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PMP Certification Training 2025 – Pass the PMI
Exam with Proven Strategies, Mock Tests, and
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One of your hardware vendors sends you an e-mail stating that due to severe bad weather, she will not be able to deliver the networking equipment on time. You succeed to respond to this risk by leasing the required equipment from a local company until yours arrives. Which of the following statements is TRUE? A. This is risk avoidance B. This is risk mitigation C. This is risk acceptance D This is risk exploitation - - correct ans- - Correct Option: B EXPLANATION Risk mitigation simply means a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Leasing the equipment reduces the consequence of the threat in this specific situation. You are trying to measure how diverse the population is in your data set. First, you find the mean by taking the average of all data points, and then you calculate the average of how far each individual point is from that mean. You are using: A. Standard deviation B. Statistical sampling C. Mutual exclusivity D. Normal distribution - - correct ans- - Correct Option: A
EXPLANATION
The standard deviation measures how diverse the population is in the data set. It is calculated by finding out the mean and then calculating the average of the distance of each data point from the mean. You are overseeing a twenty-mile railway construction project. You are supposed to spend $10,000 per mile of railway construction and complete the project today, exactly forty weeks from the start of the project. You found out that only 75 percent of the work has been completed. What is your budget at completion? A. $2,00, B. $1,50, C. $3,00, D. $4,00,000 - - correct ans- - Correct Option: A EXPLANATION You have 20 miles to complete at a rate of $10,000/mile. Your budget at completion is 20*10,000 = $200,000. Your organization is having a severe cash flow problem, and you were asked to minimize the cost in your small project as much as possible. Which of the following processes may you consider eliminating in such a scenario? A. Perform Quantitative Risk analysis B. Monitor risks C. Identify risks D Plan risk management - - correct ans- - Correct Option: A EXPLANATION
EXPLANATION
Variety of work is a motivational agent, not a hygiene factor. You decide to use a combination of tools and techniques to identify risks in your data center project. Which of the following tools is NOT used for risk identification? A. SWOT analysis B. Assumption analysis C. Brain storming D. RACI chart - - correct ans- - Correct Option: D EXPLANATION SWOT analysis, assumption analysis, brainstorming'an information gathering technique'are used to identify risks in the project. RACI is a type of responsibility assignment matrix chart that can be used to ensure clear divisions of roles and responsibilities (RACI stands for responsible, accountable, consult, and inform). Which of the following processes documents configuration management activities in a project? A. Collect requirement B. Define scope C. Plan scope management D. Validate scope - - correct ans- - Correct Option: C EXPLANATION
Requirements and configuration managements activities are documented as a part of the requirements management plan, which is an output of the Plan Scope Management process. While overseeing a construction project, you are informed by the site supervisor that the painting team has showed up even though the dry wall team is not even half done. The painting team lead is not sure when his team is supposed to start the work. Which of the following is contributing MOST to this issue? A. Team cohesiveness is poor B. Communication management plan is not developed C. A proper work authorization system is not established in the project D. The site supervisor is lacking experience. - - correct ans- - Correct Option: C EXPLANATION Work authorization system is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time. The other options listed here could be contributory factors, but most likely, a work authorization procedure is either not properly established or not properly followed. You remind your manager about your great contribution in a couple of projects and ask him to recommend you for a 10 percent salary increase. The manager mentions that management decided to give all the employees performing above average a 5% salary increase; thus, there is no need to discuss this topic any further. This is an example of: A. Good guy/bad guy B. Personal insult C. Fait accompli D. Missing man - - correct ans- - Correct Option: C EXPLANATION
D. Claims administration - - correct ans- - Correct Option: B EXPLANATION Procurement performance review is a structured review that consists of seller-prepared documentation, buyer inspection, and a quality audit of the seller's progress to deliver project scope and quality within cost and on schedule as compared to the contract. The objective is to identify performance progress or failures, noncompliance, and areas where performance is a problem. Inspections and audits are activities mainly focused on the product itself and its conformance to specification. Performance reporting is an excellent tool that provides management with information about how effectively the seller is meeting contractual objectives. This report can produce earned values, schedule and cost performance index, trend analysis, etc. The payment system is usually handled by the accounts payable system of the buyer organization and helps avoid duplicate payments, ensures invoices and payments match up, and ensures that the right amount has been invoiced for the appropriate deliverables at the right time. You are working for a cruise company as a project manager. Your company offers luxury tours to couples at a reasonable price. Currently, the company is considering adding more tours to a few other popular destinations during the holiday season in order to enhance traffic and profitability. Which risk response strategy are you using? A. Share B. Exploit C. Accept D. Enhance - - correct ans- - Correct Option: D EXPLANATION The cruise company is using the enhance strategy to increase the traffic and profitability. By influencing the underlying risk triggers, this strategy increases the size, probability, likelihood, and positive impact of an opportunity.
Your organization has outsourced a large portion of the activities of an ERP implementation project to a vendor. According to the contract, the vendor is supposed to review the design and code of any major component with the technical review group (TRG) of your organization. So far the vendor has completed and deployed three major components without the approval of the TRG team. As a project manager, what should you do in this situation? A. Terminate the contract immediately as the vendor has breached the contract B. Stop payment for the components that were deployed without approval C. Do not worry too much as the approval of the TRG is not that important D. Issue a default letter to the vendor - - correct ans- - Correct Option: D EXPLANATION When the vendor is not following the instructions stated in the contract, the project manager should inform the vendor that they are in default. Without informing the vendor about the concern and what they are doing wrong, you cannot terminate the contract. You also cannot simply stop any payment. You are having an issue with one of the manufacturing processes used to create the required parts for routers and switch that your company produces. Due to this major quality problem, only 15 percent of the parts manufactured have been within the control limits set by the manage quality team. Higher management asks you to review the process activities to determine where the process went wrong. Which type of diagram should use? A. Control chart B. Pareto chart C. Scatter diagram D. Flow chart - - correct ans- - Correct Option: D EXPLANATION
The scope management plan and requirements management plan are the outputs of the Plan Scope Management process. As an employee, working conditions, salary, status, and job security matter a lot to you, just like they do to your other coworkers. However, you feel that you will be more motivated and will contribute more if you are rewarded for your contribution to a project and given the opportunity to grow professionally. Which motivational theory does this refer to? A. McGregor's TheoryX and TheoryY B. Maslow's Hierarchy of Needs C. Herzberg's Motivation-Hygiene Theory D. Dr.William Ouchi's TheoryZ - - correct ans- - Correct Option: C EXPLANATION According to Herzberg, destroying hygiene factors such as working conditions, salary, status, and security can destroy motivation, but improving them under most circumstances will not improve motivation. Hygiene factors are not sufficient to motivate people, and motivating agents provide the best positive reinforcement. Motivating people is best done by rewarding them and letting them grow. While determining the funds needed for your project, you obtained historical information from previous projects to determine the price per square foot of carpeting and to calculate the cost of 20,000 square feet of carpeting that is required for this project. Which technique did you use to create the estimate? A. Analogous estimating B. Three-point estimating C. Heuristic estimating D. Parametric estimating - - correct ans- - Correct Option: D EXPLANATION
Parametric estimating is a technique that reviews historical data for statistical correlations. Variables are then used to estimate the costs in the current project. For example, if historical information identifies that the flooring installed in a similar project cost $1.50 per square foot, then the 20,000 square feet of flooring required for the new project would cost $30,000. Typically, this technique has been known to produce a high level of accuracy, but it will be costly due to the level of sophistication that is required to implement it. In most cases, the technique is performed when the performing organization conducts many similar projects, historical information is accurate, and the model used for the estimate is scalable. The flexibility or total float in a schedule is measured by subtracting the early dates from the late dates. Which one of the following will help you identify the flexibility in your schedule? A. Precedence diagramming method B. Resource leveling C. Critical path method (CPM) D. Parametric estimating - - correct ans- - Correct Option: C EXPLANATION Critical path method (CPM) is a technique of schedule analysis that considers activity durations, logical relationships, dependencies, leads, lags, assumptions, and constraints to determine the float of each activity and the overall schedule. This method identifies the critical path with the least flexibility and the highest risk so that it can be managed appropriately. You recently completed the SOW detailing the specifications and other requirements for an expensive item you would like to purchase for one of your projects. While working on the SOW, you identified some of the source selection criteria, terms and conditions, and the contract type that you want to use. Also, you put together some documents to solicit proposals from potential vendors. What tools and techniques will you use in the next process? A. Market research, make-or-buy analysis, and expert judgement B. Bidder conference, proposal evaluation techniques, and independent estimates
B. Project presentations and review C. Earned value analysis D. Variance analysis - - correct ans- - Correct Option: C EXPLANATION Earned value analysis is used to integrate scope, cost, and schedule measures to assess project performance. Trend analysis and variance analyses are included in earned value analysis. Variance analysis may include only a comparison of actual performance with one specific baseline. Presentations may be used to deliver information obtained during earned value analysis. You have been managing a software application project to automate the accounting system for your client. Your team has completed work as specified in the contract statement of work. You get a call from the buyer that he is disappointed with the result, even though he admits that the project team has met the terms and conditions of the contract. In this situation, the contract is considered to be: A. Complete B. Waived C. Closed D. Null and Void - - correct ans- - Correct Option: A EXPLANATION While the buyer may have had something they did not like, if the terms of the contract are complete, objectives are met, and project is complete according to agreement the contract is complete. Anything done for the customer would be a service related issue and would be outside the original scope. While overseeing the development of a new wireless media streaming device, you notice that your team members are having significant difficulties resolving an issue that they have discovered during unit testing. After working on the issue for a week, the team
members identify a number of possible causes for the issue and narrow them down to two main causes. You ask the team members to determine if there is any interdependency between these two causes that would necessitate further action. Which of the following tools would be the BEST to use in this situation? A. Histogram B. Flow chart C. Scatter diagram D. SWOT analysis - - correct ans- - Correct Option: C EXPLANATION A scatter diagram is a tool and technique used in quality management processes to analyze two characteristics of a process and see if there is any interdependency between them. Based on the outcome of the scatter diagram, appropriate actions can be taken to improve quality. You are a Project Manager of a software project that has finished the design stage and is moving to the implementation stage. At the end of the design phase, you got the document reviewed and you tracked and closed the defect logs. Also, as part of the design stage review and kick-off for the implementation phase, you checked current SPI and CPI and revisited the risks. What did you forget to do? A. Identify new risks for the next stage and update risk register B. Take corrective and preventive actions from design review so that defects can be minimized C. Conduct an impact analysis of the defects found during the design review D. Communicate project stage review findings to all the stakeholders - - correct ans- - Correct Option: D EXPLANATION The Project Manager needs to communicate project progress to stakeholders at all the major milestones. Option (a) would have been addressed during revisiting the risk as
D. The estimates are way too high - - correct ans- - Correct Option: B EXPLANATION According to the learning curve theory, when a large number of items are produced repetitively, productivity will increase but at a diminishing rate. Learning curve data indicates that as work is repeated, the time required to complete the work is reduced, but the rate of improvement decreases. For instance, installing carpets in the fiftieth room in a construction project will take less time than it did in the first room due to increased efficiency as workers become more efficient with the installation procedure. Which of the following is NOT an output of the Conduct Procurements process? A. Procurement contract award B. Selected sellers C. Source selection criteria D. Resource calendars - - correct ans- - Correct Option: C EXPLANATION Source selection criteria are not an output of the Conduct Procurements process. They are an output of the Plan Procurement Management process. They are developed and used to provide sellers with an understanding of the buyers' need and to help them decide whether to bid or make a proposal on the project. Later on, it also helps to evaluate sellers by rating or scoring them. Which of the following best describes Vroom's Expectancy theory? A. Employees will put in efforts dependent on expectancy, valence, and instrumentality B. Employee motivation is not achievable C. Hygiene factors will ensure that job dissatisfaction does not occur; however, it does not ensure job satisfaction D. People have needs starting with Physiological Needs and ending with self- actualization - - correct ans- - Correct Option: A
EXPLANATION
Vroom's Expectancy theory is based on the idea that people believe there are relationships between the effort they put in at work, the performance reviews/ratings they are credited for the effort, and the rewards they receive from their effort and performance review ratings. So, people will be motivated if they believe that hard work and effort will lead to good performance reviews and good performance reviews will lead to desired rewards. This theory consists of three key elements: Expectancy - Perception of an employee of how much and what amount of effort will lead to a desirable performance rating. Instrumentality - Perception or expectation that a good performance rating would translate into a hefty salary hike. Valence - Preference of an employee for a certain reward. Option B is clearly unrelated to this theory, so it is not the correct answer. Option C is related to Herzberg's Hygiene theory, so it too is not the correct answer. Option D is about Maslow's Theory of Hierarchical needs, so it's not the correct answer. You are managing a project that your company won after making a bid. The clients have negotiated long and hard and have driven a hard bargain. The project is scheduled to span over eight months, and you are in your fifth month of execution. You are extremely worried since you have about four more months of work remaining and the project is at the "Point of total assumption." What does this mean? A. As a seller, you are running behind schedule B. As a seller, you are ahead of schedule C. The project is going to have a cost overrun which will need to be negotiated with the client D. As a seller, all subsequent costs will have to be borne by you - - correct ans- - Correct Option: D EXPLANATION The point of total assumption (PTA) is a point where cost overruns will cause a dollar for dollar decrease in profit for the seller. Hence, any subsequent cost will have to be borne by your company.
You are the project manager and decided to outsource a part of the project to a vendor. The vendor discovered some issues that impact the cost and schedule of its work. How does the vendor update the agreement? A. A new contract needs to be signed by your company and the vendor B. A contract addendum needs to be signed by your company and the vendor C. An SOW needs to be signed by you and the vendor D. None of the above - - correct ans- - Correct Option: B EXPLANATION A contract addendum needs to be signed by your company and the vendor. As a manager on a project, you have to ensure that the project delivers within the scheduled timelines with minimal rework and customer delight. For some time now, the project work is proceeding smoothly with a CPI and SPI a perfect 1. One of your team members approaches you and indicates the possible need of a long vacation on personal grounds, and this could possibly occur two months from now. You look up the schedule and finds that this team member is scheduled to execute activities that are on the critical path and the team member's absence in two months' time would cause a delay in schedule. You decide to take some action and reschedule task allocation to ensure that this team member is not planned to work on any of the critical path activities. What did you just do? A. Mitigate the risk B. Avoid the risk C. Transfer the risk D. Exploit the risk - - correct ans- - Correct Option: B EXPLANATION You have avoided the risk. By interchanging the tasks, you have ensured that the resource who could go on a long vacation does not work on critical path activities. There
is no question of exploiting the risk as this is not a positive risk. This is not a case of risk mitigation since you have neither created a backup plan nor come up with an alternate strategy. You are in the process of executing a project that deals with laying out electrical cables connecting two cities. You have been reporting progress on a monthly basis. This month, due to unplanned vacations, many of the staff have not turned up at work. This has caused a delay in the schedule. You decide to check if the schedule variance is within the allowable threshold. What document should you refer to? A. Project Management Plan B. Schedule Management Plan C. Project Schedule Network Diagram D. Activity Definition - - correct ans- - Correct Option: B EXPLANATION The acceptable schedule variances are defined in the Schedule Management Plan. Which of the following activities is not performed as a part of Project Closure? A. Ensuring all the deliverables meet contract requirements B. Creating lessons learned and updating Organizational Process Assets C. Formal acceptance D. Verifying scope - - correct ans- - Correct Option: D EXPLANATION All the options except "verifying scope" are performed during project closure. Ensuring deliverables meet contract requirements and formal acceptance are key activities of project closure. Capturing lessons learned is also a very important activity performed during project closure. However, verifying scope is not performed during project closure. It belongs to the Monitoring and Controlling process group.
