PM Test Center

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

A. -1,000
B. -4,000
C. 1,000
D. 4,000

Answer: B. -4,000
CV (Cost Variance) is calculated by EV (Earned Value) – AC (Actual Cost). The -4,000 means that the project is $4,000 over budget.

Charles is testing widgets and he is told that each has a 10% probability of being defective. After examining nine widgets, what is the likelihood of the next one having a defect?

A. 100%
B. 50%
C. 0%
D. 10%

Answer: D. 10%
If each widget has a 10% of being defective, then the tenth widget has a 10% chance of having a defect. Statistical independence states that one event has nothing to do with the next event.

You are halfway through your project and your sponsor would like to know how much the project is expected to cost when it is completed. What earned value metric should you use?

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

Answer: C. EAC
EAC (Estimate at Completion) tells you that the project is expected to cost x dollars. This is derived from how much you thought it would cost from the beginning (BAC) and what the rate of spending is (CPI).

While building a new community park, you hired a contractor to complete a small visitor center that includes restrooms, a snack shop, and bulletin boards. You agreed to a fixed price contract payable upon completion of their deliverable. Midway through the project, they contractor informs you that the economy has affected their bottom line and they could use some funds upfront to pay their subcontractors. Which is the following is the best thing for you to do?

A. Insist that you agreed to pay upon completion and are not willing to violate the contract.
B. Negotiate a change to the payment conditions.
C. Pay the contractor for the work accomplished to date.
D. Start the search for another contractor.

Answer: B. Negotiate a change to the payment conditions.
Although paying the contractor for the work accomplished to date seems fair, you would want that detailed in a new contract or addendum. Therefore, the best approach is the negotiate the change first so the new payment conditions, whatever they may be, are documented and approved by both parties.

As the project manager with a time conscience sponsor, you have been monitoring earned value throughout the year long project. At the halfway point, you report that the SPI is 0.8. This means that the project is:

A. Ahead of schedule
B. Under budget
C. Behind schedule
D. Over budget

Answer: C. Behind schedule
The Schedule Performance Index (SPI) determines how much ahead or behind schedule you are. An SPI of 1.0 means you are on target. Therefore, an SPI of 1.5 means that you are progressing at 150% of the baseline, which is a good thing. Conversely, an SPI of 0.8 represents only moving at 80% of the baseline, not so good. In short, over 1.0 is good, under 1.0 is bad.

Resource leveling typically results in a:

A. Project cost overrun
B. Project cost savings
C. Project duration longer than the baseline
D. Project duration shorter than the baseline

Answer: C. Project duration longer than the baseline
When resource leveling, work scheduled for resources that are over-allocated will be spread over a longer period of time. As a result, this smoothing out process will usually cause the project to take longer.

While reviewing your weekly report, you notice that two of your resources are over-allocated. One way to solve this is to:

A. Level resources
B. Use PERT
C. Add lag
D. Crash the schedule

Answer: A. Level resources
Of the choices, only leveling resources is the only method that will relieve over-allocated resources. Leveling will take the extra work and move it to a different date so the resources will not exceed their maximum per day.

What is a key deliverable of the Verify Scope process?

A. Approved requirements
B. Customer acceptance
C. Product that passed quality tests
D. Completed WBS

Answer: B. Customer acceptance
The primary output of the Verify Scope process is an accepted deliverable. That means that the deliverable has met acceptance criteria and was formally signed off by the customer or sponsor.

At your upcoming status meeting with your project sponsor, rather than just using a table, you want to graphically show earned value. Which of the following charts will you use?

A. Trend analysis
B. Control chart
C. S-curve
D. Pareto diagram

Answer: C. S-curve
An S-curve graph typically displays earned value (EV), planned value (PV) and actual cost (AC). PV is charted first and will look like an S. As time progresses, the EV and AC will extend allowing you to compare them against the PV.

Dwight’s project is behind schedule. As a result, he is looking to reduce the duration of his project to bring it back on track. If cost is not a factor, what tactic should he use?

A. Fast-track
B. Critical path
C. PERT
D. Crash

Answer: D. Crash
Crashing is one method to reduce the project duration. This is done by adding resources which leads to an increase in costs.