Free PMI-SP Questions & Answers
1
What is the most commonly used relationship in a PDM (Precedence
Diagramming Method) network?
a
Dummy.
b
Finish-to-Start.
c
As Soon As Possible.
d
Start-to-Finish.
Answers
e
The best answer is B
The four types of dependency (or link) used in a PDM network are: Finish-toStart (FS), Start-to-Start (SS), Finish-to-finish (FF), and Start-to-Finish (SF).
SF is rarely used, FS is the most common dependency. Dummies are used
in ADM networks, ASAP is a type of constraint.
Reference: PMBOK® Guide page 156 Sect. 6.3.2.1
2
Which calculation is correct for the To-Complete Performance Index (TCPI)
based on the Estimate At Completion (EAC)?
a
AC + (BAC – EV)
b
(BAC - EV)/(BAC - AC)
c
BAC/CPI
d
(BAC - EV)/(EAC - AC)
cum
Answers
e
The best answer is D
TCPI is the projection of the future cost performance that must be achieved
on the remaining work to achieve a management goal such as the original
Budget At Completion (BAC) or a calculated Estimate At Completion (EAC).
All of these formula use standard Earned Value Management acronyms:
Option ‘a’ calculates EAC based on future work being performed at budgeted
rates
Option ‘b’ calculates TCPI based on BAC (the question asked for EAC)
Option ‘c’ calculates EAC based on future work being performed at the same
CPI as the completed work.
Reference: PMBOK® Guide p221 Sect 7.4.2.3
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Is a negative schedule variance (SV) an indicator that the project will not
finish as scheduled?
a
Yes, a negative SV indicates that the actual progress of the project master
schedule is behind the planned progress.
b
No, a negative SV indicates that planned work was not planned
appropriately.
c
No, a negative SV only indicates that all of the planned work has not been
accomplished; other information is needed to assess the forecast project
finish date.
d
Yes, a negative SV only get worse over time.
Answers
e
The best answer is C
Schedule variance measures the amount of work accomplished compared to
amount of work planned to have been accomplished in the period. This does
not translate directly into a delay because you do not know if the work not
done affects the Critical Path.
Reference: Practice Standard for Earned Value Management 2nd Ed. 9.3.1.1
4
You are managing a project to develop a new training course. Which of the
following statements is true regarding the tools and techniques used in
activity sequencing?
a
The precedence diagramming method (PDM) uses nodes to represent the
activities and arrows to connect the nodes and show dependencies.
b
Leads and lags allow for the delaying and acceleration of successor activities
respectively.
c
The precedence diagramming method (PDM) is used for dependency
determination.
d
The two type of dependency determination are mandatory dependencies
(hard logic) and discretionary dependencies (soft logic).
Answers
e
The best answer is A
This is a sneaky question - most of the answers look correct at first glance:
B is incorrect - Leads accelerate, lags delay (the key word is 'respectively')
C is incorrect (or not the best answer) because the description is less
complete than A and it is the 'arrows' or links that create the dependencies.
D is incorrect - there are four types of dependency "External" and “Internal”
dependencies were missed from the answer.
The precedence diagramming method (PDM) uses nodes (boxes or
rectangles) to represent the activities and arrows (links) to connect the nodes
and show dependencies. The type of dependency can be mandatory or
discretionary, and either internal or external, the link type can be FS, SS, FF
or SF.
Reference: PMBOK® Guide p156-158 Sect 6.3.2
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5
Your qualitative risk assessment matrix uses the following values on each
axis: 0.1, 0.3, 0.5, 0.7, 0.9. This is a linear scale, what descriptions are most
likely to be assigned to these values?
a
Very Low, low, moderate, high and very high.
b
Avoid, transfer, mitigate, neutral and accept.
c
Very high, high, moderate, low and very low.
d
Accept, neutral, mitigate, transfer and avoid.
Answers
e
The best answer is A
Decisions to accept, transfer avoid, etc are based on a combination of
probability and impact, they are not the sale descriptors, eg, a 'high + very
high risk may need to be removed from the project = 'avoid'. The scale is
ascending, this usually translates to 0.1 = Very Low through to 0.9 = Very
High.
Reference: PMBOK® Guide page 331 Sect. 11.3.2.2.
6
Assuming a 'Modified Beta' distribution, calculate the expected value given
the following three point estimate:
optimistic = 8, most likely = 14, pessimistic = 16?
a
1.333.
b
13.33.
c
14.
d
12.66.
Answers
e
The best answer is B
The 'Modified Beta' distribution was the basis of PERT calculations. The
Expected value, E = (O + 4M + P)/6 = (8 + (4 x 14) + 16) / 6 = 13.33.
The standard deviation = P - O/6 = 1.333
Reference: PMBOK® Guide page 170 Sect. 6.5.2.4.
7
Typical causes of unfavourable cost variances include all but the following
except:
a
Poor Planning.
b
Under staffing because of labour shortage.
c
Re-work.
d
Scope Creep.
Answers
e
The best answer is B
This is a practical question based on the 'Control Costs' process, it is also a
negative question - you are looking for the one wrong answer. Cost variances
are the difference between the planned cost and the actual cost. Poor
planning includes poor cost estimating and is likely to lead to reported cost
variances (usually negative). Extra work caused by scope creep or re-work is
also going to increase costs. Under staffing will definitely cause a negative
time variance (the work will take longer to do) but may not cause an increase
in costs provided the work is still accomplished efficiently and the overall
project is not delayed.
Reference: PMBOK® Guide page 217 – 219 Sect 7.4.2.1.
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8
Your steering committee chair has asked you for a report that highlights the
start and finish of each of key project deliverables. What is the best report
format to use?
a
A summary bar chart.
b
The schedule network diagram.
c
A Gantt Chart.
d
A Milestone Chart.
Answers
e
The best answer is D
Milestones highlight the start and finish of key deliverables - the information
requested. A summary bar chart may also achieve this but shows additional
information not requested, particularly the duration of each activity. A 'Gantt
Chart' is another name for a 'Bar Chart'.
Reference: PMBOK® Guide page 182 - 183 Sect. 6.6.3.2.
9
When distributing information to the project stakeholders, the project
manager is responsible for making the information clear and complete so
the recipient can easily understand it. This competency is best described as
a part of the project manager's _____________ skills.
a
Reporting.
b
Documentation.
c
Communication.
d
Influencing.
Answers
e
The best answer is C
The overarching skill is communication. Whilst under some circumstances the
information may be documented in a report for the purpose of influencing a
stakeholder, information can be communicated in many different forms and may be
routine rather than designed to influence the person; but in every circumstance the
transfer of information is a communication. For more on communication see:
http://www.mosaicprojects.com.au/WhitePapers/WP1066_Communcation_Theory.pdf
Reference: PMBOK® Guide page 293 Sect. 10.1.2.3.
10
Which of the following is true concerning the work breakdown structure
(WBS)?
a
The PMI WBS and PRINCE2 product breakdown structure (PBS) are
effectively the same thing.
b
The WBS is the same as the organisational breakdown structure (OBS).
c
The WBS is a hierarchical decomposition of the total scope of work to be
carried out by the project team.
d
The WBS is the bill of materials (BoM) needed to accomplish the work of
the project.
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Answers
e
The best answer is C
The difference between the PBS and the WBS is the PBS is focused on the
products to be delivered; the WBS is focused on all of the work needed to
achieve the project’s objectives including all of the ancillary works (not just
the ‘product’). Non-product elements in the WBS include project
management work, safety and hygiene work, etc.
The OBS is the document that defines the lines of management
responsibility within the project. The point where the OBS and WBS
intersect is known as a ‘control account’ and defines the manager
responsible for a section of the project work.
The BoM only describes the materials used in the work, not the other
elements of the project (eg, labour). The WBS defines all of the work and
consequently all of the costs.
Reference: PMBOK® Guide p126 Sect: 5.4
11
You are managing a critically important project that is experiencing a high
level of change. On-time delivery is vital! Which of the following best
describes the changes you will incorporate into the schedule for the team?
a
The likely changes you expect to occur based on your experience.
b
The seller receives a fixed fee calculated as a percentage of the initial
estimated project cost.
c
All authorised changes that affect the budget.
d
Only approved change requests.
Answers
e
The best answer is D
Only approved changes should be incorporated into the schedule.
Approved scope changes cause the baseline to change but other approved
changes may also affect the schedule. Unauthorised changes should not
be worked on and therefore should not be in the execution schedule. It is
important to assess the impact of proposed changes but this is done 'offline' to see 'what-if' the change proceeds and determine the best options to
recommend to the Change Control Board. Urgent changes may need an
interim approval to allow critical work to proceed ahead of the final approval
of the change request.
Reference: PMBOK® Guide page 186 - 187 Sect 6.7.
12
You are compiling a monthly summary for your PMO reports. There are 4
projects reporting the following data: Project A has an EV of $500 and an
AC of $505; Project B has a CPI of 1.08, Project C has an EV of $455 and an
AC of $450; and Project D has a CPI of 0.98. Which project is the most cost
efficient?
a
Project A.
b
Project B.
c
Project C.
d
Project D.
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Answers
e
The best answer is B
EV = Earned Value, AC = Actual Cost, CPI = Cost Performance Index. CPI
is calculated by EV/AC (earned value divided by actual cost). A CPI of less
than one means the project is over spending, a CPI greater than 1 is good
news, the project is costing less than planned (ie, is cost efficient), the
higher the value the better the performance. Project C has a CPI =
$455/$50 - 1.01, Project B has a CPI of 1.08, the CPI on project B of 1.08 is
better than Project C at 1.01; the other two are losing money.
Reference: PMBOK® Guide page 217 - 218 Sect 7.4.2.1.
13
Analogous estimating when applied to a duration is:
a
Based on expert judgement and is consequently more accurate than
standard critical path estimating.
b
Used when there is a limited amount of detailed information available.
c
A calculation based on a three point estimate using a modified BETA
distribution.
d
The same as ‘bottom up’ estimating.
Answers
e
The best answer is B
Analogous estimating uses the duration from a similar completed activity or
project as the basis for the current estimate. This is a ‘top down’ estimating
technique used when there is little detailed information available.
The critical path method is a precise set of calculations applied to the
schedule (including the estimated durations). It is not an estimating
process.
The PERT technique uses three point estimates and a modified BETA
distribution to assess the probability of completing the project in a given
timeframe.
Reference: PMBOK® Guide p149 Sect: 6.5.2.2
14
Who is responsible for identifying risks in a project?
a
The Project Manager.
b
Any project personnel including stakeholders.
c
The Project Planner.
d
The main stakeholders including the sponsor.
Answers
e
The best answer is B
Anyone working on or associates with a project can help identify the risks in
a project (and should be encouraged to help). The project manager or risk
manager manages the risk management processes with input from the
sponsor and other key stakeholders
Reference: PMBOK® Guide page 321 Sect. 11.2.
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15
You are managing a project that is running late. You propose corrective
actions that will affect the schedule baseline. This proposal is called a:
a
Change request.
b
Corrective action.
c
Schedule baseline update.
d
Preventative action.
Answers
e
The best answer is A
The schedule variance analysis that has identified the project is running
late may result in change requests to the schedule baseline. However, the
proposed change must be approved before the baseline can be altered.
Corrective and preventative actions may, or may not need to be submitted
as a change request depending on the nature of the action. However, the
question clearly indicates the proposal will affect the baseline and therefore
approval of a formal change request is required before the actions can be
implemented.
Reference: PMBOK® Guide page 191 Sect 6.7.3.3.
16
The level of information on your project has improved significantly since
the original estimates were completed, and a part of the planning process
you have been asked to review the cost estimate and produce the
definitive estimate for the project baseline. What would be a reasonable
range for you to achieve?
a
-0% to +0%.
b
-5% to +5%.
c
-5% to + 15%.
d
-15% to +25%.
Answers
e
The best answer is C
The PMBOK® Guide considers a range of -5% to +10% to be realistically
achievable as a definitive estimate. The other values are not in the
PMBOK. It is impossible to be precisely accurate when predicting the
future (+/- 0%) and in most circumstances attempting to achieve an
accuracy of +/- 5% is unrealistic (the exception being processes primarily
involving mechanical production).
Reference: PMBOK® Guide page 201 Sect 7.2.
17
The primary difference between an Arrow Diagramming Method (ADM)
network and a Precedence Diagramming Method (PDM) network is:
a
PDM is more accurate then ADM.
b
PDM networks use the CPM (critical path method), ADM networks do not.
c
PDM networks are developed from the WBS, ADM networks are not.
d
The way the network is drawn.
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Answers
e
The best answer is D
The only significant difference between an ADM network and a PDM
network is the way they are drawn. PDM networks have the 'activity on the
node' (usually a rectangular box), connected by arrows (called Links). ADM
networks represent the activity by an arrow (activity on the Arrow) and the
arrows join at the nodes. Both ADM and PDM networks use the CPM
methodology, and may be based on a WBS (or may not depending on how
the information was developed). There is no difference in the accuracy of
the calculations.
Reference: For more information see http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM03
Reference: PMBOK® Guide page 177 Sect 6.6.
18
You are working on a major project and after the first couple of months
you realise it takes an extra two weeks to get approvals on any purchase
order over $10,000. What should you do?
a
Ignore the situation; you are not responsible for the approval of purchase
orders.
b
Record the information in your project records.
c
Adjust your purchasing practices to keep all purchases under $10,000.
d
Document the information in your Lessons Learned.
Answers
e
The best answer is D
The purchase order process obviously merits a review (but this is not an
option), you may also need to adjust the timing of your ordering processes
to take account of the longer approval periods (again this is not an option).
Ignoring the issue or 'fiddling' the procurement processes to avoid the
scrutiny are both unethical; the review and approval system is part of the
organisations governance processes. The best option from a
documentation perspective is to record your findings in the projects
'Lessons Learned' - this is an integral part of the project records and will
make the information available for consideration and possible action.
Reference: PMBOK® Guide page 192 Sect. 6.7.3.6.
19
You are not sure how long the commissioning will take on your project so
you review several completed projects and decide to use the duration
required to complete a similar commissioning process on a completed
project. What is this called?
a
Analogous Estimating.
b
Using Historical Records.
c
Expert Judgement.
d
Approximation.
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Answers
e
The best answer is A
Estimating the cost or duration of a project activity (or the whole, or part of
a project) by reference to a similar completed project is known as
analogous estimating. To perform an analogous estimate, you need
historical information and have to apply expert judgement (but neither of
these options is the best answer).
Reference: PMBOK® Guide page 169 Sect 6.5.2.2.
20
The Control Costs process includes all of the following except:
a
Informing appropriate stakeholders of all approved changes and associated
costs.
b
Influencing factors that create changes in the authorised cost baseline.
c
Developing the cost performance baseline.
d
Acting to bring expected cost overruns within acceptable limits.
Answers
e
The best answer is C
Developing the cost performance baseline is part of the Determine Budget
process (see: 7.3.3.1). All of the other options are listed as inclusions in the
Control Costs process.
Reference: PMBOK® Guide 215 Sect 7.4
21
One of your team has been asked to gather information on the actual start
and finish date of activities and the remaining duration of any activities
that are still in progress. This work is a part of the projects
________________________ process.
a
Performance review.
b
Performance measurement.
c
Earned Value assessment.
d
Critical path analysis.
Answers
e
The best answer is A
The gathering of progress information is part of the performance review
process. Once gathered, the specific data listed will be used to update the
schedule (but the schedule may be either a Critical Chain or Critical Path
schedule). And the schedule information will be used to update the Earned
Value data (along with other information). Performance measurement is a
specific Earned Value technique.
Reference: PMBOK® Guide page 188 - 189 Sect 6.7.2.1.
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22
Based on the information below, what is the most likely cause of the
cost variance in this Work Package?
PV Labour Hours = 1000
PV Labour cost = $100,000
EV Labour Hours = 1000
EV Labour cost = $100,000
AC Labour Hours = 1000
AC Labour cost = $125,000
a
Rework.
b
Rate Variance.
c
Schedule Slippage.
d
Labour Shortage.
Answers
e
The best answer is B
Based on this information, both rework and a labour shortage are likely to cause
schedule slippage as well as cost variances and there is no schedule slippage (a
negative SV). Therefore the most likely cause of the variance is an unexpected
increase in the rate paid for the labour used
Reference: Download Mosaic's White paper for the basic EV Formulae:
http://www.mosaicprojects.com.au/WhitePapers/WP1081_Earned_Value.pdf
Reference: PMBOK® Guide page 218 - 219 Sect 7.4.2.1.
23
What would be the consequence of increasing the duration of task B to 4
days in the above schedule?
a
The project completion would increase by 1.
b
The project completion would increase by 4.
c
Task C would no longer be critical.
d
Task B would become critical.
Answers
e
The best answer is D
Task B would become critical and the network would now have two critical
paths (one through B and one through C). The end date does not change if
CPM calculations are used; but the probability of completing on schedule
will be reduced because any delay on either path will cause a delay to the
completion of the project.
See: http://www.mosaicprojects.com.au/PDF/Schedule_Calculations.pdf
Reference: PMBOK® Guide page 176 - 177 Sect 6.6.2.2.
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24
For some of the risks identified in the project risk register you decide to
develop a response plan that will be implemented when certain predefined
conditions are observed. This approach is called a(n) _________________
response strategy?
a
Mitigation.
b
Work around.
c
Contingent.
d
Emergency.
Answers
e
The best answer is C
A contingent response strategy can be used for both opportunities and
threats that cannot be reasonably avoided or mitigated; it is a prepared plan
of action that will be implements as soon as a predefined set of
circumstances are seen to exist. Typical examples include securing a
facility and evacuating staff in the event of a Hurricane (or Cyclone /
Typhoon) warning of a certain level or implementing a PR plan to exploit
the publicity generated by a celebrity visiting your project.
If you don't have a prepared plan, then you have to implement a
'workaround' as the risk event unfolds. Mitigation is an action taken to
change the project so as to reduce the probability or impact of an identified
threat.
Reference: PMBOK® Guide page 346 Sect. 11.5.2.3.
25
Which of the following deliverables identifies and describes the types and
quantities of each resource required to complete all of the project work
packages?
a
Activity resource requirements.
b
Work breakdown structure (WBS) dictionary.
c
Activity attributes.
d
Resource breakdown structure.
Answers
e
26
The best answer is A
The ‘activity resource requirements’ identifies the type and quantities of
resources required for each activity. Some of the information may be
included in the WBS dictionary (as resources required) but usually at a more
summary level. (Note: process outputs are internal project deliverables)
Reference: PMBOK® Guide page 165 Sect 6.4.3.1.
If not budgeted, what would the likely effect be on the cost variance and
schedule variance of asking the team to work additional overtime?
a
There may be a negative impact to the cost variance; potentially a positive
improvement to the schedule variance.
b
There will be no impact to the cost variance; potentially a positive
improvement to the schedule variance.
c
There will be a negative impact to the cost variance; potentially no impact on
the schedule variance.
d
There will be a negative impact to the cost variance; and a positive
improvement to the schedule variance.
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Answers
e
The best answer is A
Working overtime is a form of 'crashing' the project schedule. If the overtime is paid, the
cost paid for the time worked will increase due to the penalty rates paid for overtime
(but if the overtime is unpaid the reverse applies). Working additional hours should
improve the schedule variance but only if the workers can operate efficiently and do not
become too tired.
Reference:
www.mosaicprojects.com.au/WhitePapers/WP1059_Schedule_Compression.pdf
Reference: PMBOK® Guide page 181 Sect 6.6.2.7.
27
When managing the schedule, what does the term 'variance analysis'
mean?
a
Determining the cause of a difference between the baseline finish date and
the scheduled finish date of an activity.
b
Plotting the actual dates and baselines dates for each activity in a
comparative bar chart.
c
Calculating the difference between the Total Float and Free Float with
reference to the original contract calendar.
d
Recording the actual start and finish dates of the critical activities in the
schedule.
Answers
e
The best answer is A
Variance analysis is used as part of the Schedule Control process to
assess the magnitude of the variation (ie, difference) between the current
project schedule and the baseline schedule, understand the reason for the
difference and determining the appropriate actions to take to lock in gains
and mitigate losses.
Reference: PMBOK® Guide page 188 - 189 Sect 6.7.2.1
28
The responsibility assignment matrix (RAM) shows:
a
The connections between activities and project team members.
b
The delegation of responsibility through the hierarchically organised
management structure.
c
Accountabilities to assist in team performance appraisals.
d
The sequence of activities a named resource is responsible for
accomplishing.
Answers
e
The best answer is A
The RAM chart is used to illustrate the connections between work
packages or activities and project team members.
Reference: PMBOK® Guide p262 Sect: 9.1.2.1
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29
Rolling wave planning assumes:
a
The team is likely to have accurate and detailed information for the shortterm and less information further out.
b
Planning is performed for the project, and then as more information is
available progressive elaboration is used to adjust and finalise.
c
Planning will require the stakeholders to engage with key groups first, then
rippling out to more remote groups.
d
Planning information is available for some phases in detail but there are
gaps.
Answers
e
The best answer is A
All of the statements are true to an extent, A is the best answer because it
explicitly introduces the concept of time. Rolling wave planning focuses on
decomposing near-term elements in the WBS to an appropriate level of
detail in the schedule for the work to be accomplished efficiently, leaving
more time-distant work packages at a summary level until adequate
information becomes available. For more on rolling wave planning see:
www.mosaicprojects.com.au/WhitePapers/WP1060_Rolling_Wave.pdf
Reference: PMBOK® Guide page 152. Sect 6.2.2.2
30
Which of the following represent a discretionary dependency?
a
Not starting design until all of the approvals have been received.
b
Waiting the specified 72 hours before stripping formwork from a newly
poured concrete slab.
c
Applying a start-to-start link between two tasks in a PDM network.
d
Applying a lag of 4 days between two tasks.
Answers
e
The best answer is A
Any link between two tasks (or activities) may be discretionary or
mandatory. The link types in a Precedence network (PDM) are:
- Finish-to-start
- Start-to-start
- Finish-to-finish
- Start-to-finish.
A lead or a lag may be applied to any of the link types.
Mandatory dependencies are either inherent in the nature of the work (eg,
you cannot put concrete into a foundation until you have dug the hole!), or
are contractually required. The specification typically forms part of a
contract and would mandate the ‘curing time’.
Discretionary dependencies are desirable and/or represent best practice.
Whilst it is desirable to wait for the final approvals for a project before
starting the design it is not mandatory. The project team may decide to take
a calculated risk and start some design work before all of the approvals are
received.
Reference: PMBOK® Guide p158 Sect: 6.3.2.2
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