Project Practice Test: Video 2 Answers (25 Questions)

Question 1

What are the dollars included in a cost estimate to account for unforeseen future events, sometimes known as "unknown unknowns"?

Accepted Answer

Management Reserves

Answer

Management reserves are funds included in the overall project budget to cover unforeseen future events, often referred to as 'unknown unknowns,' which are risks not identified during the planning process. These reserves are typically controlled by senior management and are not part of the project cost baseline. Accessing management reserves usually requires a formal change request and approval from higher authority.

Question 2

What is planned value less earned value?

Accepted Answer

Schedule Variance

Answer

Schedule Variance (SV) is a key Earned Value Management (EVM) metric that measures the difference between the Earned Value (EV) and the Planned Value (PV). While typically calculated as EV - PV, the concept represents the deviation from the planned schedule. A positive SV indicates the project is ahead of schedule, while a negative SV means it is behind schedule, providing an objective measure of schedule performance.

Question 3

Which of the following offers the lowest level of estimation accuracy?

Accepted Answer

Rough order of magnitude

Answer

A Rough Order of Magnitude (ROM) estimate is typically performed very early in the project lifecycle, often during the initiation phase, with limited information available. It provides a very broad estimate, usually with an accuracy range of -25% to +75% (or even -50% to +100%). This makes it the least accurate type of estimate, but it is useful for initial feasibility studies and high-level decision-making.

Question 4

What is the term of the additional percent or sum by which actual costs surpass projections?

Accepted Answer

Overrun

Answer

An overrun, specifically a cost overrun, refers to the amount by which actual costs exceed the estimated or budgeted costs for a project or activity. It indicates that the project is spending more money than originally planned, which can significantly impact project profitability and financial viability. Overruns highlight deviations from the cost baseline and necessitate corrective actions.

Question 5

Which of the following choices most accurately sums up analogous estimating?

Accepted Answer

Less accurate

Answer

Analogous estimating, also known as top-down estimating, uses historical data from a similar past project to estimate the duration or cost of a current project. While quick and useful in early project phases when detailed information is scarce, it is generally less accurate than other methods. Its accuracy depends heavily on the similarity between the current and past projects and the reliability of the historical data.

Project Management Practice Test

Project Management Practice Test

Project Practice Test: Video 2 Answers (25 Questions)