PMP Free Practice Test

By the end of the first sprint, a project lead notices that one of the team members is not performing very well. Which form of communication should the project lead use to handle the situation?

1. A. Informal written communication, such as a friendly reminder
2. B. Formal verbal communication, such as a conversation at the end of the sprint retrospective
3. C. Formal written communication, such as an email with a copy sent to the manager
4. D. Informal verbal communication, such as a conversation

Correct Answer: D
According to the PMBOK Guide, 6th edition, page 368, communication can be classified into formal and informal, written and verbal, and vertical and horizontal, depending on the context, purpose, and audience of the message. Informal verbal communication, such as a conversation, is a type of communication that is spontaneous, casual, and flexible, and that can be used to exchange information, ideas, opinions, or feedback in a timely and direct manner. Informal verbal communication is suitable for handling a situation where a team member is not performing very well, as it can allow the project lead to express concern, empathy, and support, as well as to identify the root causes of the poor performance, and to explore possible solutions or improvements. Informal verbal communication can also help to maintain a positive and trusting relationship between the project lead and the team member, and to avoid any misunderstanding, resentment, or demotivation that may arise from more formal or written
communication. References:
✑ PMBOK Guide, 6th edition, page 368
✑ Free PMP Practice Exam Questions - 120 Sample Test Questions

A risk was raised during the initiation of a project. The supplier discontinued software support for one of the project's required inputs. The project manager planned a reserve budget to allow the project to
continue in the event of this occurrence. What shouldthe project manager do?

1. A. Ask the supplier to continue providing software support until the end of the project.
2. B. Inform the sponsor that the risk has been realized and that a decision has to be made for the project to continue.
3. C. Tell the project team to stop work, as software support will be canceled and the project cannot continue.
4. D. Advise the supplier that the sponsor will pay for software support as previously planned.

Correct Answer: B
According to the PMBOK Guide, the project manager is responsible for planning, implementing, and monitoring risk responses throughout the project life cycle. One of the tools and techniques for implementing risk responses is contingency reserves, which are funds or time allocated for known risks that may affect the project objectives. Contingency reserves can help the project manager mitigate the impact of risks, as well as provide flexibility and options for the project. In this scenario, a risk was raised during the initiation of a project, that the supplier discontinued software support for one of the project’s required inputs. The project manager planned a reserve budget to allow the project to continue in the event of this occurrence. However, when the risk is realized, the project manager should not assume that the reserve budget is sufficient or appropriate to deal with the situation. The project manager should inform the sponsor that the risk has been realized and that a decision has to be made for the project to continue, using contingency reserves as a tool. This option can help the project manager communicate the status and impact of the risk, as well as seek the sponsor’s guidance and approval for using the reserve budget or any other alternative actions. Asking the supplier to continue providing software support, telling the project team to stop work, or advising the supplier that the sponsor will pay for software support are not the best options, as they do not address the issue of risk response implementation, or may be unrealistic or ineffective to resolve the situation. References: PMBOK Guide, 7th edition, pages 263-264, 11.4 Implement Risk Responses.

A project team has identified a risk and wants to accept it as an opportunity to finish a project earlier than planned. The project manager realizes that the sponsor may not accept the risk since the sponsor is
risk averse.
What should the project manager do?

1. A. Convince the sponsor that this will cost less, ultimately resulting in more profit for the sponsor.
2. B. Explain to the sponsor that this is a nonevent type of risk and it will be fine to accept it.
3. C. Conduct a Monte Carlo analysis to determine if the team will complete the project early.
4. D. Create a contingency reserve to cover the risk in order to ensure that the risk will be accepted.

Correct Answer: C
According to the PMBOK® Guide, a project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. Positive risks are referred to as opportunities, and negative risks are referred to as threats. A project team can use different strategies to respond to positive risks or opportunities, such as exploit, enhance, share, or accept. Accepting a positive risk means acknowledging the opportunity and being willing to take advantage of it if it occurs, but not actively pursuing it. A project team may accept a positive risk if it has low probability or low impact, or if the cost of pursuing it outweighs the potential benefit.
In this question, the project team has identified a positive risk that could allow them to finish the project earlier than planned, and they want to accept it. However, the project sponsor is risk averse, meaning that they prefer to avoid taking risks, even if they are positive. The project manager needs to communicate with the sponsor and convince them that accepting the risk is a reasonable and beneficial decision. To do that, the project manager should use a quantitative risk analysis technique, such as Monte Carlo analysis, to determine the probability and impact of the risk, and how it will affect the project schedule. Monte Carlo analysis is a simulation technique that uses random variables to model the uncertainty and variability of the project. It generates multiple scenarios of possible outcomes and calculates the probability distribution of the project completion time. By using Monte Carlo analysis, the project manager can show the sponsor the expected value and range of the project duration, and the likelihood of completing the project early. This will help the sponsor understand the potential benefit of accepting the risk, and make an informed decision based on data and facts.
The other options are not correct because they do not provide a valid way to communicate with the sponsor and justify the risk acceptance strategy. Option A is wrong because it assumes that the sponsor’s main concern is the cost and profit of the project, which may not be true. Moreover, it does not explain how the risk will affect the project schedule or the probability of finishing early. Option B is wrong because it downplays the risk and does not address the sponsor’s risk aversion. It also does not provide any evidence or analysis to support the claim that the risk is a nonevent type. Option D is wrong because it contradicts the risk acceptance strategy. Creating a contingency reserve is a way of preparing for negative risks or threats, not positive risks or opportunities. It implies that the project manager is trying to avoid or mitigate the risk, rather than accept it. References:
✑ PMBOK® Guide, 6th edition, pages 431-432, 444-445
✑ Risk Acceptance as a Risk Response Strategy
✑ PMP Exam Strategies for Risk Response: Mitigate Risk, Avoid, or Transfer
✑ Understand Risk Acceptance in Project Management

In analyzing a project for monthly status reporting, the project manager notices that the schedule performance index (SPI) is 0.75 and the cost performance index (CPI) is 1.25. The project manager must provide the first project status review soon and wants to emphasize that the project is under control.
How should the project manager report the project status to key stakeholders?

1. A. Perform a detailed root cause analysis utilizing a pareto chart and fishbone diagrams to demonstrate that the project is under control.
2. B. Report that the project is behind schedule but that an additional experienced resource can be added to stay within schedule and maintain the budget.
3. C. Prepare a detailed presentation for stakeholders on earned value, including how it is calculated and the project's current earned value results.
4. D. Report that the project is not tracking as expected, but is still under control since the next project milestone is over a month away.

Correct Answer: B
The schedule performance index (SPI) and the cost performance index (CPI) are earned value management (EVM) measures for project schedule and cost efficiency respectively. SPI and CPI are used to assess the magnitude (or amount) of variation from the established schedule and cost baselines1.
The SPI is calculated by dividing the earned value (EV) by the planned value (PV). The CPI is calculated by dividing the EV by the actual cost (AC). Both indexes have a target value of 1, which means the project is on track. An SPI or CPI less than 1 indicates that the project is behind schedule or over budget, respectively. An SPI or CPI greater than 1 indicates that the project is ahead of schedule or under budget, respectively2.
In this question, the project has an SPI of 0.75 and a CPI of 1.25, which means that the project is behind schedule but under budget. The project manager should report the project status to key stakeholders in a way that shows the project is under control and that corrective actions are being taken to address the schedule variance.
Option A is not the best answer because performing a detailed root cause analysis using pareto charts and fishbone diagrams may be too time-consuming and complex for a monthly status report. The project manager should focus on the key issues and actions, not the details of the analysis.
Option C is not the best answer because preparing a detailed presentation on earned value may be too technical and overwhelming for some stakeholders who are not familiar with EVM. The project manager should use simple and clear language to explain the project status and the implications of the EVM results.
Option D is not the best answer because reporting that the project is not tracking as expected but is still under control may not be convincing or reassuring for the stakeholders. The project manager should provide evidence and rationale for why the project is under control and what steps are being taken to improve the schedule performance.
Option B is the best answer because reporting that the project is behind schedule but that an additional experienced resource can be added to stay within schedule and maintain the budget is a realistic and proactive way to communicate the project status. The project manager acknowledges the schedule problem, proposes a feasible solution, and demonstrates confidence in the project’s ability to meet the budget and the deadline. References:
✑ 1: PMBOK Guide, 7th edition, page 261
✑ 2: Schedule & Cost Performance Index, with Formulae & Examples (SPI/CPI)3

A project manager has a team of shared resources from other projects who are working on a client project. Three days before the project is due, the team informs the project
manager that the project will be delayed because a component was not delivered on time.
Competing priorities of the shared resources are delaying delivery of the component.
What should the project manager have done to prevent this delay from happening?

1. A. Maintained constant communication with the stakeholders of the other projects
2. B. Used the resource management plan to identify the impacts of the other projects
3. C. Updated the risk management plan and registered lessons learned for the project
4. D. Reorganized the team for the project based on the work breakdown structure (WBS)

Correct Answer: B
According to the PMBOK Guide 7th Edition, the resource management plan is a component of the project management plan that describes how the project resources are acquired, allocated, monitored, and controlled. The resource management plan also includes the resource breakdown structure (RBS), which is a hierarchical representation of the project resources by category and type. The project manager should use the resource management plan and the RBSto identify the impacts of the other projects on the availability and utilization of the shared resources, and to plan accordingly. The project manager should also communicate with the resource managers and the project sponsors of the other projects to negotiate and resolve any resource conflicts or issues. Therefore, the best answer is B. References: PMBOK Guide 7th Edition, pages 15, 16, 57, 58, 59.