PK0-005 Project Life Cycle Practice Test 7 — 15 Questions

Question 1

A project manager needs to communicate project progress to stakeholders who have low power and high interest. Which of the following is the most appropriate communication method?

Accepted Answer

Regular email updates. Stakeholders with low power and high interest are kept informed because they care deeply but cannot influence project decisions. Regular email updates are an efficient, low-cost way to provide them with consistent information without over-engaging them. This matches the 'keep informed' strategy in the power/interest grid.

Answer

Ad-hoc phone calls

Answer

Project dashboard posted on the wall

Answer

Formal presentation to executives

Question 2

A project manager is reviewing the procurement process. Which document is used to invite vendors to submit a proposal for a project?

Accepted Answer

Request for Proposal (RFP). A Request for Proposal (RFP) is used to solicit proposals from vendors.

Answer

Request for Information (RFI)

Answer

Statement of Work (SOW)

Answer

Request for Quotation (RFQ)

Question 3

In a fixed-price contract, which party bears the risk of cost overruns?

Accepted Answer

Seller. In a fixed-price contract, the seller bears the risk of cost overruns because the price is fixed.

Answer

Both equally

Answer

Buyer

Answer

Neither

Question 4

A project has earned value (EV) of $120,000, planned value (PV) of $100,000, and actual cost (AC) of $110,000. What is the cost performance index (CPI)?

Accepted Answer

1.09. Cost Performance Index (CPI) is calculated as EV / AC. With EV = $120,000 and AC = $110,000, CPI = 120,000 / 110,000 ≈ 1.09. A CPI greater than 1.0 indicates the project is under budget — it is getting more value per dollar spent than planned.

Answer

0.91

Answer

1.10

Answer

1.20

Question 5

A project manager is closing a project. Which TWO activities should be performed during project closure? (Select two.)

Accepted Answer

Obtain formal acceptance from the sponsor. Option B is correct because obtaining formal acceptance from the sponsor is a key project closure activity; the sponsor (or customer) must formally sign off that deliverables meet requirements, which is required before the project can be officially closed. Option E is correct because archiving project documents is part of closing the project; lessons learned, final reports, and project records are collected, indexed, and stored for future reference and organizational process assets. Option A is incorrect because the risk register is developed during project planning and updated throughout execution, not created at closure. Option C is incorrect because a feasibility study is performed during the pre-project or initiation phase to determine whether the project is viable. Option D is incorrect because the project charter is created during initiation to formally authorize the project, not during closure.

Answer

Develop the risk register

Answer

Conduct feasibility study

Answer

Create the project charter

Question 6

A project manager is performing quantitative risk analysis. Which THREE of the following techniques are commonly used? (Select three.)

Accepted Answer

Monte Carlo simulation. Monte Carlo simulation (B) is a core quantitative risk analysis technique that runs thousands of iterations of a model using probability distributions for cost or schedule variables to produce a probabilistic range of outcomes. Sensitivity analysis (C) is also quantitative: it examines how variation in individual risk variables (e.g., via a tornado diagram) affects the overall project objective, isolating the most influential risks. Expected monetary value (D) is quantitative because it multiplies each risk's probability by its monetary impact and sums the results to derive a contingency reserve figure. By contrast, SWOT analysis (A) is a qualitative strategic/risk identification tool, and the probability and impact matrix (E) is a qualitative technique for prioritizing risks by rating likelihood and impact rather than computing numeric values.

Answer

SWOT analysis

Answer

Probability and impact matrix

Question 7

During the initiating phase of a project, a project charter is created. Which of the following is typically included in a project charter?

Accepted Answer

Project purpose and high-level scope. The project charter is a high-level document that formally authorizes the project and gives the project manager authority to proceed. It typically includes the project purpose, measurable objectives, high-level scope, key stakeholders, and success criteria. It is created during the initiating phase before detailed planning occurs.

Answer

Detailed work breakdown structure

Answer

Risk register with identified risks

Answer

Earned value metrics

Question 8

A project manager is identifying stakeholders and analyzing their influence on the project. Using a power/interest grid, which group should the project manager 'manage closely'?

Accepted Answer

High power, high interest. On the power/interest grid, stakeholders with high power and high interest are the key players who must be managed closely, because they can significantly influence the project and care deeply about its outcome. This quadrant requires the most engagement, frequent communication, and proactive management.

Answer

Low power, low interest

Answer

Low power, high interest

Answer

High power, low interest

Question 9

A project team is decomposing the project scope into work packages. Which of the following best describes the purpose of a Work Breakdown Structure (WBS)?

Accepted Answer

To provide a hierarchical representation of all work required to complete the project deliverables. A Work Breakdown Structure (WBS) is a deliverable-oriented hierarchical decomposition of the total scope of work required to complete the project. It breaks the project down from the final deliverable into progressively smaller, more manageable components called work packages. This provides the foundation for estimating, scheduling, and assigning responsibility.

Answer

To list all project risks and their responses

Answer

To identify the critical path of the project schedule

Answer

To define the communication channels among stakeholders

Question 10

In a network diagram using PDM, activity B can start only after activity A has finished. Which dependency type does this represent?

Accepted Answer

Finish-to-Start (FS). Finish-to-Start (FS) is the most common dependency, where the successor activity cannot start until the predecessor activity has finished.

Answer

Finish-to-Finish (FF)

Answer

Start-to-Finish (SF)

Answer

Start-to-Start (SS)

Question 11

A project manager is estimating the cost of a new software development project. Since the project is similar to a previous one, the manager uses the cost of the previous project as a basis, adjusting for known differences. Which cost estimation technique is being used?

Accepted Answer

Analogous estimation. Analogous estimation uses historical data from a similar past project as the basis for estimating the current project, adjusting for known differences. The scenario explicitly describes using a previous project's cost as a reference point, which is the textbook definition of analogous (top-down) estimating.

Answer

Parametric estimation

Answer

Bottom-up estimation

Answer

Three-point estimation

Question 12

During risk management, a team identifies a risk with a 20% probability of occurrence and a potential cost impact of $50,000. What is the Expected Monetary Value (EMV) of this risk?

Accepted Answer

$10,000. The Expected Monetary Value (EMV) is calculated by multiplying the probability of the risk by its potential financial impact. Here, the probability is 20% (0.20) and the impact is $50,000. Therefore, EMV = 0.20 × $50,000 = $10,000. This quantifies the risk in monetary terms for comparison and prioritization.

Answer

$50,000

Answer

$40,000

Answer

$20,000

Question 13

A project team is in the storming stage of Tuckman's model. Which of the following behaviors is most likely to be observed?

Accepted Answer

Team members challenge each other's ideas. In the storming stage, team members may have conflicts and disagreements as they assert their opinions and struggle for positions. This is a natural part of team development.

Answer

Team members are polite and avoid conflict

Answer

Team members work together efficiently

Answer

Team members focus on completing tasks

Question 14

A project manager is developing a communication plan. Which of the following should be determined first?

Accepted Answer

The stakeholder communication needs. The communication plan must be based on the information needs of the stakeholders. According to PMBOK, the first step in planning communications is to identify stakeholders and determine their information needs, preferences, and expectations. Only after understanding these needs can the project manager select appropriate methods, frequency, and budget. Therefore, determining stakeholder communication needs is the foundational step.

Answer

The communication methods to be used

Answer

The project's communication budget

Answer

The frequency of status reports

Question 15

During project execution, a vendor is hired to provide specialized services. The contract is structured so that the vendor is paid for all allowable costs plus a fixed fee. Which type of contract is this?

Accepted Answer

Cost-reimbursable contract. A cost-reimbursable contract reimburses the vendor for all allowable incurred costs plus a fee representing vendor profit, which matches the scenario's description of payment for all allowable costs plus a fixed fee. This contract type is used when the scope is uncertain and the buyer bears more cost risk.

Answer

Time and Materials (T&M) contract

Answer

Lump-sum contract

Answer

Fixed-price contract