Midterm Sample Questions

A professional organization for project management specialists is the

a. PMI.
b. AMA.
c. MIS.
d. IPM.
e. PMBOK.

a. PMI. The Project Management Institute (PMI) is a professional organization for project managers.

2. In the _____________ stage of the project life cycle project the product is delivered to the customer and resources are reassigned.
a. Identifying
b. Defining
c. Planning
d. Executing
e. Closing

e. Closing The product is delivered and project resources are reassigned in the closing stage of the product life cycle.

3. Project management is important to understand when people
are a part of a project team because they
a. Work with others to create a schedule and budget.
b. Need to understand project priorities so they can make
independent decisions.
c. Need to be able to monitor and report project progress.
d. Need to understand the project charter or scope
statement that defines the objectives and parameters of
the project.
e. All of these are reasons it is important for project team
members to understand project management.

e. All of these are reasons it is important for project team members to understand project management. Project members are expected to use project management tools and concepts such as working as a team to create a budget or schedule and be able to monitor project progress. They also need to be able to understand project priorities and parameters.

4. Two dimensions within the project management process are
a. Technical and sociocultural.
b. Cost and time.
c. Planned and unexpected.
d. Established and new.
e. Unique and reoccurring.

a. Technical and sociocultural. There are two dimensions within the actual execution of projects. These include the technical dimension and the sociocultural dimension.

5. Which of the following is typically the responsibility of a project manager?
a. Meeting budget requirements
b. Meeting schedule requirements
c. Meeting performance specifications
d. Coordinating the actions of the team members
e. All of these are typical responsibilities

e. All of these are typical responsibilities Project managers must ensure that appropriate trade-offs are made between the time, cost, and performance requirements of the project.

6. A series of coordinated, related, multiple projects that continue over an extended time period and are intended to achieve a goal is known as a
a. Strategy.
b. Program.
c. Campaign.
d. Crusade.
e. Venture.

b. Program. A program is a group of related projects designed to accomplish a common goal over an extended period of time.

7. Which of the following is a good example of a program?
a. Planting a garden
b. Developing a new residential area that includes six
custom homes
c. Developing a new marketing plan
d. Taking notes each class meeting to prepare for the final
e. Planning a wedding

b. Developing a new residential area that includes six custom homes A program is a group of related projects designed to accomplish a common goal over an extended period of time.

8. Which of the following represents the correct order of stages within the project life cycle?
a. Planning, Defining, Executing, Closing
b. Closing, Planning, Defining, Executing
c. Defining, Planning, Executing, Closing
d. Executing, Defining, Planning, Closing
e. Planning, Defining, Closing, Executing

c. Defining, Planning, Executing, Closing The project life cycle passes sequentially through four stages: defining, planning, executing, and closing.

9. Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?
a. Sacred cow
b. Pet project
c. Political necessity
d. Special undertaking
e. Strategic ploy

a. Sacred cow The term "sacred cow" is often used to denote a project that a powerful, high-ranking official is advocating.

10. Why do project managers need to understand their organization’s mission and strategy?
a. To reduce project duration and increase the number of projects implemented
b. So they can make appropriate decisions and adjustments and be effective project advocates
c. It is only important for senior management to understand the organization’s mission and strategy
d. To get their job done and increase opportunities for promotion
e. So that they can make sure the customer is satisfied

b. So they can make appropriate decisions and adjustments and be effective project advocates There are two main reasons why project managers need to understand their organization’s mission and strategy. The first reason is so they can make appropriate decisions and adjustments. For example, how a project manager would respond to a suggestion to modify the design of a product to enhance performance will vary depending upon whether his company strives to be a product leader through innovation or to achieve operational excellence through low cost solutions. The second reason project managers need to understand their organization’s strategy is so that they can be effective project advocates. Project managers have to be able to demonstrate to senior management how their project contributes to their firm’s mission.

11.
11. All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT
a. Frequent conflicts between managers.
b. Inadequate resources.
c. Confused employees regarding which projects are more
important.
d. Not enough projects within the portfolio to make a profit.
e. People are working on multiple projects and feel
inefficient.

d. Not enough projects within the portfolio to make a profit. Frequent conflicts between managers, inadequate resources, confused employees and multitasking are all symptoms of organizations struggling with strategy disconnect and unclear priorities. Typically these organizations are also completing projects with low priority which results in a portfolio that consists of too many projects that do not align with organizational strategy.

12. Which of the following is NOT one of the characteristics of effective objectives?
a. Realistic
b. Assignable
c. Flexible
d. Specific
e. Measurable

c. Flexible Characteristics of effective objectives are that they are specific, measurable, assignable, realistic and related to time.

13. In order to formulate strategies that align with the mission the organization will need to
a. Assess internal strengths and weaknesses. b. Analyze competitors.
c. Examine the external environment.
d. Know their core competencies.
e. All of these should be considered when formulating strategies.

e. All of these should be considered when formulating strategies. Strategy formulation includes assessment of the internal and external environments.

14. The assessment of the external and internal environments is called _______ analysis.
a. SWOT
b. Competitive
c. Industry
d. Market
e. Strategic

a. SWOT The keys are to attempt to forecast fundamental industry changes and stay in a proactive mode rather than a reactive one. This assessment of the external and internal environments is known as the SWOT analysis (strengths, weaknesses, opportunities, and threats).

15. Project selection criteria are typically classified as
a. Financial and nonfinancial.
b. Short-term and long-term.
c. Strategic and tactical.
d. Required and optional.
e. Cost and schedule.

a. Financial and non financial. Although there are many criteria for selecting projects, selection criteria are typically identified as financial and nonfinancial.

16. One who endorses and lends political support for the completion of a specific project is known as the
a. Project manager.
b. CEO.
c. Project sponsor.
d. Project lead.
e. Sacred cow.

c. Project sponsor. Project sponsors play a significant role in the selection and successful implementation of product innovation projects. Project sponsors are typically high-ranking managers who endorse and lend political support for the completion of a project.

17. Examples of nonfinancial criteria include all of the following EXCEPT
a. Capturing a larger market share.
b. Reducing dependency on unreliable suppliers.
c. Preventing government intervention and regulation.
d. Making it difficult for competitors to enter the market.
e. Calculating the time it will take to recover the project
investment.

e. Calculating the time it will take to recover the project investment. The payback model measures the time it will take to recover the project investment. It is considered a financial criterion.

18. There are 5 steps involved when defining a project; which of
the following is the first?
a. Establish project priorities
b. Define the project scope
c. Verify the budget available
d. Assign team members to work on the project
e. Determine the required completion date

b. Define the project scope Defining the project scope sets the stage for developing a project plan. Project scope is a definition of the end result or mission of your project—a product or service for your client/customer.

19. An expected output over the life of a project would be classified as
a. A deliverable.
b. A product.
c. An end object.
d. An objective.
e. A target.

a. A deliverable. Major deliverables are the expected outputs over the life of the project.

20. The first step of project scope definition is to
a. Analyze the strategic plan.
b. Analyze the current budget plan.
c. Meet with team members.
d. Select team members.
e. Define the overall objective to meet the customer’s needs.

e. Define the overall objective to meet the customer’s needs. The first step of project scope definition is to define the overall objective to meet your customer’s need(s). The project objective answers the questions of what, when, and how much.

21. One of the primary jobs of a project manager is to manage the trade-offs associated with the project. Which of the following is NOT one of the basic classifications of project priorities?
a. Profit
b. Cost
c. Time
d. Performance
e. All of these are basic classifications

a. Profit One of the primary jobs of a project manager is to manage the trade-offs among time, cost, and performance. To do so, project managers must define and understand the nature of the priorities of the project.

22. There are 5 steps involved when defining a project; which of the following is the last?
a. Code the WBS for tracking
b. Assign the cost account to a manager
c. Assign the work package to a manager
d. Develop the responsibility matrix
e. All of these are included in the final step

a. Code the WBS for tracking The codes are used to define levels and elements in the WBS, organization elements, work packages, and budget and cost information. This is the last step when defining a project.

23. The project scope statement indicates that the client is responsible for training the people who will be using the equipment and that the project team will train the client’s trainers. This is an example of
a. Project objectives.
b. Deliverables.
c. Limits and exclusions.
d. Technical requirements.
e. Milestones.

c. Limits and exclusions. The limits of scope should be defined. Failure to do so can lead to false expectations and to expending resources and time on the wrong problem.

24. The tendency for the project deliverables to expand over time—usually by changing requirements, specifications, and priorities—is called
a. Scope erosion.
b. Scope creep.
c. Project bloat.
d. Scope enhancement.
e. Project add-ons.

b. Scope creep. The tendency for the project scope to expand over time— usually by changing requirements, specifications, and priorities—is called scope creep. Scope creep can be reduced by carefully writing your scope statement.

25. Which of the following is least likely to be included in a work package?
a. How long the work package should take to complete
b. A description of work to be performed
c. Overhead expenses
d. How much the work package should cost to complete
e. The person responsible for the work package

c. Overhead expenses Work packages are short duration tasks that have a definite start and stop point, consume resources, and represent cost. Work packages consist of what, how long, cost, resources, who and how well. Overhead costs are not typically found within a work package.

26. Having a strong communication plan can go a long way toward mitigating project problems. A communication plan should address all of the following EXCEPT
a. When the information will be communicated.
b. How information should be communicated and to whom.
c. What methods will be used to gather and store
information.
d. What information needs to be collected and are there
limits as to who has access to it.
e. All of these should be addressed in a communication
plan.

e. All of these should be addressed in a communication plan. A communication plan should contain what information needs to be collected, who will receive that information, how will the information be gathered, when it will be communicated and how, and if there are any limits on who has access to certain kinds of information.

27. The process of forecasting or approximating the time and cost of completing project deliverables is called
a. Budgeting.
b. Predicting.
c. Estimating.
d. Planning.
e. Guesstimating.
Estimating is the process of forecasting or approximating the time and cost of completing project deliverables.

c. Estimating. Estimating is the process of forecasting or approximating the time and cost of completing project deliverables.

28. In practice, estimating processes are frequently classified as
a. Top down/bottom up.
b. Rough/polished.
c. Precise/order of magnitude.
d. Draft/final.
e. Broad/Specific.

a. Top down/bottom up. Estimating processes are frequently classified as top-down and bottom-up. Top-down estimates are usually done by senior management. Bottom-up estimates are typically done by the people doing the work.

29. Typical kinds of costs found in a project include all of the following EXCEPT
a. Direct costs.
b. Project overhead costs.
c. General and administrative overhead costs.
d. Labor.
e. All of these are examples of costs found in a project.

e. All of these are examples of costs found in a project. Typical costs found in a project include direct costs, which consist of labor, materials and equipment, direct project overhead costs and general and administrative overhead costs.

30. Which of the following would best represent direct project costs?
a. Only labor
b. Only materials
c. Only equipment
d. Both labor and materials
e. Labor, materials and equipment

e. Labor, materials and equipment Direct project costs can be clearly chargeable to a specific work package. These costs represent real cash outflows as the project progresses; therefore they are usually separated from overhead costs. They include labor, materials and equipment costs.

31. Companies are using which of the following for improving the estimating process for future projects?
a. Adjusting estimates based on individual forecasting abilities
b. Benchmarking and using the experience of other companies
c. Using time and motion studies
d. Creating historical databases of previous projects
e. Establishing an estimating training course for all
employees

d. Creating historical databases of previous projects Some organizations have large estimating departments of professional estimators—e.g., Boeing, Kodak, IBM—that have developed large time and cost databases.

32. Reasons why estimating time and cost are important include all of the following EXCEPT
a. To schedule work.
b. To determine how long the project should take and cost.
c. To develop cash flow needs.
d. To determine how well the project is progressing.
e. To help establish a project selection process.

e. To help establish a project selection process. Estimates are not important to help establish a project selection process. This process should be established before the project was selected.

33. Information to develop a project network is collected from the
a. Organization breakdown structure.
b. Work breakdown structure.
c. Budget.
d. Project proposal.
e. Responsibility matrix.

b. Work breakdown structure. The project network is developed from the information collected for the work breakdown structure (WBS) and is a graphic flow chart of the project job plan.

34. Which of the following represents an activity on an activity-on- node (AON) project network?
a. An arrow
b. A line
c. Anode
d. Both an arrow and a line
e. An arrow, a line and a node all represent activities

c. Anode The two approaches used to develop project networks are known as activity-on-node (AON) and activity-on-arrow (AOA). Both methods use two building blocks—the arrow and the node. Their names derive from the fact that the former uses a node to depict an activity.

35. An activity that has more than one dependency arrow flowing into it is termed a(n)
a. Parallel activity.
b. Critical path.
c. Burst activity.
d. Merge activity.
e. Independent activity.

d. Merge activity. Merge activity is an activity that has more than one activity immediately preceding it (more than one dependency arrow flowing to it).

36. A(n) _________ activity has more than one dependency arrow flowing from it.
a. Parallel
b. Critical path
c. Burst
d. Merge
e. Independent

c. Burst Burst activity is an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it).

37. Activities which can take place at the same time are termed
a. Parallel activity.
b. Critical path.
c. Burst activity.
d. Merge activity.
e. Independent activity.

a. Parallel activity. Parallel activities are activities that can take place at the same time, if the manager wishes. However, the manager may choose to have parallel activities not occur simultaneously.

38. A sequence of connected, dependent activities is termed a(n)
a. Path of events.
b. Parallel path.
c. Activity chain.
d. Path.
e. Dependent chain.

d. Path. A path is a sequence of connected, dependent activities.

39. ________ activities must be completed immediately before a particular activity.
a. Merge
b. Burst
c. Predecessor
d. Successor
e. Parallel

c. Predecessor

40. ________ activities are to be completed immediately following a particular activity.
a. Merge
b. Burst
c. Predecessor
d. Successor
e. Parallel

d. Successor Which activities must immediately follow this activity? These activities are called successor activities.

41. Which of the following will correctly calculate the total slack in an activity?
a. LS-ES
b. LF-EF
c. LS-LF
d. LF-ES
e. Either LS-ES or LF-EF

e. Either LS-ES or LF-EF Total slack or float for an activity is simply the difference between the LS and ES (LS – ES = SL) or between LF and EF (LF – EF = SL).

42. The minimum amount of time a dependent activity must be delayed to begin or end is referred to as
a. Hammock.
b. Laddering.
c. Lag.
d. Cushion.
e. Buffer.

c. Lag. A lag is the minimum amount of time a dependent activity must be delayed to begin or end.

43. The requirement for a freshly poured foundation to cure 47. before beginning construction is an example of which of the following type of lag?
a. Start to Start
b. Start to Finish
c. Finish to Finish
d. Finish to Start
e. Any of these could be correct

d. Finish to Start There are situations in which the next activity in a sequence must be delayed even when the preceding activity is 48. complete. For example, removing concrete forms cannot begin until the poured cement has cured for two time units.

44. Concurrent engineering, which has dramatically reduced the development time for new products, relies on what kind of lag?
a. Start to Start lags
b. Start to Finish lags
c. Finish to Finish lags
d. Finish to Start lags
e. Any of these could be correct

a. Start to Start lags Concurrent engineering basically breaks activities into smaller 49. segments so that work can be done in parallel and the project expedited. Start-to-start relationships can depict the concurrent engineering conditions and reduce network detail.

45. An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a
a. Random chance.
b. Disaster.
c. Risk.
d. Hazard.
e. Bad luck.

c. Risk. In the context of projects, risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives.

46. The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as
a. Risk forecasting.
b. Risk management.
c. Contingency planning.
d. Scenario analysis.
e. Disaster protection.

b. Risk management. Risk management attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented.

47. The initial step in the risk management process is to
a. Determine the level of acceptable risk.
b. Assess the risk potential.
c. Identify the risks.
d. Set aside budget funds for managing the risks.
e. Appoint a risk manager.

c. Identify the risks. The risk management process begins by trying to generate a list of all the possible risks that could affect the project.

48. One common mistake made early in the risk identification process is to
a. Not consider all possibilities
b. Encourage participants be over optimistic
c. Support participants being over pessimistic
d. Focus on consequences and not on the events that could
produce consequences
e. Give too much attention to past events

d. Focus on consequences and not on the events that could produce consequences One common mistake that is made early in the risk identification process is to focus on consequences and not on the events that could produce consequences.

49. A list of questions that address traditional areas of uncertainty on a project is termed a
a. Risk profile.
b. Questionnaire.
c. Research matrix.
d. Query.
e. Checklist.

a. Risk profile. A risk profile is a list of questions that address traditional areas of uncertainty on a project. These questions have been developed and refined from previous, similar projects.

50. _______________ focuses on how to respond to events that have a positive impact on a project.

a. Risk management
b. Opportunity management
c. Value management
d. Contingency management
e. Prospect management

b. Opportunity management An opportunity is an event that can have a positive impact on project objectives. Essentially the same process that is used to manage negative risks is applied to positive risks. Opportunities are identified, assessed in terms of likelihood and impact, responses are determined and even contingency plans and funds can be established to take advantage of the opportunity if it occurs.

51. Tools such as a risk assessment form and a risk severity matrix are used to
a. Identify risks.
b. Control risks.
c. Assess risks.
d. Regulate risks.
e. Respond to risks.

c. Assess risks. A risk assessment form, a risk severity matrix and a probability analysis are all ways to assess risk. After the risk assessment you will know which risks need most attention.

52. Which of the following activities might you consider adding a time buffer to?
a. Activities with severe risks
b. Merge activities that are prone to delays
c. Activities with scarce resources
d. Noncritical activities with very little slack
e. You might consider adding a time buffer to any of these
activities

e. You might consider adding a time buffer to any of these activities Just as contingency funds are established to absorb unplanned costs, managers use time buffers to cushion against potential delays in the project. And like contingency funds, the amount of time is dependent upon the inherent uncertainty of the project. You might consider adding a time buffer to any of these activities.

53. Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.
a. Management
b. Budget
c. Contingency
d. Padded
e. Just in case

b. Budget Budget reserves are set up to cover identified risks; these reserves are those allocated to specific segments or deliverables of the project.

54. Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project?
a. Project reserves
b. Management reserves
c. Time buffers
d. Activity reserves
e. Budget reserves

b. Management reserves Management reserve funds are needed to cover major unforeseen risks and, hence, are applied to the total project.

55. What is the relationship between organizational culture and estimating?
a. There is no relationship
b. Cultural norms affect the accuracy of estimates
c. Culture determines whether estimates are made
d. Estimating alters cultural norms
e. Estimating and culture are independent

b. Cultural norms affect the accuracy of estimates Organizational culture can significantly influence project estimates. Organizations vary in the importance they attach to estimates.

56. A good starting point for developing time and cost estimates is
a. Past experience.
b. Work packages.
c. Task analysis.
d. Time and motion studies.
e. Work breakdown structure.

a. Past experience. Past experience is a good starting point for developing time and cost estimates. But past experiences must almost always be refined to reach an acceptable level of accuracy.

57. Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?
a. Planning horizon
b. People
c. Padding Estimates
d . Profit
e. Project Structure

d . Profit Factors that need to be considered to improve the quality of estimates are the planning horizon, the project duration, the people responsible for making the estimates, project management structure and organization, padding estimates, and the organizational culture.

58. Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that the projects that ook six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?
a. Padding estimates
b. Project duration
c. Project structure
d. People
e. Organization culture

b. Project duration Long duration projects increase the uncertainty in estimates.

59. Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?
a. Padding estimates
b. Planning horizon
c. Project structure
d. People
e. Organization culture

a. Padding estimates In work situations where we are asked for time and cost estimates, most of us are inclined to add a little padding to increase the probability and reduce the risk of being late. If everyone at all levels of the project adds a little padding to reduce risk, the project duration and cost are seriously overstated.

60. Richard is collecting estimates for a house that he will have the funding to build in 12 months. Which of the following factors does Richard need to consider in regard to the quality of these estimates?
a. Padding estimates
b. Planning horizon
c. Project structure
d. People
e. Project duration

b. Planning horizon If Richard will not have funding to start the project for 12 months, he needs to consider the planning horizon. The accuracy of the time and cost estimates decrease as the planning horizon expands.

61. Which of the following does NOT help describe a bottom-up estimating approach?
a. They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration
b. They establish low-cost, efficient methods for completing
activities
c. They typically comes from the people actually doing the
work and who are most knowledgeable about the task at
hand
d. Estimates are made at the work package level and then
"rolled up" to determine estimates for major deliverables
and for the project itself
e. They can take place after the project has been planned in
detail

a. They are made by someone who uses experience and/or information from someone else to determine overall project cost and duration Top-down estimates usually are derived from someone who uses experience and/or information to determine the project duration and total cost.

62. Which of the following methods is NOT considered a top- down approach to estimating project time and cost?
a. Ratio
b. Template
c. Apportion
d. Function point
e. Learning curve

b. Template Template methods are used in bottom-up approach to estimating.

63. Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using?
a. Ratio
b. Template
c. Apportion
d. Function point
e. Learning curve

a. Ratio Top-down methods (sometimes called parametric) usually use ratios, or surrogates, to estimate project times or costs. Top- down approaches are often used in the concept or "need" phase of a project to get an initial duration and cost estimate for the project. For example, contractors frequently use the number of square feet to estimate the cost and time to build a new house.

64. Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquiries, files, and interfaces. Which of the following methods is he using?
a. Ratio
b. Template
c. Apportion
d. Function point
e. Learning curve

d. Function point In the software industry, software development projects are frequently estimated using weighted macro variables called "function points" or major parameters such as number of inputs, number of outputs, number of inquiries, number of data files, and number of interfaces.

65. Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others, she estimates that it will take about 10 percent less time and money. Which of the following methods is she using?
a. Ratio
b. Template
c. Apportion
d. Function point
e. Learning curve

e. Learning curve This is a phenomenon of tasks that are labor intensive. In these circumstances the pattern of improvement phenomenon can be used to predict the reduction in time to perform the task. From empirical evidence across all industries, the pattern of this improvement has been quantified in the learning curve (also known as improvement curve, experience curve, and industrial progress curve).

66. Learning curves are more likely to be applied in situations where most of the costs are
a. Materials.
b. Labor.
c. Overhead.
d. Evenly spread over materials, labor, and overhead.
e. Labor and materials.

b. Labor. This is a phenomenon of tasks that are labor intensive. In these circumstances the pattern of improvement phenomenon can be used to predict the reduction in time to perform the task. From empirical evidence across all industries, the pattern of this improvement has been quantified in the learning curve (also known as improvement curve, experience curve, and industrial progress curve). This phenomenon is especially true of tasks that are labor intensive.

67. Which of the following describes the consensus method?
a. Should be used only for projects that require the same task, group of tasks, or product to be repeated several times
b. Uses several people with relevant experience regarding the task at hand to make time and cost estimates
c. Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost
d. Uses the number of square feet to estimate the total cost and time of the project
e. Uses weighted macro variables or major parameters such as the number of inputs or outputs to estimate the total cost and time of the project

c. Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost The consensus method simply uses the pooled experience of senior and/or middle managers to estimate the total project duration and cost. This typically involves a meeting where experts discuss, argue, and ultimately reach a decision as to their best guess or estimate.

68. Which of the following is NOT one of the bottom-up approaches to estimating project time and cost?
a. Parametric procedures applied to specific tasks b. Estimates for the WBS work packages
c. Learning curve
d. Template method
e. Range estimates

c. Learning curve Learning curve is part of top-down approach to estimating.

69. Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large?
a. Function point
b. Template
c. Learning curve
d. Phase estimating
e. Apportion

d. Phase estimating Phase estimating is used when an unusual amount of uncertainty surrounds a project and it is impractical to estimate times and costs for the entire project.

70. Rob is responsible for estimating a work package that has a significant amount of uncertainty associated with the time and cost to complete. Due to the uncertainty involved he will be making a low, an average and a high estimate. Rob is using which estimating approach?
a. Parametric procedures applied to specific tasks
b. Template method
c. Apportion method
d. Range estimating
e. Learning curve

d. Range estimating Range estimating works best when work packages have significant uncertainty associated with the time or cost to complete. Under these circumstances it is a prudent policy to require three estimates: low, average and high.

71. Which of the following is NOT true in regard to the level of detail estimates should contain?
a. It will vary with the complexity of the project
b. Detailed estimates are crucial to project success;
therefore, an effort should be made to make estimates as detailed as possible for all projects
c. The more detailed the estimate is the more the estimate will cost to create
d. Inadequate detail might lead to estimates that fall short of their intended purpose
e. Excessive detail means unproductive paperwork and unnecessary expenditures

b. Detailed estimates are crucial to project success; therefore, an effort should be made to make estimates as detailed as possible for all projects At any level of management, the detail of an estimate should be no more than necessary and sufficient. Otherwise time and money are wasted.

72. The salary of the project manager would be an example of what type of cost found in a project?
a. Labor
b. Direct
c. Direct project overhead
d. General and administrative overhead
e. Salary

c. Direct project overhead The salary of the project manager would be an example of the direct project overhead cost. The cost is linked to the project, but cannot be directly linked to a work package.

73. Accounting would be an example of which of the following costs typically found in a project?
a. Labor
b. Direct
c. Direct project overhead
d. General and administrative overhead
e. Salary

d. General and administrative overhead Accounting is an example of a cost that is carried out for the duration of the project and cannot be linked to a specific work package or even the project itself. These costs are called general and administrative overhead.

74. Which of the following is NOT one of the recommended guidelines for developing useful work package estimates?
a. Estimates should be made by those responsible for the work
b. Use several people to estimate the same work
c. Estimates should be based on normal conditions
d. Estimates should include a normal level of contingency
e. Estimates should be independent of other projects

d. Estimates should include a normal level of contingency Estimates should be made by the individuals responsible for the work, should involve several people with relevant experience and knowledge of the tasks, should be made based on normal conditions and should not include any allowances for contingencies, should be created with consistent time units, and should be independent of other projects.

75. The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as
a. Detailed WBS work package estimates.
b. Template method.
c. Function point method.
d. Time-phased cost estimates.
e. Phase estimating.

b. Template method. If the project is similar to past projects, the costs from past projects can be used as a starting point for the new project. Differences in the new project can be noted and past times and costs adjusted to reflect these differences.

76. Which of the following top-down methods is used when projects closely follow past projects in regard to features and costs of those features, and result in costs being assigned by percentages to major segments of the project?
a. Apportion
b. Function point
c. Phase estimating
d. Learning curve
e. Consensus

a. Apportion Apportionment is used when projects closely follow past projects in features and costs. Given good historical data, estimates can be made quickly with little effort and reasonable accuracy. This method is very common in projects that are relatively standard but have some small variation or customization.

77. Refining estimates may be necessary for a number of reasons. For example, resource shortages, in the form of people, equipment, or materials, can extend original estimates. This is a good example of
a. Hidden interaction costs.
b. Things going wrong on a project.
c. Normal conditions not applying.
d. Changes in project scope.
e. The customer not being clear about their expectations.

c. Normal conditions not applying. Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life. This is especially true when it comes to the availability of resources. Resource shortages, whether in the form of people, equipment, or materials, can extend original estimates.

78. Refining estimates may be necessary for a number of reasons. For example, people working on prototype development needing time to interact with the design engineers after the design is completed is a good example of
a. Hidden interaction costs.
b. Things going wrong on a project.
c. Normal conditions not applying.
d. Changes in project scope.
e. The customer not being clear about their expectations.

a. Hidden interaction costs. Interaction costs are hidden in estimates. According to the guidelines, each task estimate is supposed to be done independently. However, tasks are rarely completed in a vacuum. Work on one task is dependent upon prior tasks, and the hand-offs between tasks require time and attention. For example, people working on prototype development need to interact with design engineers after the design is completed, whether to simply ask clarifying questions or to make adjustments in the original design.

79. Refining estimates may be necessary for a number of reasons. For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of
a. Hidden interaction costs.
b. Things going wrong on a project.
c. Normal conditions not applying.
d. Changes in project scope.
e. There is never a good reason to refine estimates.

d. Changes in project scope. As he or she gets further and further into the project, the manager obtains a better understanding of what needs to be done to accomplish the project. This may lead to major changes in project plans and costs. Likewise, if the project is a commercial project, changes often have to be made midstream to respond to new demands by the customer and/or competition.

80. Refining estimates may be necessary for a number of reasons. For example, design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are good examples of
a. Hidden interaction costs.
b. Things going wrong on a project.
c. Normal conditions not applying.
d. Changes in project scope.
e. None of these are correct.

b. Things going wrong on a project. Design flaws are revealed after the fact, extreme weather conditions occur, accidents happen, and so forth. Although you shouldn’t plan for these risks to happen when estimating a particular task, the likelihood and impact of such events need to be considered.

81. Arrows on an activity-on-node (AON) project network represent
a. An activity.
b. Project flow.
c. Dependency.
d. Project flow and dependency.
e. An activity and dependency.

d. Project flow and dependency The node depicts an activity, and the arrow shows dependency and project flow.

82. When translated into a project network, a work package will become
a. A single activity.
b. One or more activities.
c. A milestone.
d. A critical path.
e. An arrow.

b. One or more activities. Work packages from the work breakdown structure (WBS) are used to build the activities found in the project network. An activity can include one or more work packages. The activities are placed in a sequence that provides for orderly completion of the project.

83. Which of the following is provided by both the project network and the work breakdown structure?
a. Dependencies
b. Sequencing
c. Interrelationships
d. Activity duration
e. Timing

d. Activity duration Project networks are developed from the work breakdown structure (WBS). The project network is a visual flow diagram of the sequence, interrelationships, dependencies and timing of all the activities that must be accomplished to complete the project. Both the WBS and the work packages will include the duration of the activity.

84. On a project network, the activity times are derived from the
a. Organization breakdown structure.
b. Work packages.
c. Budget.
d. Project proposal.
e. Responsibility matrix.

b. Work packages. Work packages from the work breakdown structure (WBS) are used to build the activities found in the project network. An activity is an element in the project that consumes time—for example, work or waiting.

85. Which of the following does NOT help describe a project network?
a. A graphic display of the flow and sequence of work through the project
b. Provides the basis for scheduling labor and equipment
c. Gives the times when activities can start and finish and when they can be delayed
d. Highlights major deliverables and identifies their
completion dates
e. Identifies critical activities

d. Highlights major deliverables and identifies their completion dates The work breakdown structure (WBS) will highlight major deliverables. Since major deliverables are a summary of the tasks below them, they do not directly consume time or resources; therefore, they are not included in the network.

86. The critical path in a project network is the
a. Shortest path through the network.
b. Longest path through the network.
c. Network path with the most difficult activities.
d. Network path using the most resources.
e. Network path with the most merge activities.

b. Longest path through the network. When the critical path term is used, it means the path(s) with the longest duration through the network. If an activity on the critical path is delayed, the project is delayed the same amount of time.