PMP Practice Test 3 — 10 Questions

Question 1

During a project, the team identifies a risk that could cause a major delay. The probability is high and the impact is high. The project manager decides to hire an external expert to manage the risk. Which risk response strategy is being used?

Accepted Answer

Transfer. Hiring an external expert to manage the risk transfers the financial and managerial responsibility for that risk to a third party. This is a classic Transfer strategy because the project retains the risk but shifts the liability and response execution to the expert via a contract or service agreement. In technical projects, this often involves outsourcing specialized tasks like penetration testing or cloud migration to a vendor.

Answer

Mitigate

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Accept

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Avoid

Question 2

A project manager is managing a construction project and notices that the actual cost for concrete work is consistently 15% above budget. The earned value (EV) is $100,000, and the actual cost (AC) is $115,000. The project manager wants to estimate the cost at completion (EAC) if this trend continues. Which formula should the project manager use?

Accepted Answer

EAC = BAC / CPI. Option C is correct because the question states the cost overrun trend (15% above budget) is expected to continue. The formula EAC = BAC / CPI is the appropriate 'typical' estimate at completion when current cost performance is projected to persist. With EV = $100,000 and AC = $115,000, the CPI is 0.87, and dividing the BAC by this CPI yields the forecasted total cost assuming the same efficiency.

Answer

EAC = AC + Bottom-up ETC

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EAC = AC + (BAC - EV)

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EAC = BAC / (CPI * SPI)

Question 3

A project manager is developing the project schedule and wants to determine the critical path. The activity network diagram shows multiple paths. Which technique should the project manager use?

Accepted Answer

Critical Path Method (CPM). The Critical Path Method (CPM) is the correct technique because it is specifically designed to identify the longest path through a project's activity network diagram, which determines the shortest possible project duration. By calculating early start, early finish, late start, and late finish dates for each activity, CPM reveals which activities have zero float and thus constitute the critical path. This directly answers the project manager's goal of determining the critical path from the network diagram.

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Resource leveling

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Gantt chart

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Program Evaluation and Review Technique (PERT)

Question 4

A project team is in the performing stage of development. The project manager is leaving for a two-week vacation. What is the best way to ensure the team remains productive?

Accepted Answer

Empower the team to make decisions within agreed boundaries and check in periodically.. Option D is correct because the team is in the performing stage, characterized by high autonomy, trust, and self-organization. Empowering the team to make decisions within agreed boundaries leverages their maturity and maintains productivity, while periodic check-ins provide necessary oversight without micromanagement. This approach aligns with the Tuckman model and servant leadership principles, ensuring the team remains effective in the project manager's absence.

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Appoint a temporary project manager to oversee the team.

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Ask the team to pause all non-urgent decisions until your return.

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Schedule daily status calls to monitor progress.

Question 5

A key vendor notifies you that they cannot deliver a critical component on time due to a supplier issue. The component is on the critical path. What should the project manager do first?

Accepted Answer

Review the risk register for the identified risk and implement the planned response. Option C is correct because the PM should first assess the impact on the project. Option A escalates without information, option B may be premature, option D ignores the risk.

Answer

Find an alternative vendor and place an order

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Ask the team to work overtime to make up for the delay

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Immediately inform the sponsor and steering committee

Question 6

You are managing a portfolio of projects. One project has a high probability of missing its deadline, which will impact the organization's strategic goals. What should you do first?

Accepted Answer

Analyze the impact on strategic goals and communicate with the sponsor and steering committee. The portfolio manager should analyze the situation and communicate the issue to stakeholders to align on corrective actions or reprioritization.

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Add more resources to the project to try to meet the deadline

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Ignore the issue because it is only one project in the portfolio

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Immediately cancel the project to reallocate resources

Question 7

A project manager is developing the business case for a new product. Which of the following is the primary purpose of the business case?

Accepted Answer

To provide justification for undertaking the project based on expected business value.. The business case is a foundational document created during the pre-project phase to justify the investment. Its primary purpose is to provide the economic and strategic justification for undertaking the project, based on the expected business value, such as ROI, payback period, or alignment with organizational goals. This aligns with the PMBOK Guide's definition of the business case as a tool to determine if the project is worth the required investment.

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To define how the project will be executed, monitored, and controlled.

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To outline how the project's benefits will be delivered and measured.

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To authorize the project manager to use organizational resources.

Question 8

During project execution, a key stakeholder requests a feature that is not in the scope. The project manager analyzes the request and determines it would add significant business value but also increase risk. What should the project manager do?

Accepted Answer

Initiate a change request and present the trade-offs to the change control board.. Option C is correct because the PMBOK Guide mandates that any out-of-scope feature must go through the formal change control process. By initiating a change request, the project manager documents the trade-offs (business value vs. increased risk) and lets the Change Control Board (CCB) make an informed decision, ensuring alignment with project governance and stakeholder expectations.

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Reject the request to avoid scope creep.

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Accept the request and manage the risk with a contingency plan.

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Ignore the request because it is out of scope.

Question 9

A project manager is leading a project that is aligned with the organization's strategic goal to increase market share. However, during execution, a competitor releases a similar product, reducing the expected benefits. What should the project manager do?

Accepted Answer

Update the business case and present the revised benefits to the steering committee for a go/no-go decision.. Option C is correct because the project manager must reassess the business case when external market changes (like a competitor's product launch) reduce expected benefits. Updating the business case with revised benefits and presenting it to the steering committee ensures an informed go/no-go decision based on current strategic alignment and value, as per PMBOK Guide's business case management and benefits realization processes.

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Immediately stop the project to avoid further losses.

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Continue the project as planned because the strategic goal has not changed.

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Add more features to differentiate the product from the competitor's.

Question 10

An organization is transitioning from a traditional waterfall approach to agile. The project manager is tasked with leading a pilot agile project. During sprint planning, the product owner prioritizes features based on stakeholder feedback. However, the team is concerned that the prioritized features do not align with the organization's strategic goals. What should the project manager do?

Accepted Answer

Facilitate a meeting with the product owner and key stakeholders to realign priorities. Option B is correct because the project manager's role in an agile transition includes ensuring alignment between the sprint backlog and the organization's strategic goals. By facilitating a meeting with the product owner and key stakeholders, the PM enables a collaborative re-prioritization that respects both stakeholder feedback and strategic objectives, which is a core agile principle of continuous stakeholder engagement.

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Request a change to the project charter

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Tell the team to trust the product owner's decisions

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Escalate the issue to the project sponsor