PMI PMI-SP Online Practice Questions and Exam Preparation

PMI PMI-SP Online Questions & Answers

• Question 171:

  Which of the following characteristics of conflict and the conflict management process should be recognized by the project managers while handling conflict in a team environment? Each correct answer represents a complete solution. Choose all that apply.

  A. Conflict resolution should focus on issues, not personalities.
  B. Conflict is natural and forces a search for alternatives.
  C. Openness resolves conflict.
  D. Conflict is an individual issue.
  A. Conflict resolution should focus on issues, not personalities.
  B. Conflict is natural and forces a search for alternatives.
  C. Openness resolves conflict.

  ---

  The characteristics of conflict and the conflict management process recognized by the project managers while handling conflict in a team environment are as follows: Conflict is natural and forces a search for alternatives. Openness resolves conflict. Conflict resolution should focus on issues, not personalities. Conflict is a team issue. Conflict resolution should focus on the present, not the past.

• Question 172:

  Terri is the project manager for her organization and she is working with her project team to develop the project schedule. She has identified the float in her project although some of the activities where float exists may be susceptible to risk in the project execution. She is also concerned that the critical path may change during the project if the risk events come into execution. What scheduling method is Terri using in this example?

  A. Critical chain method
  B. Risk analysis method
  C. Activity on the arrow method
  D. Critical path method
  D. Critical path method

  ---

  Terri is using the critical path method in this example. The question acknowledges that Terri has identified float and the critical path, but it makes no mention of the availability of project resources - something the critical chain method focuses on. Critical Path Method, abbreviated CPM, or Critical Path Analysis, is a mathematically based algorithm for scheduling a set of project activities. It is an important tool for effective project management. It provides the following benefits: Provides the graphical view of the project. Predicts the time required to complete the project. Shows which activities are critical to maintain the schedule and which are not. CPM models the activities and events of a project as a network. Activities are depicted as nodes on the network, and events that signify the beginning or ending of activities are depicted as arcs or lines between the nodes. Answer option A is incorrect. The question does not indicate that Terri is concerned with the availability of project resources - as she would be if she were using the critical chain method. Answer option B is incorrect. The risk analysis method is not a valid scheduling technique. Answer option C is incorrect. Activity on the arrow method is not being described in this question.

• Question 173:

  You are the project manager of the GHE Project. You have identified the following risks with the characteristics as shown in the following figure: How much capital should the project set aside for the risk contingency reserve?

  A. $142,000
  B. $232,000
  C. $41,750
  D. $23,750
  D. $23,750

  ---

  Contingency reserves are estimated costs to be used at the discretion of the project manager to deal with anticipated, but not certain, events. These events are "known unknowns" and are part of the project scope and cost baselines. The contingency reserve is calculated by multiplying the probability and the impact for the risk event value for each risk event. The sum of the risk events equals the contingency reserve for the project. Note that Risk D is a positive risk amount. Answer option C is incorrect. This value is the sum of the risk events if you did not include Risk D as a positive risk value. Answer option A is incorrect. This is a sum of the risk event. Answer option B is incorrect. This is a sum of the risk events without including Risk D as a positive risk event.

• Question 174:

  The figure given below demonstrates the communication model for a project. What role does the component D play in the communication model?

  

  A. Sender
  B. Medium
  C. Encoder
  D. Transporter
  B. Medium

  ---

  The phone lines are the medium between the sender/encoder and the decoder/receiver. 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. In the communication process, it is the duty of the sender to send clear and complete information to the receiver so that it is properly received by the receiver, and for confirming that it is properly understood. The duty of the receiver is to make sure that the information received is understood and acknowledged properly. A failure in communication can negatively impact the project.

  Answer option A is incorrect. The sender is the person sending the message. Answer option C is incorrect. The encoder is the outgoing fax machine. Answer option D is incorrect. The transporter is not part of the communication model.

• Question 175:

  What is the formula to find the schedule performance index?

  A. EV-PV
  B. EV/AC
  C. EV/PV
  D. EV-AC
  C. EV/PV

  ---

  The schedule performance index shows how well the project is performing on schedule. It is found by dividing the earned value by the planned value. Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target. Answer option D is incorrect. EV-AC is the project's cost variance. Answer option B is incorrect. EV/AC is the project's cost performance index. Answer option A is incorrect. EV-PV is the project's schedule variance.

• Question 176:

  You are the project manager of the GHY Project. This project is scheduled to last for one year and has a BAC of $4,500,000. You are currently 45 percent complete with this project, though you are upposed to be at your second milestone, which accounts for half of the project completion. There have been some errors in the project, which has caused you to spend $2,073,654. Based on the estimate at completion, what is this project's to-complete performance index?

  A. -$108,120
  B. 1.02
  C. $4,608,120
  D. 0.98
  D. 0.98

  ---

  The to-complete performance index when based on the estimate at completion uses the formula (BAC- EV)/(EAC-AC). In this instance, the answer is 0.98, which means the project is likely to reach its performance objectives. To-complete Performance Index (TCPI) is the measured projection of the anticipated performance required to achieve either the BAC or the EA C. TCPI indicates the future required cost efficiency needed to achieve a target EAC (Estimate At Complete).Once approved, the EAC supersedes the BAC as the cost performance goal. Any significant difference between TCPI and the CPI needed to meet the EAC should be accounted for by management in their forecast of the final cost. The formula for TCPI is as follows: TCPI = {(BAC-EV)/(BAC-AC)} Answer option B is incorrect. This is the value of TCPI using the BAC approach. Answer option C is incorrect. This is the estimate at completion for this project. Answer option A is incorrect. -$108,120 is the variance at completion

• Question 177:

  Virginia is the project manager for her company. She has used a previous project as a basis for her current project because they are similar in nature. Virginia has adapted nearly all of the previous project plans for her current project including the project schedule, risk register, and communications management plan. She has worked with management to update the plans to adapt them to the current project. What are the previous project management plans called in this instance?

  A. Expert judgment
  B. Analogous estimate
  C. Templates
  D. Parametric estimate
  C. Templates

  ---

  The best answer for this question is a template. When projects adapt previous project plans for the current project, it is an example of a project template. Template is an activity list or a part of the activity list taken from the previous project and used in a new project. Answer option D is incorrect. A parametric estimate is an estimate that uses a parameter to predict the costs of the project, such as cost per network drop or cost per software license. Parametric estimating technique utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables. Answer option A is incorrect. Expert judgment is not the best choice for this question. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Expert judgment involves people most familiar with the work of creating estimates. Preferably, the project team member who will be doing the task should complete the estimates. Expert judgment is applied when performing administrative closure activities, and experts should ensure the project or phase closure is performed to the appropriate standards. Answer option B is incorrect. Analogous is an estimating technique that uses the values of parameter, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous, similar activity as the basis for estimation of the same parameter for a future activity. It is a top-down estimating technique and is a form of expert judgment. It provides a lower degree of accuracy than other estimating techniques. This technique is primarily used when there is a limited amount of detailed information about the project or program.

• Question 178:

  Allen works as a project manager of the NHY project. This project is scheduled to last for two years and has a BAC of $5,400,000. He is currently 45 percent complete with this project, though he is supposed to be at his second milestone, which accounts for half of the project completion. There have been some errors in the project, which have caused Allen to spend $2,093,754. What is this project's schedule variance?

  A. - $210,000
  B. - $720,000
  C. - $250,000
  D. - $270,000
  D. - $270,000

  ---

  The schedule variance can be found by subtracting the planned value from the earned value. In this instance, it is EV = (0.45 * 5,400,000) = 2,430,000 PV = (0.50 * 5,400,000) = 2,700,000 SV = EV - PV = 2,430,000 - 2,700,000 = - $270,000 Schedule variance (SV) is a measure of schedule performance on a project. The variance notifies that the schedule is ahead or behind what was planned for this period in time. The schedule variance is calculated based on the following formula: SV = Earned Value (EV) - Planned Value (PV) If the resulting schedule is negative, it indicates that the project is behind schedule. A value greater than 0 shows that the project is ahead of the planned schedule. A value of 0 indicates that the project is right on target.

• Question 179:

  Jack works as a project manager for the NHQ project. His project has a budget of $2,208,456 and is scheduled to last for three years. His project is currently forty percent complete though it should be forty- five percent complete. In order to reach this point of the project, he has spent $725,000. Management needs a performance report regarding the NHQ project. Management is concerned that this project will be over budget upon completion. Management would like to create a report telling them how much more the project will need to complete. What value should Jack tell the management?

  A. $1,087,497.74
  B. $755,000.56
  C. $1,112,978.45
  D. $790,988.76
  A. $1,087,497.74

  ---

  The project will need $1,087,497.74 more to complete. This formula, the estimate to complete, is estimate at completion minus the actual costs. Here, CPI = EV/AC = (0.40*2,208,456)/725,000 = 1.21846, and ETC = EAC - AC = (BAC/CPI) - AC = (2,208,456/1.21846) - 725,000 = 1,812,497.74 - 725,000 = 1,087,497.74 The estimate to complete (ETC) is the expected cost needed to complete all the remaining work for a scheduled activity, a group of activities, or the project. ETC helps project managers predict what the final cost of the project will be upon completion. The formula for the ETC is EAC- A C. The EAC is BAC/CPI.

• Question 180:

  Which of the following processes involves the periodic collection and analysis of baseline versus actual data to understand and communicate the project progress and performance as well as to forecast the project results?

  A. Identify stakeholders
  B. Performance reporting
  C. Plan communications
  D. Stakeholder analysis
  B. Performance reporting

  ---

  The report performance process is used for gathering and distributing performance information. It consists of status reports, progress measurements, and forecasts. The report performance process contains the periodic collection and analysis of baseline versus actual data to understand and communicate the project progress and performance as well as to forecast the project results. Answer option A is incorrect. Identify stakeholder process is used to identify all people or organizations impacted by the project and document relevant information regarding their interest, involvement, and impact on project success. Answer option C is incorrect. Plan communication is the process of determining the project stakeholder information needs and defining a communication approach. Answer option D is incorrect. Stakeholder analysis is the identification of stakeholder needs, wants and expectations. It involves the documentation, prioritization, and quantification of the needs to help define the project scope. Stakeholders' interests may be positively or negatively affected by execution or completion of the project and they may also exert influence over the project and its deliverables.