CAPM Sample Exam

For a decision tree analysis, the cost of executing a decision is $50,000. For the benefit part, there is 40% chance that the decision provides a return of $90,000 and 60% chance that the decision provides a return of $30,000. What is the expected monetary value for this decision?

• 4,000$

• 28,000$

• 22,000$

• 12,000$

Answer explanation

EMV=[0.4x(90000-50000)]+[0.6x(30000-50000)]=4000 Since the EMV is positive, the decision can be taken

Your current project phase has 8 activities, A to H. A and E can start at the same time. A must finish before B starts. B must finish before C and F start. C must finish before D starts. E must finish before F and G start. F and G must finish before H starts. C and H must finish before D starts. Duration of: A = 5, B = 8, C = 15, D = 10, E = 6, F = 9, G = 19, H = 5. What is the critical path?

• ABCD

• ABFHD

• EGHD

• EFHD

Answer explanation

After drawing the network diagram EGHD is the longest path with 40 days

The Customer requests the project manager to share the latest work performance report in WhatsAppmessenger as he is out on vacation. What should the project manager do next?

• Immediately Share the report to the customer

• Politely Deny sharing the report in WhatsApp Messenger as its unethical

• Discuss the issue with the Team and Senior Management

• Review Organization Process Assets to know Policies and Procedures

Answer explanation

Here in this scenario, the project manager should first review the OPAs to know the corporate policies and procedures for social media, ethics and security

During a team meeting, a team member asks about the measurements that will be used on the project to judge performance. The team member feels that some of the measures related to activities assigned to him are not valid measurements. The project is BEST considered in what part of the project management process?

• Initiating

• Executing

• Monitoring & Controlling

• Closing

Answer explanation

The question states that the team member feels some of the measures on his activities are not valid. Therefore, he must be working during the executing phase of the project where project deliverables are produced and project members perform most of the work they should do

During project execution, a team member comes to the project manager because he is not sure of what work he needs to accomplish on the project. Which of the following documents contain detailed descriptions of work packages?

• WBS Dictionary

• Activity List

• Project scope statement

• Scope management plan

Answer explanation

Work packages in a Work Breakdown Structure contain only nouns or a couple of words regarding work or deliverable. Detailed information on what needs to be done, responsibility, prerequisites, successors, due date, etc. are included in the Work Breakdown Structure Dictionary

During a meeting with some of the project stakeholders, the project manager is asked to add work to the project scope. The project manager had access to correspondence about the project before the project charter was signed and remembers that the project sponsor specifically denied funding for the scope mentioned by these stakeholders. The BEST thing for the project manager to do is to:

• Let the sponsor know of the stakeholders’ requests

• Evaluate the impact of adding the scope

• Tell the stakeholders the scope cannot be added

• Add the work if there is time available in the project

Answer explanation

After the scope of a project is finalized and the scope baseline is determined, it can be changed only with the approved changed requests. If there is not an approved change request, the existing scope baseline must be valid and the project team must work on delivering that scope only. In the scenario, the scope is defined already but some stakeholders ask to add new work to the scope. This cannot be done unless there is an approved change request. Therefore, stakeholders must be informed that this new work cannot be added.

A schedule performance index, SPI, of 0.75 means:

• Project is over budget

• Project is ahead of schedule

• Project is progressing at 75% of the rate originally planned

• Project is progressing at 25% of the rate originally planned

Answer explanation

A is irrelevant because SPI is a schedule performance index. We cannot derive any conclusion about the budget performance of the project with this index. B is not correct because SPI is less than one, therefore, the project is behind schedule. And D, says that you have completed 25% of the work that you have originally planned, so it’s not correct. The correct answer here is C, because SPI 0.75 means, you have completed 75% of the work that you have originally planned.

Conflict resolution techniques that may be used on a project include confronting, smoothing, forcing, and:

• Withdrawing

• Directing

• Organizing

• Controlling

Answer explanation

Withdrawing, or in other words, avoiding. The other three are directing, organizing, and controlling, which are not types of conflict resolution techniques

A project manager is in the middle of creating a request for a proposal (RFP). What part of the procurement process is she in?

• Conduct procurements

• Plan Procurements

• Control Procurements

• Close Procurements

Answer explanation

Because procurement statement of work, procurement documents are prepared in the plan procurements management process. An RFP is a procurement document as well. Therefore, it is prepared in the plan procurements process. RFP was defining what the buyer is requiring from the seller

Managing a project can be a very complex task that involves identifying and managing all the stakeholders on the project. The project manager spends 90% of their time doing what important task? 

• Determining the needs of the stakeholders

• Communications

• Determining how much an activity will cost

• Determining how long it will take to finish an activity

Answer explanation

Communications generally take up 90% of the project manager’s time. This generally includes various types of meetings, discussions, negotiation, and problem solving. A project manager does not determine how much an activity will cost or how long it will take; that is generally done by a subject matter expert