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PMI-002 Certified Associate in Project Management (CAPM) Certification Questions and Answers

Questions 4

Which of the following is true about the project charter?

Options:

A.

The project charter should be published under the name of a manager external to the project.

B.

The project charter should be published under the project sponsor's name.

C.

The project charter should be published under the name of the project manager.

D.

The project charter should be published under the name of the project champion.

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Questions 5

A schedule activity may start 5 days before the predecessor activity finishes. This is an example of ______________.

Options:

A.

Finish-to-Start

B.

Finish-to-Finish

C.

Start-to-Start

D.

Start-to-Finish

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Questions 6

The belief that management's high levels of trust, confidence and commitment to workers leads to high levels of motivation and productivity on the part of workers is a part of which motivation theory?

Options:

A.

Theory Y

B.

Theory Z

C.

Theory X

D.

Contingency Theory

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Questions 7

Which of the following statements are FALSE about cost reimbursable contracts?

Options:

A.

cost-reimbursable contracts generally carry the highest risks to the buyer, as the total costs are uncertain

B.

cost-reimbursable contracts often includes incentives for meeting or exceeding project objectives

C.

cost-reimbursable contracts resemble fix unit agreements when the unit rates are preset by the buyer and seller

D.

cost-reimbursable contracts are contracts that involves payments to the seller for actual costs, plus a fee representing the sellers profit

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Questions 8

23 Reverse analysis is a tool or technique in all of the following processes EXCEPT:

Options:

A.

Monitor and Control Risks

B.

Activity resource estimation

C.

Cost estimation

D.

Determine Budget

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Questions 9

A response to a risk event that was not defined in advance of is occurrence is called a:

Options:

A.

Risk mitigation response.

B.

Workaround response.

C.

Corrective action response.

D.

Contingency response.

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Questions 10

Human resource adininistration is the primary responsibility of the_____________

Options:

A.

Project Management Team

B.

Human Resources Department

C.

Executive Manager

D.

Project Manager

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Questions 11

Estimated at Completion is determined by which of the following?

Options:

A.

ETC + ACWP

B.

BAC"ETC

C.

BAC/CPI

D.

Both A and c

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Questions 12

A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual cost of the project is $130,000. How much profit does the seller make?

Options:

A.

$31,000

B.

$19,000

C.

$15,000

D.

None of the above

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Questions 13

The ability of a product to be used for different purposes at different capacities and under different conditions determines its ____________.

Options:

A.

Usability

B.

Flexibility

C.

Operability

D.

Availability

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Questions 14

Which of the following is true about procurement documents?

Options:

A.

Procurement documents are used to solicit proposals from prospective sellers.

B.

Invitations for Bid and Request for Proposal are two examples of procurement documents.

C.

Procurement documents should be structured to facilitate accurate and complete responses from prospective sellers.

D.

Al1 of the above

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Questions 15

Which of the following is not a tool or technique used during the Risk Quantification Process?

Options:

A.

Expected Monetary Value

B.

Contingency planning

C.

Decision Trees

D.

Statistical sums

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Questions 16

How much time does the typical project manager spend communicating both formally and informally?

Options:

A.

40-60%

B.

50-70%

C.

60-80%

D.

75-90%

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Questions 17

Which of the following statements are FALSE about the Rolling Wave plan?

Options:

A.

Rolling Wave Planning is a phased iterative approach to project development.

B.

Rolling Wave Planning is a cost and schedule planning technique used in the Define Activities process.

C.

Rolling Wave Planning is the process of decomposing each work package within the WBS into the corresponding schedule activities required to produce the work package deliverables.

D.

Rolling Wave Planning describes a form of progressive elaboration planning where the work to be performed in the near time is planned in detail at a low level of the WBS, while work far in future is planned for WBS components that are relatively at a high level of WBS.

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Questions 18

Which of the following contract types places the greatest risk on the seller?

Options:

A.

Cost-plus-fixed-fee contract

B.

Cost plus-incentive-fee contract

C.

Fixed-price-incentive contract

D.

Firm-fixed-price contract

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Questions 19

Project management processes organized into ______________.

Options:

A.

Initiating, planning, executing, controlling, and closing

B.

Initiating, planning, contracting, executing, and closing

C.

Designing, developing, testing, and implementing

D.

Initiating, planning, contracting, developing, and closing

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Questions 20

Which of the following processes involves obtaining information (bids and proposals) from prospective sellers?

Options:

A.

Procurement Planning

B.

Source Selection

C.

Contract Administration

D.

Solicitation

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Questions 21

A contingency plan is ______________.

Options:

A.

A planned response that defines the steps to be taken if an identified risk event occurs

B.

A workaround

C.

A reserve used to allow for future situations which may be planned for only in part

D.

Both A and c

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Questions 22

Which of the following are inputs to the Source Selection process?

Options:

A.

Evaluation criteria

B.

Organizational policies

C.

Procurement documents

D.

Both A and B

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Questions 23

Project risk is defined as the cumulative effect of chances of ________ which will adversely affect project objectives.

Options:

A.

Likely events

B.

Complex activities

C.

Complex schedules

D.

Uncertain occurrences

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Questions 24

Communication is the PRIME responsibility of a Project ___________.

Options:

A.

Manager in a weak matrix

B.

Manager in a projectized environment

C.

Coordinator

D.

Expeditor

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Questions 25

The work that must be done in order to deliver a product with the specified features and functions is:

Options:

A.

Project scope

B.

Project verification

C.

Project control

D.

Product scope

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Questions 26

A Project Cost Management plan is created as a part of:

Develop Project Management Plan process

Control Costs process

Determine Budget process

Estimate Costs process

Options:

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Questions 27

Based on the PMBOK, who is ultimately responsible for the project quality?

Options:

A.

Project team

B.

Project manager

C.

QA manager

D.

Validation engineer

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Questions 28

Which of the following is true regarding IRR?

Options:

A.

IRR is a constrained optimization method.

B.

IRR assumes reinvestment at the cost of capital.

C.

IRR is the discount rate when NPV is greater than zero.

D.

IRR is the discount rate when NPV is equal to zero.

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Questions 29

If the level of conformance directly increases as a result of new processes, the required cost of monitoring is likely to:

Options:

A.

Stay the same.

B.

Decrease.

C.

Be more predictable.

D.

Increase.

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Questions 30

Which of the following is output of Direct and Manage Project Execution ?

Options:

A.

Change requests.

B.

Responsibility assignment matrix

C.

Work breakdown structure

D.

Project character

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Questions 31

What is one of the advantages of a functional organization?

Options:

A.

All employees report to two or more managers

B.

The organization is focused on projects.

C.

Teams are co located.

D.

All employees report to one manager and have a clear chain of command.

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Questions 32

18 You are the project manager of a software company. As software development can be very chaotic, your company has decided to follow a more rigorous approach to software development. Specifically your company has chosen to adopt the extreme programming XP methodology for your current software project. The XP methodology is highly iterative, and produces numerous deliverables include UML diagrams, architecture diagrams, prototypes and test-cases. Assume you are in the Sequence Activities phase of the project. Which of the following sequencing methods should you use to identify the logical relationships between tasks, so that the activities can be sequenced correctly?

Options:

A.

ADM

B.

PDM

C.

GEPT

D.

A0A

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Questions 33

You are the project manager and are considering recommending a project that costs $280,000; expected inflows are $10,000 per quarter for the first two years and then $25,000 per quarter thereafter. What is the payback period?

Options:

A.

48 months

B.

40 months

C.

36 months

D.

50 months

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Questions 34

Which of the following are not the tools and techniques for source selection?

Options:

A.

a weighting system.

B.

Organizational policies

C.

Independent estimates.

D.

A screening system.

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Questions 35

You are assigned to a project that has already been decided to be outsourced. As a project manager, you need to organize a formal bid process and select the vendor for this project. Your senior management is forcing you to select a vendor which has good relation with your senior management. What is the BEST course of action for you?

Options:

A.

Follow the formal bid process, and show the senior management about why the favored vendor is or is not the best choice.

B.

Report to legal department of your company.

C.

Report to your Manager about this.

D.

Get a written permission from your senior management to bypass the formal bid process.

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Questions 36

How many communication channels will be required in a project having five individual participants?

Options:

A.

10

B.

12

C.

4

D.

5

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Questions 37

A project is considered successful when

Options:

A.

the project meets or exceeds the expectations of the stakeholders

B.

the product of the project has been manufactured

C.

the project sponsor announces the completion of the project

D.

None

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Questions 38

The customer service VP expresses concern over a project in which you are involved. His specific concern is that if the project is implemented as planned, he will have to purchase additional equipment to staff his customer service center. The cost is substantial and was not taken into consideration in the project budget. The project sponsor insists that the project must go forward as originally planned or the customer will suffer. Which of the following is true?

Options:

A.

The conflict should be resolved in favor of the customer.

B.

The conflict should be resolved in favor of the project sponsor.

C.

The conflict should be resolved in favor of the VP of customer service.

D.

None

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Questions 39

You are the project manager and have just completed the Collect Requirements and Define Scope process. What should you do next?

Options:

A.

Create WBS

B.

Verify Scope

C.

Value analysis

D.

Control Scope

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Questions 40

What type of organizational structure usually experiences the MOST team nervousness at project close-out?

Options:

A.

Weak matrix

B.

Projectized

C.

Strong matrix

D.

Functional

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Questions 41

The work breakdown structure:

Options:

A.

Is used to break down the project Into manageable pieces

B.

Is set and does not change throughout the project

C.

Is needed as part of the project charter

D.

None of the above

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Questions 42

As a CAPM, you are required to comply with the CAPM Code of Professional Conduct. Part of your responsibility concerns applying professional knowledge. All of the following are part of applying professional knowledge except for which one?

Options:

A.

Staying abreast of project management practices

B.

Honestly reporting your project management experience

C.

Keeping up with industry trends and new technology

D.

Developing relationships based on mutual respect

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Questions 43

During ___________ project management process, stakeholder's ability to influence project results is high?

Options:

A.

Initiating

B.

Planning

C.

Monitoring and Controlling

D.

Executing

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Questions 44

Project management is a preferred management approach EXCEPT for:

Options:

A.

Product manufacturing environment.

B.

Cross functional tasks.

C.

Unique operations.

D.

Time-constrained deliverables.

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Questions 45

You are a project manager for a small local bank. The bank wants you to design and develop a custom online bill pay software so that its customers can pay their bills online. You are ready to begin the Activity Resource Estimation process for your project. Which of the following would you not consider when developing the activity resource requirements document?

Options:

A.

Resource availability

B.

Project management plan

C.

Resource breakdown structure

D.

Activity list

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Questions 46

What are the five project management process groups. Choose in order?

Options:

A.

Initiating, Planning, Monitoring and Controlling, Executing, and Closing

B.

Initiating, Executing, Planning, Monitoring and Controlling, and Closing

C.

Initiating, Monitoring and Controlling, Planning, Executing, and Closing

D.

Initiating, Planning, Monitoring and Controlling, Executing, and Closing

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Questions 47

Which of the following must be measured regularly to identify variances from the plan.

Options:

A.

Stakeholder requirements

B.

Project performance

C.

Control Schedule

D.

Project controls

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Questions 48

The Staffing Management Plan ___________, will be formal or informal.

Options:

A.

Depending on the size and complexity of the project

B.

Depending on the management

C.

Depending on the project manager

D.

Depending on the size only

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Questions 49

The Collect Requirements process is:

Options:

A.

Developing a plan from major stakeholders

B.

Developing a written scope statement as the basis for future project decisions

C.

Formalizing acceptance of the project scope

D.

Planning project milestones

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Questions 50

Which of the following is an output of a Verify Scope process?

Options:

A.

Formal acceptance

B.

WBStemplate

C.

SOW acceptance

D.

Rework

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Questions 51

Adjusting Leads and Lags is a technique for:

Options:

A.

Develop Schedule

B.

Estimate Activity Durations

C.

Estimate Activity Resources

D.

Sequence Activities

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Questions 52

The planning processes are:

Options:

A.

Define Scope, Resource planning, Estimate Costs, Schedule development. Define Activities

B.

Inputs, Control, Status reports, Risk management

C.

Planning, Resource planning, Quality assurance, Risk control

D.

Define Scope, Team development, Control Schedule, Budget control, Contract administration

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Questions 53

A graphic display of resource usage hours is called a/an_________________.

Options:

A.

Organizational chart

B.

Responsibility matrix

C.

WBS

D.

Histogram

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Questions 54

Who should contribute to the development of a project plan?

Options:

A.

Project manager

B.

Entire project team including project manager

C.

Senior management

D.

Just the planning department

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Questions 55

What are you likely to see as a project progresses in a schedule with must fix dates and little or no slack?

Options:

A.

Lots of free float

B.

Idle resources

C.

Negative float

D.

Positive float

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Questions 56

An input of the Collect Requirements process is a/an:

Options:

A.

Project Charter

B.

Project schedule

C.

Strategic plan

D.

Historical information

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Questions 57

Change requests should be ______ ?

Options:

A.

Formal

B.

Interesting

C.

Short

D.

None

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Questions 58

Key Management skills include:

Options:

A.

Leading

B.

Communicating

C.

Negotiating

D.

All of the above

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Questions 59

The process that is not a part of time management is:

Options:

A.

Define Activities

B.

Resource Planning

C.

Develop Schedule

D.

Sequence Activities

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Questions 60

__________ involves using project characteristics in a mathematical model

Options:

A.

Analogous estimating

B.

Life-cycle costing

C.

Parametric modelling

D.

Bottom up estimating

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Questions 61

At which stage, stakeholders have the maximum influence on a project?

Options:

A.

Initial stage

B.

Closing stage

C.

Execution stage

D.

None of the above

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Questions 62

Which of the following is not true for a Resource Leveling:

Options:

A.

Project's Critical path may be altered

B.

Reverse resource allocation scheduling

C.

Resource based scheduling method

D.

None

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Questions 63

Parametric Estimating is done as a part of which of the following process:

Options:

A.

Develop Schedule

B.

Estimate Activity Durations

C.

Sequence Activities

D.

Estimate Activity Resources

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Questions 64

Reserve Analysis technique is NOT used during __________.

Options:

A.

Control Costs

B.

Estimating Activity Duration

C.

Determine Budget

D.

Estimate Costs

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Questions 65

All are output of verify scope.

Options:

A.

Precedence diagramming method (PDM)

B.

Arrow diagramming method (ADM)

C.

Expert judgment

D.

Network templates

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Questions 66

The main purpose of project initiation is to ________.

Options:

A.

Assign the project manager to the project

B.

Formally describe the project

C.

Produce the project charter

D.

Formally authorize the project

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Questions 67

A contract cannot contain _____________.

Options:

A.

Illegal activities

B.

deadline for the completion of the work

C.

Penalties and fines for disclosure of intellectual rights

D.

Al1 of the above

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Questions 68

Who is responsible for issuing the project charter?

Options:

A.

The project manager

B.

The project sponsor

C.

The Team lead

D.

The nianagement

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Questions 69

PMI discusses procurement focusing on the ______ relationship.

Options:

A.

Buyer or seller

B.

Vendor or seller

C.

Purchasing

D.

Sellino-

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Questions 70

The project management plan:

Options:

A.

Identifies all the steps and processes that will be used after a project is initiated

B.

Steps needed to complete a project task

C.

Prepared at the beginning and fixed throughout the execution of the project

D.

Includes project charter

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Questions 71

If you are project manager for a Project and will need as many inputs to the initiation phase as possible. Of the following, which is the best source of information for your project?

Options:

A.

Historical information

B.

WBS

C.

Business plans

D.

RBS

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Questions 72

Which of the following is NOT input of Identify Risks?

Options:

A.

Project Charter

B.

Stakeholder Register

C.

Pis'* Management Plan

D.

Activity Cost Estimates

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Questions 73

Which of the following best describes project scope?

Options:

A.

The work that must be done in order to deliver a product with the specified features and functions

B.

The description of the project deliverables

C.

The authorizing document that allows the project manager to move forward with the project and to assign resources to the tasks

D.

The process of planning and executing all of the required work to deliver the project

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Questions 74

Who is responsible for the creation of the final project plan?

Options:

A.

Project Manager

B.

Team Leader

C.

Sponsor

D.

Project Team

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Questions 75

How many communication channels will be required in a project in which 5 individual are participating?

Options:

A.

10

B.

12

C.

4

D.

5

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Questions 76

Project scope is _____________.

Options:

A.

The features and functions that are to be included in a product or service

B.

The work that must NOT be done in order to deliver a product with the specified features and functions

C.

Part °ftne project charter

D.

Part of sow

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Questions 77

The product description of a project can help to create procurement details. Which one of the following best describes product description?

Options:

A.

The product description defines the contracted work, based on the requirements of the project customer

B.

The product description defines the contracted work

C.

The product description defines the requirements for the contract work

D.

Al1 of the above

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Questions 78

You are project manager of a project and you are offering an estimate that you know will be changed after the contract is signed is ___________.

Options:

A.

Bad practice

B.

Unprofessional practice

C.

Bacl f°r both tne buyer and seller

D.

Al1 of the above

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Questions 79

How many communication channels will be required in a project in which 10 individual are participating?

Options:

A.

45

B.

12

C.

10

D.

5

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Questions 80

Which document formally authorizes a project?

Options:

A.

The project charter

B.

Project scope statement

C.

The P'oject contract

D.

Project closing document

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Questions 81

Which of the following activity is not performed as part of the direct and manage project execution process?

Options:

A.

Monitor implementation of approved changes

B.

Validate deliverables

C.

Staff, train, and manage the project team

D.

Manage cisks and implement risk responses

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Questions 82

Make-or-buy decisions measure the costs of both options. What are the two options?

Options:

A.

Direct ar|d Indirect

B.

Tactical and Strategic

C.

Management and Project

D.

0n|y Tactical

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Questions 83

Which risk response is most likely to involve contingency reserves?

Options:

A.

Acceptance

B.

shaie

C.

Mitigate

D.

Transfer

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Questions 84

What is the communication channel delta if the members in the communication plan are increased from 5 to 10?

Options:

A.

35

B.

5

C.

15

D.

75

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Questions 85

_________ is the best choice for buyer when the item is well defined.

Options:

A.

Cost plus incentive fee

B.

F'xed P|ice

C.

Time and material

D.

None

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Questions 86

Which document formally authorizes a project?

Options:

A.

The project charter

B.

Project scope statement

C.

The P'oject contract

D.

Project closing document

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Questions 87

Your company create software products, and introducing a new product. To determine the characteristics and features of the new product line, you will have to perform ________.

Options:

A.

Progressive elaboration

B.

Stake holder's review

C.

p'an project life cycle

D.

Fast backing

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Questions 88

What is CI?

Options:

A.

Continuous improvement

B.

A sustained, gradual change

C.

Constancy of purpose and commitment to quality as part of its focus

D.

All of the above

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Questions 89

If a project with a SPI of 0.8, what you tell?

Options:

A.

The project is running ahead of the schedule

B.

The project is running behind of the schedule

C.

Resources assigned to the project cost 1.8 units

D.

None

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Questions 90

Correspondence, contract changes, and payment requests are ___________ of contract administration.

Options:

A.

Outputs

B.

Tools

C.

Functions

D.

InPuts

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Questions 91

A structured tool, usually industry or activity specific, used to verify that a set of required steps has been performed is called __________.

Options:

A.

Quality Policy

B.

check List

C.

Trend Analysis

D.

Paieto Diagram

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Questions 92

When a risk should be avoided?

Options:

A.

The risk event has a low probability of occurrence and low impact.

B.

The risk event is unacceptable - generally one with a very high probability of occurrence and high impact.

C.

The risk can be transferred by purchasing insurance.

D.

A risk event can never be avoided.

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Questions 93

The communications management plan is primarily dependent on the ____________.

Options:

A.

Length of the project

B.

Physical location of team members

C.

Specific needs of the project

D.

Project deliverables

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Questions 94

Which of the following is part of the expectancy theory of motivation?

Options:

A.

Clear, specific, and challenging goals generally motivate team members

B.

Project managers should ensure that tasks assigned to project participants match their skills and the organizational climate is conducive to helping them meet their needs and achieving a sense

of competence

C.

People tend to be highly productive and motivated if they believe their efforts will lead to successful results and that success will lead to personal rewards

D.

None of the above

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Questions 95

A is the correct answer. Trend analysis is a tool and technique used in Monitor and Control Risks.

Options:

A.

Financial records

B.

Inspection specifications

C.

Project charter

D.

Project reports

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Questions 96

A cost management plan is ______________.

Options:

A.

A plan for describing how cost variances will be managed

B.

A subsidiary element of the project charter

C.

An input to the Estimate Costs process

D.

Both A and C

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Questions 97

Using the PMBOK definition of contingency reserve, which of the following statements about contingency reserves is false?

Options:

A.

A contingency reserve is a separately planned quantity used to allow for future situations which may be planned for only in part.

B.

Contingency reserves may be set aside for known unknowns.

C.

Contingency reserves may be set aside for unknown unknowns.

D.

Contingency reserves are normally included in the project's cost and schedule baselines.

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Questions 98

Which of the following is output of the Plan Communications process?

Options:

A.

Project Records

B.

Communications Management Plan

C.

Performance Reports

D.

Formal Acceptance

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Questions 99

Deflection or transfer of a risk to another party is part of which of the following risk response categories?

Options:

A.

Transfer

B.

Acceptance

C.

Avoidance

D.

Mitigate

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Questions 100

To shorten project duration, resources have been added to tasks on the critical path. The plan should then be reviewed for the __________.

Options:

A.

Lagging time on other paths

B.

Emergence of a new critical path

C.

Resource assigned to other tasks on the critical path

D.

Longest task remaining in the plan

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Questions 101

An example of risk mitigation is:

Options:

A.

Taking early action to reduce probably of risk rather repair the damage after risk has occurred.

B.

Purchasing insurance

C.

Eliminating the cause of a risk

D.

You develop a contingency plan to execute in case the risk event occurs.

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Questions 102

Which of the following is NOT considered a cost of non-conformance to quality?

Options:

A.

Scrap

B.

Rework

C.

Liabilities

D.

Training

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Questions 103

Which of the following is true concerning the evaluation criteria?

Options:

A.

Can often be found in procurement documents

B.

Can be objective or subjective

C.

Used to rate or score proposals

D.

All of the above

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Questions 104

Which of the following approaches to quality improvement is LEAST likely to produce positive results?

Options:

A.

Continuous improvement

B.

Increased inspection

C.

Statistical quality control

D.

IS09001 certified process

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Questions 105

Which of the following are not functions of the project kick off meeting?

Options:

A.

Identifying project goals

B.

Obtaining commitment

C.

Presenting the project cost

D.

Introducing the stakeholders

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Questions 106

Percent complete is calculated by _________.

Options:

A.

ACWP/BAC

B.

BCWP-ACWP

C.

BCWP/BAC

D.

EAC/BAC

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Questions 107

The ability of a product to be used for different purposes at different capacities and under different conditions determines its __________.

Options:

A.

Usability

B.

Flexibility

C.

Operability

D.

Availability

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Questions 108

The independence of two events in which the occurrence of one is not related to the occurrence of the other is called _______.

Options:

A.

Event phenomenon

B.

Independent probability

C.

Statistical independence

D.

Statistical probability

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Questions 109

Which of the following techniques is used to control the project schedule?

Options:

A.

Pareto diagram

B.

Performance measurement

C.

Parametric modelling

D.

Statistical sampling

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Questions 110

Project Risk Management includes all of the following processes EXCEPT ________.

Options:

A.

Plan Risk Management

B.

Identify Risks

C.

Risk Analysis

D.

Plan R^ Response

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Questions 111

Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on source selection?

Options:

A.

Weighting System

B.

Screening System

C.

Selecting System

D.

None of the above

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Questions 112

You are in process of identifying and documenting the project roles and responsibilities and create staffing management plan. All of the following should be addressed when listing the roles and responsibilities EXCEP:

Options:

A.

Competency

B.

Authority

C.

Responsibility

D.

Compliance

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Exam Code: PMI-002
Exam Name: Certified Associate in Project Management (CAPM) Certification
Last Update: Nov 16, 2024
Questions: 748

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