CAPM Exam Prep Practice Test with Answers, Exams of Marketing Business-to-business (B2B)

Download CAPM Exam Prep Practice Test with Answers and more Exams Marketing Business-to-business (B2B) in PDF only on Docsity! 1 1 CAPM® Exam Prep Practice Test with Answers 2023 1. The process of establishing clear and achievable objectives, measuring their achievement, and adjusting performance in accordance with the results of the measurement is called: Strategic Planning Contingency Planning Detailed planning Management by Objectives Explanations: Correct Answer is D. In management by objectives, the employee and supervisor meet to discuss the objectives of the employee over the next review period. At the end of the review period the performance of the employee is reviewed relative to the objectives, and adjustments are made. 2. During the full life cycle of the project, a plot of the project's expected expenditures will usually follow a characteristic S curve. This indicates that: There is a cyclic nature to all projects. Problems will always occur in the execution phase There are high expenditures during closeout The bulk of the project budget will be spent in the execution phase Explanations: 2 2 Correct Answer is D. Most of the project money will be spent during the execution phase. At the beginning of execution the rate of expenditures rises as people and materials are brought into the project. Later the expenditures peak and slow down. By the end of the execution phase expenditures are approaching a minimum. 3. In which project lifecycle phase would you expect to have the greatest influence on overall project cost? Concept Design Build Launch Explanations: Correct Answer is A. All the stated options represent a life cycle phase; Concept is the phase which is the earliest phase in the project and therefore the phase where influence is greatest. 4. Requirement is - Quantified and documented needs of stakeholders Quantified and documented expectations of customer Quantified and documented expectations of sponsor All of the above Explanations: Correct Answer is D. All of the statements state requirement. It can be quantified and documented needs of stakeholders / customers / sponsor etc. 5. TQM is - 5 5 It has a definite beginning and end It produces a unique deliverable It is temporary It is managed in strict accordance with the PMBOK guidelines Explanations: Correct Answer is D. All the stated are characteristics of project stated in the Project definition, viz. Project is a temporary endeavor undertaken to create a unique product, service or result. 11. A group of related projects that are managed in a coordinated way that usually includes an element of ongoing activity is called a: Major project Project office Program Group of projects Explanations: Correct Answer is C. Program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. 12. Project constraint could be on - Cost Resources Schedule Any of the above 6 6 Explanations: Correct Answer is D. The project constraints are all of the options listed and also may include Scope, Quality, Budget, Risk and more. 13. Which of the following is NOT true about Project Management Office (PMO)? Support Project Managers by coaching and mentoring PMO is a project stakeholder PMO can terminate projects if required to keep business objectives consistent PMO is not involved in coordinating communication across projects Explanations: Correct Answer is D. PMO is an organizational body or entity assigned with various responsibilities related to the centralized and coordinated management of those projects under its domain. A PMO may be delegated the authority to act as an integral stakeholder and a decision maker in a project and can make recommendations, or terminate projects or take actions as required to keep business objectives consistent. It also supports the project managers and also coordinates communication across projects. 14. Projects require project management while operations require business process management or operations management. Projects can intersect with operations at various points during the product lifecycle. Which of the following is not a stage to represent this? When developing a new product or service Until the divestment of the operations at the end of the product life cycle At each closeout phase At each Executing phase Explanations: 7 7 Correct Answer is D. Executing phase is not the stage for intersection of projects and operations. 15. Enterprise environmental factors refer to both internal and external environmental factor that surround or influence a project's success. Of the following, which is NOT an enterprise environmental factor : Organizational culture, structure and processes Existing human resources Project management information system Historical data Explanations: Correct Answer is D. Of the options listed, Historical data is organizational process assets and not defined as Enterprise environmental factors. 16. A person who is involved in or may be affected by the activities or anyone who has something to gain or lose by the activity of the project is called a: Team member Customer Stakeholder Supporter Explanations: Correct Answer is C. A stakeholder is an individual or an organization that is involved in or may be affected by project activities. 17. Large projects may be divided into smaller, more manageable components known as, 10 10 When they are warranted and inline with the strategic goals of the organization Most of the time Explanations: Correct Answer is C. Only changes that are warranted and inline with the strategic goals of the organization should be made; the Project Manager should not support every change as that involves resources, time, and cost. 23. Conducting Lessons Learned is a critical part of - Executing Process Monitoring and Controlling Performance Appraisal Closing Explanations: Correct Answer is D. Conducting Lessons learned is a critical path of Closing process group. The lessons learned should be collated through comprehensive project review and should update the organization's knowledge base. 24. Of the following, which is not a process from the Planning Process Group? Collect Requirements Perform Quality Assurance Develop Schedule Perform Qualitative Risk Analysis Explanations: 11 11 Correct Answer is B. Of the listed options, 'Perform Quality Assurance' is a process from the Executing Process Group. 25. The Change Management Plan should be included in which of the following? Project Management Plan Communications management plan Configuration management plan Quality management plan Explanations: Correct Answer is A. The Change Management Plan is a document or procedure found in the project management plan and is used for the 'Control Scope' process. 26. Who is a Project Initiator? A member of your team A member of quality management team A project manager A person or organization that has the ability and authority to start the project Explanations: Correct Answer is D. Project Initiator is a person who has initiated the project, i.e. he has the ability and authority to start the project. 27. Who does the Project Integration? Project Sponsor 12 12 Project Manager Project Team Stakeholder Explanations: Correct Answer is B. This is pretty simple and straight forward question. 28. Which of the following is true about Project Plan ? Project Plan needs to have the buy in of the entire project team Project Plan is created and approved by the Project Manager Project Plan is prepared by the Sponsor and given to the Project Manager to execute Project plan is prepared only when all the required resources come on board Explanations: Correct Answer is A. Project Plan needs to have the buy-in of entire project team. The Project Plan should be created by discussion with the Project Team. 29. Which of the following statements is MOST True? The project charter identifies the names of project management team members The project charter tracks a project's history The project charter names and authorizes the project manager The project charter describes the details of what needs to be done to satisfy quality improvement objectives Explanations: Correct Answer is C. The project charter is a document that authorizes a project and names the project 15 15 Explanations: Correct Answer is A. A change to the project schedule does not indicate replacing the schedule baseline. It means analyzing the impact and following the change control process. 35. Which of the following is true? The project charter is developed during closing The project charter is developed during initiation The project charter is developed during planning The project charter is developed during execution Explanations: Correct Answer is B. Project charter is developed during initiation process group. 36. A budget change is requested and approved during the execution/control phase of the project. What is your MOST appropriate action following approval? Integrate the changes as approved, then create a new cost baseline Create a new cost baseline, but only after changes have been made Notify your project sponsor Integrate budget changes but maintain the original cost baseline Explanations: Correct Answer is D. The most appropriate action following approval is to integrate budget changes and to maintain the original cost baseline. 37. Which is NOT an output from the 'Direct and Manage Project Execution' process? 16 16 Deliverables Work Performance information Project management plan Project document updates Explanations: Correct Answer is C. Project management plan is an input to this process while the others stated are outputs from this process. 38. Who performs and documents lessons learned? Project manager and Team Project manager Key project stakeholders Project sponsor Explanations: Correct Answer is A. Project manager and team performs and documents lessons learned. 39. Which is a tool and technique for the process 'Perform Integrated Change Control' process? Project management plan Change Control meetings Configuration management Change control procedures 17 17 Explanations: Correct Answer is B. Change Control meetings is a tool and technique for the said process. 40. Which of the following is NOT a configuration management activity included in the integrated change control process? Configuration status accounting Configuration identification Configuration verification and audit Configuration control Explanations: Correct Answer is D. Configuration management activities included in the integrated change control process are Configuration status accounting, Configuration identification and Configuration verification and audit. 41. Any numbering system that is used to monitor project costs by category such as labor, supplies, or materials, for example, is called: Chart of Accounts Work Breakdown Structure Universal standard Standard accounting policy Explanations: Correct Answer is A. The chart of accounts is the system used to monitor project costs as defined by PMI. 42. An example of 'Validate Scope' process is : 20 20 hundred persons, the project manager constructs a work breakdown structure. The project manager will do the WBS to the detail level of which of the following? Task Activity WBS element Work Package Explanations: Correct Answer is D. The project manager will normally break the WBS down to the work package level. Work packages can be broken down further into tasks and activities. 48. The work that must be done in order to deliver a product with the specified features and functions is: Project scope Project verification Project control Product scope Explanations: Correct Answer is A. Project Scope is the work that needs to be accomplished to deliver a product, service or result with the specified features and functions. Product scope is the features and functions that characterize a product, service or result. 49. Which of the following is NOT a tool and technique for the 'Define Scope' process? Product analysis Alternatives Identification 21 21 Facilitated workshop Decomposition Explanations: Correct Answer is D. Of the options listed, Decomposition is a tool and technique for the 'Create WBS' process. All the other options are tools and techniques for the 'Define Scope' process. 50. Which of the following are the Requirement workshops that are focused sessions that bring key cross functional stakeholders together to define product requirements? Facilitated workshops Cross Functional workshops Focus groups Group workshops Explanations: Correct Answer is A. Facilitated workshops are Requirement workshops that are focused sessions that bring key cross functional stakeholders together to define product requirements. 51. The method of reaching a group decision where the largest block in a group decides even if a majority is not achieved is known as : Unanimity Plurality Majority Dictatorship Explanations: 22 22 Correct Answer is B. Plurality is the group decision making technique where the largest block in a group decides even if a majority is not achieved. 52. Job Shadowing an observation technique that is usually done externally by the observer viewing the user perform his or her job Control Scope Collect Requirements Verify Scope Explanations: Create WBS 53. Which of the following may NOT be included in the Project Scope Statement? Project exclusions Project deliverables Project assumptions Product verification criteria Explanations: Correct Answer is D. Product verification criteria is not included in the Project Scope Statement. 54. Which of the following are not INPUT to the 'Validate Scope' process? Requirements documentation Requirements traceability matrix 25 25 Explanations: Correct Answer is A. Variance is the difference between actual time and planned time. 60. If a project has 5 days of project float and 10 days of total float, what will happen if the early start date is delayed 3 days, how will this impact the project completion date: The project end date will be pushed out 5 days The project end date will be pushed out 10 days The finish date won't change The project will be able to finish early Explanations: Correct Answer is C. Since the project already has 5 days of project float and 10 days of total float, the early start date delay of 3 days will not impact the project completion date. 61. The project manager decided to improve the predicted completion date for the project by doing in parallel several of the activities that were scheduled to be done in sequence. This is called: Crashing Increasing priorities Fast Moving Fast Tracking Explanations: Correct Answer is D. Fast tracking a schedule is finding activities that can be done in parallel that were originally scheduled to be done in sequence. 26 26 62. The original schedule (for a project, a work package, or an activity), plus or minus approved changes, is called: The working schedule The target schedule The performance schedule The schedule baseline Explanations: Correct Answer is D. The baseline schedule as well as the baseline budget and the baseline scope are the original project plans plus or minus any approved changes. There are many other terms used to describe schedules, but the definition given is the definition of the baseline schedule. 63. Resource leveling will generally: Reduce the time needed to do the project Increase the total time necessary to do all the tasks Reduce the overutilization of resources Reduce resources to the lowest skill that is possible Explanations: Correct Answer is C. Resource leveling is a tool in most project management software and can also be done manually. In resource leveling an attempt is made to reduce overutilization of resources to their normal utilization. 64. A task was scheduled to use two persons, full time, and take two weeks to complete. Instead, the project manager was only able to assign one person to this task. At the end of two weeks, the person assigned to the task was 75% complete. What is the cost performance index? 27 27 0.5 1.5 1.1 0.7 Explanations: Correct Answer is B. At the end of two weeks this task is 75% complete. The PV was to be 4 person-weeks, two people working full time for two weeks. The EV is therefore 3 person-weeks, .75 x 4. The AC is 2 person- weeks. The cost performance index (CPI) is the EV / AC. i.e., CPI = 3 person-weeks / 2 person-weeks 1.5. 65. Which of the following is considered to be a simulation technique? PERT Analysis GERT Analysis Monte Carlo analysis Critical path method Explanations: Correct Answer is C. Monte Carlo analysis is a simulation technique that assigns durations to tasks in a schedule and then calculates the schedule information. 66. In the first attempt in resource leveling the project schedule, what would you expect to occur? The number of required resources will increase during certain time periods of the project The number of required resources will decrease during certain time periods of the project The overall project duration will increase 30 30 71. Which dependency or logical relationship of Activity-On-Node is depicted when we say - The completion of the successor activity depends upon the completion of the predecessor activity Finish to Start Finish to Finish Start to Start Start to Finish Explanations: Correct Answer is B. Finish to Finish is when the completion of the successor activity depends upon the completion of the predecessor activity. 72. Which is the output from the 'Estimate Activity Resources'? Resource breakdown structure Alternatives data Project management software Resource calendars Explanations: Correct Answer is A. Of all the options listed, Resource Breakdown structure is the output from this process. 73. For a project with the following data, evaluate the project's burn rate : PV = $750,000, EV = $750,000 and AC = $900,000 1.2 31 31 1 0.1 0.83 Explanations: Correct Answer is A. Burn Rate = 1/CPI = AC / EV = 900,000 / 750,000 = 1.2 74. Post-mortem analysis after scheduled finish date of a project shows a CPI of 0.8 and an SPI of 1.25. What is a plausible explanation for that? The project was terminated early. At that time, it was over budget and ahead of schedule The project has produced additional deliverables which were originally not required The project has evidently been finished under budget and behind of schedule The project has evidently been finished over budget and ahead of schedule Explanations: Correct Answer is A. The key to the answer is what happens to SV and SPI when your project is finished. Assuming finished" means you completed all your planned work (PV) and deliverables. 75. Which of the following about Budgets is not true, Budgets need not be approved Budget is an approved estimate for the project Budget is an approved estimate for any work or schedule activity Budget at completion is the total planned value for the project Explanations: 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 32/68 Correct Answer is A. Estimated costs of individual activities or work packages is aggregated to establish an authorized cost baseline. It is essential to get the project budgets approved. All the options listed barring option A are correct. 76. What does a CPI value of greater than 1 indicate? Cost under run of the estimates Cost Overrun of the estimates Does not affect the project Project is ahead of schedule Explanations: Correct Answer is A. A CPI value greater than 1 indicates Cost under run of the estimates. 77. During the status review meeting with the Top management, John, the project manager presents the S-curve for his project. The Index values for Cost and Schedule are 1.2 and 0.8 respectively. Which of the following is true for John's project? Project is behind schedule and over budget Project is ahead of schedule and under budget Project is behind schedule and under budget Project is ahead of schedule and over budget Explanations: Correct Answer is C. Since CPI = 1.2 and SPI = 0.8 hence the Project is behind schedule and under budget 78. A budgetary estimate should be accurate to what degree? A rough order of magnitude 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 35/68 months, the earned value analysis shows the following - EV = $650,000, PV = $750,000, AC = $800,000. What is the Schedule Variance? -$100 +$100 -$50 +$50 Explanations: -$100 is the Schedule Variance 84. To distinguish top down estimates from bottom up estimates, it would be correct to say that the bottom up estimate would be: Less accurate Both have about the same accuracy More accurate No different to perform than the top down estimate Explanations: Correct Answer is C. Bottom up estimating generally produces the most confident estimates, but is more costly and time consuming than analogous estimating. Bottom up estimating is performed by developing detailed estimates for each activity at the work package level of the WBS. 85. Which of the following mechanisms or processes is adopted to validate that the work is done to the customer satisfaction/requirement even before you present it to the customer? Perform Quality Control Verify Scope 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 36/68 Control Scope Monitor and Control Project Work Explanations: Correct Answer is A. Validated deliverables are the major output from Perform Quality Control. These validated deliverables are then an input into Verify Scope where acceptance of the deliverables from the customer is obtained. 86. The Upper Control Limit (UCL) and Lower control limit (LCL) on a typical control chart indicate what? Process specification limits Product performance specification limits Statistical validation that the product of the project satisfies performance specifications Acceptable range of variation in the process Explanations: Correct Answer is D. Upper and lower specification limits are based on requirements of the contract. They reflect the maximum and minimum values allowed. They are set by the project manager and appropriate stakeholders to reflect the points at which corrective action will be taken to prevent exceeding specification limits. 87. Which of the following is the LEAST true? Prevention over Inspection is a preferred project quality concept Pareto diagrams typically identify 20% of all possible root causes that are responsible for 80% of the problems Project QC monitors both product related deliverables and project management deliverables Statistical sampling is a QC technique that requires inspection of only 50% instead of 100% of the population, thus reducing testing time by half. 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 37/68 Explanations: Correct Answer is D. Statistical sampling is a valid technique that can save time and money but the actual percentage of items sampled is determined using statistical analysis and not fixed at 50% as stated in option D. 88. You have discovered a problem and are trying to determine the cause. The process whereby you identify the variables that have the most influence on the project by holding all the variables constant and changing one at a time is called: Product correlation Design of experiment System configuration Output processing Explanations: Correct Answer is B. Design of experiment is a statistical method for identifying which factors may influence specific variables of a product or process under development or in production. 89. The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs is the definition for: Modern quality management Quality assurance Quality Quality control Explanations: Correct Answer is C. Stated and implied needs are the inputs to developing the requirements of the product 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 40/68 cost of ensuring quality objectives Explanations: Correct Answer is D. Cost of quality includes all costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements and failing to meet requirements. 95. A responsibility assignment matrix Should be created only for large complex projects Shows assignment and levels of authority and does not indicate time Shows when people will be brought into the project and when they will leave Maybe used to show reporting relationships Explanations: Correct Answer is B. RAM is used to illustrate the connections between work packages or activities and project team members. 96. Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers. Examples of satisfiers are: Vacation time, assignment of a personal staff assistant Work satisfaction, fringe benefits Plush office space, performance based salary raise Sense of personal achievement, work satisfaction Explanations: Correct Answer is D. Projects must often have their own reward and recognition systems since the systems of the performing organization may be not appropriate. 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 41/68 97. The skill of listening involves more than just hearing the sounds. One of the characteristics of a good listener is that he or she: Finishes the speaker's sentences Takes good notes Repeats some of the things said Agrees with the speaker Explanations: Correct Answer is C. Good listening is an important skill for any manager. 98. Which conflict resolution technique should be used when the deadline is critical and tasks are at risk of slipping? Accommodating Forcing Problem Solving Compromising Explanations: Correct Answer is B. The scenario clearly warrants action on war-footing basis and therefore, the best method to resolve conflict is forcing. 99. You are a team member for the project to develop the resource management system that looks into Recruitment, Attendance, Leave Management, Appraisal and Employee Exit. The project has been assigned a budget of $3 Million that is not flexible. This is an example of, Assumption 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 42/68 Expert Judgment Constraint Estimation Explanations: Correct Answer is C. Constraint is an applicable restriction or limitation, either internal or external to a project, which will affect the performance of a project or process. Here, the question mentions that the project has a constraint budget of $3 Million. 100. Your project manager has decided on the ideal project management team and sketched out an informal plan to begin recruiting. He has also decided that it will be best to lease temporary office space, to serve as project headquarters for the team. Establishing an office facility like this for the team to work in close proximity is an example of what? Team development Team building Pre-assignment Collocation Explanations: Correct Answer is D. Co-location involves placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team. 101. Which of the following is NOT a tool and technique for the 'Acquire Project Team' process? Virtual teams Negotiation Acquisition 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 45/68 Security, change management and procedural documentation Explanations: Correct Answer is C. The project manager has three main reasons for or interests in having good document control: effective communications, making sure that all necessary information is distributed and received by all those who need it; be able to reconstruct why certain decisions were made and the conditions under which they were made; historical value, so that lessons learned can be used in the future on other projects. 107. Your project manager wants to handle communications well in his project. In order to do this he has chosen to write a communications plan. Of the items listed below, which one is not part of the communications plan? Collection and filing structure Distribution plan Method for accessing information Project organizational structure Explanations: Correct Answer is D. Of all the options listed, Communication Management plan does not include Project organizational structure. 108. Which of the following techniques allows for the participants to be anonymous? Brainstorming Nominal group Delphi technique Crawford technique Explanations: 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 46/68 Correct Answer is C. The Delphi technique allows participants to be located in different parts of the world. It lends itself to using e-mail. In the process, the participants submit their ideas anonymously. The facilitator receives the ideas, categorizes them, and returns the list to the participants. 109. In the communications model, communications between the sender and the receiver often are affected by communications barriers. These include all of the following except: Cultural differences Differences in motivation Educational differences Lack of a communications device Explanations: Correct Answer is D. Communication involves at least two people who may have very different backgrounds, experience, and education. Many times these individuals come from different cultures, speak different languages, and certainly have different drives. 110. Formal written communication with the customer is required when : Customer requests some additional work not covered under the contract Project has cost overruns Project has a schedule slippage that changes the critical path Defects are detected Explanations: Correct Answer is A. Formal written communication with customer is required in procurement, especially where the contract is involved. Since Option A talks about contract, hence it is the answer. 111. When you want to report on the actual project results vs. planned results, you use? 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 47/68 Trend report Forecasting report Status report Variance report Explanations: Correct Answer is D. The keyword here is compare". The only report that compares project results is Variance report." 112. The Power /interest grid groups the stakeholders based on - Level of authority (power) and their level of concern (interest) . Level of authority (power) and their active involvement (influence) Active involvement (influence) and ability to effect changes to project's planning or execution (impact) power, urgency and legitimacy Explanations: Correct Answer is A. The Power / Interest Grid groups the stakeholders based on their level of authority (power) and their level of concern (interest) regarding the project outcomes. 113. Which of the following is NOT an input to the 'Plan Communications' process? Stakeholder register Communications technology Stakeholder management strategy Enterprise environmental factors 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 50/68 The risk scores are graded on a bell curve. The risks are rated High, Medium, and Low The impact of each risk is not accounted for until it comes to fruition The probability of each risk is low Explanations: Correct Answer is 'D'. Risk Score is the product of probability and impact. A risk can have a very high impact on the project, but inversely may have an extremely low probability. 119. You are currently in the planning process and have identified the risks associated with this project and are ready for the next step. What is the next step? Assign probability and impact values using qualitative or quantitative analysis Use the Delphi technique to confirm the identified risks Identify the response strategies for the identified risks Start working on the creation of the project schedule Explanations: Correct Answer is 'A'. Since you have identified the risks, i.e. completed the Identify Risks process, the next step is to assign the values for probability and impact using Qualitative and/or Quantitative analysis. Delphi technique is a technique in the information gathering tool and technique of the Identify Risks process and is not applicable. 120. Sensitivity analysis is one of the tools involved in performing quantitative risk analysis. What are the advantages of using sensitivity analysis? It determines the risk to public only It allows for independent answers 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 51/68 Management understands that there is a range of possible outcomes It provides insight into the project that the PM may be lacking Explanations: Correct Answer is 'C'. Sensitivity analysis allows the project team to understand the effect of each variable in the project, and allows management to see that there is a range of possible outcomes. 121. A project of $1.5 million has an adverse event that has the probability of 60% of occurrence and a potential loss of $25,000. This represents an expected negative value of: $1,50,000 15000 1500 90000 Explanations: Explanation :(b) $15,000. Correct Answer is 'B'.Expected value= Probability x Outcome =0.6 x -25,000 = -15,000 122. After reviewing the detailed analysis of a risk associated with a particular project activity, your Project Manager along with the team decides to respond to the risk by purchasing insurance. This could be an example of? Active acceptance Passive acceptance Mitigation Transference Explanations: 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 52/68 Correct Answer is 'D'. Transference is a risk response strategy where the risk is transferred to a third party. 123. The sponsor has asked the Project Manager to ensure that sufficient amount of management reserve is available for his project. What does the Project Manager explain to the team as the primary purpose of management reserve? To take care of the risks identified for the project activities To take care of the costs that management may incur to review the project activities To take care of the risks that could not be identified by the project team To take care of the risks those have been identified, but no response has been planned to take care of them Explanations: Correct Answer is 'C'. Management Reserve is specifically for the Unknown Unknown" risks which could not be identified in the normal circumstances by the Project Team." 124. Looking at the trend of natural disasters that have occurred in India in the past 5 years, your company is adamant to buy an insurance against earthquakes, as the other disasters do not seem prevalent in the area where the work is to be done. Which of the risk response strategies does this belong to? Mitigation Contingency Transference Acceptance Explanations: Correct Answer is C. Risk Transfer requires shifting some or all of the negative impact of a threat, along with ownership of the response to a third party. Transferring the risk does not eliminate it. 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 55/68 Technique for rating risks on a scale from 1 to 100 Explanations: Correct Answer is C. SWOT is the analysis of strengths, weakness, opportunities and threats. 130. As part of planning, you are identifying risks and impacts of risk on your project. Chris, a project team member, is confused by what risk means. Your explanation is that a risk is a (an) occurrence of event that can affect the project for good or bad.: Uncertain Potential Planned None of the above Explanations: Correct Answer is A. Risk is an uncertain occurrence of event that can affect the project for good or bad. 131. Which is not an example of a correctly handled Contract closure procedure? Early termination of a contract due to bad reputation and poor delivery Settling and finally closing the contract agreement Product verification by stakeholders and administrative closure Early termination of a contract because of an immaterial breach Explanations: Correct Answer is D. All the stated options are examples of a correctly handled contract closure whereas early termination due to immaterial breach is not acceptable 4/16/22, 2:23 AM CAPM® Exam Prep | 150 Free Practice Test Questions | Simplilearn https://www.simplilearn.com/capm-exam-prep-free-practice-test 56/68 132. A project manager makes a narrative description of the work that must be done for her project. This is called a Project plan Control chart Statement of work Project objective Explanations: Correct Answer is C. A statement of work is the description of what the project is about and what is to be delivered. 133. A mutually binding agreement that obligates the seller to provide the specified product, service or result and obligates the buyer to pay for it, is called as - Project Plan Contract Deliverable Project charter Explanations: Correct Answer is B. Contract represents a mutually binding agreement that obligates the seller to provide the specified product, service or result and obligates the buyer to provide monetary or other valuable consideration. 134. The Project Management Head intends to hand over an infrastructure project to Tom, the project manager. But within the senior management of the organization, there are varied views about this project; some senior management people in the organization are against taking up the project because they feel that it is better to buy the same product from an outside source while, others feel that building the product in-house is a better option. Which of the following tools will help Tom decide whether the product should be purchased or developed in-house? Make-or-Buy Analysis Fishbone model Ishikawa diagram ROI Analysis Explanations: Correct Answer is 'A'. Make-or-Buy analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or must be purchased from outside sources. 135. The primary advantage of a fixed price contract with the vendor is: there is no risk cost risk is higher cost risk is lower risk is shared by all parties Explanations: Correct Answer is 'C'. Fixed price contracts are awarded when you are well aware of the product. Option A is incorrect because no contract can completely eliminate all risks. Option B is incorrect as cost risk is lower, not higher. 136. Which type of contract would your Project Manager NOT want to use when he does not have enough staff in the financial department to audit invoices, Fixed Price Cost plus fixed fee process? Communication management plan Change log Issue log Inter-personal skills Explanations: Answer: D - Inter-personal skills is an important technique used in the manage stakeholder engagements process. 142. An important stakeholder in a project is at an 'unaware' state at present, i.e. he does not know what is going on in a project. You reckon that his support could be very important. Which of the following is the BEST way to get him to a 'supportive' state? Send him regular reports about the project and its benefits Assign some work or review activity to him Send him tickets to his favorite opera show Give topmost priority to the issues that he has raised Explanations: Answer: B - Involving the stakeholders in the project work is a good way to get them to support the project. Simply sending them reports seems a passive way of engaging. 143. Which of the following is an input to the plan stakeholder management process? Stakeholder registers Stakeholder management plan Stakeholder engagement assessment matrix Impact/Power grid Explanations: Answer: A - Stakeholder register is an input to the plan stakeholder management process. 144. Which of the following is a tool to assess the current and desired state of engagement of a stakeholder on the project? Stakeholder registers Stakeholder management plan Stakeholder engagement assessment matrix Stakeholder issue log Explanations: Answer: C - Stakeholder engagement assessment matrix, which is a tool and technique of the Plan stakeholder management process, is a tool to assess the engagement levels of the stakeholders on a project. 145. What is the best way to manage stakeholders which are low on power and interest? Monitor them No need to worry about them Treat all stakeholders equal Keep them informed Explanations: Answer: A - The strategy for stakeholders who are low on the power-interest grid is 'Monitor'. 146. Which of the following should you be most concerned about, during stakeholder analysis? Their interest in the project Their influence on the project Both A and B Neither A nor B Explanations: Answer: C - The stakeholder can be interested in a project or be in a position to influence the project. As such, both are important for the project to understand. 147. Stakeholder management involves all of the following EXCEPT: Identifying the stakeholders Keeping all stakeholders happy Analyzing stakeholder expectations Managing stakeholder engagement Explanations: Answer: B - Stakeholder management involves processes required to identify stakeholders, analyze their expectations and to develop appropriate strategies to engage them. It does not necessarily mean keeping everybody happy (which may not even be possible). 148. Which of the following may NOT be a stakeholder to a project? Project Manager Project Team