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All of the followings are examples of the cost of nonconformance except?
B. Warranty costs
Explanation: Costs of non-conformance are costs incurred when a project fails to meet the required level of quality. Failure costs are also called costs of poor quality. Costs of non-conformance are categorized into 2 groups:
1.) Internal failure costs — Before releasing product to customer. Includes costs to rework, fix defects, wastage due to internal errors, and unnecessary advertising.
2.) External failure costs — After releasing product to customer. Liability and penalties cost, warranty costs, cost of developing and distributing fix, support calls, and damage control costs.
As a project manager of a challenging software development project, you are in the middle of project execution when one of your team members approaches you and notifies you about a problem that has just happened and that was not included in the risk register. What would be your first action in this situation?
A. Add this problem to the project risk register
B. Inform your management
C. Redo the Identify Risks process to find out other risks which might have been neglected
D. Create a workaround
Explanation: Since this is problem that has occurred and not a risk, there’s no need to add it to the risk register. The Identify Risks process will need to be redone, but since this is a problem, the first action is to come up with a solution for it. Creating a workaround is a solution. You might need to inform management as well, but this is reactive, not proactive, and not the first thing you should do.
You are assigned as the manager of a construction project and the project sponsor has provided you with a draft project charter and immediately asks you to provide a preliminary analysis of the risks on the project. Which of the following would BEST help this effort?
A. A conversation with a team member from a similar project that failed in the past
B. Resource plan from the project planning process
C. Project scope statement from the project planning process
D. An article from PM Network Magazine
Explanation: Since the only document that you have is the project charter, you are still in the project initiating phase and none of the planning documents have been generated yet. So the project scope statement and the resource plan are not correct answers. The magazine article could be correct if it was mentioned that the article gives some applicable insights, particularly about the risks involved in your project.
You are asked by your management to provide an estimation of the costs of a new residential building project using the costs of an earlier residential building project that your company had carried out as the basis for your estimation. What type of estimation is this called?
A. Bottom-up Estimating
B. Analogous Estimating
C. Activity-based Estimating
D. Parametric Estimating
Explanation: According to the PMBOK® Guide (6th Edition), analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.
A project manager is performing Reserve Analysis as a technique in one of the project managements processes that he is currently working on. Which of these is likely to be that process?
A. Estimate Reserves
B. Develop Schedule
C. Plan Costs
D. Determine Budget
Explanation: Reserve Analysis is one of the techniques which is used in more than one process. Three processes of Estimate Costs, Determine Budget, and Control Costs are the Cost Management processes that use this tool.
Knowledge management involves the recording and transferring of experiences and skills to the organization in order to achieve project objectives. Both explicit and tacit knowledge are important for this purpose. One of the advantages of tacit knowledge is that
A. It can be readily shared
B. It is open to interpretation
C. It has context built in
D. It can be readily codified
Explanation: Tacit knowledge, which is the information and belief system a team member has within their minds and realm of experience, is not documented or codified and must be drawn out by others in order to utilize that knowledge. Therefore, unlike explicit knowledge, which is written down, it is more difficult to share. However, unlike explicit knowledge, which lacks context and can therefore be open to interpretation, tacit knowledge has context built into it. Refer to section 4.4 of the PMBOK® Guide for additional info.
As a software development project manager, you are approached by one of the software developers telling you that he has added additional features to the end product which were not required in the scope. He also mentions that adding those features did not take any extra time or cost. What should be your action in this situation?
A. Implement change control process
B. Carefully review and understand the new features
C. Ask the team member to issue a change request for the extra features
D. Ask the software developer to remove the extra features
Explanation: As the project manager you are responsible to evaluate the situation before making any decision about the change. This is the first step of the integrated change control. After a complete review of the new features, you can realize the possible impacts of the change in terms of quality, risk, etc. on the project.
Your team is involved in selecting a seller for one of the important systems of the project. Two of your team members have a conflict over selecting the seller. One of them believes that you should choose company X while the other argues that company Y should be awarded the contract. Which one of the following will you refer the team to make the decision?
A. Source selection criteria
B. Procurement documents
C. Project management plan
D. Seller proposals
Explanation: The source selection criteria are the primary tools for evaluating potential sellers and should be used by the entire team in order to make a selection.
You are managing a project which is suffering many changes since the initiation. You had to process a lot of changes and you did not have enough time to do anything else. Which one of the followings best describes what you should do in such a project?
A. Determine whether the changes are needed and whether they are beneficial to the project. List all of the changes in the scope management plan.
B. Determine whether a change is needed and whether it is beneficial to the project, and notify the stakeholders who are affected by the change.
C. List all of the changes in the project charter, notify the project stakeholders who are affected by the changes and ensure that you have their sign off on the changes.
D. Determine if changes are needed. Notify the stakeholders who are affected by the changes and list all of the changes in the scope management plan.
Explanation: You never list changes in the scope management plan or in the project charter. As the project manager you need to make sure that changes are needed and beneficial and also to make sure that the stakeholders get notified.
You are a software development project manager and currently you are in the process of developing the project risk management plan. Which of the following is not part of such a plan?
A. Risk probability
B. Impact Matrix
C. Risk categories
Explanation: The contents of the risk management plan according to the PMBOK® Guide (6th Edition) are methodology, roles & responsibilities, budgeting, risk categories, definition of risk probabilities and impacts, probability & impact matrix, revised stakeholders’ tolerances, reporting formats, and tracking. Basically, the risk management plan describes how risk management will be structured and performed on the project. It does not identify individual risks or the probability of their occurrence.
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