Tag: Project Management Professional (PMP) Exam Practice

Project Management Professional (PMP) Exam Practice – Question1412

You are using earned value progress reporting for your current project in an effort to teach your software developers the benefits of earned value. You plan to display project results on the cafeteria bulletin board so that the team knows how the project is
progressing.

PV = $2,200
EV = $2,000
AC = $2,500
BAC = $10,000

What is the EAC for this project, and what does it represent?


A. $12,500; the revised estimate for total project cost (based on performance thus far)
B. $10,000; the revised estimate for total project cost (based on performance thus far)
C. $12,500; the original project budget
D. $10,000; the original project budget

Correct Answer: A

Explanation:

Explanation:
EAC is calculated as BAC/CPI (in this case, $10,000/0.80). It is now known that the project will cost more than the original estimate of $10,000. The project has been getting only 80 cents worth of work done for every dollar spent (CPI), and this information has
been used to forecast total project costs. This approach assumes that performance for the remainder of the project will also be based on a CPI of 0.80.

Project Management Professional (PMP) Exam Practice – Question1411

You are using earned value progress reporting for your current project in an effort to teach your software developers the benefits of earned value. You plan to display project results on the cafeteria bulletin board so that the team knows how the project is
progressing.

PV = $2,200
EV = $2,000
AC = $2,500
BAC = $10,000

The CV for this project is______________


A. 300
B. -$300
C. 500
D. -$500

Correct Answer: D

Explanation:

Explanation:
CV is calculated as EV -AC (in this case, $2,000 -$2,500). A negative CV means that accomplishing work on the project is costing more than was budgeted.

Project Management Professional (PMP) Exam Practice – Question1410

You are using earned value progress reporting for your current project in an effort to teach your software developers the benefits of earned value. You plan to display project results on the cafeteria bulletin board so that the team knows how the project is
progressing.

PV = $2,200
EV = $2,000
AC = $2,500
BAC = $10,000

What is the CPI for this project, and what does it tell us about cost performance thus far?


A. 0.20; actual costs are exactly as planned
B. 0.80; actual costs have exceeded planned costs
C. 0.80; actual costs are less than planned costs
D. 1.25; actual costs have exceeded planned costs

Correct Answer: B

Explanation:

Explanation:
CPI is calculated as EV/AC (in this case, $2,000/$2,500). EV measures the budgeted dollar value of the work that has actually been accomplished, whereas AC measures the actual cost of getting that work done. If the two numbers are the same, work on the
project is being accomplished for exactly the budgeted amount of money (and the ratio will be equal to 1.0). If actual costs exceed budgeted costs (as in this example), AC will be larger than EV, and the ratio will be less than 1.0. CPI is also an index of efficiency.
In this example, an index of 0.80 (or 80 percent) means that for every dollar spent on the project only 80 cents worth of work is actually accomplished.

Project Management Professional (PMP) Exam Practice – Question1409

You are using earned value progress reporting for your current project in an effort to teach your software developers the benefits of earned value. You plan to display project results on the cafeteria bulletin board so that the team knows how the project is
progressing.

PV = $2,200
EV = $2,000
AC = $2,500
BAC = $10,000

According to earned value analysis, the SV and status of the project described above is______________


A. -$300; the project is ahead of schedule

B. +$8,000; the project is on schedule
C. +$200; the project is ahead of schedule
D. -$200; the project is behind schedule

Correct Answer: D

Explanation:

Explanation:
SV is calculated as EV -PV (in this case, $2,000 -$2,200). A negative variance means that the work completed is less than what was planned for at that point in the project.

Project Management Professional (PMP) Exam Practice – Question1408

The reason that the schedule performance index (SPI) is shown as a ratio is to______________


A. Enable a detailed analysis of the schedule regardless of the value of the schedule variance
B. Distinguish between critical path and noncritical path work packages
C. Provide the ability to show performance for a specified time period for trend analysis
D. Measure the actual time to complete the project

Correct Answer: C

Explanation:

Explanation:
Because schedule performance index (SPI) and cost performance index (CPI) are expressed as ratios, they can be used to show performance for a specific time period or trends over a long-time horizon.

Project Management Professional (PMP) Exam Practice – Question1407

To account for uncertainty in a schedule, reserve analysis may be used. All the following are examples of contingency reserves EXCEPT ______________


A. Fixed number of work periods
B. Percent of the estimated activity duration
C. Buffers
D. Productivity metrics

Correct Answer: D

Explanation:

Explanation:
Duration estimates may include contingency reserves, and contingency should be identified clearly in schedule documentation. They are built into the overall project schedule to account for uncertainty. They also may be developed using quantitative analysis
methods. When more information is known about the project, the contingency reserve may be used, reduced, or eliminated.

Project Management Professional (PMP) Exam Practice – Question1406

You are managing a project to redesign a retail store layout to improve customer throughput and efficiency. Much project work must be done on site and will require the active participation of store employees who are lifelong members of a powerful union with a
reputation for labor unrest. One important component of your schedule must be______________


A. A resource capabilities matrix
B. Buffers and reserves
C. A resource calendar
D. A resource histogram

Correct Answer: C

Explanation:

Explanation:
Project and resource calendars identify periods when work is allowed. Project calendars affect all resources. Resource calendars affect a specific resource or a resource category, such as a labor contract that requires certain workers to work on certain days of
the week.

Project Management Professional (PMP) Exam Practice – Question1405

Activity A has a pessimistic (P) estimate of 36 days, a most likely (ML) estimate of 21 days, and an optimistic (O) estimate of 6 days. What is the probability that activity A will be completed in 16 to 26 days?


A. 55.70 percent
B. 68.26 percent
C. 95.46 percent
D. 99.73 percent

Correct Answer: B

Explanation:

Explanation:
First, compute the standard deviation:

Next, compute PERT expected time:

Finally, determine range of outcomes using 1:
21-5 = 16 days, and 21+5 = 26 days

Simply defined, 1 is the amount on either side of the mean of a normal distribution that will contain approximately 68.26 percent of the population. Meredith and Mantel 2012, 348-350

Project Management Professional (PMP) Exam Practice – Question1404

You are managing a project that will use a virtual team with team members on three different continents. Your company is looking to use the virtual team to provide a lower cost product by using resources in countries that have a favorable exchange rate to that of
your country. To assist in this process as you estimate resource requirements, it is helpful to consider______________


A. Bottom-up estimating
B. Published estimating data
C. Analogous estimating
D. Reserve analysis

Correct Answer: B

Explanation:

Explanation:
In estimating activity resources, published estimating data is a tool and technique that is used as many companies routinely publish updated production rates and unit costs of resources. This includes labor trades, material, and equipment for different countries
and geographic locations in these countries.