Practice Free PMP Exam Online Questions
A project manager is in the middle of an agile project comprised of 100 user stories broken down into five iterations Each user story is worth USS50. The actual expenditure is US$2,000 and 50 user stories have been delivered.
Which statement is true”
- A . The project is on budget and on schedule.
- B . The project is over budget and behind schedule
- C . The project is under budget and behind schedule.
- D . The project is under budget and on schedule.
D
Explanation:
we need to calculate the planned value (PV), earned value (EV), and actual cost (AC) of the project at the end of the second iteration. PV is the budgeted amount of work that should have been completed by a certain point in time. EV is the value of the work that has been actually completed by a certain point in time. AC is the amount of money that has been actually spent by a certain point in time. The formulas are:
PV (Budget at Completion / Total number of user stories) × Planned number of user stories EV (Budget at Completion / Total number of user stories) × Actual number of user stories AC Actual expenditure
The budget at completion (BAC) is the total value of all the user stories, which is 100 × $50 $5,000. The planned number of user stories at the end of the second iteration is 40 (20 per iteration). The actual number of user stories delivered is 50. The actual expenditure is $2,000. Therefore: PV ($5,000 / 100) × 40 $2,000 EV ($5,000 / 100) × 50 $2,500 AC $2,000
To determine whether the project is on budget or not, we can compare the EV and the AC using the cost variance (CV) and the cost performance index (CPI). The formulas are: CV EV-ACCPI EV/AC
If CV is positive or zero, the project is on budget or under budget. If CV is negative, the project is over budget. If CPI is greater than or equal to one, the project is on budget or under budget.
If CPI is less than one, the project is over budget. In this case:
CV $2,500 – $2,000 $500 CPI $2,500 / $2,000 1.25
Both CV and CPI indicate that the project is under budget.
To determine whether the project is on schedule or not, we can compare the EV and the PV using the schedule variance (SV) and the schedule performance index (SPI). The formulas are: SV EV-PVSPI EV/PV
If SV is positive or zero, the project is on schedule or ahead of schedule. If SV is negative, the project is behind schedule. If SPI is greater than or equal to one, the project is on schedule or ahead of schedule. If SPI is less than one, the project is behind schedule. In this case: SV $2,500 – $2,000 $500 SPI $2,500 / $2,000 1.25
Both SV and SPI indicate that the project is ahead of schedule.
Therefore, the correct statement is that the project is under budget and on schedule.
Reference: PMBOK Guide, 6th edition, pages 267-269, 292-293
PMP Exam Questions – Part 16 (Q 151-160), YouTube video by Certify Me Now Top 50+ PMP Exam Questions and Answers for 2024, Simplilearn article
A project manager determines that a critical path activity is going to be delayed. The team proposes a fallback plan that could get the project back on track; however, the plan would require an additional cost to an already tight budget.
What should the project manager do?
- A . Use the existing budget for executing the fallback plan and update the baseline.
- B . Add additional resources to the project to fast track certain activities and reduce delays.
- C . Evaluate the fallback plan proposed by the team and submit a change request, if required.
- D . Communicate the delay to stakeholders and maintain the existing budget baseline.
C
Explanation:
When faced with a delay in a critical path activity, it is prudent for the project manager to thoroughly evaluate the proposed fallback plan, considering its impact on the project’s scope, time, cost, and quality. If the fallback plan is viable and justifies the additional cost, the project manager should proceed with submitting a change request. This process involves documenting the proposed changes, assessing the benefits and risks, and seeking approval from the project sponsor or change control board. The change request should detail the reasons for the deviation from the original plan, the expected outcomes, and the justification for the additional expenditure. This approach ensures that any alterations to the project are well-considered, transparent, and formally approved, maintaining the integrity of the project management process123.
Reference: (Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition. Newtown Square, PA: Author; Project Management Institute. (2013). Practice Standard for Project Risk Management. Newtown Square, PA: Author; Project Management Institute. (2019). PMI Standard for Project Management. Newtown Square, PA: Author).
The team is working on a critical project deliverable and the project manager is concerned about meeting the deadline There have been complaints from some stakeholders about some of the team members’ performance. The project manager wants to understand the situation and provide feedback to the team as soon as possible
What three actions should the project manager take to address this situation? (Choose three)
- A . Define team ground rules
- B . Perform a retrospective session
- C . Implement daily team meetings.
- D . Request a manager performance review
- E . Conduct an annual review.
ABC
Explanation:
Feedback is the process of providing constructive and timely information to the project team
members about their performance, behaviour, and contribution to the project. Feedback can help the project team to improve their skills, knowledge, and motivation, and to achieve the project goals and deliverables. According to the Project Management Professional (PMP) Reference Materials1, feedback can be given in various ways, such as:
Formal or informal: Formal feedback is planned and structured, and follows a specific format, criteria, and frequency. Informal feedback is spontaneous and flexible, and does not follow a predefined format or schedule.
Positive or negative: Positive feedback is praise or recognition for doing something well, and aims to reinforce and encourage the desired performance or behaviour. Negative feedback is criticism or correction for doing something poorly, and aims to address and improve the undesired performance or behaviour.
Individual or group: Individual feedback is given to one person at a time, and focuses on their specific performance or behaviour. Group feedback is given to a team or a group of people at the same time, and focuses on their collective performance or behaviour.
In this scenario, the team is working on a critical project deliverable and the project manager is concerned about meeting the deadline. There have been complaints from some stakeholders about some of the team members’ performance. The project manager wants to understand the situation and provide feedback to the team as soon as possible.
Therefore, the best three actions that the project manager should take to address this situation are:
Define team ground rules: Team ground rules are the agreed-upon norms and expectations that guide the team’s work and interactions. They can help the team to establish a common vision, purpose, and values, and to define their roles, responsibilities, and accountabilities. They can also help the team to communicate effectively, collaborate efficiently, and resolve conflicts constructively. By defining team ground rules, the project manager can ensure that the team members are aware of and aligned with the project goals and deliverables, and that they respect and support each other’s performance and behaviour.
Perform a retrospective session: A retrospective session is a meeting that allows the team to reflect on their past performance and behaviour, and to identify what went well, what went wrong, and what can be improved. It can help the team to learn from their experiences, celebrate their achievements, and address their challenges. It can also help the team to generate ideas and action plans for future improvement and innovation. By performing a retrospective session, the project manager can provide formal and group feedback to the team, and involve them in the feedback process.
Implement daily team meetings: Daily team meetings are short and frequent meetings that allow the team to share their progress, issues, and plans for the day. They can help the team to stay on track, coordinate their tasks, and solve their problems. They can also help the team to communicate regularly, transparently, and collaboratively. By implementing daily team meetings, the project manager can provide informal and individual feedback to the team members, and monitor and support their performance and behaviour.
The other options are not the best choices, because:
Request a manager performance review: A manager performance review is a formal and individual feedback that is given by the team member’s direct manager, and focuses on their overall performance, behaviour, and career development. It is usually done annually or semi-annually, and follows a specific format and criteria. While a manager performance review can be useful and beneficial for the team member, it is not the responsibility of the project manager, unless they are also the team member’s direct manager. Moreover, it is not the most appropriate or timely feedback for the situation, as it does not address the specific project deliverable, deadline, or stakeholder complaints.
Conduct an annual review: An annual review is a formal and group feedback that is given by the project manager, and focuses on the team’s overall performance, behaviour, and achievements for the year. It is usually done at the end of the year or the project, and follows a specific format and criteria. While an annual review can be useful and beneficial for the team, it is not the most appropriate or timely feedback for the situation, as it does not address the specific project deliverable, deadline, or stakeholder complaints.
Reference: How to Provide Effective Feedback to Project Team Members.
A project team is working on a product that is planned for multiple iterations. They are delivering incremental value.
When should the value be demonstrated?
- A . After full development is completed
- B . When a major feature is completed
- C . At the end of each and every iteration
- D . When the sponsor approves the increment
C
Explanation:
The value should be demonstrated at the end of each iteration to engage stakeholders and receive feedback on the development progress. This practice aligns with the agile methodology, where iterative development and frequent assessment are key components. Demonstrating incremental value at the end of each iteration allows for adjustments to be made based on stakeholder feedback, ensuring that the product evolves in a manner that meets their needs and expectations.
Reference: Practice: Iteration Demonstration and Review – Project Management Institute1.
A project manager is managing a hybrid project that is using a contractor for a few key deliverables.
The contractor has been hired to perform an important delivery, but has not yet confirmed that they
can meet the required schedule.
What should the project manager do?
- A . Escalate the issue to the procurement team as the final delivery date of the project will be impacted.
- B . Review the project scope with the stakeholders and remove the potentially delayed item from the scope.
- C . Plan the task delivery with the contractor or vendor, highlighting the criticality of the current situation,
- D . Check with procurement to see if there is another previously used contractor who can develop the task.
C
Explanation:
In a situation where a contractor has not yet confirmed that they can meet the required schedule, the project manager should take proactive steps to manage the potential risk. This includes planning the task delivery with the contractor or vendor, and highlighting the criticality of the current situation1. This approach aligns with the principles of effective project management, which emphasize the importance of communication, risk management, and proactive problem-solving.
Reference: NEC Contract
A project team was hired to perform on-site duties, but there were unexpected circumstances that required the entire team to work remotely Some team members returned to their hometowns and they are now requesting reimbursement for operational expenditures.
What should the project manager do?
- A . Follow the Perform integrated Change Control process and submit a change request
- B . Ask the team members to draft a justification before processing the reimbursements
- C . Update the project management plan with the incurred costs
- D . Review the budget and allocate funds for the reimbursements
A
Explanation:
The project manager’s role includes managing day-to-day operations and ensuring the project is completed on time, on budget, and achieves its objectives1. When unexpected changes occur, such as the need for team members to work remotely and incur operational expenditures, it’s important to follow the Perform Integrated Change Control process. This process involves reviewing all requested changes, approving changes, and managing changes to deliverables, organizational process assets, project documents, and the project management plan2. In this case, the project manager should submit a change request to address the additional costs incurred by the team members. This ensures that the project’s budget and schedule are updated accordingly and that the project continues to align with its objectives.
Reference: Project team roles and responsibilities1
Assembling a Project Team: Roles, Responsibilities & Best Practices2
A project had scheduling delays, which necessitated the team to work overtime to meet critical milestones. This led to some misunderstandings among team members. The project sponsor has allocated a monetary award.
How should the project manager utilize the award?
- A . Meet with the team members and ask them how to spend the reward.
- B . Arrange a luncheon for all team members and include team-building sessions.
- C . Draft a points system to allocate a portion of the money for each resource.
- D . Allocate the reward to the team leaders to spend on the team as they see fit.
B
Explanation:
In the context of project management, especially after a period of intense work and overtime, it is important to not only reward the team but also to invest in team cohesion and address any misunderstandings that may have arisen. Arranging a luncheon for all team members, coupled with team-building sessions, can serve as both a reward and a means to improve team dynamics. This approach aligns with best practices in project management which emphasize the importance of team development and positive reinforcement12.
Reference: Project Management Institute, PMI Professional in Business Analysis.
A project had scheduling delays, which necessitated the team to work overtime to meet critical milestones. This led to some misunderstandings among team members. The project sponsor has allocated a monetary award.
How should the project manager utilize the award?
- A . Meet with the team members and ask them how to spend the reward.
- B . Arrange a luncheon for all team members and include team-building sessions.
- C . Draft a points system to allocate a portion of the money for each resource.
- D . Allocate the reward to the team leaders to spend on the team as they see fit.
B
Explanation:
In the context of project management, especially after a period of intense work and overtime, it is important to not only reward the team but also to invest in team cohesion and address any misunderstandings that may have arisen. Arranging a luncheon for all team members, coupled with team-building sessions, can serve as both a reward and a means to improve team dynamics. This approach aligns with best practices in project management which emphasize the importance of team development and positive reinforcement12.
Reference: Project Management Institute, PMI Professional in Business Analysis.
After completion of a project with specific users in various countries, the project manager’s supervisor asks if the project users are satisfied with the way the project was run.
What two actions should the project manager take? (Choose two)
- A . Prepare the lessons learned from the project phase.
- B . Obtain official approval on the new process from the various countries
- C . Send a questionnaire to the project participants and seek their feedback.
- D . Refer to the communications management plan
- E . Deliver the project materials to the users and see if they have any comments
C E
Explanation:
According to the PMBOK Guide, one of the key activities in the closing process group is to obtain feedback from the project stakeholders, including the project users, to measure their satisfaction and identify any improvement opportunities1. This feedback can be collected using various methods, such as questionnaires, surveys, interviews, focus groups, or workshops2. The project manager should also deliver the project materials, such as the final product, service, or result, to the project users and confirm that they meet the acceptance criteria and the quality standards3. By delivering the project materials and seeking feedback, the project manager can ensure that the project users are satisfied with the project outcome and the project performance, and also capture any lessons learned or best practices for future projects. Preparing the lessons learned from the project phase is also an important activity, but it is not directly related to measuring the project user satisfaction. Obtaining official approval on the new process from the various countries may be a requirement for some projects, but it is not a general action that the project manager should take to assess the project user satisfaction. Referring to the communications management plan is a useful practice throughout the project, but it is not a specific action that the project manager should take after completing the project with the project users.
Reference: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, Chapter 4.7, p. 123
User Feedback:
What is it, Importance, Metrics &.
How to collect, Section “How to collect user feedback”
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) C Sixth Edition, Chapter 5.6, p. 176
[Project customer satisfaction: 5 tips for dealing with it in the best possible way], Section “How to measure customer satisfaction”
An agile team completes a deliverable that is to be certified by another expert team. The second team does not take the deliverable for many months.
What should the servant leader do?
- A . Review the process and remove the impediment
- B . Escalate this to the project director for a resolution
- C . Remove the certification need from the project scope
- D . Escalate this to the agile lead of the second team
A
Explanation:
In an Agile context, the servant leader’s role is to support the team and help them perform their tasks in a self-organized way12. When a deliverable that needs to be certified by another team is not taken for many months, it creates an impediment to the team’s progress. The servant leader should review the process and work to remove this impediment12. This could involve facilitating communication between the two teams, adjusting the process to prevent such delays in the future, or finding alternative solutions that allow the team to continue their work effectively12.
Reference: 12
https://www.agile-academy.com/en/scrum-master/servant-leadership-how-does-leadership-work-in-an-agile-context/