PMT 3600V ADVANCED PROGRAM
MANAGEMENT EXAM PREP
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. A project manager is calculating the Estimate at Completion (EAC) for a project where the
current variances are expected to continue. Given BAC = $200,000; AC = $120,000; EV =
$100,000; and PV = $110,000. What is the EAC?
A. $200,000
B. $220,000
C. $240,000
D. $180,000
Answer: C
Conceptual Explanation: EAC = BAC / CPI. CPI = EV / AC = 100,,000 = 0.833.
EAC = 200,.833 = $240,000.
2. In a Fixed Price Incentive Fee (FPIF) contract, the Point of Total Assumption (PTA) is the
point where:
A. The seller assumes all cost risk for every dollar spent beyond this point.
,B. The buyer assumes all cost risk.
C. The project becomes unprofitable for the buyer.
D. The ceiling price is reached but profit is still paid.
Answer: A
Conceptual Explanation: PTA is the point where the seller assumes all cost risk for every
dollar spent beyond this point because the ceiling price limits the buyer’s liability.
3. A project has three critical paths. How does this affect the project’s risk profile?
A. It decreases the project risk because there are redundancies.
B. It has no effect on the project risk.
C. It makes the project easier to manage using crashing techniques.
D. It increases the project risk because a delay in any one path delays the project.
Answer: D
Conceptual Explanation: Multiple critical paths increase project risk because any delay on
any of the paths will result in a delay to the project finish date.
4. You are evaluating four projects. Project A has an NPV of $50,000, Project B has an NPV of
$75,000, Project C has an NPV of $15,000, and Project D has an NPV of -$10,000. Which
project should you select?
A. Project A
B. Project D
, C. Project C
D. Project B
Answer: D
Conceptual Explanation: In project selection, the project with the highest positive Net
Present Value (NPV) is typically selected as it adds the most value.
5. A project manager identifies a risk that a critical vendor might go bankrupt. The PM
decides to purchase an insurance policy to cover potential losses. What risk response strategy
is being used?
A. Mitigation
B. Avoidance
C. Transference
D. Acceptance
Answer: C
Conceptual Explanation: Transference involves shifting the impact of a threat and
ownership of the response to a third party, such as an insurance company.
6. A PERT estimate for a task shows Optimistic = 10 days, Pessimistic = 22 days, and Most
Likely = 13 days. What is the standard deviation for this task?
A. 3 days
B. 2 days
MANAGEMENT EXAM PREP
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2026/2027
UPDATE. JUST RELEASED
1. A project manager is calculating the Estimate at Completion (EAC) for a project where the
current variances are expected to continue. Given BAC = $200,000; AC = $120,000; EV =
$100,000; and PV = $110,000. What is the EAC?
A. $200,000
B. $220,000
C. $240,000
D. $180,000
Answer: C
Conceptual Explanation: EAC = BAC / CPI. CPI = EV / AC = 100,,000 = 0.833.
EAC = 200,.833 = $240,000.
2. In a Fixed Price Incentive Fee (FPIF) contract, the Point of Total Assumption (PTA) is the
point where:
A. The seller assumes all cost risk for every dollar spent beyond this point.
,B. The buyer assumes all cost risk.
C. The project becomes unprofitable for the buyer.
D. The ceiling price is reached but profit is still paid.
Answer: A
Conceptual Explanation: PTA is the point where the seller assumes all cost risk for every
dollar spent beyond this point because the ceiling price limits the buyer’s liability.
3. A project has three critical paths. How does this affect the project’s risk profile?
A. It decreases the project risk because there are redundancies.
B. It has no effect on the project risk.
C. It makes the project easier to manage using crashing techniques.
D. It increases the project risk because a delay in any one path delays the project.
Answer: D
Conceptual Explanation: Multiple critical paths increase project risk because any delay on
any of the paths will result in a delay to the project finish date.
4. You are evaluating four projects. Project A has an NPV of $50,000, Project B has an NPV of
$75,000, Project C has an NPV of $15,000, and Project D has an NPV of -$10,000. Which
project should you select?
A. Project A
B. Project D
, C. Project C
D. Project B
Answer: D
Conceptual Explanation: In project selection, the project with the highest positive Net
Present Value (NPV) is typically selected as it adds the most value.
5. A project manager identifies a risk that a critical vendor might go bankrupt. The PM
decides to purchase an insurance policy to cover potential losses. What risk response strategy
is being used?
A. Mitigation
B. Avoidance
C. Transference
D. Acceptance
Answer: C
Conceptual Explanation: Transference involves shifting the impact of a threat and
ownership of the response to a third party, such as an insurance company.
6. A PERT estimate for a task shows Optimistic = 10 days, Pessimistic = 22 days, and Most
Likely = 13 days. What is the standard deviation for this task?
A. 3 days
B. 2 days
