Certification Insider

The following PMP® exam sample question is taken from the Free PMP Exam Simulator at http://free.pm-exam-simulator.com - The answer is at the very bottom:

Joe is working as a project manager in a highway construction project. He wants to use a fixed price contract instead of cost-plus contract. The risk response strategy he is using in this case is an example of?

A) Risk Avoidance
B) Risk Transference
C) Risk Mitigation
D) Risk Acceptance

 

Hint:

The project manager in this example is currently performing the Conduct Procurements process but the answer is in the Plan Risk Responses process.


All our questions are updated to the latest PMBOK® Guide standard. Stop by at http://free.pm-exam-simulator.com and try the PMP Exam Simulator free for 3 days. We also offer 110 free questions at http://www.free-pm-exam-questions.com. We are a PMI Registered Education Provider.

 

ANSWER AND EXPLANATION:

The correct answer is B
Explanation: Risk Transference requires shifting some or all of the negative impact of a threat, along with the ownership of the response. A fixed price contract may transfer risk to the seller, whereas a cost-plus contract may transfer cost risk to the buyer.
Reference: PMBOK Guide 4th Edition, page 304

In this free episode we give you an overview of the Project Integration Management Knowledge Area. We review what the knowledge area contains, what the general concepts of its processes are, we discuss project interactions, the charter, the PM Plan, historical files and many other concepts: http://bit.ly/LzVqBN

We want you to be well prepared.

One important recommendation I have for those taking the PMP Exam is that to manage the time allotted to answer each question on the exam. Call it budgeting, call it time management, call it whatever you want; but do it! You need to walk into the examination room with a clear plan on how many questions you will answer per hour, when you plan on taking a break, and what you will do if time seems to be running out.

Remember that the exam is composed of 200 questions that you must answer within 4 hours. That's 1.2 minutes per question. Once you begin, the clock starts and will not stop even when you take a break. So plan your approach - say for the first 2 hours, answer all easy questions first and mark those difficult ones for later. Be sure to read all the questions carefully and understand them before you answer. Then take a 10 minute break before going back to the harder questions for the rest of the allotted time. By doing this you will be able to finish the whole exam on time.

But that's just one of many possible approaches and you should define your own. And by having a plan and implementing it you will relieve a lot of the exam pressure. So plan well, and budget your time wisely to succeed.

The following PMP® exam sample question is taken from the Free PMP Exam Simulator at http://free.pm-exam-simulator.com - The answer is at the very bottom:

Cost of Quality refers to the total cost of all efforts related to quality throughout the Product Life Cycle. Organizations should invest in product quality improvement to reduce which of the following?

A.) Internal Cost of Quality
B.) Prevention Costs
C.) Appraisal Costs
D.) External Cost of Quality

 

Hint:

If organizations don’t invest in product quality improvements, the cost of product returns, warranty claims, and recall campaigns increases.


All our questions are updated to the latest PMBOK® Guide standard. Stop by at http://free.pm-exam-simulator.com and try the PMP Exam Simulator free for 3 days. We also offer 110 free questions at http://www.free-pm-exam-questions.com. We are a PMI Registered Education Provider.

 

ANSWER AND EXPLANATION:

The correct answer is D
Explanation: Organizations should invest in reducing the External Cost of Quality by improving product quality. This will result in reduced product returns and warranty claims.
Reference: PMBOK Guide 4th Edition, page 191

This tip is intended to tell our readers that they should expect the unexpected in the test questions. For instance one student asked why the technique of "Activity on Arrow" was a question he got on his exam, even though this technique had been removed from The PMBOK Guide. My answer was as follows:

The PMBOK Guide is a GUIDE. It doesn't contain 100% of the concepts and tools that project managers around the world use. As such both AON and AOA are still being used. Also, PMI clearly says that the exam will also test you on concepts that are not necessarily found in the PMBOK Guide (but they cleverly omit telling us where we could find these...).

So what is the consequence of all of this? Don't be surprised to find questions on the test that are about concepts that are not (or no longer) on the PMP Exam. But don't let that worry you too much. Simply accept that this might be happening, read lessons learned from others so that you can see what might be on the test and do your best as you prepare for the exam.

Generally: Write this tip in such a way that the students understand that there may be things on the exam that they never heard of, or had expected not to be tested on. What to do in such a moment? Try your best in answering the question.