PMP Questions 81 - 100

81. Using the formula: Present value = S/(1+i)n where i is the interest rate in percentage, n isthe number of periods, and S is the starting amount, the following table is produced:
Periods       10%       12%       14%
1                0.909      0.893      0.877
2                0.826      0.797      0.769
3                0.751      0.712      0.675
4                0.683      0.636      0.592
5                0.621      0.597      0.519

Based on the table, what is the value of an annual income flow of \$1,300 each year overthe next three years at 12%?
a. \$3122.60
b. \$3900.00
c. \$3497.00
d. 36%

82. Lifecycle costing:
a. Is a method of including all of the cost associated with the project over its entire life
b. Is a federal government accounting method
c. Is a method of predicting the life of a project
d. Is a method of evaluating projects when they are complete

The following table and description refer to questions 83 through 89.
A project manager is using the earned value reporting method to manage his project. Thefollowing table shows the data collected to date. The plan is for the project to be complete aftereight weeks. The earned value report shows data collected for the first four weeks of the project.
The figure shown in the table are cumulative.

Week       PV      AC      EV
1             1,000 1,000 1,000
2             3,000 2,000 2,500
3             5,000 5,000 6,000
4             7,000 9,000 7,000
5            13,000
6            17,000
7            19,000
8            20,000

83. What is the cost performance index for week 4?
a. 1.000
b. 0.777
c. 1.286
d. 1.250

84. What is the schedule performance index for week 3?
a. 1.200
b. 0.833
c. 1.000
d. 1.500

85. What is the BAC for the project during week 4?
a. 7,000
b. 9,000
c. 5,000
d. 20,000

86. During week 5 it is found that some of the work that was reported complete in week 2was considered unacceptable. It will require \$500 to fix the problem and make this workacceptable. The work is scheduled to be done in week 6. No other work is reported to becomplete during week 5. What is the EV for week 5?
a. 7,000
b. 6,500
c. 9,000
d. 5,000

87. What is the cost variance for week 4?
a. 0
b. -2,000
c. 2,000
d. 7,000

88. What is the schedule variance in week 2?
a. 500
b. 1,000
c. -500
d. -1,000

89. What is the EAC at week 4?
a. 20,000
b. 15,555
c. 25,740
d. 17,717

90. The calculation of the EAC assumes that:
a. The schedule performance index will remain the same for the remaining part of theproject
b. The cost performance index will remain the same for the remaining part of the project
c. The BAC will be different by the end of the project
d. The EAC will continuously increase for the remaining portion of the project

91. What factors need to be known in order to be able to calculate the ETC?
a. Budget at completion, actual cost, and planned value
b. Budget at completion, earned value, and actual cost
c. Estimate at completion and planned value
d. Estimate at completion and actual cost

92. A construction company is being measured by the earned value reporting method.During the project one of the tasks, installing ten elm trees, was completed. The plannedvalue for this task was \$4,000, and it was completed two weeks ago. Unfortunately forthe contractor, maple trees should have been planted. The customer insists that maple
trees be planted and that the elm trees be removed. As of this time the elm trees are stillin the ground, but the contractor has agreed to do the work of replacing them. Whataction should be taken on the earned value report?

a. Reduce PV by \$4,000
b. Reduce AV by \$4,000
c. Reduce EV by \$4,000
d. Make no changes since the vendor has agreed to fix the problem

93. Learning curve theory emphasize that in producing many goods:
a. Cost decreases as production rates increase
b. Average unit cost decreases as more units are produces
c. Materials become cheaper when they are purchased in bulk
d. Laborers become more productive because of technological advances

94. A project manager is considering applying learning curve theory to his project. Theproject involves designing a number of software modules that are very similar. Accordingto the cost figures that have been collected the first unit required 100 person-hours todesign and test. The second unit required 90 person-hours to design and test. Howmany person-hours will the eighth module take to design and test?
a. 90
b. 100
c. 73
d. 172

95. The process required to ensure that the project will satisfy the needs for which it wasundertaken include all activities of the overall management function that determines thequality policy, objectives, and responsibilities and implements them by means such asquality planning, quality control, quality assurance, and quality improvement, within thequality system. This is called:
a. Quality assurance
b. Quality control
c. Quality planning
d. Quality management

96. Decisions as to the types of projects that should be accomplished and strategic plans asto the quality of the projects that are required should be the decision of which of thefollowing?
a. Project manager
b. Procurement manager
c. Upper management
d. Stakeholders

97. According to Deming and Juran most of the quality problems that exist are due to adefect or failure in processes that are controlled by:
a. The project manager
b. The procurement manager
c. Upper management
d. Stakeholders

98. A project manager is managing a large project and must consider the application of aquality management plan. One of the critical factors in such a plan is the cost ofimplementing the plan. The project manager should:
a. Invoice the client for all quality improvements
b. Implement the highest quality possible regardless of cost
c. Implement quality improvements as long as the benefits outweigh the costs
d. Rely on upper management to determine the quality budget

99. A project manager has discovered a problem and is trying to determine the cause. Theprocess whereby he identifies the variables that have the most influence on the projectby holding all the variables constant and changing one at a time is called:
a. Product correlation
b. Design of an experiment
c. System integration
d. Output processing

100. A control chart is being used to control a manufacturing process. As part of the control asample of five parts is taken from the manufacturing process each hour of operation.Each of the five parts is measured and the dimension is recorded on the work sheet. Thedifference between the highest and lowest measured dimension of the five parts isplotted on the control chart. This is called which of the following values?
a. R
b. R bar
c. X
d. X bar

81. A
\$3122.60

82. A
Is a method of including all of the cost associated with the project over its entire life

83.B
0.777

84. A
1.200

85.D
20,000

86. B
6,500

87. B
-2,000

88. C
-500

89. C
25,740

90. B
The cost performance index will remain the same for the remaining part of the project

91. B
Budget at completion, earned value, and actual cost

92. C
Reduce EV by \$4,000

93. B
Average unit cost decreases as more units are produces

94. C
73

95. D
Quality management

96. C
Upper management

97. C
Upper management

98. C
Implement quality improvements as long as the benefits outweigh the costs

99. B
Design of an experiment

100. A