___1. Which of the following is an example of a direct cost on an IT project

1. a. Salary of the project manager and subcontractor expenses
2. b. Property taxes paid by the company
3. c. Salary cost of accounting personnel
4. d. Electricity and heating

____2. Which one of the following is an example of a parametric model for estimating cost:

1. Vendor bids
2. Function point analysis
3. Construction costs calculated as $$ per square foot
4. Learning curve analysis

____3. The network diagram is useful for:

a. Estimating project costs

b. Identifying tasks which can be performed in parallel

c. Managing communications with stakeholders

1. For determining which tasks need to be done before others
2. b & d

___4. Your company has established a reward and recognition system for its project management professionals;Project cost performanceis used as a criterion to determine rewards. What should you do to ensure that rewards reflect performance?

a. Be sure to not allow any overtime to be worked.

b. Utilize a cost baseline

c. Use earned value management to monitor performance using actual costs versus budgeted (planned) costs

d. Estimate and budget controllable and uncontrollable costs separately

____5. You are planning a concert event for your children's school end-of-semester. Some of the Direct Stakeholders you have identified are the students and parents who will attend, the school administration, and the band who will play.

Which of these below are Indirect Stakeholders of whom you should be aware and make part of your plans?

A) The local weekly newspaper

B) The School custodians

C) Businesses in your town

D) A & B

E) None of these are Indirect Stakeholders

_____6. True (T) or False (F) : The Users for your project will not be very available to you and are generally uninterested in the project. The Agile approach may not be the best for this project.

7. Management directed all project managers to use earned value analysis on all projects with budgets exceeding $ 100,000. Your project budget is $200,000, and you must use Earned Value. Your manager asks you for your estimate at completion, a forecast of the most likely total project costs, at each meeting. Estimate at completion (EAC) is based on project performance and

a. Cost analysis

b. Trend analysis of performance indexes

c. Risk Quantifications

d.The results of a project audit

.

____8. A vendor gives you a holiday card with a gift card for $100 included. Following PMIs ethical guidelines, you should:

a. Thank the vendor and use the card, but resolve to not let it influence your use of the vendor in the future

b. Thank the vendor and give the card to your boss

c. Thank the vendor, but return the card and explain that ethical practice prevents you from accepting gifts from vendors

d. Any of the above that you wish.

_____ 9. A project is in trouble - at this rate of work, it will not be finished on time.What kind of corrective action can the Project Manager take:

a. Reduce the scope of the work to be done

b. Reduce the quality of the work that is delivered

c. Add additional manpower or more skilled manpower

d. Buy components or services rather than making/performing them

e. Any or all of the above

_____10. True (T) or False (F): The RACI chart is one of the tools used to develop an effective Communication Plan.

_____ 11. Which statement is NOT true for the Delphi approach:

a. Statistically proven to be a satisfactory approach for estimating.

b. Variance is reduced and accuracy is improved with each round as extremes are thrown out

c. With Delphi, one must identify and estimate the cost for each individual work item

d. It gives the opinions of shy people the same weight as the more talkative

_____ 12. Project Managers can build skill in making estimates by:

a. Tracking actual time spent on projects

b. Keeping a history file of past projects

c. Keep track of project costs and comparing to estimates

d. All of the above

____13. Which of the following is an advantage of establishing a longer term partnership with another company rather than just sub-contracting?

a. reduced administrative costs

b. improved innovation

c. improved communication

d. all of the above

e. a and c

____14.One method of understanding stakeholders influence is to map them onto the Power/Interest grid. Which quadrant should be managed most closely?

A) Low Power/Low Interest

B) Low Power/High Interest

C) High Power/Low Interest

D) High Power/High Interest

____15. Partnering is based on the assumption that

1. the traditionaladversarialrelationship between owner and contractor(s) is self-defeating.
2. owners and contractors cannot trust each other.
3. open communication can eliminate any problems between an owner and a contractor.
4. a good contract can handle any problem that comes up on a project.

____16. Of the statements below about Outsourcing, which one is NOT true?

1. Requires strong telecommunications network
2. Intellectual Property laws differ between countries and can cause problems
3. Time zone, cultural, and language differences increase risk
4. Outsourced projects don't need a Project Manager to handle them

____17. Which of the following is a recommended element of most successful project partnering efforts:

1. strong top management support
2. joint evaluation of the project partnering process.
3. team-building workshops involving the key participants from different organizations
4. a pre-determined method for resolving problems quickly and effectively
5. all of the above

_____18.. True or False: For the purposes of Project Management, when we say that an estimate falls within 2 Standard Deviations of the calculated cost Mean, we say we can have a 95% confidence level in the estimate.

_____19. The Critical Path for a project is important because:

a. It is the shortest path through a network diagram.

b. It is an important part of the Project Scope document

c. The tasks which are on the Critical Path should be most closely monitored for any delay

d.All tasks in the project are part of the "Critical Path"

_____ 20. True or False: When asked to make an early estimate it is acceptable to seek a similar past project and use that project's costs as a starting point.

____ 21. Best practices for high quality projects recommend obtaining a good statement of requirements from the user. Which of these isnota tool (method) that is used to elicit and document user requirements?

a. Use Cases and Scenarios

b. Specification Document

c. User Stories

d. RACI chart

Network Diagram

Referring to the network diagram below, answer the following questions. The following 4 questions are worth TWO POINTS each:

NOTE: The numbers below each task indicate the duration of each task in weeks. For example, Task A will take 3 weeks to complete. The Critical Path on this diagram is A, C, F ( 7 weeks).

_____ 22 . True or False: Tasks C, D AND E must be completed before task F can begin.

_____ 23. True or False:To reduce the schedule to less than 7 weeks it will be necessary to shorten at least one of the tasks on the Critical Path (A, C, or F).

_____ 24. True or False: Reducing task B or D will make the overall schedule less than 7 weeks.

_____ 25. True or False: If Task B is delayed by a week the project is in danger of being late.

____ 26. Your boss calls you and asks you about how much the project, to which you arenewlyassigned, will cost. You quickly think of some similar past projects, and give her a numberin two minutes. What type of estimate did you provide?

a. Definitive

b. Budget

c. Order-of-magnitude

d. Detailed

___ 27. Calculation -PERT MEAN - Show Your Work

3 points

Your project has four work packages:

WORK COST ESTIMATES

PACKAGE Optimistic Pessimistic Likely

A - $ 40,000 $ 70,000 $ 47,000

B - $ 20,000 $ 50,000 $ 28,000

C - $ 15,000 $ 35,000 $ 20,000

D - $ 25,000 $ 45,000 $ 30,000

Total: $100,000 $200,000 $125,000

What is your PERT Mean estimate for the TOTAL project?

PERT Mean= (P + 4L + O) / 6

___ 28. True (T) or False (F): Overhead is usually calculated as a percentage of Labor costs.

___ 29.The contract type which places the most risk onto thecontractoris:

1. Cost Plus Percentage.
2. Cost Plus Incentive
3. Fixed Price Plus Incentive
4. Firm Fixed Price
5. Time and Materials
   1. Resource rate

___ 30. A factor which may cause a PM to increase an estimate is:

a. Staff is not very experienced in this type of project

b. Teams are located in different countries

c. Morale is poor

d. All of the above

___ 31. Of the following, which one is NOT needed when making cost estimates?

a. Resource job descriptions

1. Resource duration
2. Materials and supplies

____ 32. True (T) or False (F): Earned Value is equal to the Planned Value at a particular date, multiplied by the percentage of the project work that has been completed by that date.

____ 33. Two common causes of poor estimates are:

______________________________ and _____________________________ .

_____ 34. During your project Earned Value analysis was performed, resulting in the following numbers:

EV = 523,000 PV= 623,000 AC= 643,000

Which of the following results is correct?

a.CV = -120,000; SV = -100,000

b.CV = +120,000; SV = +100,000

c.CV = -100,000; SV = -120,000

d.CV = +100,000; SV = +120,000

____35. True (T) or False (F) : Fixed price contracts are an example of transferring risk from an owner to a contractor.

_____ 36. Creating a 'weighting system' is part of which phase of Procurement?

A) Solicitation

B) Contract Administration

C) Solicitation Planning

D) Source Selection

__ 37. Conflict between team members on a project may be hidden. Symptom(s) of hidden conflict is (are):

1. Team members prefer to work in isolation
2. The team seems unable to make decisions
3. Morale is low
4. The team members lack enthusiasm for the project
5. Any or all of the above

38. In a partnering relationship, ____________ is shared jointly among the partners, which can reduce costs and increase innovation.

_____ 39. Your project is lagging behind schedule and your manager has offered to give you additional staff in the hope that you will be able to keep to your original schedule. The intention is to be helpful, however you know that adding additional people to a project in process can actually make it even later because (pick the best answer):

1. When additional people are added to a project, the communication paths increase greatly, requiring additional (unscheduled) communication work for everyone.
2. It may not be feasible to split project tasks so you can effectively use new people.
3. New people added to a project need time to "spin-up" and will need to spend (previously unscheduled) time with team members to get oriented to the project.
4. All of the above can make adding additional people less helpful than intended

_____40. What does an SPI of 1.6 mean?

1. All resources assigned to the project cost 1.6 units
2. Ascope performance indexof 1.6 suggests that the project is doing well and running ahead of schedule
3. Aschedule performance indexof 1.6 suggests that the project is doing well and running ahead of the schedule
4. None of the above.

______ 41. Which of the following is a recognized contract type within the PMI context?

A .Fixed-price Contract

b.Cost-reimbursable contract

c.Time and Material Contract

d.All of the above.

_______ 42. Tuckman's theory of group development states that a group settles its issues about roles and responsibilities in this phase:

A) Forming

B) Adjourning

C) Norming

D) Performing

_____ 43. The CPI on your project is .92.The means

1. The project is going well - costs are below the planned costs
2. The project is going terribly badly - costs are very much more than planned
3. The project costs are slightly more than planned and the project needs to be monitored
4. All of the above are incorrect

**** For the following 4 questions use this information *****

You are the new Project Manager on an ongoing project, tasked with taking over for a Project Manager who left.Some of the numbers you find in your initial research are as follows:

Originally Estimated Project Cost ---$675,000

Project Timeline --- 24 weeks

This is week 12 and accumulated costs (AC) are $300,000. Only half (.50) of the work that was scheduled for completion by Week 12 has been completed.

Assume that each week requires the same cost and was expected to have an equal amount of work completed each week.

________ 44. As of this date, what is the Planned Value (PV = How much money had you planned to spend by Week 12)?

a .$300,000

b.$113,062

c. $337,500

d. $389,453

________ 45.What is the Earned Value today?[EV= PV times % of work completed]

a .$300,000

b.$113,062

c.$168,750

d.$483,103

_________ 46. What is the Cost Variance? [CV = EV minus AC]

a . + $300,000

b. - $113,062

c. - $131,250

d. - $452,250

____ 47.True/False You have spent less by the end of Week 12 than you planned to spend. This means the project is doing really well.

48. The Benefit of Using Earned Value Management

5 points

How does using Earned Value Management techniques give a better view of a project's status than merely reporting on how much has been spent so far? (You may use bullet points)

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EXTRA CREDIT Schedule and Cost Performance Index - 5 POINTS

Your company is committed to using Earned Value and they have been tracking the SPI and CPI on your project of the first 10 weeks of a 20 week project . This is what they have reported to you so far:

SPI CPI

Week 2 1.0 1.0

Week 4 1.0 0.9

Week 6 0.9 0.9

Week 8 0.85 0.9

Week 10 0.83 0.9

_____ True or False: According to these figures, your Actual Costs are running below what you had estimated.

____ Analyzing your SPI numbers you realize that:

a. You are gradually falling behind your planned schedule.

b. You are slowly and steadily getting ahead of your planned schedule.

c. The differences are so small, the schedule is not impacted.

d. Ten weeks into the project is too early to tell if you are behind or ahead of schedule.