CPM Project Initiation & Planning 3 — Questions and Answers
Question 1: Which technique is used to IDENTIFY risks by examining assumptions made during project planning?
- Monte Carlo simulation
- Assumption and constraint analysis (Correct answer)
- Decision tree analysis
- Sensitivity analysis
Correct answer: Assumption and constraint analysis
Assumption and constraint analysis tests the validity and stability of planning assumptions to surface potential risks if they prove false.
Question 2: The project sponsor asks why a project manager is spending time creating a stakeholder register during initiation. The BEST response is:
- It is required by organizational policy
- It identifies who can impact the project and how to engage them effectively (Correct answer)
- It documents contact information for the team
- It tracks stakeholder approval signatures
Correct answer: It identifies who can impact the project and how to engage them effectively
The stakeholder register captures stakeholder interests, involvement, and influence so the PM can plan appropriate engagement strategies.
Question 3: A project manager uses analogous estimating for the project schedule. This technique relies on:
- Statistical relationships between historical data and variables
- Expert judgment and historical project data (Correct answer)
- Bottom-up aggregation of work package estimates
- Three-point estimates weighted by probability
Correct answer: Expert judgment and historical project data
Analogous estimating uses actual duration or cost data from previous similar projects combined with expert judgment.
Question 4: What is the critical path in a project network diagram?
- The sequence of tasks with the most resources assigned
- The longest path through the network that determines project duration (Correct answer)
- The path with the highest risk activities
- The sequence of tasks with zero float
Correct answer: The longest path through the network that determines project duration
The critical path is the longest sequence of dependent activities, and any delay on it directly delays the project end date.
Question 5: During project planning, team members consistently provide optimistic time estimates. What technique helps correct this bias?
- Parametric estimating
- Three-point estimating (PERT) (Correct answer)
- Reserve analysis
- Bottom-up estimating
Correct answer: Three-point estimating (PERT)
PERT uses optimistic, pessimistic, and most likely estimates to calculate a weighted average, balancing out systematic optimism bias.
Question 6: A project charter has been signed. What is the NEXT logical step?
- Begin executing project work
- Develop the project management plan (Correct answer)
- Identify and analyze stakeholders
- Conduct a kickoff meeting
Correct answer: Develop the project management plan
After charter approval, the project moves into planning where the project management plan and all subsidiary plans are developed.
Question 7: Which output of the planning process group serves as the baseline for measuring cost performance?
- Project budget
- Cost management plan
- Cost baseline (Correct answer)
- Funding requirements
Correct answer: Cost baseline
The cost baseline is the approved, time-phased budget used to compare against actual costs and measure cost performance variances.
CPM Project Initiation & Planning 3
Which technique is used to IDENTIFY risks by examining assumptions made during project planning?