PMI CAPM PMI-100 Questions & Answers

• Question 761:

  Identify Stakeholders is the process of identifying all of the people or organizations impacted by the project and documenting relevant information regarding their interests in, involvement in, and impact on the project:

  A. manager.

  B. success.

  C. deadline.

  D. scope.

  Correct Answer: B

  Explanation:

  Process: 13.1 Identify Stakeholders Definition: The process of identifying the people, groups, or organizations that could impact or beimpacted by a decision, activity, or outcome of the project; and analyzing and documentingrelevant information regarding their interests, involvement, interdependencies, influence, andpotential impact on project success.Key Benefit: The key benefit of this process is that it allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders.

  Inputs

  Project charter

  Procurement documents

  Enterprise environmental factors

  Organizational process assets

  Tools and Techniques

  1.

  Stakeholder analysis

  2.

  Expert judgment

  3.

  Meetings

  Outputs

  1. Stakeholder register

• Question 762:

  Which of the following response strategies are appropriate for negative risks or threats?

  A. Share, Accept, Transfer, or Mitigate

  B. Exploit, Enhance, Share, or Accept

  C. Mitigate, Share, Avoid, or Accept

  D. Avoid, Mitigate, Transfer, or Accept

  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 763:

  A tool and technique used during the Define Scope process is:

  A. facilitated workshops.

  B. observations.

  C. questionnaires and surveys.

  D. group creativity techniques.

  Correct Answer: A

  Explanation:

  Facilitated Workshops. An elicitation technique using focused sessions that bring key cross-functional

  stakeholders together to define product requirements.

  Process: 5.3 Define Scope

  Definition: The process of developing a detailed description of the project and product.

  Key Benefit: The key benefit of this process is that it describes the product, service, or result boundaries

  by defining which of the requirements collected will be included in and excluded from the project scope.

  Inputs

  1.

  Scope management plan

  2.

  Project charter

  3.

  Requirements documentation

  4.

  Organizational process assets

  Tools and Techniques

  1.

  Expert judgment

  2.

  Product analysis

  3.

  Alternatives generation

  4.

  Facilitated workshops

  Outputs

  1.

  Project scope statement

  2.

  Project documents updates

• Question 764:

  The process for performing variance analysis may vary, depending on:

  A. scenario building, technology forecasting, and forecast by analogy.

  B. working relationships among various stakeholders and team members.

  C. application area, the standard used, and the industry, D. work to be completed next.

  Correct Answer: C

• Question 765:

  The risk shared between the buyer and seller is determined by the:

  A. assumption log.

  B. quality checklist.

  C. risk register.

  D. contract type.

  Correct Answer: D

• Question 766:

  The project management processes are usually presented as discrete processes with defined interfaces, while in practice they:

  A. operate separately.

  B. move together in batches,

  C. overlap and interact.

  D. move in a sequence.

  Correct Answer: C

• Question 767:

  Which of the following is a tool or technique used in the Determine Budget process?

  A. Variance analysis

  B. Three-point estimating

  C. Bottom-up estimating

  D. Historical relationships

  Correct Answer: D

  Explanation:

  7.3.2.4 Historical Relationships Any historical relationships that result in parametric estimates or analogous estimates involve the use of project characteristics (parameters) to develop mathematical models to predict total project costs. Such models may be simple (e.g., residential home construction is based on a certain cost per square foot of space) or complex (e.g., one model of software development costing uses multiple separate adjustment factors, each of which has numerous points within it). Both the cost and accuracy of analogous and parametric models can vary widely. They are most likely to be reliable when:

  Historical information used to develop the model is accurate,

  Parameters used in the model are readily quantifable, and

  Models are scalable, such that they work for large projects, small projects, and phases of a project.

  Process: 7.3 Determine Budget Definition: The process of aggregating the estimated costs of individual activities or work packages to

  establish an authorized cost baseline.

  Key Benefit: The key benefit of this process is that it determines the cost baseline against which project

  performance can be monitored and controlled.

  Inputs

  1.

  Cost management plan

  2.

  Scope baseline

  3.

  Activity cost estimates

  4.

  Basis of estimates

  5.

  Project schedule

  6.

  Resource calendars

  7.

  Risk register

  8.

  Agreements

  9.

  Organizational process assets

  Tools and Techniques

  1.

  Cost aggregation

  2.

  Reserve analysis

  3.

  Expert judgment

  4.

  Historical relationships

  5.

  Funding limit reconciliation

  Outputs

  1.

  Cost baseline

  2.

  Project funding requirements

  3.

  Project documents updates

• Question 768:

  When a permitting agency takes longer than planned to issue a permit, this can be described as a risk:

  A. event.

  B. response.

  C. perception.

  D. impact.

  Correct Answer: A

• Question 769:

  Plan-do-check-act is also known as:

  A. prevention over inspection.

  B. statistical sampling.

  C. management responsibility,

  D. continuous improvement.

  Correct Answer: D

• Question 770:

  The total of the planned value (PV) is also known as:

  A. work breakdown structure (WBS).

  B. schedule target.

  C. performance measurement baseline (PMB).

  D. earned value baseline.

  Correct Answer: C

  Explanation: Planned value. Planned value (PV) is the authorized budget assigned to scheduled work. It is the authorized budget planned for the work to be accomplished for an activity or work breakdown structure component, not including management reserve. This budget is allocated by phase over the life of the project, but at a given moment, planned value defines the physical work that should have been accomplished. The total of the PV is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC).