PMP Exam Cram 2 (2nd Edition)

Answer D is the best response. You have a responsibility to refrain from accepting inappropriate forms of compensation for personal gain. Answers A and C are incorrect for this reason. Answer B is a poor choice because the appearance of impropriety is present.

Answer D is the correct response. A work breakdown structure (WBS) is not a component of the project charter. Answers A, B, and C are all components of the project charter.

Answer A is the best response. A project manager should be assigned prior to the start of project planning. Answer B is incorrect because the project manager should be assigned prior to the creation of a project charter. Answer C is incorrect because a project manager should be assigned prior to, not during, project planning. Similarly, answer D is incorrect because a project manager should be in place before project execution.

Answer C is the best response. A project scope statement documents what work is to be accomplished and which deliverables need to be produced. Answers A and B are both individually correct, but answer C is the better response. Answer D is incorrect.

Answer D is the best response. A statement of work (SOW) identifies the business need for the project, the project or product requirements, and the strategic plan for the organization. Answers A, B, and C are individually correct, but answer D is the better response.

Answer C is the correct response. Project selection methods are used to determine which project the organization will select. These methods fall into two categories: benefit measurement methods and mathematical models. Benefit measurement methods include scoring models, economic models, and benefit contribution, making answers A, B, and D incorrect. A mathematical model is a category of models and not a specific model in itself.

Answer A is the correct response. The change control system is a subsystem of the configuration management system.

Answer B is the best response. The project manager, along with the project management team, directs the performance of the planned project activities and manages the technical and organizational interfaces necessitated by the project and occurring continuously throughout the project lifecycle.

Answer D is the best response. Earned value technique (EVT) measures performance of the project as it moves through the entire project life cycle, from project initiation through project closing.

Answer D is the best response. The project scope management plan includes preparation of a detailed project scope statement, creation of the work breakdown structure (WBS), and a process specifying how formal verification and acceptance of the completed project deliverables will be obtained.

Answer D is the best response. Approved change requests can cause a change to project scope, project quality, and project schedule.

Answer C is the correct response. The work breakdown structure (WBS) is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables.

Answer C is the correct response. The work breakdown structure (WBS) provides a detailed definition of work specified in the current, approved project scope statement. Both answers A and B describe the WBS and are therefore incorrect responses to the question.

Answer C is the correct response. Decomposition is a planning technique that subdivides project deliverables into smaller, more manageable components until the project work and project deliverables are defined at the work package level.

Answer D is the correct response. The project cost and project schedule for work can be reliably estimated at the work package, or lowest, level of the work breakdown structure (WBS). The work package level is the lowest level of the WBS.

Answer B is the best response. You have a responsibility to provide accurate and truthful representations in the preparation of estimates concerning costs, services, and expected results. It is your responsibility as a project management professional to give the project sponsor all the information pertinent to make informed decisions regarding the viability and continuation of a project.

Answer D is the correct response. The approved detailed project scope is one component of the project scope baseline. Other components are the associated work breakdown structure (WBS) and the WBS dictionary. Answer A is incorrect because it is an unapproved preliminary, not detailed, project scope. Answer B is incorrect because even though it purports to be "approved," it is a preliminary, not detailed, project scope. Answer C is incorrect because it is not an "approved" detailed project scope.

Answer B is the correct response. A project is a temporary endeavor undertaken to create a unique product, service, or result. A project by definition cannot be permanent nor ongoing. A project has a specific timeline and duration.

Answer D is the correct response. Progressive elaboration is a technique for continuous improvement in your planning efforts. More details are added to your planning documents as the information becomes available, and each successive iteration of your planning process results in a better plan.

Answer A is the correct response. The risk of project failure is highest at the start of a project. The certainty for project completion increases as the project continues through its life cycle.

Answer A is the correct response. Stakeholders have the ability to influence the project scope and project cost to the greatest extent during the initiating phase of the project. This influence decreases during the life cycle of the project.

Answer A is the correct response. Project changes from scope creep or error correction have a more significant impact on project cost as a project continues through its life cycle.

Answer C is the correct response. Project cost and project staffing levels are low at the start of a project, peak during the middle phases of the project life cycle, and then drop rapidly toward the conclusion of the project.

Answer C is the best response. A strong matrix structure within an organization supports a full-time project manager with considerable project authority, including budgetary and resource allocation ability, as well as a full-time project management administrative staff. Answer A is incorrect because a functional structure within an organization provides a part-time project manager with little to no authority and part-time administrative support. Answer B is incorrect because a weak matrix structure within an organization supports a part-time project manager with limited authority and only part-time administrative staffing. Answer D is incorrect because a projectized structure within an organization provides a full-time project manager with almost absolute authority and a full-time project management administrative staff.

Answer D is the correct response. Rolling wave planning is a form of progressive elaboration in which the work to be performed within the near term is planned in detail while work scheduled for further out is defined at only a high level in the work breakdown structure (WBS). Rolling wave planning is a tool for activity definition. Answer A is incorrect because activity sequencing entails the documenting of logical relationships among scheduled activities and is actually the task following activity definition. Answers B and C are incorrect because the precedence diagramming method (PDM), also called activity-on-node (AON), is a tool for activity sequencing.

Answer A is the correct response. Finish-to-start is the most common type of precedence relationship used in the precedence diagramming method (PDM). The initiation of the successor activity is dependent on the completion of the predecessor activity in finish-to-start dependencies.

Answer C is the correct response. Internal dependencies are not a type of dependency used in sequencing activities.

Answer A is the correct response. Bottom-up estimating is a technique for estimating a component of work through decomposition. The bottom-up estimate is based on the requirements for each lower work package and then combined to estimate the entire component of work. Answer B is incorrect because there is no technique called decomposed estimating. Answer C is incorrect because should-cost estimating is an activity duration estimating technique. Answer D is incorrect because three-point estimating is a procurement estimating technique.

Answer A is the correct response. Crashing is a schedule compression technique whereby the project cost and project schedule are optimized to obtain the highest degree of schedule compression for the least cost to the project. Crashing does not always result in a viable project solution and can increase the overall cost of your project. Answer B is incorrect because crashing is not a term used for a project that is over time and over budget. Answer C is incorrect because crashing does not necessarily allow you to meet the planned project end date. Answer D is incorrect because fast tracking is another schedule compression tool used to perform multiple phases of project development in parallel.

Answer C is the best response. Cost control involves determining and evaluating both the cause of a variance and the magnitude of the variance. Answers A and B are both individually correct, but answer C is the best answer. Answer D is incorrect.

Answer A is the correct response. Planned value (PV), in the earned value technique (EVT), is the budgeted cost for work scheduled to be completed on an activity up to a specific time. Answer B is incorrect because the budgeted cost for the work actually completed on the scheduled activity during a specific time period refers to earned value (EV). Answer C is also incorrect because the total cost for work on the scheduled activity during a specific time period defines actual cost (AC). Answer D is incorrect.

Answer C is the best response. The most commonly used performance measure for evaluating whether work is being completed as planned at any given time in a project is both cost variance (CV) and schedule variance (SV). Answers A and B are both individually correct, but answer C is the best answer. Answer D is incorrect.

Answer A is the correct response. A cost performance index (CPI) value less than 1.0 indicates a project has a cost overrun of the cost estimates. Answer B is incorrect because a cost underrun of the cost estimates is indicated by a CPI greater than 1.0. Answers C and D are incorrect.

Answer D is the correct response. Cost variance (CV) is calculated by subtracting the actual cost (AC) from the earned value (EV). CV = EV AV. In the example given, the AC is $150,000 and the EV is $100,000. $100,000 $150,000 = -$50,000. Answer A is incorrect. Answer B is the schedule variance (SV), not the CV, so it is incorrect. Answer D is incorrect.

Answer B is the correct response. Schedule variance (SV) is calculated by subtracting the planned value (PV) from the earned value (EV). SV = EV PV. In the example given, the PV is $200,000 and the EV is $100,000. $100,000 $200,000 = $100,000. Answer A is incorrect, as is answer C. Answer D is the cost variance (CV), not the SV, so it is incorrect.

Answer A is the correct response. The cost performance index (CPI) is calculated by dividing the actual cost (AC) into the earned value (EV). CPI = EV ÷ AC. In the example given, the AC is $150,000 and the EV is $100,000. $100,000 ÷ $150,000 = .06667. A CPI value less than 1.0 indicates a cost overrun of the project budget. Answer B is incorrect because, if the project were under budget, the CPI value would be greater than 1.0. Answer C is incorrect because the CPI would be 0. Answer D is incorrect.

Answer A is the correct response. The schedule performance index (SPI) is calculated by dividing the planned cost (PC) into the earned value (EV). SPI = EV ÷ PC. In the example given, the PC is $200,000 and the EV is $100,000. $100,000 ÷ $200,000 = .05. A SPI value allows you to predict the completion date for a project in conjunction with the schedule status. Given the math done to arrive at answer A, answers B, C, and D are incorrect.

Answer A is the best response. Benchmarking is the practice of comparing your project to other planned project practices or actual project best practices in an effort to improve your project and establish performance measurement benchmarks. Answer B is incorrect because continuous improvement is a plan-do-check-act cycle for improving quality in the product developed by a project. Answer C is incorrect because metrics are specific defined tools for describing and measuring key values for quality control. Answer D is incorrect because quality assurance (QA) is the application of planned, systematic activities to achieve specific quality objectives. QA is the overarching process in which continuous process improvement is practiced. Benchmarking is one task within the process, and metrics are a way to assess quality initiatives.

Answer D is the correct response. A quality audit is a structured, independent review providing an assessment of whether a project's activities meet organizational and project policies, processes, and procedures.

Answer C is the best response. Monitoring project activities and results to evaluate whether the findings comply with applicable quality standards as well as identifying mitigation strategies is a quality control activity. Answers A, B, and D are incorrect.

Answer B is the correct response. Statistical sampling is a quality control technique, but it is not one of the seven basic tools of quality. The seven basic tools of quality are cause and effect diagram, control charts, flowcharting, histogram, Pareto chart, run chart, and scatter diagram. Answers A, C, and D are incorrect because these items are part of the seven basic tools of quality.

Answer D is the best response. Answer A is correct because Ishikawa diagrams are also known as cause-and-effect diagrams. Answer C is correct because Ishikawa diagrams are also known as fishbone diagrams. Because both A and B are correct answers, Answer D (both A and C) is the best response. Answer B is incorrect. Scatter diagrams show the pattern of the relationship between two variables, whereas Ishikawa diagrams show how various factors (causes) can link to potential problems (effects).

Answer C is the correct response. A Pareto chart is a specific type of histogram, ordered by frequency of occurrence and showing how many defects were generated to show nonconformity. Answers A, B, and D are incorrect.

Answer D is the best response. Project communication planning includes all these tasks: determining and limiting who will communicate with whom and who will receive what information, combining the type and format of information needed with an analysis of the value of the information for communication, and understanding how communication affects the project as a whole.

Answer D is the best response. Communications technology factors include the urgency of the information need, the expected staffing for the project, the staff members' individual skill sets, and the length of the project.

Answer A is the correct response. Qualitative risk analysis occurs prior to quantitative risk analysis and is a method for prioritizing identified risks for quantitative risk analysis. Answers B, C, and D are incorrect.

Answer A is the correct response. A decision tree diagram can be used to consider potential risks and all the implications associated with the risk. You can include every conceivable choice and outcome. Every option is considered. Answer B is incorrect because choice and outcome are limited to the most probable scenario. Answer C is incorrect because choice and outcome are limited to the least probable scenario. Answer D is incorrect.

Answer D is the best response. Risk assessment is not limited to the beginning of a project's life cycle when the risk management plan is developed. The risk management plan should include a tool for risk assessment as a continuous process throughout the project. Risk reassessment should be a regularly scheduled component of the project but should also have the flexibility to occur as needed at greater or lesser intervals based on the level of risk.

Answer B is the best response. The responsibility for tailoring a contract for goods and services to the needs of the project lies with the project management team. The project management team can include the project manager, attorneys, and/or contract manager, but the responsibility does not rest solely with one individual.

Answer C is the best response. The decision on whether a product or service can be produced by the project management team or can be purchased is called a make-or-buy analysis.