PM Test Center

While monitoring and controlling risks on a project, one of the tools a project manager could use compares the amount of the contingency reserves remaining to the amount of risk remaining to determine if the remaining reserve is adequate. This is called:

A. Reserve analysis
B. Performance report
C. Risk audit
D. Variance and trend analysis

Answer: A. Reserve analysis
A reserve analysis is used in parallel to project execution since risks may have positive or negative impacts to the contingency reserve. This ensures that the reserve is neither too high nor too low throughout the project.

One of your monthly reports claim that your project has a SV of -1000. How would you describe it to your sponsor?

A. The project is behind schedule
B. The project is ahead of schedule
C. Impossible to have a negative SV
D. Not enough information

Answer: A. The project is behind schedule
SV (schedule variance) is simply a measure of how the project is performing in terms of schedule. A positive number is good, ahead of schedule, while a negative number is bad, behind schedule. SV is derived from EV (earned value) minus PV (planned value).

One of your monthly reports claim that your project has a CV of 2000. How would you describe it to your sponsor?

A. The project is $2000 over budget
B. The project is $2000 under budget
C. CV of anything over 1000 is irrelevant
D. Not enough information

Answer: B. The project is $2000 under budget
CV (cost variance) is simply a measure of how the project is performing in terms of cost. A positive number is good, under budget, while a negative number is bad, over budget. CV is derived from EV (earned value) minus AC (actual cost).

While developing a charter, you are asked to consider enterprise environmental factors. These may include all of the following except:

A. Historical information
B. Marketplace conditions
C. Government standards
D. Industry standards

Answer: A. Historical information
Enterprise environmental factors can include government standards, industry standards, organization infrastructure, and marketplace conditions. Historical information is an organizational process asset.

You are a project manager for a new client. To help you get acclimated more quickly, she directs you to their organizational process assets in the company archives. You know that when you locate that directory, you will likely find:

A. Industry standards
B. Historical information
C. Financial data
D. Market conditions

Answer: B. Historical information
Organizational process assets typically include processes, policies, templates, and historical information. They are essential inputs and outputs for many processes.

Adam wants to show his stakeholders defect types ranked by frequency of occurrence. What tool should he use?

A. Pareto chart
B. Maslow’s Hierarchy of Needs
C. Control chart
D. Cause and effect diagram

Answer: A. Pareto chart
Pareto charts are based on the Pareto Law (the 80/20 principle). This type of histogram shows categories of defects in order of frequency of occurrence. By ranking defect types this way, you could visually see which 20% of the causes to address in order to solve 80% of the problems.

The project you are managing is nearing its end. Your testing team is currently inspecting the final deliverable. Which process is your project on?

A. Verify Scope
B. Control Scope
C. Perform Quality Assurance
D. Perform Quality Control

Answer: D. Perform Quality Control
According to the PMBOK®, Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. In short, inspection! Do not confuse quality control with scope verification, the latter involving a formal sign-off by the customer.

Six months into a year-long project your CPI is 0.8. However, your SPI is 1.2. This means that the project is:

A. Ahead of schedule and under budget
B. Ahead of schedule and over budget
C. Behind schedule and under budget
D. Behind schedule and over budget

Answer: B. Ahead of schedule and over budget
For both Cost Performance Index (CPI) and Schedule Performance Index (SPI), 1.0 is exactly as planned, over 1.0 is good and under 1.0 is bad. So in this case, the CPI is bad and SPI is good. In this example, the CPI means you are getting $0.80 of value out of every $1 spent (see CPI — what is it trying to tell me?) while the SPI means you are progressing at 120% (i.e. 20% better than planned) of the baseline.

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

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

Answer: D. Over budget
The Cost Performance Index (CPI) determines how much value you are earning per $1 spent. A CPI of 1.0 means you are on target and means that for every $1 you are putting into the project, you are getting $1 of value in return. Therefore, a CPI of 1.5 means that you are getting $1.50 for every $1 you put in, which is a good thing. Conversely, a CPI of 0.8 represents only getting $0.80 per $1, not so good. In short, over 1.0 is good, under 1.0 is bad.

As the project manager responsible for creating forecasts, you tend to utilize time series methods for predicting outcomes. Reports you typically use are:

A. Monte Carlo simulation, P&I matrix
B. Linear regression analysis, non-linear regression analysis
C. Probability estimates, Delphi method
D. Earned value, moving average

Answer: D. Earned value, moving average
Examples of time series methods are earned value, moving average, extrapolation, linear prediction, trend estimation, and growth curve.