What risk management process are you most
likely in?
A: Monitor and Control Risks.
C: Perform Quantitative Risk Analysis.
D: Plan Risk Response.
B is correct: You are conducting a risk probability and impact

assessment which is a TnT of the Perform Qualitative Risk
Analysis process.
A structured means to analyze the inputs to a process for identification of
the causes of errors is called:
A: A cause-and-effect diagram.
B: Pareto diagram.
C: Design of experiments.
D: Statistical process control.
The cause and effect diagram is used to explore all the potential or real
causes (or inputs) that result in a single effect (or output). Causes are
arranged according to their level of importance or detail, resulting in a
depiction of relationships and hierarchy of events. This can help you search
for root causes, identify areas where there may be problems, and compare
the relative importance of different causes.
Which of the 6 Risk Processes assigns the risk owner?
A: The risk owners are assigned after the analysis
processes during the Plan Risk Response process.
B: All risk owners are identified once the risk is

identified during the Identify Risk process.
C: The risk owner can be assigned as early as the

Identify Risk process and as late as the Plan Risk
Response process.
D: The risk owner can be assigned as early as the

Identify Risk process and as late as the Monitor and
Control Risk Process.
Based on the following string of data, which statistic is incorrect? Data: 6, 4, 5, 1, 9, 7, 8, 4, 2.
A: Mean = 5.1.
B: Mode = 4.
C: Median = 6.
D: Range = 8.
C is correct: The median for this set of data is 5 not 6. The median is the middle value of the
data ordered when they are ranked top to bottom or bottom to top. In the event your set of
data is an even number, take the average of the middle 2 numbers for the median.
A wrong: The mean is the average of the set of data. In this case 5.1 Add all the numbers and
divide by the number of total data points.
B wrong: The mode is the most frequent number. In this case 4.
D wrong: The statistical range is the difference between the lowest and highest valued
numbers in a set of numbers. To find the range of a group of numbers: Arrange the numbers
in order by size then subtract the smallest number from the largest number. In this case 9
from 1 = 8.
Your team lead has just advised you that a task estimate is
significantly flawed. The revised estimate submitted naturally
adds time to the original estimate. What is the first thing as the
project manager you should do?
A: Determine if there is any time available from another task.
B: Determine if there is enough reserve to handle the change.
C: Notify management.
D: Determine if the task is on the critical path.
When task estimates are refined resulting in an increase in

effort, the first thing to evaluate is if the task is on a critical
path or a non critical path.
You are managing a team in a balanced matrix organization. Matrix organizations share a blend of both
functional and projectized characteristics. Your team is comprised of 10 individuals from 4 different
departments. As project manager you must negotiate with 4 different functional managers for resource
availability. The drawbacks for a matrix organizations are:
A: Duplication of effort on some tasks, project manager has to negotiate with other PMs for resource
availability, and project communication is more complex.
B: Project communication is more complex, team members work themselves out of a job, and resources
report to functional managers.
C: Lack of deep expertise of each functional department, professional growth is difficult in a specialized
area, and a high probability for contention.
D: Projects are prioritized lower, resources may likely be less loyal to PM, and the project manager has to
negotiate with other PMs.
A: This is a tricky question as each possible answer contains at least one drawback from a matrix
organization combined with drawbacks from both functional and projectized organizations. The drawbacks
for a matrix organization are:
- Duplication of effort on some tasks which results in higher overhead.
- Project managers not only must negotiate with functional managers for resources, but must negotiate with
other PMs as well.
- Communication is more complex.
- Resources report to a functional manager.
- A high probability for contention between PM and functional manager.
- Because resources don't report directly to the PM, they may be les loyal to the PM's cause.
B: "team members work themselves out of a job" is a drawback of a projectized organization.

C: "professional growth is difficult in a specialized area" is a drawback of a projectized organization.
D: "projects are prioritized lower" is a drawback of a functional organization.
You have just learned a subcontractor has installed windows on the housing
project you are the PM for, that are not exactly per spec. The effect
cosmetically is very minor and these windows have decreased your overall
material costs by approximately $18,000. What is the best course of action
for you to take?
A: Update the spec change in the change control plan.
B: Advise your client this change in spec is fantastic news since material
costs have been decreased.
C: Inform the contractor he must adhere to the original spec and will now
have to replace the installed windows to the original specs, at his own cost
and still maintain the contract schedule.
D: Determine the overall impact on the project.
Part of integrated change control, provides opportunities to continuously

validate and improve the project by considering the impact of each
change. In this situation, as the PM you should first evaluate the change
in the spec and assess the magnitude of the spec change. Then, you can
make an informed decision and advise your client of the cost savings due
to this minor change to the spec, if your evaluation proves this.
To convey information between two or more parties,
the communication process must have a medium. The
three most common media are:
A: Written, spoken, and signals.
B: Seeing, talking, and listening.
C: Visual, auditory, and tactile.
D: Listening, seeing, and touching.

On a large project, you have a core team of competent, senior technical resources
who tend to work on tasks in the order they choose, regardless of the task order in
the schedule. What would you put in place to ensure work is done at the right time
and in the right sequence?
A: Work authorization system.
B: Schedule management plan.
C: Organizational policies.
D: Project management information system.
Work Authorization system is a tool, a subsystem of the overall project management

system. It is a collection of formal documented procedures that defines how project
work will be authorized and committed to ensure that the work is done by the
identified organization at the right time and in the proper sequence. It includes the
steps, documents, tracking system, and defined approval levels needed to issue
work authorization.
Schedule management plan defines how changes to the schedule will be managed
(output of schedule development).
Organizational Policies i.e. performance reviews, time reporting, quality objectives
PMIS tools and techniques used to gather, integrate and disseminate the outputs of
project management processes.
A war room is:
A: A required part of every project.
B: A room to give the project a physical location.
C: The project's entire senior management team is located in one area.
D: An advantage since all of the project information can be located in one

geographic location.
War rooms have many functions, one of which is to give the project a
physical identity, another of which is to hold the coffee pot; but they are
not a requirement on every project. They will give the project an
advantage since it provides a single place where all project information can
be located.
Your project will involve some communications between the customer and
several contractors during the execution phase. What is the best method
for communication between the customer executive and the contractor
executives?
A: Formal.
B: Informal.
C: Formal and informal.
D: Not required.
Formal communication should be linked by the PM and the customer and

contractor. However, at the executive level "informal" communication is
preferred i.e. memos and conversations.
You are fine tuning your very large project schedule that currently has 4
critical paths and 10 parallel paths. Which of the following statements is
true?
A: PERT does not show the critical path, but CPM does.
B: Both PERT and CPM use duration estimates.
C: PERT allows for probabilistic sequencing that CPM cannot provide.
D: CPM provides more accurate duration estimates than PERT
CPM refers to the "critical path method". It is a technique that determines

the theoretical early start, early finish, late start and late finish dates
regardless of resource availability. It is one of several different schedule
network analysis. CPM uses 1 estimate per activity: the most likely.
PERT has 3 estimates per activity: pessimistic, most likely and optimistic
and uses the distribution's mean, instead of the most likely estimate as in
the CPM.
There are four general categories of communication in the project
environment: formal written, informal written, formal verbal and informal
verbal. Which of the following is not a formal written communication?
A: Project implementation plan.
B: Project technical designer's notes.
C: Project charter.
D: Project budge
A, C and D are formal written project documents. The technical designer's

notes are informal written communications.
You are managing a multi-year, $2M project. Your team has completed
development and testing, and you are confident that the system can be
fully deployed by early November of this year, allowing stores to use the
system for the holiday rush. In your monthly status report to the Executive
Steering Committee in September, you outlined the risks involved. But at
the end of September, your Executive Steering Committee decided to
extend the launch to April next year, instead of November of this year.
What is the most likely reason they did so?
A: They felt the launch had too many risks.
B: They had no confidence in your ETC.
C: The PMO advised of competing projects launching at the same time.
D: The management reserve was more than expected.
Answers B or A may factor into the decision, but alone would not make the
Sponsors move a launch date. One of the key responsibilities of a PMO is to
optimize the use of shared organizational resources across all projects.
Your solution-delivery organization is going through a transformation
exercise, which will adapt the structure to focus on changes in the
marketplace. You would like to recommend that the transformation include
setting up a PMO to assist in managing projects. What should you make
sure is in place from the outset to ensure the success of the PMO?
A: All the Project Managers in the organization are PMP certified.
B: Full buy-in at the Executive level.
C: A rigorous project management methodology is in place.
D: A rigorous PMIS is in place.

B is the correct answer. Setting up a PMO could be viewed as a project, and
for any project to have the best chance of success, it must be chartered
with full buy-in at the Executive level. All the other options are
requirements to be defined in the Scoping of the PMO project.
Your communication plan on a $2M multi-year project states that Executive
Status Updates will be provided monthly in the format of an Executive
Steering Committee meeting presentation. However, during the most
critical part of the project, one of the functional VPs requests an emergency
status update to bring to his boss in an upcoming meeting. You know she
wants the latest status, but you also have very little time to spare to do this
for her. Your best response is.
A: Provide the most recent status update, even though it is not entirely
current.
B: Refuse, as it is outside the scope documented in the Communication

Plan.
C: Respond as requested.
D: Delegate to your Technical Lead.

An informal feedback survey reflects that more than 60% of your core team
members are not reviewing the bi-weekly project updates distributed to
them via the internal company project web site. As the project manager
what course of action should you take?
A: Revise the communications plan appropriately to meet the

informational needs of the stakeholders.
B: Distribute the bi-weekly reports by e-mail.
C: Improve the layout of the weekly project updates to encourage reading

by team members.
D: Call a meeting of the core team members and ask them directly why
they are not reading the reports.
An informal feedback survey reflects that more than 60% of your core team
members are not reviewing the bi-weekly project updates distributed to them
via the internal company project web site. As the project manager what course
of action should you take?
A: Revise the communications plan appropriately to meet the informational
needs of the stakeholders.
B: Distribute the bi-weekly reports by e-mail.
C: Improve the layout of the weekly project updates to encourage reading by

team members.
D: Call a meeting of the core team members and ask them directly why they
are not reading the reports.
Since we already know that over half the team is not reading the
communications effectively we need to reassess the communication needs of
these stakeholders and update the communications plan accordingly. Part of
this would require a "communications requirement analysis" which would
require discussion with the core team to revisit what their information needs
requirements were and then revisions to the communications plan.
Note: These are typical type questions you will see on the real exam where
there are 2 possible choices (A and D). You need to really assess what is the
BEST choice given the situation and possible options to select.
You know that risk management should be on your radar screen at all times
since risks can occur anytime throughout a project. Several highly technical
subject matter experts on your project team, have committed to meet early
next week to evaluate the probability and consequence of 6 risks that
involve the recently signed contract. This activity is part of which
management process?
A: Plan risk responses.
B: Plan Procurements.
C: Perform Qualitative Risk Analysis.

Notice, the key word in the question - "evaluate". This would imply D -
quantitative risk analysis. It would not be A, as Plan risk management
deals with the general approach to managing risk, not with specific risks.
B: Plan procurements is too early in the process to have a signed
contract. The signed contract would be accomplished during the Conduct
Procurements process which is an executing process. Qualitative analysis
involves a broad determination (high, low, medium) of assessing the
probability and impact of risks. Quantitative aims to analyze/measure
the overall risk. i.e. 60% probability.
Though there is dispute over what the exact percentages are, face to face
communication can be broken down into verbal, Para lingual and visual
components. Rank these components in order from the smallest to largest
impact on conversation.
A: Verbal, visual, non-verbal.
B: Words, Para lingual, inflection.
C: Para lingual, lingual, verbal.
D: Words, tone and inflection, other non-verbal.
Though there is dispute over what the exact percentages are, face to face
communication can be broken down into Verbal (words - 7%), Para lingual
(tone and inflection - 38%) and Visual (non-verbal - 55%) Components.
You have 3 independent activities, A, B, and C that are scheduled to start on
the same day. Each activity has a duration estimate of 3 days to complete.
What are the chances of starting the converging activity D on day 4 if the
probability to complete each activity is 50%, 50% and 50% respectively?
A: 13%.
B: 40%.
C: 50%.
D: 10%.
This is a tough questions to answer. Probability of starting the converging
activity D on day 4, is 13%. (0.5 * 0 .5 * 0.5) = 0.125 or 13%.
There are 8 logical outcomes from this scenario, with only one of them
being all of them on time. 1/8 = 12.5%.
Manual filing systems, electronic text databases, project management
software, are examples of:
A: Information distribution tools.
B: Communication technology.
C: Internal communication systems.
D: Project records.
Project information can be completed through various media - such as
manual, electronic, software and processes that permit access to technical
documentation, such as engineering drawings and specifications.
In communications, the receiver filters messages based on all but which of
the following?
A: Culture.
B: Semantics.
C: Language.
D: Distance.
The assumption here is that the media used for distance communication
is acceptable. i.e. the fax or phone is operational.
Internal rate of return is:
A: The present value of all cash flows.
B: The net present value of all cash flows.
C: The interest rate that equates the present value of expected future net
cash inflows to the initial cost outlay.
D: The interest rate that equates all future cash inflows to zero
Internal Rate of Return is the discount rate where the present value of the
cash inflows exactly equals the initial investment. In other words, IRR is the
discount rate when NPV is zero. Present Value can be expressed as a
number. Therefore answer A and B are incorrect. Answer D indicates cash
inflows, not inflows and outflows. Note that IRR relates to both inflows and
outflows and the calculations are extremely complex and not frequently
used.
Internal rate of return is:
A: The present value of all cash flows.
B: The net present value of all cash flows.
C: The interest rate that equates the present value of expected future net
cash inflows to the initial cost outlay.
D: The interest rate that equates all future cash inflows to zero
Internal Rate of Return is the discount rate where the present value of the
cash inflows exactly equals the initial investment. In other words, IRR is the
discount rate when NPV is zero. Present Value can be expressed as a
number. Therefore answer A and B are incorrect. Answer D indicates cash
inflows, not inflows and outflows. Note that IRR relates to both inflows and
outflows and the calculations are extremely complex and not frequently
used.
Your team or technical risk experts are meeting to conduct a risk probability
and impact assessment on the risks for the next two phases of your project.
What will the team of experts require to review first to conduct the P/I
assessment?
A: Risk urgency assessment.
B: Risk data quality assessment.
C: P/I matrix.
D: P/I definitions.
D is correct: The P/I definitions are defined in the Risk Management Plan
to ensure the ranking of project risks are consistently measured and
ranked. These definitions are then referenced by the team during the P/I
assessment meeting.
The PMO has contacted you as the project manager and advised a "Quality
Audit" on your 2 year project has been scheduled for the beginning of the
next quarter. At the next team meeting, you inform the project team of the
scheduled quality audit. The team is highly stressed to begin with due to
the recent company budget cuts and strongly object to this upcoming audit.
You start to explain to the team that the purpose of a quality audit is:
A: To measure the project performance.
B: To confirm that we meet the specific quality standard.
C: To identify lessons learned that can improve performance on project.
D: Part of an ISO 9000 investigation.

The purpose of a quality audit is to determine what lessons can be found
to improve quality on all "in progress" projects and future projects in the
company. A and B are part of the quality control process.
Overall risk exposure identifies the:
A: Expected monetary value of the risk.
B: The range of the overall outcomes to the project objectives.
C: Product of the probability and impact of the risk.
D: The uncertainty of the estimates.
Overall risk exposure provides a measure to compare each risk by

assessing both the impact and the likelihood of the risk occurring.
As a mentor of a new junior project manager Ella, you are reviewing the
risks identified in the risk register that were completed during the Identify
Risk process. Based on the list, you do not have a warm and cozy feeling all
the possible risks have been identified. Which of the following techniques
would be the most effective to ensure all risks were identified.
A: Affinity Diagram.
B: Nominal Group Technique.
C: Brainstorming with stakeholders.
D: Delphi.
A is correct: Affinity diagramming will sort risks identified in a way that
promotes new risks to be identified thus making it the best choice.
B is incorrect: This is a relatively slow technique and probably does not
have a reasonably good chance of uncovering something new after risk
identification has been completed.
C is incorrect : At first glance brainstorming may appear to be a good idea,
however this has already been completed.
Its 10:30 in the morning, and as creatures of habit you enjoy making a
"coffee-run" for you and your fellow associates in the office. Massimo, a
PM who you've worked with in the past, decided to join you on your way to
the coffee shop. Massimo begins to discuss an interesting technique for
stakeholder analysis that he is currently using on his latest project.
Massimo mentions this technique involves the act of taking a job
traditionally performed by designated agents and outsourcing it to an
undefined, generally large group of people in the form of an open call.
What technique is Massimo referring too:
A: Phishing
B: Off shoring
C: Crowd sourcing
D: Distributive Prototyping
Crowd sourcing is a bottom up approach to stakeholder analysis. It taps
into the feedback and design of a collective group of individuals who share
an interest in a given subject matter. These individual replace the
traditional designated agents, the Business Analysis, and provide a different
spin on the subject matter by utilizing lateral thinking.
A project manager is in the process of evaluating and prioritizing risks in the
project by calculating Risk Priority number (RPN) for the risks. What are the
3 attributes required to calculate the RPN to further prioritize the identified
risks?
A: Probability, Impact and Timeframe.
B: Probability, Impact and Frequency.
C: Probability, Impact and Cost.
D: Probability, Impact and Schedule.

A is correct: Probability, Impact and Timeframe can be used to calculate
the Risk Priority number (RPN) for the risks. These three attributes
determine the RPN for each risk by multiplying attribute ratings for
probability, impact and timeframe (P*I*T). The timeframe allows the
project to readily assess prioritization. Prioritizing the risks relative to one
another assists the team in deciding how to allocate resources for
mitigation, especially when there a large number of identified risks.
An action taken to bring a product or service into compliance with
customer specification is called:
A: Recommended corrective action.
B: An audit.
C: A recall.
D: Defect repair review.
Defect repair review is conducted during the quality control process. It is

an action taken to ensure that product defects are repaired and brought
into compliance with requirements or specifications
An important part of any project is to ensure all project stakeholders are
properly identified. Stakeholder analysis does not involve which of the
following?
A: Identifies the influence and interests of the various stakeholders.
B: Documents stakeholder needs, wants and expectations.
C: An analysis of the stakeholders communications requirements.
D: Prioritizes stakeholders needs, wants and expectations.

A stakeholder analysis is a tool and technique of identify stakeholders and
results in identifying all the stakeholders by their level of influence and
interests which could be negative or positive. Answers A, B and D are all
correct statements of a stakeholder analysis.
C: Analyzing stakeholders communications requirements is a tool and
technique of plan communications
A project selection criteria could be based on the projects; expected benefit
cost ratio. One potential project you are reviewing has a BCR of 1.22. This
indicates that:
A: Payback is 1.22 months.
B: Payback is $1.22 for every dollar expended.
C: Cost is 1.22 more than the anticipated profit.
D: Costs are greater than the anticipated benefits.

Benefit cost ratio (BCR) compares the benefits to the costs of the project
where the benefits are the same as revenues or often referred to as
"payback". The project with the higher BCR typically is selected over the
projects with a lower BCR.
Greater than 1 is good as it means the benefits exceed the costs.
Less than 1 naturally means the reverse - the benefits are lower than the
costs.
A value equal to 1 reflects both the costs and the benefits are the same.
Which of the following uses initiating, planning, executing, monitoring and
controlling and close-out?
A: Product life cycle.
B: Project life cycle.
C: Project management life cycle.
D: Program management life cycle.

The method for calculating earned value should be agreed to before the
work begins and it is best to keep the earned value calculation method as
simple as possible. What is not a method of reporting earned value?
A: Apportioned.
B: Milestone.
C: Level of Effort (LOE).
D: Variance analysis.
A: Apportioned gives credit for activity where work is related in direct
proportion to some other effort (e.g. inspection).
B: Milestone develop interim milestones for work packages that are
definite and measurable. Assign a value to each milestone. As each
milestone is completed, the value of that milestone is earned. Removes
subjectivity. Best for longer-term and more complex tasks.
C: Level of Effort activity is measured only in terms of resources actually
used within a given time period. Project management and other indirect
costs are examples.
D: Variance analysis is a key element for time and cost control.
Comparing target dates with the actual start and finish dates and actual
budget figures, enables detection of deviations and implementation of
corrective action.
You are the PM in charge of running a Mix Martial Art (MMA) pay-per-view in London, Ontario. This is the
first MMA pay-per-view of its kind in this city. Tickets will be sold at a first come first serve basis, with a flat
fee of $25 a piece. One of your responsibilities is to determine the location in which the event will be held.
There is a 45% chance that you can procure an outdoor venue for the event. If the outdoor event is chosen,
there is a 15% chance the event will be cancelled due to rain. The outdoor venue has a capacity of 60,000
seats. If the indoor event is chosen, there is 95% chance that the event would be a success, but this would
result in a 20% reduction in sales from the outdoor event. What is the expected value of a successful indoor
event before considering investment costs.
A: 627,000
B: 114,0000
C: 573,750
D: 127,000
55% x 95% x $1,200,000 = $627,000.
Ticket sales for the outdoor event: $25 x 60,000 seats = $1,500,000
Ticket sales for the indoor event: We know that there is a 20% reduction in sales as compared to the
outdoor event. $1,500,000 x 20% = $300,000.
Therefore, $1,500,000 - $300,000 = 1,200,000 expected sales/revenues.
Now we determine the risk factor of having the event indoors (55%) and a successful event (95%) and we
have a probability of success of (55% x 95% ) is 52.25%.
Risk factor 52.25 X expected gain of 1,200,000 to reach an EMV of 627,000 .
The ultimate goal of applying the risk management process to a project is
to:
A: Eliminate all risks.
B: Significantly reduce project risks.
C: To create contingency plans.
D: Always reduce the time required to complete the project.
Risk management is the systematic process of identifying, analyzing, and

responding to project risk. It includes maximizing the probability and
consequences of positive events and minimizing the probability and
consequences of adverse events to project objectives.
Your company will be launching a brand new e-learning product in 7
different languages for global marketing. The rollout of the 7 different
languages is a fairly aggressive schedule over the next two and half months.
This can BEST be described as a:
A: Portfolio Management.
B: Project Management.
C: Program Management.
D: Project Life Cycle.

C: A program is defined as a group of related projects coordinated
together. The question also asks for the best answer, which would signal
program over project. A: You may have also struggled with portfolio as an
option, but remember that although a portfolio also contains grouped
projects, they are all grouped in such a way to meet a specific and strategic
business objective and not necessarily because the projects are related.
D: Project life cycle refers to one project.
During communications the receiver is not responsible for:
A: Receipt of the entire message.
B: Correctness of understanding.
C: Completeness of the message.
D: All of the above.
The sender is responsible for the completeness of the message along with
the clarity and unambiguousness
You are looking at the risk register after the risk analysis processes have
been done. What should be your next action?
A: Rank the risks in priority and severity.
B: Determine the response for each risk.
C: Validate the accuracy of each risk to determine the response plan.
D: Determine the response for the top risks identified.

D is correct: The next step is the Plan Risk Response process for the top
risks. A is incorrect: The qualitative and qualitative risk analysis
processes will rank the risks in the severity and priority. B is incorrect: We
do not plan responses to risks on the watchlist.
C is incorrect: The qualitative risk analysis process validates the data
accuracy.
The Plan Risk Management process results in:
A: The assignment of risk owners.
B: A risk register and risk management plan.
C: A risk management plan.
D: Revised stakeholder tolerance levels.
C is correct. The risk management plan is the only output of the Plan Risk
Management process. B: The risk register is created during the Identify
Risk process.D: The revised stakeholder tolerances if applicable are
included in the risk management plan.
You are estimating the risk of outsourcing vs. staffing internally to complete
the periodic drafting tasks in your project. The service provider for
outsourcing explains that they can not guarantee that your company will be
assigned the same individuals to complete your work each time you require
drafting services as it is just based on availability. If you consider each time
you receive staff from this company to be an event, these events would be
considered to be:
A: Mutually exclusive.
B: Statistically independent.
C: Statistically dependent.
D: Mutually inclusive.
Statistically independent is the probability of the occurrence of one event is

unchanged based on the occurrence of another event.
Mutually exclusive is when two events can not happen at the same time.
After loosing 5% market share during last quarter, your company conducted
a research study which identified some issues with your company's
business processes. You have been assigned a project to generate ideas for
improvement and submit a report to the company president within 30
days. You should consider using what technique to generate the best
results?
A: Benchmarking to generate ideas for improvement.
B: Cost/benefit analysis to quantitatively evaluate alternative quality

requirements.
C: Design of experiments to identify variables that have the most influence

on the overall outcome.
D: Flowcharting.
Benchmarking is a tool used for process improvement. Areas where the
team is having trouble are identified and then an organization which has
successfully mastered that problem is located. That organization's
processes are studied and adapted where practical.
As the project manager for the new medical wing expansion, a team leader has
brought to your attention a new process to complete several work packages
that would normally take 6 weeks can now be finished in just 3 weeks. You
decide to take advantage of this opportunity and rework the schedule with the
new advanced project delivery date. Your actions would be good example of:
A: Crashing the schedule.
B: Exploiting the opportunity to improve the schedule.
C: Fast tracking the schedule.
D: Enhancing the opportunity to improve the schedule.

B is correct: You are increasing the opportunity by making it more probable,
which is considered exploiting. A incorrect: Crashing is a schedule duration
compression technique that requires adding additional resources to the project
to shorten the schedule. C incorrect: Fast tracking is another schedule duration
compression technique that schedules tasks in parallel that normally would not
be to shorten the schedule.D incorrect: Enhancing the opportunity would be to
increase the probability and or the impact.
What is the technique called that validates the integrity of the data used
during risk management?
A: Data validation analysis.
B: Checklist analysis.
C: Risk data quality assessment.
D: Assumptions analysis.
C is correct: Risk data quality management measures the confidence and

accuracy of the data used for risk management purposes. It evaluates
the accuracy, reliability, integrity and quality of the data and information
to assess risks.
You work with several full-time project managers in a software company
who share 1 administrative person. Typically the company undertakes 8-10
projects per year, utilizing approximately 25% of the company's employees,
however these employees do not report to you. This organization structure
can best be described as a:
A: Functional.
B: Strong matrix.
C: Projectized.
D: Balanced matrix.
We can rule out functional and weak matrix organization types since
there is a group of full time project managers. Since the project staff
work 25% on the project, the only one that accomplishes this restriction is
a balanced matrix.
You are a team member working on a project which will deliver a new extra
spicy sauce. During the development phase, you are tasked to determine the
optimum torque requirement for the new jar the sauce will be packaged in. Any
torque greater than 8 pounds will mar the finish on the glass. You start to look
at all the factors such as line speed, lid placement and conveyor speed that can
contribute to the torque. This is called _________ which is conducted during
the _________ process.
A: design of experiment, Plan Quality
B: design of experiment, risk analysis
C: benchmarking, Plan Quality
D: benchmarking, Perform Quality Assurance

Design of experiment is a tool and technique that can be conducted during
both the quality planning and quality assurance processes. It is a statistical
method that identifies factors which influence specific variables in a project.
The objective is to change the variables in order to assess different outcomes,
which helps to determine an optimal solution. Useful in assessing impacts on
cost and schedule. Such as the effect on using junior developers vs. senior
developers.
Risks are accepted when:
A: You develop a contingency reserve to execute should the risk event

occur.
B: You accept the consequences of the risk.
C: You transfer the risk to another party.
D: A and B.
It would be next to impossible to eliminate all risks from a project,
therefore in some cases we must accept the risk. Risk acceptance
indicates the project team has decided not to change the project plan. It
can be both passive - do nothing at all, or we can actively accept the risk
by establishing a contingency reserve, including amounts of time, money
or resources to handle the identified risk.
Tim is the project manager for a project that involves the production of a
new line of computer software that is used to track and manage designated
substance (Dub) information found with in buildings. Tim is having regular
bi-weekly meetings with his team. He had his team do a first cut on its view
of what risks affect the project. What should Tim do next?
A: Involve stakeholders in a 2nd review and then develop risk responses.
B: Develop risk responses.
C: Document the risks and file them in the project file.
D: Involve stakeholders in a 2nd review and then people not directly

involved in the project for a final, unbiased review.
D is correct because involving stakeholders & non project members is key

in developing an unbiased analysis of risk.
Often a project manager can attract quality resources to their project
simply because of the reputation he/she has in the organization. This
reputation has been earned and is a function of knowledge, skills, success,
qualification and personal qualities. These are known as what types of
power?
A: Formal / Legitimate.
B: Expert / Referent.
C: Penalty / Coercive.
D: Charismatic / Technical.
Expert and referent are "earned" types of power based on the knowledge,
skills and experience an individual has obtained. Formal, reward and
penalty are "legitimate" powers based on one's position in the company.
You are trying to obtain estimates for the duration of building a shed and
you ask the contractor to provide you with an estimate for the duration. He
explains that best case, it will take 1 day; however, based on past
experience it usually takes 2 days. Knowing that the weather is quite
uncertain at this time of year, there is often a delay, resulting in the task
taking 5 days. Based on the high level of uncertainty in this effort, what
would be the expected duration of this task?
A: =(1+4*2+5)/6
B: =(1+5)/2
C: =(1+2+5)/3
D: 5
Since the task has a high level of uncertainty, it is best to use the PERT non-
weighted to take the emphasis off of the most likely. (P + ML + O)/6
What would be the most effective method to quantify a risk that was ranked with a
high impact and medium probability to review and discuss with your sponsor?
A: Expected monetary value.
B: Utility theory.
C: Sensitivity analysis.
D: Probability analysis
C is correct: Sensitivity analysis helps to determine which risks have the most
potential impact on the project. T typically you would perform for variables which
are likely to have a major impact on project performance in terms of cost, time, or
economic return. It is a simple method of analyzing the impact of potential risk and
its results are easy for project stakeholders to understand. Tornado charts are often
used to visually depict the sensitivities.
Note the disadvantage: it does not lend itself well to assessing combination of risk
and how they might affect a project. Furthermore the sensitivity diagram does not
provide an indication of anticipated probability of occurrence of the risk event.
A is incorrect: EMV is a method to determine which decision to take by factoring in
the risks associated with each possible decision.
B is incorrect: Utility theory is stakeholder risk tolerance level. i.e. risk adverse, risk
taker or risk neutral.
D is incorrect: Probability analysis is a qualitative method not quantitative method.
A histogram ordered by frequency of occurrence that reflects the vital few and
trivial many is called a:
A: Statistical histogram.
B: Control chart.
C: Quality chart.
D: Pareto diagram.
The chart derives its name from the Pareto Law - 80% of all errors are
attributable to 20% of all causes.
It is a rank ordering, arranging data in descending order according to magnitude or
influence thus identifying that the fewest causes produce the most defects, so by
eliminating the few causes (vital few), the greatest number of defects can be
eliminated.
Control charts are used to routinely monitor quality. When using control charts,
control limits are chosen so that almost all of the data points will fall within these
limits as long as the process remains in-control. What is the horizontal line in the
middle of the chart referred to?
A: Mean.
B: Specification limit.
C: Data point.
D: Upper and lower control limit.
All control charts have three basic components: a centerline, usually the
mathematical average of all the samples plotted, upper and lower statistical control
limits that define the constraints of common cause variations and performance data
plotted over time.
The purpose of making control charts is to look at variation, seeking special causes
and tracking common causes. Special causes can be spotted using several tests:
1 data point falling outside the control limits
An example of verify scope is:
A: Reviewing the performance of an installed software module.
B: Managing changes to the project schedule.
C: Decomposition of the WBS to a work package level.
D: Performing a benefit/cost analysis to determine if we should proceed with the

project.
A: Correct. Verify scope involves reviewing deliverables and work results to obtain
acceptance of the work results. In this case performance of the software would be
requirement from the customer which would require the scope to be verified.
B: Managing changes to the project schedule is part of the schedule control
process.
C: Decomposition of the WBS to a work package level is part of the create WBS
process.
D: Performing a benefit/cost analysis to determine if we should proceed with the
project is part of the scope definition process.
During which process of risk management would you complete a risk rating matrix
of the risks?
A: Identify Risks.
C: Plan Risk Management.
Answer A is the exact PMBOK Guide definition of what a program is which makes it
the best answer from all the possible choices.
You are reviewing several control charts with the quality control team. One of the
charts reflects seven data points in a row on one side of the mean. What action
should be taken based on these results?
A: Additional statistical sampling.
B: Adjust the chart to reflect the new mean.
C: Investigate the cause.
D: This is the rule of seven and can be ignored.
This is the rule of 7 - which refers to non-random data points grouped together in a
series that total seven on one side of the mean. The rule of seven tells you, that
although none of these points are outside of the control limits, they are not random
and the process is indeed out of control. Chances of this happening are 1.56%. This
type of situation should be investigated to determine the cause of the variation.
Your team uses statistical sampling to estimate the mean value of the quality
characteristic of your product. A quantitative measure of precision of this
estimation is standard error. Which one of the following statements is true?
A: Standard error increases when sample size increases.
B: Standard error decreases when sample size increases.
C: Standard error and sample size are not correlated.
D: Standard error is the mean value of the quality characteristic.
Standard error = standard deviation / sqrt(n). It decreases when sample

size n increases.

size n increases.

size n increases.
Due to a recent downsizing in the company, it is inevitable that you will be
reassigned within the next 3 months. After meeting with your current boss, you
mutually agree it would be in your best interest to transfer to the department that
controls project managers, documentation, methodologies and policies and gathers
and distributes lessons learned from the company projects. What does this
department best describe?
A: A projectized organization structure.
B: A tight matrix organization structure.
C: A department with a Project Management Office.
D: A balanced to strong matrix organization.

The project management office (PMO) develops formal procedures, standards, and
methods for practice as well as provides tools and techniques for managing a
portfolio of projects. The PMO also maintains project documentation and acts as a
repository and archive for project information including lessons learned, plans, and
reports. The project office may also create and maintain templates and forms for
project documents and maintain and update resource repository, or an inventory of
resources available throughout the organization.

Creeping scope is a major concern of any project. The person responsible for safe-
guarding customer change requests is the:
A: Functional manager.
B: Project sponsor.
C: Project manager.
D: Business manager.

Your new Director of Mortgages has mandated you to reduce the mortgage
approval process time for new applicants from 4 days to 1 day. You plan to
investigate other firms to see what their approval timelines are and to compare
industry standards for performance metrics including cost, cycle time, productivity
and quality to come up with your own product metrics. You are doing which of the
following activity?
A: Cost Benefit Analysis.
B: Value Engineering.
C: Process Analysis.
D: Benchmarking.
D is correct: Benchmarking is a Plan quality management tool. It is the process of
comparing the business processes and performance metrics including cost, cycle
time, productivity, and/or quality to another that is widely considered to be an
industry standard benchmark or best practice. The objective of Benchmarking is:
1: To determine what and where improvements are called for
2: Assess how other firms achieve their high performance levels
3: Use this information to improve the firm's performance.
Unfortunately, the project produced less than desirable results. Should you, as the
project manager proceed with a lessons learned session?
A: No, because the project was not successful.
B: Yes, it is your professional obligation to do so.

C: Only if the project sponsor insists on it.
D: Only if the project team insists on it.

You are reviewing the most recent earned value chart. The EV line is between the
PV and AC with the PV line above the EV line and the AC line just slightly below.
What does this tell you about your project progress?
A: The project is ahead of schedule and over budget.
B: The project is behind schedule and under budget.
C: The project is ahead of schedule and under budget.
D: Insufficient information to determine project progress.

You are 4 months into an 18 month project. The latest results of your cost variance
are negative and you know the scope of work must still be completed at less cost.
What options can you consider?
A: Update the IRR to reflect the negative variance.
B: Perform a value analysis.
C: Evaluate benefit cost ratios.
D: Recover some sunk costs.

Value analysis focuses on optimizing cost performance. It is a systematic use of
techniques to identify the required functions of an item, establish values for those
functions, and provide the functions at the lowest overall cost without loss of
performance.
NOTE: Value analysis is one of several different techniques of the scope definition
TnT Product analysis which purpose is to translate the project objectives into
tangible deliverables to provide a better understanding of the project product.
Other techniques are:
Which of the following activities is completed during verify scope?
A: Performance measurement.
B: Alternatives identification.
C: Product analysis.
D: Inspection.
Inspection is the only tool and technique for verify scope. Measuring, examining,
testing undertaken to determine whether results conform to requirements.
Sometimes referred to as: reviews, product reviews, audits, and walk-throughs.
A: Performance measurement is an earned value technique of cost and schedule
control.B and C are tools and technique for scope definition.
The type of information that we distribute is a reflection of stakeholder
requirements. Typically senior management would require what type of
communication?
A: Graphical, high level and bi-Weekly.
B: Graphical, high level and daily.
C: Daily detailed reports.
D: Detailed monthly reports.
Typically senior management requires less detail with more graphical information.
They are looking for status and warnings along with problem isolation and proposed
recommendations.
Communicating involves understanding the other person and agreeing on what was
said. The use of _____________ is a means of giving feedback to the speaker by
paraphrasing the speaker's words to ensure there is a common level of
understanding.
A: Double talk.
B: Double speak.
C: Give-back.
D: Active listening.
According to the PMBOK Guide definition of contingency reserve, which of the
following is a false statement about contingency reserves?
A: Contingency reserves require management approval to spend.
B: A contingency reserve is a separately planned quantity used to allow for future

situations which may be planned for only in part.
C: Contingency reserve is added to the budget to allow for the risk of overruns on
the project objectives to a level acceptable to the organization.
D: Contingency reserves are normally included in the project's cost and schedule
baselines.
Contingency reserves are included in the baseline and do not require management
approval to spend. Management reserves, which are not included in the baseline
require management approval. This is for unplanned changes to project scope and
cost.
Your team lead Susan has agreed to take on the responsibility to identify and assess
the technical risks for the large enterprise resource platform project you are the
project manager for. Susan is reviewing the results she recently ran using the Monte
Carlo technique. The results she is reviewing are most likely displayed as a:
A: Trend Chart.
B: Control Chart.
C: Earned Value Chart.
D: Probability Distribution.
D is correct: Monte Carlo results are typically displayed as a probability

distribution/confidence level of the cost and schedule outcome.
As of the third month on the "Beacon Project", the cumulative planned budget is
$95,000. The accounting system reflects charges to date of $105,000. How are you
going to report the "Beacon Project" on the monthly executive status reports?
A: Unable to make an assessment with this information supplied.
B: Trouble is brewing due to a small cost overrun.
C: Project completion will be within the original budget.
D: The budget is slightly ahead of schedule.
The missing piece of information here to assess correctly is "the value of the work
that has been accomplished to date". Or in earned value terms: EV or BCWP.
As a project manager your project is placing approximately 50 miles of sewer pipe
for a new residential development site. Some of your responsibilities involve
analyzing if there are changes to the scope of the project, the schedule, the budget
and the technical requirements. These responsibilities are part of which process?
A: Executing.
B: Controlling.
C: Planning.
D: Closing.
Controlling: Ensuring that the project objectives are met by monitoring and
measuring progress and taking corrective action when necessary.
A newly-minted Project Manager working under you in your portfolio is frustrating
his team by demanding that all documents in the PMI process be created as
separate stand-alone documents that must be reviewed and signed off by the team.
This is causing the progress of the team to slow which is a concern since the
delivery date is fast approaching and no clear plan is in place yet. Everyone is
anxious to get started, but no one knows how to speak to the PM. You have been
asked to assist. What is your best approach?
A: Replace the PM with a more senior PM who can do the job.
B: Take on the project yourself and get it to a point where you can pass it back to
the PM for day-to-day management.
C: Leave the PM in place, but ask the senior developer to pull together a plan that
can be executed.
D: Have a one-on-one with the PM to explain that the PMI Methodology consists
of best practices that should be scaled appropriately to the complexity of the
project.
PMI states that the process should not be applied rigidly but with flexibility based
on the complexity of the project. Any other option would be an overreaction at
this point.
During the risk response planning meeting with your technical experts, discussion
about various plans took place. What is not a true statement about risk responses?
A: A fallback plan is implemented after a contingency plan.
B: Contingency plan takes place before the risk event occurs, while a workaround
takes place after the risk event occurs.
C: A fallback plan is created before a contingency plan.
D: Both contingency plans and workaround plans are strategies for risk acceptance.
C is correct: You require a contingency plan to be created and take place before a
fallback plan.
The tools and techniques in the administer procurements process are:
A: Contract change control system, performance reporting, and payment system.
B: Contract change control system, procurement audits, and payment system.
C: Contract change control system, contract negotiations, and contract changes.
D: Contract change control system, payment system, and payment requests.
Administer procurement is a monitoring and control process dealing with managing

the relationship with the vendor.
Contract negotiations, also an executing process, is a tool and technique conducted
during the conduct procurements process.
Payment requests are outputs of administer procurements, not a Tool and
technique.
An important aspect of communications is to select the appropriate form of
communication method for each of the various stakeholders and the specific
situation. What would not be considered a communication method?
A: Formal written.
B: Formal verbal.
C: Para lingual.
D: Informal verbal.
There are a variety of communication methods: Written and oral, listening and
speaking both informal and formal. Internal (within the project ) and external
(customer, the media, the public)Formal (reports, briefings) and informal (memos,
ad hoc conversations)n Vertical (up and down the organization) and horizontal (with
peers) Answer C: Para lingual (pitch and tone of voice) would be a type of
communication not a method of communication.
Your integrated project plan and project schedule have been
approved by the steering committee and accepted by key the
stakeholders. The project plan and schedule should be
distributed to:
A: All stakeholders in the performing organization.
B: All project stakeholders.
C: Project team members and the project sponsor.
D: People identified in the communications management

plan. A, B & C may all be true if they were identified in the
communications plan. The communications plan defines who
receives what kind of information and the level of detail to be
provided.
Sensitivity analysis is a primary modeling tool that can be used to assist in valuing
individual risks, which is extremely valuable in risk management and risk allocation
support. A "tornado diagram" is a useful graphical tool for depicting risk sensitivity
or influence on the overall variability of the risk model. What is not a true
statement about a tornado diagram.
A: It is applicable to a wide range of project domains such as Financial,

Constructions, Software, Sales and Services.
B: Can be used for analyzing sensitivity in other project constraints such as cost,
time, quality and risk objectives.
C: It is a variance of the sensitivity charts where the variable with highest impact is
displayed at the top of the chart followed by other variables in descending impact
order which represents a Tornado.
D: It is a statistical technique that calculates the average outcome when the future
includes scenarios that may or may not happen.
D is a definition of expected monetary value technique.
A, B and C are all true statements about a tornado diagram.
In order to maintain a consistent level of quality, your company's maintenance
department makes process adjustments at the end of every 8 hour shift. Your company
has a formal quality management system. Being a QA manager, you know that these
process adjustments have a cost attached, including production interruptions. As a result
of recent changes in the specifications of the input material, your QA tests show that the
quality of the product will not be affected and the process will remain in control if
process adjustments are done after every two production shifts. Which of the following
statements will be an appropriate approach?
A: In order to save costs and production interruptions, ask your maintenance
department to immediately change the process adjustment frequency.
B: The process adjustment frequency change should be handled according to
procedures for integrated change control.
C: In order to save costs and production interruptions, ask the Operations department to
immediately change the process adjustment frequency.
D: In order to save costs and production interruptions, ask the concerned technician to
immediately change the process adjustment frequency
Answer B is the best choice as it is in-line with the integrated change control concept.
The question states the company has a "formal" quality management system which
means all changes would be handled according to an established procedure. The change
may potentially impact several stakeholders (functions within the organization - e.g.
operations, maintenance, warehousing, sales & marketing because of increased
production level, perhaps finance to measure the new performance levels, Human
Resources, and so on) and need to be properly coordinated as per existing procedures
and involving all stakeholders.
Approval has been obtained by the sponsor to crash your
project in order to avoid penalty payments stated in the
contract. As the project manager you should analyze:
A: All activities.
B: Activities with the longest time durations.
C: Activities on the critical path.
D: Activities with the greatest cost.
Crashing a project is a schedule compression technique to

decrease the total project schedule after analyzing a number
of alternatives to determine how to get the maximum duration
compression for the least cost. Additional resources, or
overtime is authorized to activities that are on the critical path.
Dividing a project into phases provides better management
control and links the ongoing operations to the performing
organization. Each phase of a project is marked by:
A: Standardization and control.
B: The completion of one or more deliverables.
C: Objective setting and information gathering.
D: An external deliverable.
A project phase is a collection of logically related project

activities usually culminating in the completion of a major
deliverable(s).
There are cost and schedule trade-offs to be considered when
determining the resources for the project team. Senior people
generally cost more but can do the work faster than junior
people. To determine the optimal mix of junior and senior
resources on the project team, the project manager might use:
A: Personnel files.
B: Lessons learned on other projects.
C: Design of experiments.
D: Advice from functional managers.
Design of experiments' is a statistical method that helps

identify which factors might influence specific variables.
As a PM, your management style should influence
your communication style. You should also tailor your
communication style to the organizational structure in
which you are working in. If your management style is
to not interfere and be available for assistance, this
style would be called:
A: Conciliatory
B: Promotional
C: Passive
D: Facilitating
As part of the communication process, which best describes the
responsibility of the sender?
A: The sender is responsible for making sure that the information is

received in its entirety, understood correctly, and acknowledged.
B: The sender is responsible for encoding the message through various
mediums.
C: The sender translates thoughts or ideas into a language that is

understood by others.
D: The sender is responsible for making the information clear and

complete so that the receiver can receive it correctly.
As part of the communications process, the sender is responsible for

making the information clear and complete so that the receiver can
receive it correctly.
During communications the sender is not responsible for:
A: Clarity.
B: Unambiguousness.
C: Completeness of message.
D: Correctness of understanding.
The receiver is responsible for the correctness of

understanding of the message along with receipt of the entire
message.
When communicating, the receiver is responsible for:
A: Scheduling communication exchange.
B: Ensuring the receiver agrees with the message.
C: Confirming the message is understood.
D: Presenting the message in the most favorable manner
Communicating is an exchange of information. The sender is responsible for making the

message clear and complete so that it can be understood, and the receiver is responsible for
ensuring the information is understood correctly and received in its entirety.
When communicating, the receiver is responsible for:
A: Scheduling communication exchange.
B: Ensuring the receiver agrees with the message.
C: Confirming the message is understood.
D: Presenting the message in the most favorable manner
Communicating is an exchange of information. The sender is responsible for making the

message clear and complete so that it can be understood, and the receiver is responsible for
ensuring the information is understood correctly and received in its entirety.
You are an Operations manager working for an electronic circuit manufacturer. Your company
produces high quality electric circuit boards. The manufacturing process you use is capable of
producing the product at six sigma level of quality. Your major challenge is to keep the
manufacturing process "in control" to produce the product at the desired level of quality. You
may consider:
A: Using control charts to identify random variations and unusual variations and adjusting
the process when out of control.
B: Using control charts to identify process variations and adjusting when variations are
present.
C: Using control charts to identify and eliminate random variations.
D: Using control charts to monitor variations.

A process can have two types of variations: random variations and special cause variations.
Special cause variations are to be identified and controlled. Random variations are natural
variations in the process.
Of the following contract types, which one would have the
highest risk to the purchaser?
A: Firm fixed price contracts.
B: Cost plus incentive fee.
C: Cost sharing.
D: Fixed price plus incentive.
There is a spectrum of possibilities for pricing on contracts.

The customer assumes the highest risk when movements in
dates or materials costs are paid by them. Therefore the
highest risk contract to the customer is the cost plus incentive
fee, since the customer not only pays the costs, but may have
to pay incentive fees on top of it.
During the quantitative risk analysis you know most statistical simulations
of budgets or schedules generally use which of the following approaches?
B: Decision-tree analysis.
C: Random number generation (normal, triangular, beta and uniform).
D: Monte Carlo techniques
Monte Carlo simulation (MCS) is a technique used during risk quantitative

analysis. It helps to reduce the uncertainty involved in estimating future
outcomes. MCS converts uncertainties in input variables of a model into
probability distributions. By combining the distributions and randomly
selecting values from them, it recalculates the simulated model many
times and brings out the probability of the output. We can use MCS to
determine our confidence levels of the schedule date or budget costs. i.e.
we are 80% confident we can deliver the project by Sept 15th or we are
75% confident we can bring the project in within $400k.
Which risk management process uses subjective evaluation
techniques to determine the probability and the impact of a
risk occurring?
A: Plan Risk Responses.
B: Perform Quantitative Risk Analysis.
C: Perform Qualitative Risk Analysis.
D: Identify Risks.
Subjective evaluations of risks are conducted during the

Qualitative Risk Analysis vs. numeric/objective evaluations
are conducted during the Quantitative Risk Analysis process.
All of the following are true of project life-cycles except:
A: Uncertainty and the impact of risks are lowest at the beginning of the
project.
B: The influence of stakeholders over the characteristics of the final product

decrease over time.
C: Cost levels start low then increase over time before trailing off as the
project ends.
D: Level of effort, staffing and cost vary from phase to phase. Typically they
start low and increase to a maximum point, then taper off.
At the beginning or start up a phase the probability of success is lowest,

hence risk and uncertainty are highest (not lowest) at the start of the
project. Probability of success gets progressively higher as the project
progresses. Note the impact of risks are lowest at the beginning and
continue to increase over time.
A control chart for a major project process shows that seven consecutive
data points of the nine sample averages are above the process average
within the control limits. What is indicated by this phenomenon?
A: The process average is moving to the upper values and needs to be

corrected.
B: No action is required because the points are still within the control
limits.
C: The process is out of control and should be investigated.
D: This is considered abnormal behavior and should be investigated.
As a rule of thumb, it is considered abnormal if seven consecutive points,

ten of eleven, or twelve of fourteen data points are above or below the
process average.
You are creating a project plan. You find it is impossible to get everyone on
your team on the same page, though you have been sending out regular
updates through e-mails and personal memos, as promised. You have failed
as a PM in your:
A: Communications planning.
B: Information distribution.
C: Use of a standard project planning methodology/PMIS.
D: Selection of the right staff.
It appears the vehicle of communicating to the team as stated in the

communications plan is not very effective. The communication
requirements analysis conducted during the plan communications process
should identify what communications is required for success and where a
lack of communications can lead to a breakdown in communications.
Which of the following is generally not an output of the Plan
Risk Response process?
A: Secondary risks.
B: Updated project management plan.
C: Risk-related contract decisions.
D: Data precision ranking.
Data precision ranking is conducted during the Perform

Qualitative Risk Analysis. A, B and C are all outputs to the
Plan Risk Response process.
As sponsor of several projects you have significant influence
over which projects will progress from the inception phase into
the planning phase. Your highest profile project has actual
costs of $225k. The original estimate for work completed to
date was $300k. The actual costs of $225k are referred to as:
A: Order of magnitude cost.
B: How the project budget is progressing.
C: Direct cost.
D: Sunk cost.
Sunk costs are all the costs spent to date and cannot be
recovered.
In some highly technical projects there is a severe limitation on the
qualified resources that can perform the work. In addition to pre-assigning
of resources, negotiating, resource levelling etc., a project manager may
arrange for a skilled contractor to perform the work in the event that a
technical resource is not available. This would be known as:
A: Resource mitigation.
B: Risk mitigation.
C: Risk avoidance.
D: Wishful thinking.
Risk Mitigation implies a reduction in the probability and/or impact of an

adverse risk event to an acceptable threshold. In this case we are not
avoiding the risk, merely planning to mitigate the impact if the technical
resource is not available when required.
When analyzing risks using the certainty vs. uncertainty spectrum, the term "unknown -
unknowns" is best described as:
A: At the extreme end of the uncertainty spectrum. They will definitely affect you, although
you have no control over them.
B: Items or situations whose existence we cannot imagine ("Who knew ?").
C: Items that will affect you, although you are not able to predict how or how much they will
affect you.
D: Rework.
Risk is the notion of dealing with uncertainty. Knowns at the extreme end of the uncertainty
spectrum will definitely affect you, although you have no control over them. Objective
probabilities from experienced or available data. i.e. insurance, no estimate required, costs
are known. Items or situations containing no uncertainty (taxes).
Known- Unknowns: These items will affect you although you are not able to predict how or
how much they will affect you. Items we know exist but we do not know how they will affect
us (rework). If you are subject to supplier price increase based on next year's consumer price
index, you are facing a known-unknown risk. Rely on subjective probabilities qualified
judgment based on experience or expert opinion. No estimate possible costs are unknown.
Unknown-Unknowns. Items or situations whose existence we cannot imagine ("Who knew ?")
No reasonable person would have expected this to happen. If you were a slide rule
manufacturer in the middle of the 20th century the advent of the electronic calculator was an
unknown-unknown.
Which of the following is the best definition of acceptance of a risk during
the Plan Risk Response process?
A: You are lucky as you have the solution to prevent the risk.
B: Reduce the probability of occurrence.
C: Ease the pain.
D: Whatever - do nothing.
D is correct: Acceptance is about accepting the consequences if the risk

occurs.
A is an example of avoidance.
B is an example of transference.
C is an example of mitigate.
Strategies for negative risks or threats are:
A: Mitigation, Transference, Avoid.
B: Mitigation, Transference, Acceptance and Control.
C: Technical, marketing, financial and human.
D: Identification, quantitative and qualitative analysis, risk

response planning and risk monitoring and control.
Strategies for risk response planning of negative risks are:

avoid, transfer, mitigate, accept or contingent response
strategy.
Your project risks have been identified, risk analysis conducted and risk
response plans have been completed. What is the NEXT action you should
take as the project manager?
A: Start the Monitor and Control Risks process.
B: Plan the risk strategies.
C: Prioritize the high impact risks for close monitoring and controlling.
D: Update the risk management plan.
D correct: Because of the new work or omitted work generated by the

risk response plans, various management plans such as the quality, HR,
procurement etc. must be updated to reflect the changes made during the
Plan Risk Responses process.
Bruce is working on a project that has approximately 4.5 million in
hardware costs to occur over 3 phases with a timeline of 18 months. The
hardware will be purchased from Europe and Bruce is estimating the
Canadian dollar might fluctuate 10% with the Euro dollar. Bruce produced a
tornado diagram to visually display how this currency fluctuation might
affect the 3 phases over the 18 months. What risk analysis technique is
Bruce using?
A: EMV.
B: Sensitivity Analysis.
C: Modeling and Simulation.
D: Monte Carlo.
A sensitivity analysis is a Quantitative Risk Analysis technique. It helps to

determine what risks can have the most impact on meeting the project
objectives or how the same risk can affect different objectives. A tornado
diagram is on the more common ways to display the results from a
sensitivity analysis.
You are replacing a team member on a very large project due to a long term illness.
You start to review the project risk register and see your name appears as the risk
action owner to many risks. As the new risk action owner, you know you will now be
responsible for each risk you are assigned, to:
A: Determine which risks should be placed on a watchlist based on the assigned

probability and impact ratings.
B: Determine the workarounds.
C: Ensure the planned risk responses are implemented.
D: Analyze the risk responses to ensure they are effective
C correct: The risk action owner is assigned by the risk owner to ensure the risk
responses are executed.A incorrect: Risks rated low to moderate ratings are usually
placed on a "watchlist".
B incorrect: Workarounds are responses to unidentified risks.
D incorrect: The risk owner is the individual responsible to determine the
effectiveness of the response plan. Note the risk owner and risk action owner can
be the same person.
One of the engineers working on your project identifies that the key design
software has a problem and will not be operational for 2 days. As the risk
manager you had already considered that there was a chance something
may happen with the software since it was new. Now you must first:
A: Log the risk.
B: Review the risk response plan and risk register.
C: Use the management reserve.
D: Submit a change request and process through integrated change control.
If this is a risk you considered, it would be in the risk register and there may
be a response plan if it was found to be warranted.
'A' is not correct as once something occurs, it is no longer a risk. In this
case it would be an issue on entered in the issue log.
Updates to the risk register after the Identify Risks process
include:
A: List of potential risk responses.
B: Watchlists of low-priority risks; risks grouped by categories.
C: Lists of risks requiring responses in the near-term.
D: List of risks for additional analysis and response.
A is correct: Potential risk responses can often be identified

during the Identify Risks process and then input to the Plan
Risk Responses process.
B C and D are all updates to the risk register during the
Perform Qualitative Risk Analysis.
You are reviewing a list of risks identified by the team and now need to
"categorize" the risks which will facilitate the risk monitoring process.
Which of the following risk events would present the highest risk to the
"schedule category" of risks?
A: Substantial increases in the cost of purchased materials.
B: Delays in obtaining required approvals.
C: Contract disputes that generate back charges.
D: Deferral of the scheduled post-implementation review meeting.
The question is asking for the highest risk related to the schedule category.
Answer A would affect the budget not the schedule.
B is the most correct answer as delays in approvals can stop the project
work completely. Many times if approval is delayed by one or two weeks
this could delay the project even more i.e. one month. In other words the
approval delay and schedule delay are not like for like.
In a company best described as a weak matrix organization,
where will the project manager encounter the most conflict
with respect to staffing or resource issues?
A: Functional Manager.
B: Project Management Office.
C: Human Resources Department.
D: Outside Contractor.
In a weak matrix organization the project manager's influence

is limited and the functional manager exerts budgetary and
resource control.
.
What is the theory that relates to the attitude of a person
towards risk?
A: Decision Theory.
B: Utility theory.
C: Theory Y.
D: Probability and impact matrix.
Risk utility or risk tolerance is the amount of satisfaction or

pleasure received from a potential payoff. Utility rises at a
decreasing rate for a person who is risk-averse. Those who are
risk-seeking have a higher tolerance for risk and their
satisfaction increases when more payoff is at stake. The risk
neutral approach achieves a balance between risk and payoff .
.
You are the Risk Manager at a meeting with 3 of your project
team members. You are reviewing a list of risks and
determining the categories they should belong do. What risk
management process are you working in?
A: Perform Quantitative Risk Analysis.
C: Identify Risks.
D: Plan Risk Responses.
A list of risk by category is an output of the Perform Qualitative

Risk Management.
.
Which is not used as a tool and technique for
information gathering during the risk
identification process?
A: SWOT.
B: Delphi.
C: Root cause identification.
D: Simulation.
Simulation is a technique used during the
Quantitative risk analysis process.
Updates to the risk register after the Monitor and Control Risks
process include:
A: Outcomes of risk assessments; risk audits; risk reviews.
B: Risk owners and assigned responsibilities.
C: Negotiated contracts.
D: Planned contingency reserve budget for monitoring and

controlling.
A correct: Outcomes of risk assessments; risk audits; risk

reviews are all results of the Monitor and Control Risks
process.
Updates to the risk register after the Monitor and Control Risks process include:
A: Outcomes of risk assessments; risk audits; risk reviews.
B: Risk owners and assigned responsibilities.
C: Negotiated contracts.
D: Planned contingency reserve budget for monitoring and controlling.
A correct: Outcomes of risk assessments; risk audits; risk reviews are all results of the
Monitor and Control Risks process.
Project risk is concerned with the expected value of one or more results of one or more future
events in a project. It is an uncertain condition that, if it occurs, has an effect on at least one
project objective. Objectives can be scope, schedule, cost, and quality. Project risk is always in
the future.
Identify Risks is the process of determining which risks may affect the project. It also
documents risks' characteristics. The Identify Risks process is part of the Project Risk
Management knowledge area. As new risks may evolve or become known as the project
progresses through its life cycle, Identify Risks is an iterative process. The process should
involve the project team so that they can develop and maintain a sense of ownership and
responsibility for the risks and associated risk response actions. Risk Register is the only output
of this process.
What is meant by cause in project risks?
A cause in project risks is a necessity, limitation, assumption or situation that creates the
chance of negative and positive outcomes. A cause can be the condition of permit to do work,
or having restricted personnel assigned to design the project. If either of these conditions
occurs, there may be an impact on the project cost, schedule, or performance.
Preparing for risk communication.
What is the Communications Management Plan?

The Communications Management Plan aims to define the communication necessities for the
project and how the information will be circulated. The Communications Management Plan
sets the communication structure for the project. This structure provides guidance for
communication throughout the project's life and is updated as communication needs change.
The Communication Managements Plan identifies and defines the roles of persons concerned
with the project. It includes a matrix known as the communication matrix to map the
communication requirements of the project.
What is the communication model in a project?
The communication model shows the traversal of information between two hosts, known as
the sender and the receiver. The key components of the model are as follows:
Encode: It is used to crypt or code the message into a language that is understood by
others.
Decode: It is used to decrypt the message back into the meaningful codes.
Message and feedback message: It is the output of encoding.
Noise: It is referred to anything, which interferes with the transmission and understanding of
the message.
Medium: It is the method used to convey the message.
What is meant by cause in project risks?
A cause in project risks is a necessity, limitation, assumption or situation that creates the
chance of negative and positive outcomes. A cause can be the condition of permit to do work,
or having restricted personnel assigned to design the project. If either of these conditions
occurs, there may be an impact on the project cost, schedule, or performance.
Preparing for risk communication.
What is the Communications Management Plan?

The Communications Management Plan aims to define the communication necessities for the
project and how the information will be circulated. The Communications Management Plan
sets the communication structure for the project. This structure provides guidance for
communication throughout the project's life and is updated as communication needs change.
The Communication Managements Plan identifies and defines the roles of persons concerned
with the project. It includes a matrix known as the communication matrix to map the
communication requirements of the project.
What is the communication model in a project?
The communication model shows the traversal of information between two hosts, known as
the sender and the receiver. The key components of the model are as follows:
Encode: It is used to crypt or code the message into a language that is understood by
others.
Decode: It is used to decrypt the message back into the meaningful codes.
Message and feedback message: It is the output of encoding.
Noise: It is referred to anything, which interferes with the transmission and understanding of
the message.
Medium: It is the method used to convey the message.
What is the salience model?
The salience model is a technique for categorizing stakeholders according to their
importance. The various difficulties faced by the project managers are as follows:
How to choose the right stakeholders? How to prioritize competing claims of the
stakeholders communication needs?
Stakeholder salience is determined by the evaluation of their power, legitimacy and
urgency in the organization.
Power is defined as the ability of the stakeholder to impose their will.

Urgency is the need for immediate action. Legitimacy shows the stakeholders
participation is appropriate or not. . The model allows the project manager to decide
the relative salience of a particular stakeholder. Risk and Stakeholder Management.
What is the stakeholder register?

The stakeholder register is a project management document that contains a list of the
stakeholders associated with the project. It assesses how they are involved in the
project and identifies what role they play in the organization. The information in this
document can be very perceptive and is meant for limited exchange only. It also
contains relevant information about the stakeholders, such as their requirements,
expectations, and influence on the project.
What are communication channels?
Communication channels are paths of communication with stakeholders in a project.
The number of communication channels shows the complexity of a project's
communication and can be derived through the formula shown below:
Total Number of Communication Channels = n (n-1)/2. where n is the number of
stakeholders. Hence, a project having five stakeholders will have ten communication
channels. Putting the value of the number of stakeholders in the formula will
provide the number of communication channels.
What is Planning Meeting and Analysis in the Plan Risk Management process?
Planning Meeting and Analysis is a tool and technique in the Plan Risk Management
process. Planning meetings are organized by the project teams to develop the risk
management plan. Attendees at these meetings include the following:
Project manager Selected project team members Stakeholders Anybody in the
organization with the task to manage risk planning Sophisticated plans for conducting
the risk management activities are defined in these meetings, responsibilities related
to risk management are assigned, and risk contingency reserve application
approaches are established and reviewed.
What is the risk utility function?
The risk utility function describes a person's or organization's willingness to accept risk.
It is synonymous with stakeholder tolerance to risk. Risk utility function facilitates the
selection and acceptance of risk and provides opportunity to merge the approach with
setting thresholds of risk acceptability and using utility-risk ratios if necessary.
What is an issue log?
An issue log is used to record all the issues within a project. It helps to monitor the
types of issues and follow the procedures taken to determine them. The issue log
reduces the impact that issues have on the project and hence increases the chances of
success. The issue log provides different ways to help the project manager. The purpose
of the issue log is as follows:
• It gives priority to each issue raised.
• It analyzes the impact that the issue is having on the project.
• It tracks the actions taken to resolve the issue.
• It tracks the outcome of the actions taken.
•The issues must be clearly declared and classified based on necessity and the probable
impact.
•Unresolved issues are an important basis for conflict and project delays.
What is change log?
A change log is used to record the changes that take place during the project. The
changes and their impacts in the project can be expressed in terms of cost, time, and
risk, and must be communicated to the right stakeholders. It provides a place to store
all the information related to the changes in a project. Approximately, every project
practices the changes at some point. When change occurs, one must record the
information related to alteration, so that it should help an individual to monitor and
control the effect of that change on the project. Managing Risks and Project Changes.
What is Configuration Management System?

Configuration Management System is a subsystem of the overall project management
system. It is a collection of formal documented procedures used to identify and
document the functional and physical characteristics of a product, result, service, or
component of the project. It also controls any changes to such characteristics, and
records and reports each change and its implementation status. It includes the
documentation, tracking systems, and defined approval levels necessary for authorizing
and controlling changes. Audits are performed as part of configuration management to
determine if the requirements have been met. Communicating Risk Identification
What is risk enhancement?
Risk enhancement raises the probability of an opportunity to take place by focusing on
the trigger conditions of the opportunity and optimizing the chances. Identifying and
maximizing input drivers of these positive-impact risks may raise the probability of
their occurrence.
What is sharing response?
Sharing response is where two or more entities share a positive risk. Risk sharing deals
with sharing of responsibility and accountability with others to facilitate the team with
the best chance of seizing the opportunity. Teaming agreements are good example of
sharing the reward that comes from the risk of the opportunity.
What is risk avoidance?
Risk avoidance is a technique used for threats. It creates changes to the project
management plan that are meant to either eliminate the risk completely or to protect
the project objectives from its impact. Risk avoidance removes the risk event entirely
either by adding additional steps to avoid the event or reducing the project scope
requirements. It may seem the answer to all possible risks, but avoiding risks also
means losing out on the potential gains that accepting (retaining) the risk
might have allowed.
What is risk enhancement?
Risk enhancement raises the probability of an opportunity to take place by focusing on
the trigger conditions of the opportunity and optimizing the chances. Identifying and
maximizing input drivers of these positive-impact risks may raise the probability of
their occurrence.
What is sharing response?
Sharing response is where two or more entities share a positive risk. Risk sharing deals
with sharing of responsibility and accountability with others to facilitate the team with
the best chance of seizing the opportunity. Teaming agreements are good example of
sharing the reward that comes from the risk of the opportunity.
What is risk avoidance?
Risk avoidance is a technique used for threats. It creates changes to the project
management plan that are meant to either eliminate the risk completely or to protect
the project objectives from its impact. Risk avoidance removes the risk event entirely
either by adding additional steps to avoid the event or reducing the project scope
requirements. It may seem the answer to all possible risks, but avoiding risks also
means losing out on the potential gains that accepting (retaining) the risk
might have allowed.
What is Perform Qualitative Risk Analysis?
Perform Qualitative Risk Analysis is the process of prioritizing risks for further analysis
and action. It combines risks and their probability of occurrences and ranks them
accordingly. It enables organizations to improve the project's performance by focusing
on high-priority risks. Perform Qualitative Risk Analysis is usually a rapid and cost-
effective means of establishing priorities for Plan Risk Responses. It also lays the
foundation for Perform Quantitative Risk Analysis.
What is the quality management plan?
The quality management plan is a component of the project management plan. It
describes how the project team will implement the organization's quality policy. The
quality management plan addresses quality control (QC), quality assurance (QA), and
continuous process improvement for the project. Based on the requirement of the
project, the quality management plan may be formal or informal, highly detailed or
broadly framed.
What is a recurrent project?
A recurrent project is a project that is repeated over and over within an organization. It
generally has risks that are already identified and well-understood based on the past
experiences. This saves time and effort in risk analysis.
What is a system flowchart?
A system flowchart is also known as the process flowchart. It shows the relationships
between major components in a system. It tabulates the process design values for the
components in different operating modes, typical minimum, normal and maximum
values. System or process flowcharts can help identify risks within the process flow,
such as bottlenecks or redundancy.
What is risk register?
Risk register is a document that contains the results of the qualitative risk analysis,
quantitative risk analysis, and risk response planning. Description, category, cause,
probability of occurring, impact on objectives, proposed responses, owner, and the
current status of all identified risks are put in the risk register.
What is the Delphi technique?
Delphi is a technique to identify potential risk. In this technique, the responses are
gathered via a questionnaire from different experts and their inputs are organized
according to their contents. The collected responses are sent back to these experts for
further input, addition, and comments. The final list of risks in the project is prepared
after that. The participants in this technique are anonymous and therefore it helps
prevent a person from unduly influencing the others in the group. The Delphi
technique helps in reaching the consensus quickly.
What is the procurement management plan?
The procurement management plan defines more than just the procurement of team
members, if needed. It defines how procurements will be planned and executed, and
how the organization and the vendor will fulfill the terms of the contract.
What is Tornado diagram?

Tornado diagrams graphically display the result of single-factor sensitivity analysis. The
sensitive variable is modeled as uncertain value while all other variables are held at
baseline values (stable).
The diagram is shown in the image below:
The uncertainty in the parameter associated with the largest bar, the one at the top of
the chart, has the maximum impact on the result, with each successive lower bar
having a lesser impact. Tornado diagrams are useful for sensitivity analysis - comparing
the relative importance of variables.
What is SWOT analysis?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a part of
business policy that helps an individual or a company to make decisions. It includes the
strategies to build the strength of a company and use the opportunities to make the
company successful. It also includes the strategies to overcome the weaknesses of and
threats to the company.
What is Monte Carlo simulation?
Monte Carlo simulation is a process for iteratively evaluating a deterministic form using
sets of random numbers as inputs. This method is repeatedly used when the model is
complex, nonlinear, or involves more than just a couple of vague parameters. Monte
Carlo simulation is named after the city in Monaco, where the major attractions are
casinos that have games of chance. Gambling games, such as roulette, dice, and slot
machines, exhibit random behavior. This technique works particularly well when the
process is one where the underlying probabilities are known but the results are more
difficult to determine. It is a process that generates hundreds or thousands of probable
performance outcomes based on probability distribution for cost and schedule on
individual tasks. The outcomes are then used to generate a probability distribution for
the project as a whole.
What are the tools and techniques for Qualitative Risk Analysis process?
The tools and techniques for Qualitative Risk Analysis process are as follows :
Risk Probability and Impact Assessment: Risk probability assessment investigates the
chances of a particular risk to occur. Risk Impact Assessment investigates the possible
effects on the project objectives such as cost, quality, schedule, or performance,
including positive opportunities and negative threats. Probability and Impact Matrix:
Estimation of risk's consequence and priority for awareness is conducted by using a
look-up table or the probability and impact matrix. This matrix specifies the mixture of
probability and impact that directs to rating the risks as low, moderate, or high priority.
Risk Data Quality Assessment: Investigation of quality of risk data is a technique to
calculate the degree to which the data about risks are useful for risk management.
Risk Categorization: Risks to the projects can be categorized by sources of risk, the area
of project affected and other valuable types to decide the areas of the project most
exposed to the effects of uncertainty.
Risk Urgency Assessment: Risks that requires near-term responses are considered
more urgent to address. Expert Judgment: It is required to categorize the probability
and impact of each risk to
determine its location in the matrix.
What is the watchlist of low-priority risks?
The watchlist of low priority risks is prepared for monitoring the risks that are not
assessed as important in the Perform Qualitative Risk Analysis process. The output of
Perform Qualitative Risk Analysis process is an updated Risk Register, which contains
the relative ranking of risks and watchlists of low priority risks.
What is the output of perform qualitative risk analysis process?
The output of perform qualitative risk analysis process is Risk Register Updates. Risk
register is updated with the information from perform qualitative risk analysis and the
updated risk register is included in the project documents. Updates include the
following important elements: Relative ranking or priority list of project risks
Risks grouped by categories Causes of risk or project areas requiring particular
attention List of risks requiring response in the near-term List of risks for additional
analysis and response Watch list of low priority risks Trends in qualitative risk analysis
results
What is brainstorming?
Brainstorming is a technique to gather general data. It can be used to identify risks,
ideas, or solutions to issues by using a group of team members or subject-matter
expert. Brainstorming is a group creativity technique that also provides other benefits,
such as boosting morale, enhancing work enjoyment, and improving team work.
What is Ishikawa diagram?

The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) are
diagrams, that shows the causes of a certain event. A common use of the Ishikawa
diagram is to identify potential factors causing an overall effect. It helps identify causal
factors and contributing causes.
You are the project manager for your organization. You have determined that an
activity is too dangerous to complete internally so you hire licensed contractor to
complete the work. The contractor, however, may not complete the assigned work
on time which could cause delays in subsequent work beginning. This is an example
of what type of risk event?
A: Transference
B: Internal
C: Secondary risk
D: Pure risk
A secondary risk is created as a result of a risk response. The first risk of the
dangerous work is addressed through transference, but the response creates the
possibility of delays within the project. A secondary risk is a risk that arises as a
straight consequence of implementing a risk response. The secondary risk is an
outcome of dealing with the original risk. Secondary risks are not as rigorous or
important as primary risks, but can turn out to be so if not estimated and planned
properly.
Which positive risk response best describes a teaming agreement?
A: Enhance
B: Venture
C: Exploit
D: Share
Sharing is a positive risk response where a positive risk is shared with another entity
through a teaming agreement, joint venture, or other partnership arrangement.
Sharing response is where two or more entities share a positive risk. Risk sharing
deals with sharing of responsibility and accountability with others to facilitate the
team with the best chance of seizing the opportunity. Teaming agreements are
good example of sharing the reward that comes from the risk of the
opportunity.
Answer option C is incorrect. Exploiting is a positive risk response where the
organization ensures that the positive risk benefits are realized. The exploit
response is one of the strategies to negate risks or threats appear in a project. This
strategy may be selected for risks with positive impacts where the organization
wishes to ensure that the opportunity is realized. Exploiting a risk event provides
opportunities for positive impact on a project. Assigning more talented resources to
the project to reduce the time to completion is an example of exploit response.
Which positive risk response best describes a teaming agreement?
A: Enhance
B: Venture
C: Exploit
D: Share
Sharing is a positive risk response where a positive risk is shared with another entity
through a teaming agreement, joint venture, or other partnership arrangement.
Sharing response is where two or more entities share a positive risk. Risk sharing
deals with sharing of responsibility and accountability with others to facilitate the
team with the best chance of seizing the opportunity. Teaming agreements are
good example of sharing the reward that comes from the risk of the
opportunity.
Answer option C is incorrect. Exploiting is a positive risk response where the
organization ensures that the positive risk benefits are realized. The exploit
response is one of the strategies to negate risks or threats appear in a project. This
strategy may be selected for risks with positive impacts where the organization
wishes to ensure that the opportunity is realized. Exploiting a risk event provides
opportunities for positive impact on a project. Assigning more talented resources to
the project to reduce the time to completion is an example of exploit response.
A project manager discovers that there is a part of the project that
contains some risk. His strategy with this risk is to subcontract the
work to an outside supplier by using a firm fixed-price contract.
Which of the following must the project manager do?
a. The project manager should make certain that the project team
does not reveal
the risk to the supplier until the contract is signed.
b. The project manager should make every effort to make sure that
the supplier is
made aware of the risk after the contract is signed.
c. The project manager should make sure that the supplier
understands the risk before the contract is signed.
d. The project manager should assign a member of the project
team to monitor the activity of the supplier to make sure that the
supplier deals with the risk properly if it occurs.
The project has done its risk analysis. In the process of risk
identification the project team has determined that there are risks
that will probably happen that have not been identified or evaluated
except by noting that other projects of this type have historically had
a certain amount of risk discussed in the lessons learned of the
project. This project team should set aside money to handle these
risks in which financial category?
a. Risk management fund

b. Contingency budget
c. Management reserve
d. Emergency fund
The effect of risk on schedule dates for the project creates an
array of dates that are possible for project completion. In a typical
project the most likely date for the project will have which of the
following relationships with the expected value for the project
completion date?
a. The most likely date will be earlier than the expected
value date.
b. The most likely date will be later than the expected value date.
c. Both dates will have the same likelihood.
d. The most likely date and the expected value date will occur at
the same time.
Answer: a: Because of risk in most projects the probability

distribution is usually skewed. This is because there are more things
that will adversely affect schedules than there are that will improve
them. If the probability distribution of the scheduled completion of
the project is indeed skewed, then the most likely date for project
completion will be earlier than the mean value or the expected value.
A project manager is doing risk analysis with the project team
members. They are concerned about evaluating the risks in
such a way that the risks will be ranked according to their
severity in relation to the project. What method should be
used to rank the risks in the order of importance?
a. Determine the expected value
b. Determine the cost of the impact
c. Determine the probability
d. Use subjective analysis
The expected value of the risk is the probability of the risk

multiplied by its cost. This is one method of ranking risks.
Risks can also be ranked qualitatively by assigning them
qualitative values like ‘‘very risky’’ and ‘‘not too risky’’ and
ranking them in groups.
A project manager must make a decision about a risk in
his project. He examines the extent to which the
uncertainty of each of the elements of the project affects
the objective being examined when all other uncertain
elements are held at their baseline values. This
technique is called which of the following?
a. Decision tree analysis
b. Expected value analysis
c. Sensitivity analysis
d. Simulation
Answer: a
PERT is a probabilistic method used to determine the
estimated project completion based on the statistical
estimating of the project durations. CPM is a
deterministic method using specific values for activity
and task durations.
The project manager of a project evaluates the risks of
the project by assessing the probability of the risk by
categorizing the risks as likely or not likely and assesses
their impact as high impact, medium impact, or low
impact. This would be which type of risk assessment?
a. Quantitative
b. Qualitative
c. General
d. Characteristic
Answer: b
Qualitative assessment of risks is often appropriate.
When there is little impact from a risk or when little
is known about the risk parameters it may only be
practical to evaluate risks in a qualitative way.
A project manager working on a large project finds that there are
several risks that have a severity that is higher than the
acceptable risk tolerance. They cannot be avoided or deflected.
The project manager will need to use which of the following
approaches?
a. Change the risk tolerance of the client
b. Buy insurance for the risk
c. Ignore the risk
d. Mitigate the risk
Answer: d: The risk option of mitigation means that the impact or

the probability is reduced to a level below the risk tolerance level.
This means that the risk is now acceptable.
A project manager decides to create a model to represent the project
risks. The model translates the uncertainties specified at a detailed
level into their potential impact and probabilities. This technique is
called a:
a. Risk model.
b. Simulation.
c. Computer risk program.
d. Decision tree.
Simulations such as the Monte Carlo simulation are frequently used

in risk management. It is far less expensive to model the real world
than to actually do things in the real world.
Monte Carlo analysis can best be described as:
a. A deterministic scheduling method.
b. A probabilistic scheduling simulation method.
c. A probabilistic cost management technique.
d. A risk identification technique.
Answer: b
The Monte Carlo technique is a computer simulation
method that selects durations for schedule events
according to a probability distribution on a random
basis. For each set of selected durations the simulation
is run and the schedule and critical path are calculated.
The result is a probability distribution showing the
probability of project completion dates that are possible.
The criticality index shows the percent of simulations
that any activity is on the
critical path.
The project manager of a large project meets several times
with the client for the project. During the meeting the
project manager judges that the client has a very low risk
tolerance. This means that the client will probably:
a. Be willing to take large risks to make large profits.
b. Be unwilling to take large risks to make large
profits.
c. Understand when risks happen on the project.
d. Not understand when risks happen on the project.
Answer: b
Risk tolerance is the measure of the client’s likelihood to
take risks. A client with a low risk
tolerance will not be willing to take very many or large risks
even though they may produce
considerable opportunities to make large profits.
A project manager is dealing with risk analysis on a
software development project. There is a risk that the
module that creates the most important report that the
system will create will not work properly and will
require 200 person-hours to correct. The project
manager decides to do nothing about this risk. Which of
the following risk strategies is the project manager
employing?
a. Acceptance
b. Avoidance
c. Mitigation
d. Deflection
Answer: a
Risk acceptance is doing nothing about the risk until it
happens. This is done with risks that are below the risk
tolerance level.
When using PERT analysis on a project schedule, probabilistic or
expected durations aAre used for activity durations. If there is a
concern that the critical path may shift due to durations
changing within the expected range, what technique can be
used?
a. CPM
b. Monte Carlo
c. Decision trees
d. Finite element analysis
Answer: b
The Monte Carlo technique is a simulation technique that
assigns a value to the duration for each activity in the schedule.
This assignment can be by user-selected probability
distributions. Depending on the values of the duration for each
activity the critical path may change from simulation run to
simulation run.
The Monte Carlo technique can be used to:
a. Determine the amount of contingency budget needed for
the project.
b. Determine the amount of the management reserve.
c. Determine the criticality index for an activity in the
schedule.
d. Determine the risk index for a risk in the project.
Answer: c
The Monte Carlo technique is a refinement of PERT. In the
PERT process the range of values and the probability that
they can occur are calculated for the project completion date
or parts of the project. The Monte Carlo technique allows for
shifts that may occur in the critical path during possible
values of the durations of the activities of the project. It is a
simulation technique that produces a value called the
criticality index, which is the percent of simulations that a
particular activity is on the critical path.
22. A project team evaluates risk in the project. As an
outcome there are some positive and negative risks that are
identified and evaluated. To evaluate the worst case for
the project the project team should evaluate and summarize:
a. All of the risks affecting the project.
b. Only the negative risks.
c. The negative risks minus the positive risks.
d. The positive risks minus the negative risks.
Answer: b
In determining the worst-case situation, all of the negative
risks are included and none of the positive risks are included
in the total. This makes the assumption of the worst case as
being that all of the bad things happen and none of the good
things happen.
21) The project team has put together a project plan for a
project, and the plan has been approved by the stakeholders.
The customer asks the project manager if the project
can be delivered seven weeks sooner. The customer offers
sufficient monetary incentive for the project manager. The
project manager decides to fast track the project. This decision
will:
a. Increase risk.
b. Decrease risk.
c. Not affect risk.
d. Risk change cannot be determined.
Answer: a
Fast tracking is changing the project plan to schedule activities
that were planned to be done
in sequence so that they can be done completely or partially in
parallel. This will increase
risk, because more work will be done if a problem is discovered.
20. A risk event in a project is something that can have an effect
on the project:
a. For the better only, a positive effect.
b. For the worse, a negative effect.
c. Both better or worse, a positive or negative effect.
d. Neither better nor worse, neither a positive nor a negative
effect.
Answer: c
Risks are events that affect a project for better or worse. Positive
risks increase the positive
cash flow or benefits to the project, and negative risks increase
the negative cash flow or
effects of the project.
19. In managing the risk of the project schedule we are managing
the risk that the project will not be delivered or completed on time.
If we assume that the project’s possible completion dates are
normally distributed and we promise the client the most likely of
the project’s possible completion dates, what is the probability that
the project will be delivered late?
a. 5%
b. 10%
c. 50%
d. 77%
Answer: c
In the normal probability distribution or any symmetric probability
distribution, the most likely value of the distribution is the peak of
the distribution curve. This is the value that has the highest
probability of occurring. In a symmetric probability distribution this
will be the center of the curve as well. There is a 50% probability
that the project will finish past the most likely date and a 50%
chance that the project will finish earlier than that date.
17. A project manager uses the breakeven point to justify his project.
He presents this as a justification for buying a new machine. What
risk does the project manager run by using this technique to justify
buying a new machine for his company?
a. Breakeven point will favor buying a cheap, low-quality machine.

b. Breakeven point will favor buying a machine that is too expensive
for the work
required.
c. The company may not have the funds to buy the machine in spite of
the justification.
d. The machine may not be available because the justification method
takes a long time to calculate.
Answer: a
The breakeven-point justification technique predicts a point in time
where the benefits offset the costs involved. It is a simple justification
technique that takes into consideration a lot of
assumptions. Since it predicts the point in time where the benefits
exceed the cost, given the choice of an expensive and a cheap machine,
the cheap machine will usually have high shortterm benefits, and the
expensive machine will have higher long-term benefits.
16. The management reserve for the project contains:
a. Money to offset missing cost objectives.
b. Money to offset missing schedule objectives.
c. Money to offset missing cost or schedule
objectives.
d. Money to handle the effects of known risks in the
project.
Answer: c
The management reserve is time and money used to
offset the effect of unknown risks affecting cost and
schedule. These risks can only be approximated since
none of them are specifically identified. PMI refers to
these risks as the known-unknown risks and the
identified risks as the known-known risks.
15. In the Monte Carlo technique, what is the criticality index?
a. The number of days the project will be late divided by the
project duration
b. The percent of time a given activity will be on the
critical path
c. The percent of time an activity will be late.
d. The sum of the duration of the critical path activities divided by
the project expected value for duration
Answer: b
The Monte Carlo technique is a refinement of PERT. In the PERT
process the range of values and the probability that they can occur
is calculated for the project completion date or parts of the project.
The Monte Carlo technique allows for shifts that may occur in the
critical path during possible values of the durations of the
activities of the project. It is a simulation technique that produces
a value called the criticality index, which is the percent of
simulations that a particular activity is on the critical path. That
is, criticality index is the percent of the number of simulations
that an activity is on the critical path.
14. A project manager holds the first risk meeting of the project
team. The client is present at the meeting. At the meeting several
risks are identified and assigned to members of the project team
for evaluation and quantification. The result of the meeting is:
a. Expected value of the risk events.
b. Strategies for the risk events.
c. A list of potential risk events.
d. General statements about risks for the project.
Answer: c The result of the first risk meeting of a project

team is to identify as many risks as possible in the time
allowed.

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Which of the following is an example of theory X?

A. Self-led project teams

B. Theory X states that workers have an inherent

A. Project delays, budget under-runs,

A. Risk Management Plan.

A. Risk response plan

A. Perform Qualitative risk analysis

Correct Answers are : 2

Correct Answers are : 1

Correct Answers are : 1

A. Critical to a project manager because the PM has to have as much

A. Hierarchical-type Organizational Chart

A. Hierarchical-type Organizational Chart

A. Defines what project team is responsible for

A.Staffing Management Plan

A. Documenting Project Closure

A. As part of risk identification

A. The risk management plan.

a) To define policies, ensure standards are being followed

A. Metrics show how detailed the plan is.

• a. A cause and effect diagram

a.Risk Management Plan.

a.Risk Management Plan.

a.Risk response plan

a.Risk response plan

• A is the correct answer. The Monetary Value of the amount

Correct Answers are : 2

a) Build the new software.

Build the new software: $ 2,000,000 * 0.4

a) Sharing a Positive Risk

• A. Risk response planning

A: Team members may become overly concerned with their own

A: Team members may become overly concerned with their own

A: Addresses individual risks descriptively.

B: Prioritizes individual risks for subsequent analysis.

C: Assesses the discrete probability of occurrence and impact on objectives if it does

D: Identifies risks with greatest effect on overall project risk.

A: Send a formal letter to each team member outlining project objectives,

A: Throughout the project.

B: Before the end of planning.

C: Before the end of execution.

The archiving of project records is an administrative closure procedure completed

A: Documentation to date on this project is minimal.

B: The project is over budget and behind schedule.

C: The unhappy client.

A: It shows where paths diverge.

B: It visually displays where the dependencies are.

C: It reflects all the task work required to complete the project.

D: It shows where paths converge.

A: It shows where paths diverge.

B: It visually displays where the dependencies are.

C: It reflects all the task work required to complete the project.

D: It shows where paths converge.

A: Poorly defined communication channels.

B: Lack of contingency reserve.

C: Inappropriate level of detail or frequency of communication.

D: Language barriers - technical or cultural.

A: Poorly defined communication channels.

B: Lack of contingency reserve.

C: Inappropriate level of detail or frequency of communication.

D: Language barriers - technical or cultural.

Para linguistics and metacommunication refer to nonverbal forms of communication

A: Uses project models for cost and schedule.