Risk Management Q&A

1. 1 . Which is the tool and technique used under control risks process?
Risk audits
Documentation reviews
Analytical techniques
Data gathering and representation techniques
Answer: a) Risk audit is the tool and technique which is used to control risk.
2 . The degree of uncertainty an entity is willing to take on in anticipation of a read is-----
Risk tolerance
Risk appetite
Risk threshold
Risk averse
Answer: b) The degree to which one can take in anticipation of reward is appetite.
3 . Which of the following option comes under technical risk category?
Quality
Government
Schedule
Funding
Answer: a) Quality comes under technical, government comes under external, schedule comes
under project management and funding comes under internal

2. 4 . Which of the following mathematical analysis shows the risks which has the most
potential impact on the project?
Expected monetary value
Monte Carlo simulation
Utility function
Sensitivity analysis
Answer: d) Sensitivity analysis shows how the uncertainty as the output can be apportioned to
different sources of uncertainty assist inputs.
5 . Which of the following is the input for identify stakeholder process?
Project management plan
Procurement documents
Stakeholder management plan
Communication management plan
Answer: b) Procurement documents, project charter, enterprise environmental factors and
organizational process assets are inputs to identify stakeholders
6 . You are in the process of numerically analyzing the effect of identified risks on
overall project objectives. Which process addresses this definition?
Plan risk management
Perform qualitative risk analysis
Perform quantitative risk analysis
Control risks
Answer: c) The quantitative risk analysis helps in building numerical value like cost and time impact.

3. 7 . The ability of an organization to invite or take the risk to make it an opportunity is
called
Risk seekers
Utility function
Risk averser
Risk neutral
Answer: b) The ability of an organization which invites or handles risk is called utility function. It uses
the principle of utility theory
8 . As the buyer during the contract negotiation process, you are interested in a contract
that would have the least amount of risk to your organization. Which of the following
contracts would be preferred to meet your risk-averse needs?
Firm Fixed Price
Cost Plus Percentage of Cost
Cost Plus Incentive Fee
Cost Plus Fixed Fee
Answer: a) The Firm Fixed Price or Lump Sum contract places the responsibility to deal with the risk
of a cost overrun with the seller. Cost plus contracts shift the cost risks to the buyer.
9 . Risk of incorrectly deciding to reject the null hypothesis is called :
Alpha risk
Beta risk
Secondary risk
Residual risk
Answer: a) Risk of incorrectly deciding to reject the null hypothesis is called alpha risk. For example:
Under the probability if the confidence interval is 90%, then the alpha risk 10%.

4. 10 . Which of the following is an output of identify risk process?
Project documents updates
Risk register
Work performance information
Change request
Answer: b) Once you identify risk, everything should be documented under risk register
11 . Which of the following is an input to estimate activity resources?
Project management plan
Risk register
Project charter
Scope baseline
Answer: b) Out of the given options only risk register is the input for estimate activity resources
12 . An analysis used in the change management context where it will adapt for risk
identification by identifying driving forces and restraining forces which affect project
objective is called:
FMEA/FMECA/Fault analysis
DMAIC
Force field analysis
Facilitated workshop
Answer: c) This sis typically used wherever there is a change coming from different direction during
the project to see if any impact due to risk

5. 13 . You need to inform a stakeholder about a project. Under which conditions of power
and interest of stakeholder you need to consider?
High power, High Interest
High power, Low Interest
Low power, High Interest
Low power, Low Interest
Answer: c) Under the stakeholder analysis technique, if the stakeholder is having low power and
high interest, you have to inform them about project activities.
14 . You are in the process of defining which risks may affect the project both positively
and negatively and documenting their characteristics. Which process you are into?
Plan risk management
Identify risks
Plan risk responses
Control risks
Answer: b) Identify risk process helps in finding the project risks and documenting them
15 . You are a project manager managing a construction project which is half-way
through the execution. The project is progressing well and is on schedule when a
vendor calls to inform you that there will be a one-week delay in delivery of the product.
This is due to an unforeseen labor dispute at their company. Which of the documents
would best capture the impact of the delay on the project schedule?
Network Diagram
Procurement Management Plan
Work Breakdown Structure
Risk Register
Answer: a) A project network diagram captures the project schedule and would be the best
document to reflect the impact of a delay on a vendor deliverable. The work breakdown structure
shows what work is in the project, but doesn't focus on how long it should take. The risk register
would show an increase in project risk, but wouldn't help to determine the impact of a delay on the
project schedule.

6. 16 . Which of the following is an output of plan risk management process?
Risk register
Project documents updates
Project management plan updates
Risk management plan
Answer: d) Risk management plan is the output.
17 . Which estimation technique uses rule of thumb?
Analogous
One time estimation
Three point estimation
Heuristic
Answer: d) Heuristic approach is based on rule of thumb and uses trial and error to come out with
estimation for an activity in terms of duration and cost
18 . Generally, projects are planned by developing phases that are performed
sequentially. In some cases, it is necessary to accelerate the project life cycle by
overlapping project phases. Which of the following best describes this technique?
The technique of overlapping requires the elimination of minor project activities which results in higher quality
Overlapping project phases will compress the schedule but will not generally have an effect on project risk
This technique is known as fast tracking and the risk level should be acceptable before it is implemented
This technique is known as crashing and can increase the cost of the project but will not affect project risk
Answer: c) Overlapping is referred to as fast tracking and can introduce risk into the project.
Generally, activities are not removed and the scope is not changed. Crashing involves the addition
of resources or the use of overtime and will usually increase project cost.
19 . Which is the best statement for the terminology issue?
A negative project risk that has occurred
A project risk that has occurred
A positive project risk that has occurred
A negative project risk that may occur
Answer: a) Negative risk which has already occurred is issue. That may happen is still a risk. Issue
is always negative.

7. 20 . Which of the following option is not an organization process asset?
Templates
Change control procedure
Personnel administration
Financial control procedure
Answer: c) Except for personnel administration rest of the options are organizational process assets
21 . Which of the following tools is used to find if there any relation between two
variables when trying to find the reason for the defect?
Histogram
Pareto chart
Check sheets
Scatter diagrams
Answer: d) Scatter diagram also called correlation charts used to explain a change in one variable
affect or change the other variable.
22 . Which of the following are scope baseline elements?
Project scope statement, WBS and WBS dictionary
Activity list, WBS and WBS dictionary
Activity list, activity attributes and WBS
Activity list, activity attributes and WBS dictionary
Answer: a) Scope baseline consists of project scope statement, WBS and WBS dictionary
23 . A project manager would like to inform everyone in a distributed team to update
their time cards for every week by Monday evening. What is the best way to
communicate this expectation?
Formal written
Informal written
Formal verbal
Informal verbal
Answer: b) Informal written - most likely the project manager will send an email reminder to
everybody, which represents informal written communication.

8. 24 . Which of the following tool referred to as process map which display the sequence
of steps and branching possibilities for a process that transform one or more inputs into
one or more outputs?
Pareto chart
Network diagram
Flow chart
Control chart
Answer: c) Flow chart technique helps in defining the process sequence which results in output by
considering different inputs.
25 . You are managing a project and have a major decision to make about a change in
the plan. You decide to contact several subject matter experts to obtain their opinions
before making a decision. Each expert is unaware of the participation by any of the
other experts you have contacted. The process being used is:
Nominal group technique
Delphi technique
Brainstorming
SWOT analysis
Answer: b) The Delphi technique utilizes input from subject matter experts who remain anonymous
to other experts involved in specific research or problem resolution
26 . Which is the tool and technique used under plan risk management process?
Risk reassessment
SWOT analysis
Expert judgment
Reserve analysis
Answer: c) Expert judgment is the tool and technique used for this process. Rest are used in other
processes

9. 27 . Which of the following is the tool and technique for plan stakeholder management?
Stakeholder analysis
Analytical techniques
Communication methods
Information management system
Answer: b) Expert judgment, meetings and analytical techniques are tools and techniques for plan
stakeholder management process
28 . There are different stakeholder levels which can influence the success or failures of
the project. The project manager needs to identify these levels in order to eliminate or
reduce negative risk so that the stakeholders can be in the desired engagement. Which
are those different levels?
Unaware, resistant, neutral, supportive and leading
Unaware, resistant, neutral, supportive and forcing
Unaware, resistant, neutral, supportive and dictating
Unaware, resistant, neutral, delegating and leading
Answer: a) Stakeholders can be under unawareness situation about project, resistant to change,
neutral behavior, supportive to changes and above all on top of project which is leading. The project
manager need to identify the current engagement and bring them to the desired engagement
29 . A project manager working on a construction project identifies a risk of a heavy
storm in the coming months which might affect the construction activity. However, he
doesn't have any reliable information on the weather forecast or the severity of the
storm. In this case, what is the best project manager can do?
Capture the Risk in the Risk Register
Ignore the Risk as nothing can be done to avoid it
Actively accept the risk and allocate time and cost reserve in contingency fund
Proceed with Risk Response Strategy to counter the Risk
Answer: c) In this situation the project manager has no information on the timing, anticipated
frequency, or impact of the expected rough weather. Option (d) will not give any valuable
information. The best option is (c) to accept the risk, but plan a contingency reserve in terms of cost
and time in case the risk occurs. Option (a) and (b) are passive approach and are not recommended
for a good project manager who should be always proactive in his approach towards risk
management.

10. 30 . Which of the following is a special form of bar chart and are used to describe the
central tendency, dispersion and shape of statistical distribution?
Histogram
Fishbone diagram
Flow chart
Control chart
Answer: a) Bar chart is a plot with vertical bars for different reasons of occurrence of measurement.
It is also called as Histogram
31 . Which diagramming technique shows causal influences, time ordering of events
and an expectation of outcomes considering a set of variables?
Scatter diagram
Flow chart
Ishikawa diagram
Influence diagram
Answer: d) Influence diagram represents a mathematical decision situation
32 . A project manager is managing a short duration pilot project and has started the
risk management planning process. He has identified new risks and prioritized them
based on probability and the impact matrix. The project manager now proceeds to plan
responses for the risks without analyzing the risks numerically . According to you, this
decision of project manager is-----------
Incorrect , It is important to numerically analyze each risk so that they can be responded properly
Correct, Quantitative Risk Analysis is waste of time and not required if risks are already assessed qualitatively
Incorrect, Quantitative risk analysis is important. We need to calculate EMV for each risk and that later move to
risk response planning
Correct, This is a short duration project and Project Manager might skip Quantitative Risk analysis if he feels it
is not assisting in the Risk Management process
Answer: d) For short term projects, quantitative risk analysis is not mandate because it takes huge
effect to collect the data and assessment from the numerical perspective.

11. 33 . Which of the following is an input to plan risk management process?
Project charter
Risk management plan
Scope baseline
Work performance data
Answer: a) Project Charter provides information of risk, project description and requirements at a
very high level
34 . Which of the following is an input to determine budget?
Project management plan
Risk register
Project charter
Schedule baseline
Answer: b) Out of the given options only risk register is the input for determine budget
35 . Which of the following contract types does not encourage the seller to control costs
and, as a result, places the greatest risk on the buyer?
Cost exclusive
Cost Plus Fixed Fee
Cost Plus Incentive Fee
Cost Plus Percentage of Cost
Answer: d) The cost-plus-percentage-of-cost or CPPC contract transfers all cost to the buyer and
any increase in costs will result in an increase in the fee to the seller. It also incentivizes the seller to
be inefficient. This places significant risk with the buyer and requires close cost management.

12. 36 . A project manager is making a transition of the manufacturing plant like heavy
equipment which are of high price from one city to another city. The road condition is
very bad and there is a risk of damaging the equipment while transiting. The project
manager go for insurance of the equipment. What is this risk response called?
Accept
Mitigate
Avoid
Transfer
Answer: d) Insurance is a good example of transfer risk response.
37 . Your project's earned value (EV) = 350, its actual cost (AC) = 400 and its planned
value (PV) = 325. What is the cost variance (CV), Schedule variance, cost performance
index and schedule performance index?
(-50, 25, 0.87, 1.07)
(25, -50, 0.87, 1.07)
(-50, 25, 1.07, 0.87)
(0.87, 25, -50, 1.07)
Answer: a) CV= EV-AC, SV= EV-PV, CPI=EV/AC and SPI=EV/PV
38 . What is the meaning of continuous process improvement in Japanese?
Kanban
Kaizen
Ouchi
Poker
Answer: b) Kaizen means continuous process improvement or change for better

13. 39 . A project life cycle where the project scope is generally determined early in the
project life cycle, but time and cost estimates are routinely modified as the project team
understanding of the product increases. What is this life cycle called?
Sequential
Overlapping
Iterative
Multi phase
Answer: c) Iterative means plan in detail for the near term activities and at a higher level for the later
activities. As the things are getting clearer, plan in incremental method
40 . From the given table, what is the duration of the project?
12
13
14
15
Answer: d) The minimum duration required to complete the project is 15 days which itself is the
critical path duration
41 . Which risk response deals with allocating some or all of the ownership of the
opportunity to third party who is able to deliver the best results to the project?
Share
Mitigate
Avoid
Exploit
Answer: a) Sharing actions include risk sharing partnerships, join ventures which results in
opportunity so that all parties gain from the action

14. 42 . The degree, amount or volume of risk that an organization or individual will
withstand is
Risk tolerance
Risk appetite
Risk threshold
Risk averse
Answer: a) The degree to which one can withstand risk is tolerance.
43 . Prompt list is a set of risk categories which can help in identifying risk. As per
prompt list, PESTLE means
Political, Economical, Social, Technological, Legal and Environmental
Political, Economical, Social, Technological, Legal and Ecological
Political, Economical, Survival, Technological, Legal and Environmental
Procedure, Economical, Social, Technological, Legal and Environmental
Answer: a) PESTLE means Political, Economical, Social, Technological, Legal and Environmental
44 . Which of the following technique systematically gather the information and helps to
analyze the interest of team?
Sensitivity analysis
Brainstorming
Delphi technique
Stakeholder analysis
Answer: d) It's the stakeholder analysis which provides the information about team/stakeholder pulse

15. 45 . Which of the following option is true regarding McGregor theory?
Theory X, Esteem
Theory Y, Esteem
Theory X, Theory Y
Theory Y, Social
Answer: c) McGregor says the members in the team belong to theory x and theory Y. Theory X
means people should be watched every minute. Theory Y means people willing to work without
supervision
46 . Which is the tool and technique used under perform qualitative risk analysis
process?
Risk data quality assessments
Data gathering and representation techniques
Variance and trend analysis
Technical performance measurements
Answer: a) options B is used under quantitative risk analysis and C & D are under control risk
process
47 . Which of the following option is not an enterprise environmental factor?
Organizational culture
Government or industry standard
Infrastructure
Processes and procedures of the organization
Answer: d) Except for organization process and procedures rest of the options are enterprise
environmental factors.

16. 48 . Which of the following is an output of perform quantitative risk analysis process
Risk register
Project documents updates
Work performance information
Change request
Answer: b) Project documents updates is the output
49 . A plan developed in anticipation of the occurrence of a risk to be executed only if
specific predetermined trigger conditions arise is called:
Contingency reserve
Contingency plan
Risk management plan
Mitigation plan
Answer: b) Contingency plan is developed and used when the risk occurs or during the active
acceptance of the risk
50 . The amount of time that a schedule activity can be delayed without delaying the
early start of immediate successor activity is called-------
Free float
Total float
Independent float
Project float
Answer: a) Total float is the amount of time that a schedule activity can be delayed from early start
date without delaying the project finish date. Free float is the amount of time that a schedule activity
can be delayed without delaying the early start of immediate successor activity. Independent float is
the amount of time an activity can be delayed if all the immediate predecessors finish at their latest
finish dates and we want to start all immediate successors on the earliest start dates. Project float is
an activity in the project can be delayed without affecting the customer committed date. This is like
project buffer added on top of internal committed date.

17. 51 . The measure along the level of uncertainty or the level of impact at which a
stakeholder may have a specific interest is---------
Risk tolerance
Risk appetite
Risk threshold
Risk averse
Answer: c) The level of impact at which a stakeholder may have a specific interest is threshold.
Below this threshold, the organization accept the risk, above this organization will not tolerate
52 . The amount of time an activity can be delayed if all the immediate predecessors
finish at their latest finish dates and we want to start all immediate successors on the
earliest start dates is called--------
Free float
Total float
Independent float
Project float
Answer: c) Total float is the amount of time that a schedule activity can be delayed from early start
date without delaying the project finish date. Free float is the amount of time that a schedule activity
can be delayed without delaying the early start of immediate successor activity. Independent float is
the amount of time an activity can be delayed if all the immediate predecessors finish at their latest
finish dates and we want to start all immediate successors on the earliest start dates. Project float is
an activity in the project can be delayed without affecting the customer committed date. This is like
project buffer added on top of internal committed date.
53 . Which of the following is an input to identify risk process?
Activity cost estimate
Risk register
Work performance data
Scope management plan
Answer: a) Activity cost estimate is required as this may provide the cost required at activity levels
and if any deviation from anticipated leads to identify risk

18. 54 . Known risks that cannot be managed proactively should be assigned a---------
Management reserve
Contingency reserve
General reserve
Project reserve
Answer: b) Known risk should be assigned to contingency reserve and unknown risk should be
assigned to management reserve
55 . A category of risk where the negative or the loss is the only outcome is called:
Business risk
Residual risk
Pure risk
Secondary risk
Answer: c) Pure risk is the risk which always results in the negative impact. Example can be fire,
theft, flood etc.
56 . Which of the following is not a risk category?
External
Technical
Accept
Project management
Answer: c) Accept is a risk response and rest are risk categories

19. 57 . A measure of how likely an individual risk is to occur is called:
Probability
Impact
Effect
Trigger
Answer: a) Probability is a measure of how likely an individual risk is to occur. It is also called as
likelihood
58 . Which option is true regarding sigma values?
1 sigma is 68.2%, 2 sigma is 95.4%, 3 sigma is 99.7% and 6 sigma is 99.99%
2 sigma is 68.2%, 2 sigma is 90.4%, 3 sigma is 99.7% and 6 sigma is 99.99%
3 sigma is 68.2%, 2 sigma is 95.4%, 3 sigma is 97.7% and 6 sigma is 99.99%
4 sigma is 60.2%, 2 sigma is 95.4%, 3 sigma is 99.7% and 6 sigma is 99.99%
Answer: a) 1 sigma is 68.2%, 2sigma is 95.4%, 3sigma is 99.7% and 6sigma is 99.99% are the
different sigma values
59 . Which tool is also known as tally sheet, which is used to verify the effective
collection of data?
Histogram
Pareto chart
Check sheets
Control chart
Answer: c) Check sheet is also known as tally sheet and may be used as a checklist when gathering
data.

20. 60 . Unknown risks that cannot be managed proactively should be assigned a----------
Management reserve
Contingency reserve
General reserve
Project reserve
Answer: a) Known risk should be assigned to contingency reserve and unknown risk should be
assigned to management reserve
61 . A project manager assumes if a person is good or bad in some area, he/she is
good or bad in other areas also. What is this called?
Assumption
Halo effect
Structured
Organized
Answer: b) Halo effect. This happens usually in the organization when it comes to appraisals
62 . You are working on a project and suddenly the customer demands early release of
the project deliverable ahead of the schedule. Now this may be a risk for the project. To
meet this demand you start using the most talented resources from the organization.
Which risk response you are dealing with?
Accept
Mitigate
Avoid
Exploit
Answer: d) Exploit is positive risk strategy where the organization wishes to ensure the opportunity is
realized. Here in the example, if you meet customer demand, the chances of get more business is
higher.

21. 63 . On which themes are the Risk attitudes of both organization and stakeholders
based ? Choose the correct answer.
Risk owner, risk tolerance, risk threshold
Risk owner, risk actionee, risk threshold
Risk actionee, risk tolerance, risk threshold
Risk appetite, risk tolerance, risk threshold
Answer: d) Risk attitudes of both organization and stakeholders may be influenced by a number of
factors and based on appetite, threshold and tolerance
64 . You are managing an information technology project. A technical specialist on your
team, after having an informal meeting with a low ranking customer representative
working on the project, determines that a simple alteration would be a great addition to
the project. You and the project sponsor have already signed off on the scope and a
change control process is in place. The technical specialist installs the change with no
negative effect to the project schedule and at no additional cost. What management
action should be taken?
The technical specialist should be recognized for exceeding customer expectations without affecting project
cost or schedule
The project manager should add a task to the project plan with no additional scheduled time and note that there
was no increased budget
The technical specialist should be informed their actions were not authorized and was inconsistent with the
change management plan
The project manager should create a change control form, and have the customer sign-off, since the change
has already been made
Answer: c) The change control process should be followed by everyone on the project team. Failure
to manage change effectively can result in significant scope creep and could result in serious
implications and additional risk and liability.

22. 65 . Which of the following is an input to perform qualitative risk analysis process?
Scope baseline
Cost management plan
Schedule management plan
Quality management plan
Answer: a) Options, B and C are inputs in quantitative risk analysis and option D is input to identify
risk
66 . Which of the following statement is true?
Risk and stakeholder influence are high during the initiating
Risk is low and stakeholder influence is high during the initiating
Risk is high and stakeholder influence is low during the initiating
Risk and stakeholder influence are low during the initiating
Answer: a) Risk and stakeholder influence are high during the initiating and comes down as the time
progresses
67 . What is the float for the activity C from the given table?
1
2
3
5
Answer: b) The float for activity C is 2. Early start is 2, early finish is 3, late start is 4 and late finish is
5. Float formula is LS-ES or LF-EF which is 4-2 or 5-3. So the float is 2

23. 68 . What is the output of manage stakeholder engagement?
Stakeholder register
Stakeholder management plan
Issue log
Work performance information
Answer: c) Issue log, change requests, project management plan updates, project documents
updates and organizational process assets updates are the outputs of manage stakeholder
engagement process
69 . Which of the following estimation technique is the most accurate where we can say
risk is less?
Analogous
Bottom up estimating
Expert judgment
Reserve analysis
Answer: b) Bottom up estimation is the most accurate estimation compared to the other.
70 . Prompt list is a set of risk categories which can help in identifying risk. As per
prompt list, SPECTRUM means
Socio-cultural, Political, Economical, Competitive, Technology, Regulatory, Uncertainty, Market
Socio-cultural, Political, Economical, Commercial, Technology, Regulatory, Uncertainty, Market
Socio-cultural, Political, Economical, Competitive, Technology, Regional, Uncertainty, Market
Survival, Political, Economical, Competitive, Technology, Regulatory, Uncertainty, Market
Answer: a) SPECTRUM means Socio-cultural, Political, Economical, Competitive, Technology,
Regulatory, Uncertainty, Market

24. 71 . The project manager is trying to find the trend of the risks which are being identified
in the project. Which of the following tool will help in analyzing the trend?
Histogram
Run chart
Flow chart
Control chart
Answer: b) Run chart is used to identify and display trends in data over time.
72 . In which of the following process groups the high level risk is identified?
Initiating
Planning
Executing
Closing
Answer: a) High level risk can be identified during the initiating and detailed during planning process
group
73 . A response to a threat that has occurred for which a prior response had not been
planned or was not effective is called:
Trigger
Workaround
Fix
Impact
Answer: b) Workaround is a response to a threat that has occurred for which a prior response had
not been planned or was not effective.

25. 74 . Which of the following is an input to estimate activity durations?
Project management plan
Risk register
Project charter
Scope baseline
Answer: b) Out of the given options only risk register is the input for estimate activity durations
75 . Circumstance under which a risk strategy or risk action will be invoked is called:
Probability
Impact
Effect
Trigger condition
Answer: d) Trigger condition is a circumstance under which a risk strategy or risk action will be
invoked
76 . Which is the tool and technique used under perform quantitative risk analysis
process?
Risk data quality assessments
Data gathering and representation techniques
Variance and trend analysis
Technical performance measurements
Answer: b) options A is used under qualitative risk analysis and C & D are under control risk process

26. 77 . Risk plans, quality plans, and change control plans are all--------to the project plan
Constraints
Appendixes
Additions
Subsidiaries
Answer: d) Subsidiary plans are the outputs of some of the other planning processes associated with
Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement
management. Additional plans that can be added to the project management plan include Change
Management, Process Improvement, Requirements Management and Configuration Management
plans.
78 . Which of the following is an input to plan procurement management?
Cost management plan
Risk register
Project charter
Schedule baseline
Answer: b) Out of the given options only risk register is the input for plan procurement management

27. 79 . There is a situation that as a project manager you need to determine the expected
value of the decision to build a new plant. The cost to build the plant is $120 million.
There are two probable outcomes. A 60% chance of a strong market which will result in
a $200 million reward and a 40% chance that there will be a weak demand resulting in a
$90 million reward. What is the expected monetary value for this decision?
$36
$48
$12
$60
Answer: a) The decision to build a new plant would cost $120 million. There are two possible
outcomes associated. There is a 60 % chance that there will be a strong demand for your product
which will result in a $200 million dollar reward or payout. The net path value for that scenario is
$200 - $120million or $80 million. There is a 60% probability that the strong demand will occur. 60%
* 80 million = expected value of $48 million. There is a 40 % chance that there will be a weak
demand for your product which would result in a $90 million reward or payout. $90million - $120,000
= $-30 million. The net path value is -$30,000. 40% * 30 million = -$12 million. The expected value of
this decision is -12 million. Adding the 48 million and the -12 million will result in an expected
monetary value of the decision of $36 million.
80 . A project manager is using an S-Curve to reflect the various expenditures of
resources over the projected time of the project. This S-Curve indicates that:
The bulk of the project cost is spent during execution
The project follows linear expenditure over all the phases
The project resource cost would be directly proportional to the size of the project
The project has high risk of attrition during execution
Answer: a) The S-Curve is used in project management as a means of representing the various
expenditures of resources over the projected time of the project or as a means of charting the real-
time expenditure of resources. This is important to project management in that it can be used to
monitor the project as it progresses and compare it to the projected S-Curve to determine whether
the project is being completed within the time and budget limitations. The shape of the curve
indicates the maximum cost and staffing levels are during the execution of the project.

28. 81 . Which of the following is not a project risk management domain?
Risk strategy and planning
Stakeholder engagement
Risk communication
Perform specialized risk activities
Answer: c) The five domains are risk strategy and planning, stakeholder engagement, risk process
facilitation, risk monitoring and reporting and perform specialized risk activities.
82 . Which of the following is an input to plan risk responses process?
Human resource management plan
Communication management plan
Quality management plan
Risk register
Answer: d) Risk register is the input
83 . Which organization is having the combination of projectized and functional
organizations structure?
Functional
Projectized
Matrix
Tight Matrix
Answer: c) This is a characteristic of a matrix organization. Matrix is combination of projectized and
functional organization. In the matrix structure, the personnel and other resources that a project
manager requires are not permanently assigned to the project, but are obtained from a pool,
controlled and monitored by a functional manager. Personnel required to perform specific functions
in a particular project are detailed for the period necessary, and are then returned to the control of
the functional manager for reassignment.

29. 84 . A cost reimbursable contract introduces greater risk to the:
Buyer
Seller
Project team
Functional managers
Answer: a) In a cost reimbursable contract the buyer generally does not have finalized requirements.
The buyer has higher cost risk, since the seller has their costs covered.
85 . Which of the following is an input to develop schedule?
Project management plan
Risk register
Project charter
Scope baseline
Answer: b) Out of the given options only risk register is the input for develop schedule
86 . You need to manage a stakeholder very closely. Under which conditions of power
and interest of stakeholder you need to consider?
High power, High Interest
High power, Low Interest
Low power, High Interest
Low power, Low Interest
Answer: a) Under the stakeholder analysis technique, if the stakeholder is having high power and
high interest, you have to manage them closely

30. 87 . A measure of the effect of a risk on one or more objectives if it occurs is called:
Probability
Impact
Effect
Trigger
Answer: b) A measure of the effect of a risk on one or more objectives if it occurs is called impact. It
is also called as consequence
88 . Under which type of contract does the seller accept all liability for poor
workmanship, engineering errors and consequential damages?
Incentive fee
Fixed price
Cost plus
Cost plus fixed fee
Answer: b) Fixed price. The Fixed price or lump-sum contract places the risk on the seller. The seller
will generally include a contingency in the contract to assist in minimizing the risk of reduced profits.
89 . What is the order of team development as per Tuckman ladder?
Forming, Norming, Storming, Performing and Adjourning
Forming, Storming, Norming, Performing and Adjourning
Forming, Performing, Norming, Storming and Adjourning
Forming, Storming, Performing, Norming and Adjourning
Answer: b) Forming, Storming, Norming, Performing and Adjourning is the correct order as per
Tuckman ladder

31. 90 . A group creativity technique that allows large numbers of ideas to be classified into
groups for review and analysis is called :
Alternative analysis
Mind mapping
Affinity diagram
Cause and effect diagram
Answer: c) Explanation Affinity diagram is a bottom up approach where ideas are collected and
grouped under bucket for further review
91 . The project team is finding the causes by looking at the problem statement and
asking "why" until the actionable root causes have been identified. Which of the
following tool helps in determining the causes?
Pareto chart
Fishbone diagram
Histogram
Control chart
Answer: b) Fishbone diagram also called as cause and effect diagram is used to find the causes of
the problem statement.
92 . As a project manager, you know that organizational process asset is one of the key
inputs for many processes which we come across during project management. In risk
management there is a process called quantitative risk analysis which helps in
numerically assigning the values for the risk. Now to carry out this process,
organizational process assets play an important role. Among the option given, which
one is not fit statement about organizational process asset?
You will use organizational process assets for risk databases that may be available from industry sources.
You will use organizational process assets for studies of similar projects by risk specialists.
You will use organizational process assets to determine costs of all risks events within the current project.
You will use organizational process assets for information from prior similar projects.
Answer: c) Determine cost is an estimation and not an OPA

32. 93 . Which of the following option suits for the definition process of defining how to
conduct risk management activities for a project?
Plan risk management
Risk communication
Risk analysis
Risk identification
Answer: a) Plan risk management process helps to understand how to identify risks, how to carry out
analysis, distinguishing between opportunity and threat and controlling the risk
94 . Point where budget is compared to earned value for performance measurement is
called:
Control account
Relative account
Fixed account
Control point
Answer: a) Control account is a point where scope, budget, actual cost and schedule are integrated
and compared to earned value for performance measurement
95 . A CEO from the Paris office wants to communicate project information to the
technical officer in China. The correct procedure would be?
CEO will encode the message in French; the technical staff will decode the message in Chinese
CEO will decode the message in French; the technical staff will encode the message in Chinese
CEO will encode the message in Chinese; the technical staff will decode the message in French
CEO will decode the message in Chinese; the technical staff will encode the message in French
Answer: a) Remember, each message is encoded by the sender and decoded by the receiver based
on the receiver's education, language, experience, and culture.

33. 96 . Diagram that describes a decision under consideration and the implications of
choosing one or another of the available alternatives is called:
Decision tree analysis
Cause and effect diagram
Fish bone diagram
Affinity diagram
Answer: a) The decision tree is a diagram that describes a decision under consideration and the
implications of choosing one or another of the available alternatives.
97 . You need to monitor a stakeholder. Under which conditions of power and interest of
stakeholder you need to consider?
High power, High Interest
High power, Low Interest
Low power, High Interest
Low power, Low Interest
Answer: d) Under the stakeholder analysis technique, if the stakeholder is having low power and low
interest, you have to monitor them
98 . Which of the following statement is correct with respect to input, tats and output for
control stakeholder process?
Project charter, stakeholder analysis and stakeholder register
Project management plan, expert judgment and stakeholder management plan
Stakeholder management plan, communication methods and issue log
Issue log, Information management systems and work performance information
Answer: d) Issue log is the input, Information management systems is the tool and work
performance information is the output

34. 99 . Project manager and the team are estimating the duration for an activity. They are
using 3 point estimation technique. The duration with worst value is 10 days, the best
value is 4 days and the most likely value is 7 days. What is the estimated duration and
variance for this activity?
10+/-4 days
7+/-1 day
6+/-1day
21+/-7 days
Answer: c) The formula for 3 point estimation is (P+4M+O)/6 and variance is (P-O)/6
100 . A key responsibility of the project manager is to ensure the proper adaptation of
the project management processes and coordinate the process phases through the
project life cycle. This involves balancing the basic aspects of scope, cost, and schedule
in addition to managing quality, communication, customer satisfaction, etc. In a single
word, how can the roles of the project manager is best described?
Integrator
Leader
Communicator
Differentiator
Answer: a) The role of a project manager is the combination of all the above options, but the one
that is most critical to the project's success is that of an Integrator. As described in the question, a
project manager is expected to integrate the project management processes and coordinate the
process phases throughout the project management life cycle to ensure all areas of the project come
together to successfully deliver the project.

35. 101 . Which of the following statement is correct from the definition of project, program
and portfolio?
Project is temporary & unique. Program is group of related projects, Portfolio is group of projects and programs
Project is temporary & unique. Program is group of projects, Portfolio is group of projects and programs
Project is temporary & unique. Portfolio is group of related projects, Program is group of projects
Program is temporary & unique. Project is group of related projects, Portfolio is group of projects and programs
Answer: a) Project is temporary & unique. Program is group of related projects, Portfolio is group of
projects and programs
102 . An analysis of a model structured to identify the various elements that can cause
system failure by themselves or in combination with others based on the logic of the
system is:
FMEA/FMECA/Fault analysis
DMAIC
Facilitated workshop
Brainstorming
Answer: a) It is a structured approach and is called failure mode and effect analysis
103 . The risks that arise as a direct result of implementing a risk response is called:
Primary risk
Secondary risk
Pure risk
Risk
Answer: b) The risks that arise as a direct result of implementing a risk response is called secondary
risk

36. 104 . Prompt list is a set of risk categories which can help in identifying risk. As per
prompt list, TECOP is
Technical, Environmental, Commercial, Operational and Political
Technical, Economical, Commercial, Operational and Political
Technical, Environmental, Communication, Operational and Political
Technical, Environmental, Commercial, Operational and Procedural
Answer: a) TECOP means Technical, Environmental, Commercial, Operational and Political
105 . Project risk is typically characterized by which three elements:
Severity of impact, duration of impact and cost of impact
Identification, type of risk category and probability of impact
Risk, probability, and impact
Occurrence, frequency and cost
Answer: c) A risk event is the actual occurrence of the risk. Example - equipment failure. Risk
probability is the likelihood that a risk event may occur. Impact refers to the consequence of the
occurrence of the risk event in terms of cost, time, scope, etc.
106 . The project manager and the team are adopting a risk response strategy whereby
they try to reduce the probability of occurrence or impact of risk. What is this risk
response called?
Accept
Mitigate
Avoid
Transfer
Answer: b) Mitigation is reducing the impact towards the project objectives

37. 107 . Which of the following option comes under project management risk category?
Regulatory
Funding
Requirements
Estimating
Answer: d) Estimating comes under project management, Regulatory comes under external, funding
comes under internal and requirements comes under technical
108 . Which of the following statement is correct with respect to relationship between
product life cycle and project life cycle?
Project lifecycle and product life cycle are same
Product life cycle is initiating, planning, executing, monitoring and control and closing
Product life cycle consists of multiple project life cycle
Project life cycle consists of multiple product life cycle
Answer: c) Product life cycle consists of multiple project life cycle is the correct option
109 . An estimation technique used based on historical data from a similar project is
known as:
Parametric estimation
Heuristic estimation
Analogous estimation
Benchmarking
Answer: c) Analogous is based on the previous history of similar projects

38. 110 . Process of reviewing all change requests, approving changes and managing
changes to deliverables, organizational process assets, project documents and project
management plan and communicating their disposition is called:
Change control system
Perform integrated change control
Work authorization system
Risk management
Answer: b) Integrated change control through CCB takes care of all these activities
111 . The process of prioritizing risks for further analysis or action by assessing and
combining their probability of occurrence and impact is-----------
Plan risk management
Perform qualitative risk analysis
Perform quantitative risk analysis
Control risks
Answer: b) Based on probability and impact, the qualitative risk analysis helps in building ranking of
risks
112 . Which model is used to analyze stakeholder power, urgency and legitimacy?
Power/interest grid
Power/influence grid
Influence/impact grid
Salience model
Answer: d) Salience model describes classes of stakeholders based on their power, urgency and
legitimacy.

39. 113 . You are in the process of project selection from different countries. One of the
projects which is proposed by a country is not doing good in terms of economical front.
So if you select this particular project there, it can be risky for the organization. You will
play safe and not consider for further project selection process. Which risk response
you adopted?
Accept
Mitigate
Avoid
Exploit
Answer: c) You are not honoring that project and avoiding for further evaluation
114 . From the figure shown, what is the duration of project?
41
42
37
36
Answer: c) Activity A and B together it takes 30. C will be finished by 28. D start from 31 and finishes
on 37

40. 115 . Which of the following is an input to perform quantitative risk analysis process?
Risk management plan
Human resource management plan
Communication management plan
Quality management plan
Answer: a) Risk management plan is the input for quantitative risk analysis process from the given
option
116 . The project team decides to acknowledge the risk and not take any action unless
the risk occurs. Which risk response they are dealing with?
Accept
Mitigate
Avoid
Transfer
Answer: a) Risk acceptance is nothing but not taking any action and accepting the situation. If risk
occurs contingency reserve will be established.
117 . Technique used to consolidate ideas created through individual brainstorming into
a single map to reflect commonality and differences in understanding and to generate
mew ideas is called:
Alternative analysis
Mind mapping
Affinity diagram
Cause and effect diagram
Answer: b) It is a top down approach where the from the objective the ideas are branched out with
groups

41. 118 . The risk response strategy to increase the probability and impact of positive
impact of an opportunity is called---------
Share
Mitigate
Enhance
Exploit
Answer: c) Enhance strategy is used to increase the probability and impact of positive impact of an
opportunity. Adding more resources to an activity to finish early can be an example
119 . Which of the following order is correct as per the Edward Deming cycle?
Plan, Do, Check and Act
Plan, Act, Do and Act
Plan, Act, Check and Do
Act, Check, Do, Plan
Answer: a) Deming explained about small process improvement by using the model PDCA or plan,
do, check and act
120 . You need to satisfy a stakeholder. Under which conditions of power and interest of
stakeholder you need to consider?
High power, High Interest
High power, Low Interest
Low power, High Interest
Low power, Low Interest
Answer: b) Under the stakeholder analysis technique, if the stakeholder is having high power and
low interest, you have to satisfy them

42. 121 . You are a project manager in a financial firm with multinational dealings. You feel
the financial meltdown in one of the client's countries could affect your project adversely
and 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?
Risk Seeker
Risk Averse
Risk Neutral
Risk Mitigator
Answer: b) Someone who doesn't want to take risks 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 and 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.
122 . As a project manager, you have been asked by the customer to give an overview
of the project status using milestone charts. Which of the following statement is
incorrect about milestone charts?
Milestones usually have zero duration
Milestone charts are similar to bar charts but only show major points or events
Milestone charts can be used to capture the status of project schedule
Milestones are used to define phases of a project
Answer: d) Milestone charts capture the major milestones in the project which represents the
beginning or completion of a deliverable, work package, phase, or project. A milestone is a zero
duration activity and these charts are commonly used to present project status to senior
management or a customer. Milestones do not define the phases of a project - this is defined by the
project lifecycle

43. 123 . Which of the following term is used when we are dealing with risk due to force of
nature while drafting the contract document?
Pivity
Force Majeure
Utility function
Lassez-faire
Answer: b) Pivity is based on the mutual or trust basis, utility function is about risk taking ability of
organization, lasses faire is the one of the leadership style by leaving the team members alone.
Force majeure is used under contract to define the terms if anything happens due to natural
disasters
124 . Which is the tool and technique used under identify risk process?
Analytical techniques
Meetings
Checklist analysis
Risk categorization
Answer: c) options A and B are tools and techniques for plan risk management process and risk
categorization is under perform qualitative risk analysis process.
125 . You are a project manager working on a compliance project in a banking firm. The
project is scheduled to complete six weeks from now. Your sponsor tells you that if the
project is finished sooner, the company can get some monetary incentives offered by
the government. You decide to fast track the project, which would have what effect:
Increase risk in the project
Not affect the project risk
Decrease risk in the project
Cannot be determined
Answer: a) Fast-tracking is the process of rescheduling tasks to be performed in parallel that were
originally planned in series. Remember, fast-tracking always involves risk that could lead to
increased cost and rework later.

44. 126 . During which part of the planning process group the detailed risk can be
identified?
Plan human resource management
Plan communication management
Activity cost estimate
Create work breakdown structure
Answer: d) While decomposing the scope of work into work breakdown structure, we can identify the
detailed or comprehensive risks
127 . A project team with a CPI of 0.78 is looking for options to reduce cost. Choose the
best option from the following.
Reduce a test cycle, in the System Testing phase
Reduce scope by cutting down non- essential features
Add more resources to expedite the schedule
Revisit estimates and eliminate risks; re- estimate
Answer: d) Option (c) wouldn't reduce cost. Option (a) and (b) would always have a negative effect
as they compromise on quality or scope. Of all the available option's (d) is the one with the minimum
negative effect.

45. 128 . A project manager working on a construction project identifies a risk of a heavy
storm in the coming months which might affect the construction activity. However, he
doesn't have any reliable information on the weather forecast or the severity of the
storm. In this case, what is the best project manager can do?
Capture the Risk in the Risk Register
Ignore the Risk as nothing can be done to avoid it
Actively accept the risk and allocate time and cost reserve in contingency fund
Proceed with Risk Response Strategy to counter the Risk
Answer: c) In this situation the project manager has no information on the timing, anticipated
frequency, or impact of the expected rough weather. Option (d) will not give any valuable
information. The best option is (c) to accept the risk, but plan a contingency reserve in terms of cost
and time in case the risk occurs. Option (a) and (b) are passive approach and are not recommended
for a good project manager who should be always proactive in his approach towards risk
management.
129 . Techniques used to assess multiple alternatives that will be used to generate,
classify and prioritize product requirements is called------
Group decision making techniques
Group creativity technique
Meetings
Expert judgment
Answer: a) Group decision making techniques used to assess multiple alternatives that will be used
to generate, classify and prioritize product requirements
130 . A risk which arises later in a project and could have been identified earlier on is
called:
Primary risk
Secondary risk
Residual risk
Emergent risk
Answer: d) An emergent risk is a risk which arises later in a project and which could have been
identified earlier on

46. 131 . Which of the following is an input to plan quality management?
Cost management plan
Risk register
Project charter
Schedule baseline
Answer: b) Out of the given options only risk register is the input for plan quality management
132 . As a project manager you decide to create an issue log which captures issue
description, owner, and the target date for issue closure. All of the following are
common examples of issues in the project except:
Differences in Opinion
Probable delay in the next delivery
Pending root cause analysis
Delay in receiving feedback from the customer
Answer b) Probable delay in the next delivery represents a project risk and is not an issue as the
event is uncertain. This may or may not happen in future.
133 . Which of the following statement is true regarding the role of risk owner and risk
action owner?
Both are same
The person responsible for ensuring that an appropriate response is selected and implemented is risk owner
where as risk action owner is responsible for carrying out approved risk actions
The person responsible for ensuring that an appropriate response is selected and implemented is risk action
owner where as risk owner is responsible for carrying out approved risk actions
Risk owner is called risk actionee
Answer: b) Risk owner ensures the risk is implemented. Risk action owner executes or implements
the decided action. Risk action owner is called risk actionee

47. 134 . Techniques that are used to generate ideas within a group of stakeholders is
called:
Group decision making taking
Group creativity technique
Meetings
Expert judgment
Answer: b) Group creativity Techniques used to generate ideas within a group of stakeholders like
brainstorming, NGT, mind mapping
135 . From the table shown, will you buy a new car or an old car? And how much is the
new car expenditure and old car expenditure considering the maintenance?
New car as the total investment and maintenance is $21,500
Old car as the total investment is $22,000
New car as the total investment and maintenance is $35,000
Old car as the total investment is $25,000
Answer: a) New car is $20000+($15000*10%)+(0*90%)=$21,500 and Old car is
$15,000+($10,000*70%)+(0*30%)=$22,000. New car is cheaper

48. 136 . Here NPV is Net Present Value. As a project manager, if you had to choose
amongst projects A, B, C, and D which one would be the best option?
Project A: NPV $ 50,000 to be completed in 3 years
Project B: NPV $ 40,000 to be completed in 2 years
Project C: NPV $ 70,000 to be completed in 9 years
Project A: NPV $ 60,000 to be completed in 1 years
Answer: c) The project with highest value of NPV should be selected. The information on number of
years to complete the project is irrelevant as it is already considered while calculating the value of
NPV. NPV is defined as: The difference between the present value of cash inflows and the present
value of cash outflows. Remember, NPV is used in capital budgeting to analyze the profitability of an
investment or project.
137 . There are 15 people in a team, an addition of one person was made. How many
communication channels are present in the team now?
16
105
120
56
Answer: c) Use the formula n(n-1)/2. n is the number of people. 16 * 15/2
138 . Data driven improvement cycle used for improving, optimizing and stabilizing
business process and designs is called:
FMEA/FMECA/Fault analysis
DMAIC
Facilitated workshop
Brainstorming
Answer: b) DMAIC is the tool used mostly to drive six sigma and other improvements. It is Define,
Measure, Analyze, Improve and Control

49. 139 . From the given table, what are the critical path activities?
ABCDEH
ACDEGH
ABDEGH
ABDEFH
Answer: c) Activities A, B, D, E, G and H are the activities coming under critical path. These activities
are having zero float.
140 . Which are the two components of Herzberg theory?
Hygiene factor and Physiological
Hygiene factor and motivational factor
Motivational factor and Physiological
Esteem and social
Answer: b) Hygiene factor and motivational factor are the two factors of Herzberg theory.

50. 141 . You are the project manager assigned to a critical project, which requires that you
handle project risk intentionally and methodically, so you have assembled only the
project team. They have identified 32 potential project risks, determined what would
trigger the risks, rated and ranked each risk using a risk rating matrix. You have also
reviewed and verified all documented assumptions from the project team and verified
the sources of data used in the process of identifying and rating the risks. You are
continuing to move through the risk management process. What have you forgotten to
do?
Conduct a Monte Carlo simulation
Determine which risks are transferable
Determine the overall riskiness of the project
Involve other stakeholders
Answer: d) The risk management process requires input from all key stakeholders including the
project team. Use of a stakeholder register assists in the proper identification of stakeholders and in
obtaining their input.
142 . An estimation technique used based an algorithm, historical data and project
parameters and other variables like per unit bases is known as:
Parametric estimation
Heuristic estimation
Analogous estimation
Benchmarking
Answer: a) Parametric estimating uses algorithm, historical data, project parameters like unit, cost,
duration.

51. 143 . The process of implementing risk response plans, tracking identified risks,
monitoring residual risks, identifying new risks and evaluating risk process effectiveness
throughout the project is called:
Plan risk management
Perform qualitative risk analysis
Perform quantitative risk analysis
Control risks
Answer: d) Control risk is monitoring and controlling overall risk
144 . Which of the following is an input to control risks process?
Scope baseline
Schedule baseline
Cost baseline
Work performance report
Answer: d) Work performance report is used to find if any other risks and also to control the same
145 . Which of the following relationship is mostly used while constructing network
diagram?
Finish to Start
Start to Start
Start to Finish
Finish to Finish
Answer: a) FS relationship is most widely used which is nothing but start of an activity depends on
finish of previous activity

52. 146 . Which of the following statement is true?
The objective of project risk management is to increase the likelihood and impact of positive events and
decrease the likelihood and impact of negative events in the project
The objective of project risk management is to decrease the likelihood and impact of positive events and
increase the likelihood and impact of negative events in the project
The objective of project risk management is to increase the likelihood and impact of positive events and
increase the likelihood and impact of negative events in the project
The objective of project risk management is to decrease the likelihood and impact of positive events and
decrease the likelihood and impact of negative events in the project
Answer: a) To increase the opportunity and decrease the threat. Refer to PMBOK
147 . Which of the following is an output of control risks process
Work performance data
Work performance report
Work performance information
Risk register
Answer: c) Work performance information is the output of control risk process
148 . Defining--------------will provide a structure for systematically identifying risks to a
consistent level of detail during the project planning process. The areas defined in this
process should reflect common sources of risk for the industry or application area.
Assumptions
Constraints
The product description
Risk categories
Answer: d) Assumptions are information items that should be verified. They are not generally
considered to be based on factual data. Constraints are limitations that should be considered when
developing project plans. The product description provides details about the complexity of the
product to be delivered. Risk categories assist is detailed risk identification and may be utilized with
a Risk Breakdown Structure (RBS).

53. 149 . Which of the following statement is true regarding lead and lag?
Lead is advancing an activity and lag is delaying an activity
Lead is delaying an activity and lag is advancing an activity
Lead is can be planned and lag can't be planned
Both lead and lag are same
Answer: a) Lead is advancing an activity to avoid any risk and lag is used to leverage best output
from the situation
150 . Your project has the following information based on earned value analysis, its
Earned Value (EV) is $1000, Actual Cost (AC) is $ 850 and Planned Value (PV) is
$1050. Which of the following is true about your project?
Your project is over budget and behind schedule
Your project is under budget and behind schedule
Your project is over budget and ahead of schedule
Your project is under budget and ahead of schedule
Answer: b) Cost Variance = EV-AC = $1000-$850 =$150 is positive (under budget) and SV = EV -
PV =1000-1050 = -50 is negative (behind schedule).
151 . Which formula is used for Triangular distribution?
(p+4m+o)/6
(p+m+o)/6
(p+m+o)/3
(p+4m+o)/3
Answer: c) Triangular distribution is average of pessimistic, most likely and pessimistic. Beta
distribution is weighted average which is (p+4m+o)/6.

54. 152 . Which of the following tools is used to identify or distinguish a few vital sources
that are responsible for causing most of a problem's effects?
Histogram
Pareto chart
Flow chart
Control chart
Answer: b) Pareto chart also known as 80/20 rule helps in identifying a few critical vs. critical
reasons for the issues. Also used to prioritize the defects from the given samples
153 . The amount of time that a schedule activity can be delayed from early start date
without delaying the project finish date is called :
Free float
Total float
Independent float
Project float
Answer: b) Total float is the amount of time that a schedule activity can be delayed from early start
date without delaying the project finish date. Free float is the amount of time that a schedule activity
can be delayed without delaying the early start of immediate successor activity. Independent float is
the amount of time an activity can be delayed if all the immediate predecessors finish at their latest
finish dates and we want to start all immediate successors on the earliest start dates. Project float is
an activity in the project can be delayed without affecting the customer committed date. This is like
project buffer added on top of internal committed date.

55. 154 . Two months into a design project, the customer requested a modification to the
product specifications. The change was immediately implemented by the project team
without notifying the project manager. During the final testing phase, results were
different than what was planned. This scenario is an example of which of the following :
Poor adherence to the change control process
Poor adherence to the communication plan
Poor development of the quality management plan
Poor definition of the test plan
Answer: a) The change control process was not followed. Failure to follow the agreed upon change
control processes may create serious risk situations and jeopardize the entire project.
155 . Using the following information, determine the total price to be paid by the
customer. This is a Cost Plus Incentive Fee Contract. The sharing ratio is 80/20. The
target cost is 150,000. The price ceiling is 180,000. The target profit is 10,000. The
actual cost of the project was 140,000.
140000
150000
180000
152000
Answer: d) Target Cost = 150,000, Target Profit = 10,000, Actual cost = 140,000, Savings = 10,000
Contractor share of the savings = 20% x 10,000 or 2000 Total Profit = target profit plus incentive =
10,000 + 2000 = 12,000 Total price paid = 12,000 + 140,000 = 152,000
156 . Which of the following is an output of perform qualitative risk analysis process
Risk register
Project documents updates
Work performance information
Change request
Answer: b) Project documents updates in the output

56. 157 . During the planning process, the project manager should be aware that
assumptions generally involve:
A degree of risk
Direction from the Sponsor
Financial controls
Detailed, factual information
Answer: a) Assumptions are not based on factual information and failure to validate may result is
significant risk events.
158 . Which of the following is an input to estimate costs?
Project management plan
Risk register
Project charter
Schedule baseline
Answer: b) Out of the given options only risk register is the input for estimate costs
159 . Which of the following is an output of plan risk responses process
Risk register
Project management plan updates
Work performance information
Change request
Answer: b) Project management plan updates is the output

57. 160 . Technique that computes the project cost or schedule many times using input
values, selected at random from probability distributions of possible costs or duration to
calculate a distribution of possible project cost or completion date of project is called:
Quantitative risk analysis
Qualitative risk analysis
Monte Carlo analysis
Group decision making analysis
Answer: c) Explanation Monte Carlo analysis is a simulation tool that predicts the possible project
cost and completion date based on different input values along with the overall impact from the risk
perspective
161 . For your project you are working on procurement related area to outsource some
work packages. While doing so you decide to go for fixed price contract. What is the
disadvantage in the case of fixed price contract ?
Less work for buyer to manage
Seller has a strong incentive to control costs
Buyer knows the total price at project starts
Final cost may be more than a cost reimbursable contract because contractors have to inflate the price to cover
their risk
Answer: d) All options are advantages of a fixed price contract except D.

58. 162 . 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 for
this decision?
35000
- $35, 000
$21,000
- $21, 000
Answer: a) Expected monetary value for a project is calculated by subtracting expenses from
savings. In this case Savings = 0.4 * $150,000 = $60,000 and Expenses = 0.5* $50,000 =
$25,000.So EMV = $60,000- $25,000 = + $35,000.
163 . What is the term used for reserves that are maintained for unknown unknowns?
Contingency reserves
Management reserves
Project reserves
Product reserves
Answer: b) Management reserves are kept aside for covering unknown unknowns, i.e. risks that are
not identified in advance
164 . A group of related activities aggregated and displayed as a single activity is called:
Networked activities
Coupled activities
Hammock activity
Hanging activities
Answer: c) A group of activities which are related to each other is called hammock activity also
called as summary activity

59. 165 . Which of the following option is in the correct order from lowest to highest point as
per Maslow hierarchy of needs?
Physiological, safety, Social, esteem, Self-actualization
Self-actualization, esteem, social, safety, Physiological
Physiological, safety, esteem, Social, Self-actualization
Physiological, Social, esteem, safety, Self-actualization
Answer: a) Physiological, safety, Social, esteem, Self-actualization is the correct order
166 . Which is the tool and technique used under plan risk responses process?
Risk data quality assessments
Data gathering and representation techniques
Expert judgment
Technical performance measurements
Answer: c) Expert judgment is the tools and technique used for plan risk responses process under
the given options
167 . What is early start, late start, early finish and late finish for activity F?
10, 11, 12, 13
2, 4, 3, 5
10. 11, 12, 13
13, 12, 11, 10
Answer: a) For activity F, early start is 10, late start is 11, early finish is 12 and late finish is 13.

60. 168 . Which statement is true regarding RACI model?
We can have multiple accountable people for a single activity
We can have only one accountable people for a single activity
We can have only one responsible people for a single activity
We can have multiple responsible, multiple accountable, multiple consultants and multiple people who will be
informed
Answer: b) In RACI model we can have only one accountable who will take the ownership for the
activity
169 . The project manager in a project is finding the measurements of certain metrics
stable or not by looking in a diagram which represents measurements within the limits
and out of the limit. Which of the following tool helps in deterring the measurements are
within the required limits are not?
Histogram
Fishbone diagram
Flow chart
Control chart
Answer: d) Control chart defines the mean and the tolerance by specifying upper control and lower
control limits. If the measurements are coming with these limits, then it is ok. If the measurements
are crossing the limits, then it calls for corrective actions.

61. 170 . Your team is using a model that translates the uncertainties specified at a detailed
level into their potential impact on project objectives at the level of the whole project.
The technique being used is:
Modeling and Simulation
Data precision analysis
Decision tree analysis
Quantitative trends
Answer: a) The use of modeling and simulations such as a Monte Carlo simulation generate
information through iterations. Project information at the activity level is chosen at random during the
process and produces data that illustrates the likelihood of achieving specific cost or schedule
targets.