PM Test Center

If EV = 25,000, PV = 30,000, and AC = 29,000, what is the CPI?

A. 0.83
B. 0.86
C. 1.16
D. 1.20

Answer: B. 0.86
CPI (Cost Performance Index) is calculated by EV (Earned Value)/AC (Actual Cost). The 0.86 means that the project is getting 86 cents out of every dollar.

While managing a project for a new playground, one of your team members uncovers an opportunity to exploit a risk. Most likely, he found a way to:

A. Increase the probability or impact of a risk
B. Ensure that a positive risk is realized
C. Decrease the probability of impact of a risk
D. Eliminate the threat entirely

Answer: B. Ensure that a positive risk is realized
The term exploit is used to define a strategy that ensures that a positive risk, or opportunity, is realized. Increasing a probability or impact is a enhance response, decreasing a probability or impact is a mitigation response, and eliminating is an avoid response.

Which of the following estimating types takes the most amount of time to prepare?

A. Bottom up
B. Analogous
C. Parametric
D. Top down

Answer: A. Bottom up
Bottom up, also known as engineering, grass roots or definitive estimating, takes a substantial amount of time since it involves estimating each work package. The estimates are then rolled up to sub-project and overall project levels.

As a project progresses, stakeholder influence, risk, and uncertainty will all:

A. Increase
B. Decrease
C. Depend on other factors
D. Stay the same

Answer: B. Decrease
Stakeholder influence, risk, and uncertainty will decrease as project progress through the life cycle. As the deliverables evolve, many more known factors will be revealed.

While interviewing for a new job, the hiring manager tells you that there are fringe benefits tied to the position. Based on what you know about these benefits, these could include any of the following except:

A. Health plan
B. 401k contributions
C. Company car
D. Tuition reimbursement

Answer: C. Company car
A fringe benefit is provided to every employee.

Which of the following is an example of Herzberg’s Theory’s motivation agents?

A. Increased salary
B. Recognition of tenure milestone at the company annual meeting
C. Company car
D. Increased responsibility

Answer: D. Increased responsibility
According to Herzberg, people are motivated by the work itself. Also known as motivation agents, these allow people to become the best they can be (self-actualization). If an employee is looking to obtain increased responsibility, then providing it as an opportunity to accomplish more motivates the employee to achieve greater things.

One disadvantage of using Activity-on-Arrow (AOA) is that:

A. Only finish-to-start relationships can be used.
B. Negative lag is not shown.
C. There can only be one critical path.
D. Project duration is limited to the total of all dummy activities.

Answer: A. Only finish-to-start relationships can be used.
A drawback of AOA is that only finish-to-start relationships are possible.

You are halfway through your project and your sponsor would like to know how much more the project is expected to cost from now until the end. What earned value metric should you use?

A. CV
B. AC
C. EAC
D. ETC

Answer: D. ETC
ETC (Estimate to Complete) tells you that the project is expected to cost x dollars to complete. This is derived from how much the project is expected to cost currently (EAC) and how much was already spent (AC).

In order to execute the Verify Scope process, at a minimum, you must have:

A. Prototypes
B. Accepted deliverables
C. Project charter
D. Validated deliverables

Answer: D. Validated deliverables
Validated deliverables is a key input to the Verify Scope process. Without them, the process cannot occur. Other potential inputs to the process are project management plan, requirements documentation, and requirements traceability matrix.

The project is currently behind schedule and with the goal of catching up, you decide to ensure that you reduce the time. Which of the following is an example of exploiting the risk?

A. Assign the most experienced and most talented personnel on any task.
B. Assign the most experienced and most talented personnel on a critical task.
C. Buy insurance against the delay.
D. Find a logical partner to share the risk with.

Answer: B. Assign the most experienced and most talented personnel on a critical task.
Exploiting a risk means that you are ensuring that the opportunity definitely happens. By adding the best person for a critical task, you are ensuring that the project work accelerates toward the goal.