Scenario practice questions

During risk assessment, a project team identifies a risk that has a high probability of occurrence and high impact on project cost. Which risk response strategy is most appropriate?

Trap 1: Mitigate the risk by reducing probability or impact

Mitigation reduces risk but does not eliminate it; if feasible, avoidance is more effective for critical risks.

Trap 2: Accept the risk with a contingency reserve

Acceptance is typically for low-priority risks; for high probability/impact, avoidance or mitigation is preferred.

Trap 3: Transfer the risk to a third party

Transfer is suitable for financial risks but may not be possible for all high-probability risks.

A
Mitigate the risk by reducing probability or impact
Why wrong: Mitigation reduces risk but does not eliminate it; if feasible, avoidance is more effective for critical risks.
B
Accept the risk with a contingency reserve
Why wrong: Acceptance is typically for low-priority risks; for high probability/impact, avoidance or mitigation is preferred.
C
Avoid the risk by changing the project plan
Avoidance eliminates the threat entirely, which is ideal for high-probability, high-impact risks.
D
Transfer the risk to a third party
Why wrong: Transfer is suitable for financial risks but may not be possible for all high-probability risks.

Question 2hardmultiple choice

A project manager is evaluating whether to implement a PMO (Project Management Office) for the organization. Which scenario would best justify the creation of a PMO?

Trap 1: Projects are consistently completed under budget.

Success indicates effective processes, not a need for a PMO.

Trap 2: The project manager has extensive experience.

Experience is not a primary reason to create a PMO.

Trap 3: The organization has a single large project.

A single project typically does not require a PMO.

A
Projects are consistently completed under budget.
Why wrong: Success indicates effective processes, not a need for a PMO.
B
The organization has multiple projects with inconsistent processes and low success rates.
A PMO standardizes processes and improves success rates across multiple projects.
C
The project manager has extensive experience.
Why wrong: Experience is not a primary reason to create a PMO.
D
The organization has a single large project.
Why wrong: A single project typically does not require a PMO.

Question 3easymultiple choice

A project manager is assigned to a new project that involves developing a mobile application. The project sponsor is from the marketing department, and the key stakeholders include the IT director and the customer. Which organizational structure is most likely being used if the project manager has limited authority and must rely on the functional managers to provide resources?

Trap 1: Strong matrix

In a strong matrix, the PM has significant authority and dedicated resources.

Trap 2: Projectized

In a projectized organization, the PM has full authority and dedicated team.

Trap 3: Weak matrix

Weak matrix also has limited PM authority, but it is still matrix; the description fits functional more precisely.

A
Strong matrix
Why wrong: In a strong matrix, the PM has significant authority and dedicated resources.
B
Projectized
Why wrong: In a projectized organization, the PM has full authority and dedicated team.
C
Weak matrix
Why wrong: Weak matrix also has limited PM authority, but it is still matrix; the description fits functional more precisely.
D
Functional
Functional organization has limited PM authority; resources are controlled by functional managers.

Read the full NAT/PAT explanation →

Question 4mediummultiple choice

During project execution, a team member reports that a key deliverable will be delayed because a required component is out of stock. The project manager updates the issue log and meets with the team to evaluate alternatives. Which project management process is being performed?

Trap 1: Close Project or Phase

This process finalizes the project or phase.

Trap 2: Perform Integrated Change Control

This process reviews and approves changes.

Trap 3: Monitor and Control Project Work

This process focuses on tracking, reviewing, and reporting progress.

A
Close Project or Phase
Why wrong: This process finalizes the project or phase.
B
Direct and Manage Project Work
This process involves executing the work and managing issues as they arise.
C
Perform Integrated Change Control
Why wrong: This process reviews and approves changes.
D
Monitor and Control Project Work
Why wrong: This process focuses on tracking, reviewing, and reporting progress.

Question 5hardmulti select

Which TWO techniques are used in the Perform Quantitative Risk Analysis process? (Choose two.)

Trap 1: Risk auditing

Part of risk monitoring and control.

Trap 2: Probability and impact matrix

Used in qualitative risk analysis.

Trap 3: Risk categorization

Used in qualitative risk analysis.

A
Sensitivity analysis
Quantitative technique to determine which risks have the most impact.
B
Expected monetary value (EMV)
Quantitative technique to calculate average outcome.
C
Risk auditing
Why wrong: Part of risk monitoring and control.
D
Probability and impact matrix
Why wrong: Used in qualitative risk analysis.
E
Risk categorization
Why wrong: Used in qualitative risk analysis.

Question 6hardmultiple choice

Which statement is true?

Exhibit

Refer to the exhibit.
Earned Value Report as of Month 3:
PV=$150k, EV=$120k, AC=$130k.

Trap 1: CPI = 1.08, SPI = 0.8

CPI would be >1 if AC were less than EV, not the case.

Trap 2: CPI = 0.92, SPI = 1.2

SPI >1 would require EV>PV, which is not true.

Trap 3: CPI = 1.08, SPI = 1.2

Both indices are incorrectly high.

A
CPI = 1.08, SPI = 0.8
Why wrong: CPI would be >1 if AC were less than EV, not the case.
B
Cost Performance Index (CPI) = 0.92, Schedule Performance Index (SPI) = 0.80
Correct. CPI=120/130=0.92, SPI=120/150=0.80.
C
CPI = 0.92, SPI = 1.2
Why wrong: SPI >1 would require EV>PV, which is not true.
D
CPI = 1.08, SPI = 1.2
Why wrong: Both indices are incorrectly high.