PMI CAPM PMI-100 Questions & Answers

• Question 421:

  In which type of organizational structure are staff members grouped by specialty?

  A. Functional

  B. Projectized

  C. Matrix

  D. Balanced

  Correct Answer: A

• Question 422:

  Which technique is commonly used for the Perform Quantitative Risk Analysis process?

  A. Brainstorming

  B. Strategies for opportunities

  C. Decision tree analysis

  D. Risk data quality assessment

  Correct Answer: C

  Explanation:

  Decision Tree Analysis. A diagramming and calculation technique for evaluating the implications of a

  chain of multiple options in the presence of uncertainty.

  -Can only be used with discrete data.

  Process: 11.4 Perform Quantitative Risk Analysis

  Definition: The process of numerically analyzing the effect of identified risks on overall project objectives.

  Key Benefit: The key benefit of this process is that it produces quantitative risk information to support

  decision making in order to reduce project uncertainty.

  Inputs

  Risk management plan

  Cost management plan

  Schedule management plan

  Risk register

  Enterprise environmental factors

  Organizational process assets

  Tools and Techniques

  Data gathering and representation techniques

  Quantitative risk analysis and modeling techniques

  Expert judgment

  Outputs

  1. Project documents updates

• Question 423:

  Managing procurement relationships and monitoring contract performance are part of which process?

  A. Conduct Procurements

  B. Plan Procurements

  C. Administer Procurements

  D. Close Procurements

  Correct Answer: C

• Question 424:

  Which of the following is an output from Control Scope?

  A. Change requests

  B. Variance analysis

  C. Accepted deliverables

  D. Requirements documentation

  Correct Answer: A

  Explanation:

  Process: 5.6 Control ScopeDefinition: The process of monitoring the status of the project and product scope and managing changes to the scope baseline. Key Benefit: The key benefit of this process is that it allows the scope baseline to be maintained throughout the project.

  Inputs

  Project management plan

  Requirements documentation

  Requirements traceability matrix

  Work performance data

  Organizational process assets

  Tools and Techniques

  Variance analysis

  Outputs

  Work performance information

  Change requests

  Project management plan updates

  Project documents updates

  Organizational process assets updates

• Question 425:

  Which characteristic do projects and operational work share in common?

  A. Performed by systems

  B. Constrained by limited resources

  C. Repetitiveness

  D. Uniqueness

  Correct Answer: B

• Question 426:

  What does a CPI value greater than 1.0 indicate?

  A. Cost right at the estimated value

  B. Cost under the estimated value

  C. Cost right at the actual value

  D. Cost over the estimated value

  Correct Answer: B

  Explanation: CPI = EV / AC

• Question 427:

  A project has an EV of 100 workdays, an AC of 120 workdays, and a PV of 80 workdays. What should be the concern?

  A. There is a cost underrun.

  B. There is a cost overrun.

  C. The project may not meet the deadline.

  D. The project is 20 days behind schedule.

  Correct Answer: B

  Explanation: Earned Value (EV) = 100 Actual Cost (AC) = 120 Planned Value (PV) = 80

• Question 428:

  Which of the following correctly explains the term "progressive elaboration'?

  A. Changing project specifications continuously

  B. Elaborate tracking of the project progress

  C. Elaborate tracking of the project specifications with a change control system

  D. Project specifications becoming more explicit and detailed as the project progresses

  Correct Answer: D

  Explanation:

  Progressive Elaboration. The iterative process of increasing the level of detail in a project management

  plan as greater amounts of information and more accurate estimates become available.

• Question 429:

  Which of the following strategies is used to deal with risks that may have a negative impact on project objectives?

  A. Exploit

  B. Share

  C. Enhance

  D. Transfer

  Correct Answer: D

  Explanation:

  11.5.2.1 Strategies for Negative Risks or Threats Three strategies, which typically deal with threats or risks that may have negative impacts on project

  

  objectives if they occur, are: avoid, transfer, and mitigate. The fourth strategy, accept, can be used for negative risks or threats as well as positive risks or opportunities. Each of these risk response strategies have varied and unique influence on the risk condition. These strategies should be chosen to match the risk's probability and impact on the project's overall objectives. Avoidance and mitigation strategies are usually good strategies for critical risks with high impact, while transference and acceptance are usually good strategies for threats that are less critical and with low overall impact. The four strategies for dealing with negative risks or threats are further described as follows:

  Avoid. Risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. It usually involves changing the project management plan to eliminate the threat entirely. The project manager may also isolate the project objectives from the risk's impact or change the objective that is in jeopardy. Examples of this include extending the schedule, changing the strategy, or reducing scope. The most radical avoidance strategy is to shut down the project entirely.

  Some risks that arise early in the project can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise.

  

  Transfer. Risk transference is a risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response. Transferring the risk simply gives another party responsibility for its management—it does not eliminate it. Transferring does not mean disowning the risk by transferring it to a later project or another person without his or her knowledge or agreement. Risk transference nearly always involves payment of a risk premium to the party taking on the risk. Transferring liability for risk is most effective in dealing with financial risk exposure. Transference tools can be quite diverse and include, but are not limited to, the use of insurance, performance bonds, warranties, guarantees, etc. Contracts or agreements may be used to transfer liability for specified risks to another party. For example, when a buyer has capabilities that the seller does not possess, it may be prudent to transfer some work and its concurrent risk contractually back to the buyer. In many cases, use of a cost-plus contract may transfer the cost risk to the buyer, while a fixed-price contract may transfer risk to the seller.

  Mitigate. Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk. It implies a reduction in the probability and/or impact of an adverse risk to be within acceptable threshold limits. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Adopting less complex processes, conducting more tests, or choosing a more stable supplier are examples of mitigation actions. Mitigation may require prototype development to reduce the risk of scaling up from a bench-scale model of a process or product. Where it is not possible to reduce probability, a mitigation response might address the risk impact by targeting linkages that determine the severity. For example, designing redundancy into a system may reduce the impact from a failure of the original component.

  Accept. Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs. This strategy is adopted where it is not possible or cost-effective to address a specific risk in any other way. 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. This strategy can be either passive or active. Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risks as they occur, and to periodically review the threat to ensure that it does not change significantly. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the risks.

• Question 430:

  Another name for an Ishikawa diagram is:

  A. cause and effect diagram.

  B. control chart.

  C. flowchart.

  D. histogram.

  Correct Answer: A