PM Test Center

While planning a project that has not been accomplished before at the company, your manager asks you to get a three point estimate from Shari, the lead designer. Shari provides you with an optimistic estimate (2 hours), a most likely estimate (4 hours), and a pessimistic estimate (12 hours). What must be the three point estimate for Shari’s task?

A. 5 hours
B. 6 hours
C. 10 hours
D. Not enough information and will need clarification from the manager

Answer: D. Not enough information and will need clarification from the manager
A three point estimate could be derived several ways. Two of the most common are the mean ((O+M+P)/3), which would give you 6 hours and PERT ((O+4M+P)/6), which would give you 5 hours. However, in this example, it is not clear what type of three point estimate to use.

Your client requests that you to use a Monte Carlo technique for the project. What are you being asked to do?

A. Create a histogram that ranks risks.
B. Estimate cost and time results by executing the project many times through a simulator.
C. Ignore minor risks and take our chances.
D. Monitor cost variances and use contingency funds when necessary.

Answer: B. Estimate cost and time results by executing the project many times through a simulator.
The Monte Carlo, a Quantitative Risk Analysis Technique, runs simulations to estimate cost and time. It uses many iterations to produce a probability distribution.

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.

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. Dwight is also tasked with keeping costs as low as possible to reduce the risk of an overrun. What tactic should he use?

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

Answer: A. Fast-track
Fast-tracking is one method to reduce the project duration. This is done by overlapping tasks (i.e. adding lead time). Although this does not typically increase cost, it does increase risk.

What is the typical duration of a milestone?

A. 0
B. 1
C. Milestone durations depend on the total duration of the project
D. Milestone durations depend on each predecessor

Answer: A. 0
Milestones typically have a duration of 0 since they do not require effort to complete. Effort is usually spent on work leading up to them. They are usually used to track time and cost targets. Milestones may also have durations other than zero but it is not the norm.

As a general rule, when determining how to manage quality on a project, quality must be __________ in, not __________ in.

A. Built, scheduled
B. Planned, inspected
C. Tested, worked
D. Pushed, pulled

Answer: B. Planned, inspected
The philosophy of prevention over inspection is that quality must be planned in, not inspected in.

While preparing a quality management plan, you decide that sampling is appropriate for tests. When asked, you explain to your client that, typically, sampling is preferred when at least one of the following is true except:

A. It is not cost effective to test the entire population.
B. There is a high confidence level that there will be a low number of defects.
C. The WBS is less than four levels deep.
D. There is not enough time to test the entire population.

Answer: C. The WBS is less than four levels deep.
The other choices are all reasons why sampling is appropriate. The WBS has nothing to do with whether or not it makes sense to sample.

Which of the following statements is true regarding low grade and low quality?

A. Low grade is a goal, low quality is how you measure it.
B. Low grade and low quality mean the same thing.
C. Low grade is achieved by the team, low quality is determined by the project manager.
D. Low grade is acceptable, low quality is unacceptable.

Answer: D. Low grade is acceptable, low quality is unacceptable.
Grade is a rank given to a product with different characteristics. Low grade is perfectly acceptable assuming the project meets requirements. Low quality is never OK. For example, a Honda Civic is a lower grade than a Jeep Grand Cherokee; however, the quality of the former is much better than that of the latter.

Expected monetary value (EMV) for an entire project is calculated by:

A. Creating a probability and impact matrix
B. Performing a sensitivity analysis
C. Adding the EMV for each risks
D. EMV can only be determined for each risk, not for an entire project

Answer: C. Adding the EMV for each risks
The EMV for an entire project is just the sum of the EMVs of all the risks.

For a particular risk, if the probability is 10% and the impact is -$20,000, then the expected monetary value (EMV) is:

A. -$2,000
B. $2,000
C. $20,000
D. Not enough information to determine

Answer: A. -$2,000
The expected monetary value (EMV) for a risk is simply the probability times the impact.