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2025 PMP Certification Exam Prep – All-in-
One Guide with Real Practice Questions and
Answers
Which of the following statements is correct? A. Develop risk management plan by considering uncertainty B. Develop risk management plan by considering opportunity C. Develop risk management plan by considering project manager's wish D. Develop risk management plan by considering uncertainty and opportunity - - correct ans- - Correct Option: D EXPLANATION As per the new examination content outline, risk management plan should consider opportunities as well. A project manager wants to determine the number and types of tests for a project. He is using a statistical method to identify the factors that may influence specific variables of the project, so he can select applicable test scenarios. Which technique is the project manager using? A. Brainstorming B. Benchmarking C. Statistical sampling D. Design of Experiments - - correct ans- - Correct Option: D EXPLANATION
Design of Experiments (DOE) is a systematic approach to investigate 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 predefined output are then assessed. Design of experiments is a discipline that has very broad application across all the natural and social sciences, as well as various other sectors like automotive, software, defense, and healthcare. Which of the following are the MOST important inputs to derive the total funding requirements and periodic funding requirements of a project? A. Management Reserve and Contingency Reserve B. Cost Baseline and Management Reserve C. Funding Limit Reconciliation D. Project Budget and Contingency Reserve - - correct ans- - Correct Option: B EXPLANATION The total funds required for the project are included in the cost baseline, along with any management reserve. The cost baseline includes contingency reserves, projected expenditures, and anticipated liabilities. Refer to PMBOK® Guide Sixth Edition, Project Cost Management, page 254. Which of the following statements regarding analogous estimation is INCORRECT? A. Activities need not be identified B. It is less expensive than other estimations C. It is the most accurate technique for estimation D. It requires considerable experience to do well - - correct ans- - Correct Option: C EXPLANATION It is the most accurate technique for estimation. Bottom-up estimates give more accurate estimates because they are done at a later phase of the project when
While option (b) describes how the project management team will implement the quality policy of its organization, a process improvement plan is more focused on enhancing the value of the process on a project. It includes determining process boundaries, process metrics, and targets for improved performances. Refer to Project Quality Management, page 271, PMBOK® Guide Sixth Edition for more details. The method of examining work or a product to determine whether it conforms to documented standards is known as: A. Inspection B. Statistical Sampling C. Audit D. Verification - - correct ans- - Correct Option: A EXPLANATION Inspection is the examination of work or a product to determine whether it conforms to documented standards. It is also called peer reviews, review audits, or walkthroughs. Inspection can be done at any level in the project and can also be used to validate defect repairs. A project manager is in the project planning phase. He is creating a plan to describe how human resource requirement on the project would be met and using a bar chart tool called resource histogram for charting this requirement. However, he notices that some of the individual bars on the resource histogram extend beyond the maximum allowed hours. What should the project manager do to correct this? A. Reduce Scope B. Extend Working Hours C. Do Resource Leveling D. Schedule Compression - - correct ans- - Correct Option: C EXPLANATION
Resource leveling is required whenever individual bars on the resource histogram extend beyond the maximum allowed hours. Resource leveling can be done by either adding more resources or modifying the schedule. Option (a) reducing scope or (b) extending working hours would be detrimental to the project's success and is not recommended. Option (d) schedule compression, which can be done through either crashing or fast tracking, would not necessarily be helpful in the current situation. Specific bars are showing an overflow. This can be best tackled using resource leveling. A project manager in a warehousing company is mapping resources required for a project, along with the number of hours that will be required during the project. Which tool would be most suitable for this purpose? A. Gantt or Bar Chart B. Responsibility Assignment Matrix C. Resource Histogram D. Resource Breakdown Structure - - correct ans- - Correct Option: C EXPLANATION A resource histogram can be used to show the usage of resources individually or by groups over time. Option (a) Gantt or Bar Chart illustrates a project schedule by capturing start and finish dates, as well as the expected duration of a project. Option (b) Responsibility Assignment Matrix maps specific resources against work packages from the WBS and would not indicate timelines. Option (d) Resource Breakdown Structure (RBS) is a standardized list of personnel resources related by function and arranged in a hierarchical structure and would not be helpful. You are managing a project with project teams in different geographical locations. There are approximately 25 team members in 3 different locations each being led by a team lead. In addition, there are 3 members from supporting groups working part-time on the project. How many communication channels are possible? A. 496 B. 992
A. Interactive Communication B. Pull Communication C. Push Communication D. Personal communication - - correct ans- - Correct Option: B EXPLANATION This is an example of a pull communication method which is used for large volumes of information or for large audiences and requires recipients to access the communication content at their own discretion. To make it easier to remember, think of pull communication as the receiver pulling information at his discretion. For more information, please refer to Communication Methods, page 374, PMBOK® Guide Sixth Edition. You are a project manager with a financial firm that has multinational dealings. You feel the financial meltdown in one of the client countries could affect your project adversely, so you want to hedge your risks. Although, the probability of occurrence of the event is low, you are advised to play it safe. In terms of risk attitude, your organization could BEST be described as: A. Risk Seeker B. Risk Averse C. Risk Neutral D. Risk Mitigator - - correct ans- - Correct Option: B EXPLANATION Someone who does not want to take risk is called risk averse and the project manager seems to be part of such an organization. Option (c) risk neutral describes a person or an organization which is indifferent to the risk. Option (a) risk seeker suggests an aptitude to take risks with an opportunity for higher returns. Option (d) risk mitigation is a risk response strategy and is an invalid choice. These behaviors are best described by the utility function U(x), where x represents the value that might be received in money or goods.
You are a project manager currently finding all of the risks on a project. As a part of this activity, you would like to know the risk attitude and organization policies and procedures for risk management. Which of the following should you refer for this purpose? A. Enterprise environmental factors B. Stakeholder register C. Risk management plan D. Project documents - - correct ans- - Correct Option: A EXPLANATION The project manager is in the identify risks process. Enterprise and environmental factors can greatly influence the process. It will determine the organization attitude towards risks, as well as policies and procedures for risk management. Option (b) Stakeholder register contains information on the stakeholders which would be helpful to get their inputs on risk identification. Option (c) and (d) are specific to the project and would not have required information on organization policies and procedures. Please refer to Project Risk Management, page 395, PMBOK® Guide Sixth Edition for more details. Which of the following is a tool to perform qualitative risk analysis process? A. Monte Carlo Simulation B. SWOT (Strength, Weakness, Opportunities and Threat C. Probability-Impact Matrix D. Root cause identification - - correct ans- - Correct Option: C EXPLANATION Probability-Impact matrix is used in analyzing the probability and impact of the identified risks.
There is a lag of 15 days between the activities. If the second activity starts, when the first activity is running, this situation is called Lead. After the first activity completes, if there is a delay or wait period before the second activity starts, it is called a lag. The estimating technique that uses the statistical relationship between the historical data and other variables to calculate an estimate for an activity is called: A. Analogous estimating B. Parametric estimating C. Three-point estimating D. Monte Carlo technique - - correct ans- - Correct Option: B EXPLANATION Parametric estimating primarily refers to an estimation technique which utilizes the statistical relationship that exists between a series of historical data and a delineated list of other variables. Some examples of these variables include square footage on a construction project and the number of lines of code that exist in a software application. This information is then implemented to calculate and demonstrate an estimate for the entity's activity parameters. Which of the following is NOT an advantage of a fixed price contract? A. The buyer has less work to manage B. The seller has a strong incentive to control costs C. The buyer knows the total price at project start D. Final cost may be more than a cost reimbursable contract because contractors must add to the price to cover their risk - - correct ans- - Correct Option: D EXPLANATION Since the risk of increase in cost lies with the seller on a fixed priced project, the final cost of the contract could be more than a cost reimbursable contract.
A project manager is trying to successfully complete a project, but his role in the organization is limited and the project manager has no control over the project's budget. Although he has some power to authorize decisions, he needs to seek approval on most of the major decisions. Also, his team members work only part-time on the project. The functional manager is interested to carry out functional activities than project activities. In which kind of organization does the project manager work? A. Functional B. Projectized C. Composite D. Matrix - - correct ans- - Correct Option: A EXPLANATION The functional manager is interested to carry functional activities than project activities. The Project Manager has limited authority and no control over the project's budget. Also, his team members are not allocated full-time on project work. Hence, the Project Manager is working in a functional organization structure. You are in the process of implementing approved changes, corrective actions, preventive actions, and defect repairs on a project. Which process group are you in? A. Initiation B. Planning C. Executing D. Monitor and Control - - correct ans- - Correct Option: C EXPLANATION The executing process group involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance to the project management plan.
constraints. Option (a) is a reactive approach and would do nothing to solve the problem. Option(c) should come much later after exploring all the alternatives. Option(d) is not recommended as a good project manager is expected to use resource leveling during project planning for the optimal use of resources. Any arbitrary reassignment would overload the existing team members resulting in poor quality and a further delay in the schedule. A project manager realizes that a lot of time and effort are spent by their team capturing the data during product testing. What is the best option to address the issue? A. Stop capturing the data as it doesn't add any value to the project activity B. Allocate a time at the end of the day to update all the data together C. Ask for an additional resource to capture project data D. Automate the data capturing process - - correct ans- - Correct Option: D EXPLANATION The best alternative is the one which eliminates the root cause of the problem and prevents subsequent changes. Here the main problem is the inefficient use of team members' time in capturing the data. The best way to address this is to automate the data capturing process, thus reducing both time and effort. Option (b) could result in incorrect and incomplete data as it is not recorded at the time of capture. Option (a) and (c) suggest the project manager evades her responsibility to produce valid project data. A customer who is in the latter part of the project execution wants to add scope to the project. The project manager discusses this change with the customer and raises a written change request. He then evaluates if this change can be addressed through project reserves and explores alternatives. The project manager finds that this addition would result in missing the next milestone delivery of the project. What should the project manager do NEXT? A. Evaluate the impact of the change on other factors of triple constraint-cost and time B. Perform integrated change control C. Get an approval from the Change Control Board
D. Update the project baseline and inform the customer - - correct ans- - Correct Option: C EXPLANATION Since the project affects the milestone deliverable, it is best to gain approval from the Change Control Board. The board will have the responsibility to review change requests to determine if additional analysis is warranted. They can also approve or reject project changes. The change control board can include the project sponsor, customer, experts, and others besides the project manager. You are a project manager for a project in the execution stage. The current Schedule Performance Index (SPI) and Cost Performance Index (CPI) for the project are 1.2 and 1.1. The project performance is well within the baseline. The defects found during the internal testing for the last deliverable were well below organization limits. However, the customer does not seem to be happy with the project's progress. What should be the FIRST thing the Project Manager does? A. Start managing the project as you gain more insight into day-to-day responsibilities B. Meet with the project team to understand open issues in the project C. Conduct a meeting with the customer to understand his concern over the project's progress D. Improve the project schedule and cost control measure so that SPI and CPI reaches above 1.5 - - correct ans- - Correct Option: C EXPLANATION It is important for the project manager to understand why the customer is unhappy in spite of the project performance being well within the baseline. Option (a) would not address the main problem and option (d) has no valid justification. Option (b) could be a good option after talking to the customer to address his concerns and other issues on the project.
A project manager is working on a critical deadline. He wants to ensure that there is no scope creep during the project work. Which of the following would be most helpful? A. Work Breakdown Structure dictionary B. Observations C. Decomposition D. Inspection - - correct ans- - Correct Option: A EXPLANATION A WBS dictionary provides detailed descriptions of the work to be done for each work package including acceptance criteria and quality requirements. It helps to ensure the resulting work better matches with what is needed. Therefore, the project manager can effectively use this tool to prevent scope creep. A project manager has some new members join in her team. She wants to help them see their roles and provide the project team with an understanding of where their work packages fit in the project management plan. Which of the following would be the most suitable document? A. Requirements documentation B. Requirements traceability matrix C. Responsibility assignment matrix D. Work breakdown structure - - correct ans- - Correct Option: D EXPLANATION The work breakdown structure is the foundation of project planning and a powerful tool for expressing the scope or extent of a project in simple graphic terms. It represents the project in terms of the hierarchy of deliverables and services it will produce. Hence, it would be an effective tool in providing the new members an understanding of where their work packages fit into the overall project management plan and gives them an indication of the impact of their work on the project. Option (c) Responsibility Assignment Matrix would give clarity with respect to individual roles on the project.
Option (a) Requirements Documentation focuses more on how individual requirements would fulfill business needs for the project. You are managing a large and changing project team which is joined by some new members. You would like to take the entire team through the project schedule and where the project currently stands with respect to the original plan. Which of the following charts would be most helpful? A. Gantt Chart B. Milestone Chart C. Work Breakdown structure D. Schedule Baseline - - correct ans- - Correct Option: A EXPLANATION A Gantt chart is a bar chart that shows the activities of a project, when each activity must take place and how long each will take. As the project progresses, bars are shaded to show the activities have been completed. People assigned to each task can also be represented. This is the most effective tool to show the people assigned to the project where they are with respect to the original plan. Option (b) Milestone Chart is a high- level summary of the project schedule and more suitable for senior management. Option (c) the work breakdown structure (WBS) is used to show the work that is in the project. Option (d) schedule baseline denotes the standard by which project performance is measured. You are a project manager evaluating a decision to buy a licensed software tool. This tool has a 50% chance of being successfully implemented in your company and would cost $50,000. However, there is a 40% chance that your company would be able to save $150,000 due to improved productivity. What is the expected monetary value of this decision? A. $35, B. - $35, 000 C. $21, D. - $21, 000 - - correct ans- - Correct Option: A
EXPLANATION
To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is Actual Cost, EV is Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion. You are a project manager in a manufacturing company. You want to analyze the output of a production line which manufactures piston rings. You also want to determine whether the variations in the jobs are inherent to the process or if the process needs adjustment. Which tool would be MOST useful? A. Statistical sampling B. Control charts C. Pareto charts D. Trend Analysis - - correct ans- - Correct Option: B EXPLANATION Control charts are graphical displays of the results over time of a process. They are used to determine if the process is "in control" or needs adjustment. Option (a) Statistical sampling is the process of selecting elements of a population for either descriptive or inferential purposes and is not a tool. You are a project manager and your team is preparing for the internal quality audit cycle. You feel that the team is a little apprehensive about the audit process, so you decide to give them an overview of the process. Which of the following is INCORRECT about quality audits? A. Quality audits are used to identify all the best practices implemented in a project B. Quality audits help to share best practices in a project with other projects in the organization C. Quality audits aim to assess project team effectiveness and suggest improvements
D. Quality audits help to improve process implementation - - correct ans- - Correct Option: C EXPLANATION Quality audits aim to assess project team effectiveness and suggest improvements. While all the other statements are true about quality audit, option (c) is not the scope of quality audits. Quality audits are structured, independent reviews purely aimed at determining whether project activities comply with organizational and project policies, as well as processes. Project team performance evaluation is done as part of the team performance assessment in the process develop project team under human resource management. For more information on the quality audit process, refer to, page 294, PMBOK® Guide Sixth Edition. Your project is going through an audit cycle when one of the senior auditors points out the target value for the Schedule Performance Index (SPI) is set too low and should be increased by at least five percent. You try to tell him that the target value follows the organization baseline and cannot be changed. Which of the following is a CORRECT statement in this case? A. The auditor is right; the project has a critical deadline to meet and hence target SPI should be increased. B. The auditor is right; the target value for SPI that is a benchmark for the project should be kept high and thus increased. C. The project manager is right; the schedule is not critical in the project and hence target SPI value needn't be kept too high. D. The project manager is right; target SPI is based on the organization baseline derived from the process maturity level and should be followed by the project. - - correct ans- - Correct Option: D EXPLANATION Most of the organizations set up organization level baselines called Process Capability Baselines. A Process Capability Baseline (PCB) specifies what results to expect when processes are followed. By using a PCB, a project can predict at a gross level, the effort
