PMP Prep 2021
Characteristics of a Project Correct Answer: Unique, gives an output, non-repetitive
Rolling Wave Planning Correct Answer: ear term work is planned in more detail, while the distant work
is planned broadly.
RACI Chart Correct Answer: Responsible, Accountable, Consult, Inform; Responsibility assignment
matrix; shows who should be informed regarding a certain activity
What types of risks are kept on the Watch LIst Correct Answer: Low-priority risks are kept in the Watch
List. These risks have low probability and low impact. These risks are kept in the Watch List for future
monitoring to determine if they may become a high probability or a large impact risk.
Maslow theory Correct Answer: hierarchy of needs; it states that when our lower order needs are met
and satisfied, we tend to be concerned with the higher order of needs.
Who controls the budget in a weak matrix? Correct Answer: Functional Manager
Who controls the budget in a projectized organization and strong matrix? Correct Answer: Project
Manager
Who controls the budget in a balanced matrix? Correct Answer: Project Manager and the Function
Manager
Point of Total Assumption (PTA) Correct Answer: PTA is a point above which total cost overrun is borne
by the seller.
Budget at Completion (BAC) Correct Answer: The original total budget for a project; does not include
management reserve
Secondary Risk Correct Answer: A secondary risk is caused by applying the strategy to minimize the
effect of the primary risk.
high power and low-interest category stakeholders Correct Answer: keep satisfied
high power and high-interest category stakeholders Correct Answer: manage closely
low power and low-interest category stakeholders Correct Answer: monitor
high interest and low power Correct Answer: keep informed
Enterprise Environmental Factors Correct Answer: Conditions, not under the immediate control of the
team, that influence, constrain, or direct the project, program, or portfolio. Rules & Regulations,
Organization Culture, and Market Conditions are examples of Enterprise Environmental Factors.
,Contingency reserve Correct Answer: A time or dollar amount allotted as a response to KNOWN risk
events that may occur within a project.
Organizational Process Assets Correct Answer: assets possessed by an organization to help you to run
the project efficiently and smoothly; e.g. policies, procedures, lessons learned, etc.
Planned Value Correct Answer: Planned Value (PV) is the authorized budget assigned to work to be
accomplished for an activity or WBS component.
(Planned % Complete) X (BAC)
Standard deviation equation Correct Answer: Standard Deviation = (Pessimistic Estimate - Optimistic
Estimate)/6
Management Reserve Correct Answer: discretionary reserve set aside by upper management to be used
to cover future situations that can't be predicted. unidentified risk.
Gold plating Correct Answer: Gold Plating is a phenomenon where you add some extra features to the
product in order to make the client happy. Gold Plating may increase cost and risks.
TCPI Correct Answer: To Complete Performance Index. The efficiency needed to complete project. If
greater than 1, you need to work with better cost performance.
TCPI = (BAC - EV) / (BAC - AC)
Scope Creep Correct Answer: The uncontrolled expansion to product or project scope without
adjustments to time, cost, and resources.
Resource leveling Correct Answer: you arrange resources to maximize their utility.
Pareto Chart Correct Answer: Vertical bar graph on which bar height reflects frequency or impact of
causes; helps you identify the minor number of sources causing most of the troubles.
workaround Correct Answer: A response to an unplanned risk event
defect repair Correct Answer: Defect Repair is a process where you correct a defective component.
preventative action Correct Answer: Preventive actions are taken when the project is trending away
from the planned scope, schedule, cost, or quality requirements. Preventive actions are proactive in
nature, based on a variance and trend analysis.
Preventive actions are intended to ensure the project is delivered in alignment with the agreed-upon
project baselines.
corrective action Correct Answer: Corrective actions are taken when the project has deviated from the
planned scope, schedule, cost, or quality requirements. Corrective actions are reactive in nature and are
intended to bring the project's performance back into alignment with the agreed-upon project
baselines.
, Triple Constraint Correct Answer: time, cost, scope
Fishbone diagram is also known as Correct Answer: cause-and-effect and Ishikawa diagram.
Which estimate is given more weight in the PERT estimate formula? Correct Answer: Most Likely
estimate; (Optimistic + 4*Most-Likely + Pessimistic)/6
In which project phases do you identify the project stakeholders? Correct Answer: all phases
EMV = Correct Answer: Expected Monetary Value = Impact * Probability
Which relationship model is most commonly used in the Precedence diagrams Correct Answer: start to
finish
Delphi Technique Correct Answer: A decision-making technique in which group members (experts) do
not meet face-to-face but respond in writing to questions posed by the group leader.
What theory was suggested by Demming? Correct Answer: The Plan-do-Check-Act doctrine - used in
scrum, iterative and agile practice
CPI = Correct Answer: EV/AC (earned value/actual cost)
SV (schedule variance) Correct Answer: EV-PV
Screening system Correct Answer: predefined criteria that are used to short-list vendors for source
selection
Predictive Life Cycle Correct Answer: More traditional approach; bulk of planning up front; execute in a
single pass; sequential
Iterative Life Cycle Correct Answer: Allows feedback for unfinished work to improve and modify that
work
Incremental Life Cycle Correct Answer: Provides finished deliverables that the customer may be able to
use immediately
Agile Life Cycle Correct Answer: Iterative and Incremental to refine work items and deliver frequently
Agile Team Members Correct Answer: Cross functional team member, team facilitator, product owner
In an agile team, what is the product owners role? Correct Answer: guide direction of work; rank work
based on business value; provide fedback; work with stakeholders, cutomers and teams to define
product direction; create the backlog for and with the team
Team Facilitator role Correct Answer: servant leader; scrum master; coach
T shaped people Correct Answer: have a speciality but also breadth of experience across multiple skills
Characteristics of a Project Correct Answer: Unique, gives an output, non-repetitive
Rolling Wave Planning Correct Answer: ear term work is planned in more detail, while the distant work
is planned broadly.
RACI Chart Correct Answer: Responsible, Accountable, Consult, Inform; Responsibility assignment
matrix; shows who should be informed regarding a certain activity
What types of risks are kept on the Watch LIst Correct Answer: Low-priority risks are kept in the Watch
List. These risks have low probability and low impact. These risks are kept in the Watch List for future
monitoring to determine if they may become a high probability or a large impact risk.
Maslow theory Correct Answer: hierarchy of needs; it states that when our lower order needs are met
and satisfied, we tend to be concerned with the higher order of needs.
Who controls the budget in a weak matrix? Correct Answer: Functional Manager
Who controls the budget in a projectized organization and strong matrix? Correct Answer: Project
Manager
Who controls the budget in a balanced matrix? Correct Answer: Project Manager and the Function
Manager
Point of Total Assumption (PTA) Correct Answer: PTA is a point above which total cost overrun is borne
by the seller.
Budget at Completion (BAC) Correct Answer: The original total budget for a project; does not include
management reserve
Secondary Risk Correct Answer: A secondary risk is caused by applying the strategy to minimize the
effect of the primary risk.
high power and low-interest category stakeholders Correct Answer: keep satisfied
high power and high-interest category stakeholders Correct Answer: manage closely
low power and low-interest category stakeholders Correct Answer: monitor
high interest and low power Correct Answer: keep informed
Enterprise Environmental Factors Correct Answer: Conditions, not under the immediate control of the
team, that influence, constrain, or direct the project, program, or portfolio. Rules & Regulations,
Organization Culture, and Market Conditions are examples of Enterprise Environmental Factors.
,Contingency reserve Correct Answer: A time or dollar amount allotted as a response to KNOWN risk
events that may occur within a project.
Organizational Process Assets Correct Answer: assets possessed by an organization to help you to run
the project efficiently and smoothly; e.g. policies, procedures, lessons learned, etc.
Planned Value Correct Answer: Planned Value (PV) is the authorized budget assigned to work to be
accomplished for an activity or WBS component.
(Planned % Complete) X (BAC)
Standard deviation equation Correct Answer: Standard Deviation = (Pessimistic Estimate - Optimistic
Estimate)/6
Management Reserve Correct Answer: discretionary reserve set aside by upper management to be used
to cover future situations that can't be predicted. unidentified risk.
Gold plating Correct Answer: Gold Plating is a phenomenon where you add some extra features to the
product in order to make the client happy. Gold Plating may increase cost and risks.
TCPI Correct Answer: To Complete Performance Index. The efficiency needed to complete project. If
greater than 1, you need to work with better cost performance.
TCPI = (BAC - EV) / (BAC - AC)
Scope Creep Correct Answer: The uncontrolled expansion to product or project scope without
adjustments to time, cost, and resources.
Resource leveling Correct Answer: you arrange resources to maximize their utility.
Pareto Chart Correct Answer: Vertical bar graph on which bar height reflects frequency or impact of
causes; helps you identify the minor number of sources causing most of the troubles.
workaround Correct Answer: A response to an unplanned risk event
defect repair Correct Answer: Defect Repair is a process where you correct a defective component.
preventative action Correct Answer: Preventive actions are taken when the project is trending away
from the planned scope, schedule, cost, or quality requirements. Preventive actions are proactive in
nature, based on a variance and trend analysis.
Preventive actions are intended to ensure the project is delivered in alignment with the agreed-upon
project baselines.
corrective action Correct Answer: Corrective actions are taken when the project has deviated from the
planned scope, schedule, cost, or quality requirements. Corrective actions are reactive in nature and are
intended to bring the project's performance back into alignment with the agreed-upon project
baselines.
, Triple Constraint Correct Answer: time, cost, scope
Fishbone diagram is also known as Correct Answer: cause-and-effect and Ishikawa diagram.
Which estimate is given more weight in the PERT estimate formula? Correct Answer: Most Likely
estimate; (Optimistic + 4*Most-Likely + Pessimistic)/6
In which project phases do you identify the project stakeholders? Correct Answer: all phases
EMV = Correct Answer: Expected Monetary Value = Impact * Probability
Which relationship model is most commonly used in the Precedence diagrams Correct Answer: start to
finish
Delphi Technique Correct Answer: A decision-making technique in which group members (experts) do
not meet face-to-face but respond in writing to questions posed by the group leader.
What theory was suggested by Demming? Correct Answer: The Plan-do-Check-Act doctrine - used in
scrum, iterative and agile practice
CPI = Correct Answer: EV/AC (earned value/actual cost)
SV (schedule variance) Correct Answer: EV-PV
Screening system Correct Answer: predefined criteria that are used to short-list vendors for source
selection
Predictive Life Cycle Correct Answer: More traditional approach; bulk of planning up front; execute in a
single pass; sequential
Iterative Life Cycle Correct Answer: Allows feedback for unfinished work to improve and modify that
work
Incremental Life Cycle Correct Answer: Provides finished deliverables that the customer may be able to
use immediately
Agile Life Cycle Correct Answer: Iterative and Incremental to refine work items and deliver frequently
Agile Team Members Correct Answer: Cross functional team member, team facilitator, product owner
In an agile team, what is the product owners role? Correct Answer: guide direction of work; rank work
based on business value; provide fedback; work with stakeholders, cutomers and teams to define
product direction; create the backlog for and with the team
Team Facilitator role Correct Answer: servant leader; scrum master; coach
T shaped people Correct Answer: have a speciality but also breadth of experience across multiple skills
