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You are working for FALCON highway construction agency as a project cost estimator. The agency started a highway construction project which is in it's planning phase. The rough order of magnitude (ROM) cost estimate for the project is expected to be between 3 and 5 million dollars in the planning phase with a ROM of -25% to +25%. What will be the ROM estimate in the execution phase if it changes to -10% to +10%?
Option 1: Between 3.1 and 4.1 million dollars
Option 2: Between 3.6 and 4.4 million dollars
Option 3: Between 3.9 and 4.1 million dollars
Option 4: Between 3.4 and 4.4 million dollars
Option 5:
The Budget at Completion (BAC) for a project is $ 50,000. The Actual Costs (AC) to date are $ 10,000. The Earned Value (EV) is $ 7,000. At this stage, the project management team did a manual bottom-up summation of costs and forecast an Estimate to Complete (ETC) of $ 50,000. What is the Estimate at Completion (EAC) for the project?
Option 1: $ 57,000
Option 2: $ 40,000
Option 3: $ 60,000
Option 4: $ 53,000
Option 5:
You are the project manager of a business that sells software contracting services to Banks. Recently, Fourth National bank has requested you to submit a proposal for their mortgage project that has been published for the bid. They have also requested you to register the name of your business on the list of qualified sellers. Which of the following statement about qualified sellers list is true?
Option 1: Qualified sellers list is the list generated from procurement negotiations and represents an output of the conduct procurements process
Option 2: Qualified sellers list gives the listing of vendors who have been selected to perform the work with the organization and represents an input to the plan procurements process
Option 3: Qualified sellers list gives the listing of vendors who have been pre-selected for their past experience with the organization and represents an input to the conduct procurements process
Option 4: Qualified sellers list is the list generated out of bidder conferences and represents an output of the conduct procurements process
Option 5:
Cindy has been working in a manufacturing project as a project manager. This project is designed to produce high quality semiconductors to use in computers. Since semiconductors are produced from silicon wafers, she contracted a company to provide silicon wafers to the project on an ongoing basis. Due to unknown reasons from the contractor, low quality wafers have been transferred to the project compromising the electrical performance of semiconductors. Overwhelmed by the complaints from the computer division, Cindy is obligated to correct the manufacturing defects to avoid future liabilities. In this scenario, the costs incurred by Cindy is known as:
Option 1: External failure costs or Cost of nonconformance
Option 2: Appraisal costs or Cost of nonconformance
Option 3: Prevention costs or Cost of conformance
Option 4: Internal failure costs or Cost of conformance
Option 5:
All of the following are tools of the control schedule process EXCEPT:
Option 1: Parametric estimating
Option 2: What-if scenario analysis
Option 3: Schedule compression
Option 4: Variance analysis
Option 5:
A project manager is estimating the project duration and finds that the only information available to him is a previous project that was quite different from the current one. However, some portions of the previous project were similar to the current one. Which of the following tools is the project manager likely to use?
Option 1: Analogous estimating
Option 2: Program Evaluation and Review Technique (PERT)
Option 3: Three-point estimates
Option 4: Parametric estimating
Option 5:
Experienced project managers always tell that accuracy and precision are not the same. Precise measurements may not be accurate and accurate measurements may not be precise. Which of the following statements about the precision and accuracy are CORRECT?
Option 1: Accuracy means the degree to which a set of inherent characteristics fulfill requirements and Precision means a category assigned to products or services having the same functional use but different technical characteristics
Option 2: Accuracy means the values of repeated measurements are clustered and Precision means the measured value is close to the actual value
Option 3: Precision means the degree to which a set of inherent characteristics fulfill requirements and Accuracy means a category assigned to products or services having the same functional use but different technical characteristics
Option 4: Precision means the values of repeated measurements are clustered and Accuracy means the measured value is close to the actual value
Option 5:
Decision tree analysis is used to calculate the average outcome when the future includes scenarios that may or may not happen. What is the input and output in a decision node?
Option 1: Input: Cost of each decision Output: Probability of occurrence
Option 2: Input: Cost of each decision Output: Decision made
Option 3: Input: Scenario probability Output: Expected Monetary Value (EMV)
Option 4: Input: Cost of each decision Output: Payoff
Option 5:
Sensitivity analysis helps to determine which risks have the most potential impact on the project. A project manager prepared a display chart of sensitivity analysis for his project. The diagram contained a series of bars with the length of the bars corresponding to the risk impact on the project. The longer the bars, the greater was the risk presented. Such a diagram is likely to be:
Option 1: An assessment diagram
Option 2: A triangular distribution
Option 3: A tornado diagram
Option 4: A funnel distribution
Option 5:
The Actual Cost (AC) is the total cost actually incurred and recorded in accomplishing work performed for an activity or work breakdown structure component. What is the upper limit for the AC?
Option 1: 50% over and above the Planned Value (PV)
Option 2: The Actual Cost (AC) is limited to the Planned Value (PV).
Option 3: 100% over and above the Planned Value (PV)
Option 4: There is no upper limit for the Actual Cost (AC).
Option 5:
The formula for Cost Variance is:
Option 1: CV=EV-AC
Option 2: CV=AC-EV
Option 3: CV=BAC-(AC-EV)
Option 4: CV=SV-BC
Option 5:
When the budget is determined for a project, costs are estimated for all activities in the project and aggregated to establish a cost baseline. Which of the following statements about the cost baseline is NOT true?
Option 1: The project cost performance is measured against the cost baseline
Option 2: The cost baseline is an output of the determine budget process
Option 3: The cost baseline includes all authorized budgets including management reserves
Option 4: The cost baseline is in the form of an 'S' curve
Option 5:
Your project team has recently identified a risk in the software development project and decided not to change the project management plan to deal with the risk. The risk response strategy your team used in this scenario is an example of:
Option 1: Mitigate
Option 2: Transfer
Option 3: Avoid
Option 4: Acceptance
Option 5:
Variance thresholds for monitoring cost performance are typically expressed as _______________ from the baseline plan.
Option 1: Positive deviation
Option 2: Percentage deviation
Option 3: Average deviation
Option 4: Negative deviation
Option 5:
Predicting future performance based on historical events is called ___________.
Option 1: Historical analysis
Option 2: Trend analysis
Option 3: Parametric analysis
Option 4: Pareto analysis
Option 5:
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