PK0-005 Project Life Cycle — Timed 50 Questions

Question 1

A project manager is calculating the Expected Monetary Value (EMV) for a risk event. The probability of the risk occurring is 20%, and the impact if it occurs is $50,000. What is the EMV?

Accepted Answer

$10,000. EMV = Probability × Impact = 0.20 × $50,000 = $10,000. This represents the expected cost of the risk event. The EMV is positive when considering the magnitude of potential loss, though in risk management it may be expressed as a negative value for threats. The calculation yields $10,000.

Answer

$40,000

Answer

$250,000

Answer

$100,000

Question 2

A project manager is identifying response strategies for a risk that could impact the project schedule. Which TWO options are risk response strategies? (Select TWO.)

Accepted Answer

Transfer. The standard risk response strategies for threats include avoid, transfer, mitigate, accept, and escalate. For opportunities, the strategies include exploit, enhance, share, accept, and escalate. In this case, 'Transfer' and 'Avoid' are both valid threat response strategies. 'Enhance' is for opportunities only, 'Ignore' is not a recognized strategy, and 'Escalate' is a standard strategy, but the question requires selecting exactly two, and Transfer and Avoid are correct.

Answer

Ignore

Answer

Enhance

Answer

Escalate

Question 3

A project manager is reviewing the risk register and notices a risk with a high probability (0.7) and high impact ($50,000). The team decides to purchase insurance to cover the potential loss. Which TWO risk response strategies are being applied?

Accepted Answer

Transfer. Purchasing insurance transfers the financial risk to the insurance company, which is a classic example of risk transfer (Transfer strategy). Mitigation involves actions to reduce the probability or impact of a risk, but insurance does not reduce probability or impact; it only shifts the financial burden. Therefore, only Transfer is correctly applied in this scenario. The question asks for two strategies, but only one strategy is demonstrated; the other strategy is not represented among the options.

Answer

Avoid

Answer

Accept

Answer

Mitigate

Answer

Exploit

Question 4

A project manager is analyzing the network diagram for a project. The critical path is A-B-C, with durations 3, 4, 2 days respectively. Activity D (2 days) has a finish-to-start relationship with A and a start-to-start relationship with B. Which TWO statements are correct about the schedule?

Accepted Answer

The critical path duration is 9 days.. The critical path A-B-C has duration 3+4+2=9 days, so statement B is correct. Activity D has total float of 4 days (LS-ES = 7-3=4), so statement D is correct. Statement A is essentially a restatement of option D and thus not considered a separate correct statement for this two-statement question.

Answer

Activity D can be delayed up to 4 days without affecting the project end date.

Answer

Activity D has a total float of 0 days.

Answer

The project has two critical paths.

Question 5

During which project phase is the project charter typically created and approved?

Accepted Answer

Initiating. The project charter is created during the Initiating phase to formally authorize the project.

Answer

Closing

Answer

Executing

Answer

Planning

Question 6

A project manager is developing a network diagram and needs to represent an activity that can start only after its predecessor has finished. Which dependency type does this describe?

Accepted Answer

Finish-to-Start (FS). Finish-to-Start (FS) is the most common dependency where the successor cannot start until the predecessor finishes.

Answer

Start-to-Start (SS)

Answer

Finish-to-Finish (FF)

Answer

Start-to-Finish (SF)

Question 7

A project manager is using the power/interest grid to classify stakeholders. Which group should be managed most closely because they have high power and high interest?

Accepted Answer

Manage closely. Stakeholders with high power and high interest are key players who require close management to keep them engaged and satisfied.

Answer

Keep satisfied

Answer

Monitor

Answer

Keep informed

Question 8

A project has an Earned Value (EV) of $50,000, Actual Cost (AC) of $60,000, and Planned Value (PV) of $55,000. What is the Cost Performance Index (CPI), and what does it indicate?

Accepted Answer

0.83; over budget. CPI = EV/AC = 50,000/60,000 = 0.83. A CPI less than 1 indicates the project is over budget.

Answer

1.20; under budget

Answer

0.83; on budget

Answer

0.91; under budget

Question 9

Which risk response strategy involves taking action to reduce the probability or impact of a risk?

Accepted Answer

Mitigate. Mitigation involves reducing the probability or impact of a risk to an acceptable level.

Answer

Accept

Answer

Avoid

Answer

Transfer

Question 10

A project manager is estimating the cost of a new software development project. She uses the actual cost of a similar past project and adjusts for differences in size and complexity. Which estimation technique is she using?

Accepted Answer

Analogous estimation. Analogous estimation uses historical data from similar projects to estimate costs or durations.

Answer

Three-point estimation

Answer

Parametric estimation

Answer

Bottom-up estimation

Question 11

During which stage of Tuckman's team development model do team members begin to resolve conflicts and establish norms?

Accepted Answer

Norming. In the Norming stage, team members start to resolve differences, develop consensus, and establish norms and roles.

Answer

Forming

Answer

Performing

Answer

Storming

Question 12

Which document formally authorizes the project and assigns the project manager?

Accepted Answer

Project charter. The project charter is the document that formally authorizes the project, assigns the project manager, and provides high-level requirements.

Answer

Business case

Answer

Project scope statement

Answer

Project plan

Question 13

A project manager is creating a Work Breakdown Structure (WBS). Which technique is used to break down deliverables into smaller, manageable components?

Accepted Answer

Decomposition. Decomposition is the process of subdividing project deliverables into smaller work packages.

Answer

Bottom-up estimating

Answer

Precedence diagramming

Answer

Rolling wave planning

Question 14

In a project, the critical path has a duration of 100 days. Activity X on the critical path has a duration of 10 days and can be crashed to 7 days at an additional cost of $3,000. What is the crash cost per day for Activity X?

Accepted Answer

$1,000 per day. Crash cost per day = (crash cost - normal cost) / (normal duration - crash duration). Assuming normal cost is zero incremental, crash cost per day = $3,000 / (10-7) = $1,000 per day.

Answer

$500 per day

Answer

$3,000 per day

Answer

$300 per day

Question 15

A vendor is hired to provide a service with a fixed price of $100,000, regardless of actual costs incurred. Which contract type is this?

Accepted Answer

Fixed-price. A fixed-price contract has a predetermined price that does not change based on the seller's cost performance.

Answer

Time and Materials (T&M)

Answer

Cost-reimbursable

Answer

Cost-plus

Question 16

A project team is entering the Storming stage of Tuckman's model. Which TWO characteristics are typical of this stage?

Accepted Answer

Disagreements and competition among team members arise.. Storming is characterized by conflict, competition, and challenges to authority as team members express differing opinions.

Answer

Team members are polite and avoid conflict.

Answer

Team members work together efficiently and effectively.

Answer

Team members establish norms and ground rules.

Question 17

A project manager is planning risk responses for identified risks. Which THREE are valid risk response strategies?

Accepted Answer

Avoid. The main risk response strategies are Avoid, Transfer, Mitigate, and Accept. Enhance is for opportunities, not threats.

Answer

Ignore

Answer

Enhance

Question 18

During project closing, which TWO activities are typically performed?

Accepted Answer

Archive project documents. Project closing includes formal acceptance from the sponsor and archiving project documents. Releasing resources is also part of closing, but it's one of the two correct answers here.

Answer

Update the risk register

Answer

Create the project charter

Answer

Develop the WBS

Question 19

A project manager is developing the project charter. Which of the following should be included as a key element of the project charter?

Accepted Answer

High-level budget and schedule. The project charter formally authorizes the project and includes the project purpose, objectives, high-level scope, budget, schedule, assumptions, constraints, and the authority of the project manager. The other options are developed later in the planning or executing phases.

Answer

Detailed risk response plan

Answer

Work Breakdown Structure

Answer

Communication management plan

Question 20

During project planning, the project manager creates a network diagram. Activity A has a duration of 5 days, Activity B has a duration of 3 days, and Activity C has a duration of 4 days. Activities A and B can start immediately. Activity C can start only after Activity A is complete. Activity B has no dependency on others. What is the duration of the critical path?

Accepted Answer

9 days. The critical path is the longest path through the network. Path A-C: 5+4=9 days. Path B: 3 days. The critical path is A-C with 9 days.

Answer

7 days

Answer

8 days

Answer

12 days