WGU C722 Project Management questions with
verified answers
Does a project always result in a new product or service? Ans✓✓✓ No. A project
may be undertaken to improve an existing product or service.
How are serial activities performed? Ans✓✓✓ In a single stream of tasks
How are the five steps organized? Ans✓✓✓ Chronologically across the life of the
project
How are the results of EV analysis used? Ans✓✓✓ To understand the current
state of the project and also to make predictions of what the budget performance
will be at project completion
How do probabilistic methods work? Ans✓✓✓ They use basic statistics to
account for uncertainty in activity duration estimates
How do profit/profitability based project selection models work? Ans✓✓✓ They
use some aspect of measuring the financial returns of the project relative to the
cost of the project or the time required to break-even
How does critical chain project management (CCPM) work? Ans✓✓✓ CCPM
assumes that resources available to complete the project are in limited supply
and it specifically plans to ensure resource availability. CCPM applies the theory of
constraints logic to project management by recognizing that the project can only
be completed if the resource (person, machine, capital, etc.) capacity is available.
In CCPM, the work each resource is expected to complete is checked to verify that
the resource will be capable and available when needed. Time buffers are built
,into the schedule to handle situations when the critical resources fall behind or
are not available.
How does the projectized organizational structure work? Ans✓✓✓ Subject
matter experts (SMEs) from different functional areas are assigned to directly
report to the project manager (PM) for a specific project. The SMEs report to the
PM for the duration of the project. At project conclusion, the SMEs report back to
their respective functional areas where they receive work assignments from the
functional manager until such time as they are reassigned to another project.
How is a set of criteria for a scoring model developed? Ans✓✓✓ Based on the
strategic objectives of the company
How is cost performance index (CPI) calculated? Ans✓✓✓ CPI = EV/AC
How is cost variance calculated? Ans✓✓✓ CV = EV − AC
How is estimate at completion calculated? Ans✓✓✓ EAC = AC + ETC
How is estimate to completion calculated? Ans✓✓✓ ETC = (BAC − EV)/CPI
How is PERT used? Ans✓✓✓ To estimate activity duration times; it uses a
statistical approach to estimate the time that will be required to complete project
work activities
How is schedule variance calculated? Ans✓✓✓ SV = EV − PV
,How is the activity estimate range calculated? Ans✓✓✓ Pessimistic estimate
minus optimistic estimate (P-O)
How is the activity estimate standard deviation calculated? Ans✓✓✓ Activity
estimate range (P-O) divided by six
How is the beta distribution calculated? Ans✓✓✓ Add the pessimistic estimate,
the optimistic estimate, and four times the most likely estimate; divide the result
by six
How is the payback period calculated? Ans✓✓✓ Estimated cost/monthly return
(estimated cost divided by monthly return)
How is the percent complete index calculated if the original baseline budget
stands? Ans✓✓✓ PCIB = EV/BAC
How is the percent complete index calculated when the customer has agreed to a
new budget at completion (BAC)? Ans✓✓✓ PCIC = AC/*EAC
How is the schedule performance index (SPI) calculated? Ans✓✓✓ SPI = EV/PV
How is the to complete performance index (TCPI) calculated? Ans✓✓✓ TCPI =
(BAC − EV)/(BAC − AC) if the project is under budget; TCPI = (BAC − EV)/(EAC − AC)
if the project is over budget
How is the triangular distribution/simple average determined? Ans✓✓✓ Add the
optimistic, most likely, and pessimistic estimates and divide by three
, How must criteria be answered in a scoring model for project selection?
Ans✓✓✓ With a scale
In project management, what is a duration? Ans✓✓✓ A term used to describe
the number of time periods required to complete some portion of the work
In project management, what is a stakeholder? Ans✓✓✓ Anyone who has an
impact on or is impacted by the project
In project management, what is a variance? Ans✓✓✓ A difference between
actual performance and the baseline scope
In project management, what term is used to describe connecting project
outcomes to company goals? Ans✓✓✓ Alignment
In which phase of the project life cycle does collecting customer requirements
occur? Ans✓✓✓ Planning phase
True/False: Checklists assign weights to each selection criterion? Ans✓✓✓ False
True/False: The functional organizational structure represents a traditional
hierarchy within a firm. Ans✓✓✓ True
Using the competitive necessity model, what is the decision to approve or
disapprove a project based on? Ans✓✓✓ Whether implementing the project will
ensure the viability of the company in the competitive market
verified answers
Does a project always result in a new product or service? Ans✓✓✓ No. A project
may be undertaken to improve an existing product or service.
How are serial activities performed? Ans✓✓✓ In a single stream of tasks
How are the five steps organized? Ans✓✓✓ Chronologically across the life of the
project
How are the results of EV analysis used? Ans✓✓✓ To understand the current
state of the project and also to make predictions of what the budget performance
will be at project completion
How do probabilistic methods work? Ans✓✓✓ They use basic statistics to
account for uncertainty in activity duration estimates
How do profit/profitability based project selection models work? Ans✓✓✓ They
use some aspect of measuring the financial returns of the project relative to the
cost of the project or the time required to break-even
How does critical chain project management (CCPM) work? Ans✓✓✓ CCPM
assumes that resources available to complete the project are in limited supply
and it specifically plans to ensure resource availability. CCPM applies the theory of
constraints logic to project management by recognizing that the project can only
be completed if the resource (person, machine, capital, etc.) capacity is available.
In CCPM, the work each resource is expected to complete is checked to verify that
the resource will be capable and available when needed. Time buffers are built
,into the schedule to handle situations when the critical resources fall behind or
are not available.
How does the projectized organizational structure work? Ans✓✓✓ Subject
matter experts (SMEs) from different functional areas are assigned to directly
report to the project manager (PM) for a specific project. The SMEs report to the
PM for the duration of the project. At project conclusion, the SMEs report back to
their respective functional areas where they receive work assignments from the
functional manager until such time as they are reassigned to another project.
How is a set of criteria for a scoring model developed? Ans✓✓✓ Based on the
strategic objectives of the company
How is cost performance index (CPI) calculated? Ans✓✓✓ CPI = EV/AC
How is cost variance calculated? Ans✓✓✓ CV = EV − AC
How is estimate at completion calculated? Ans✓✓✓ EAC = AC + ETC
How is estimate to completion calculated? Ans✓✓✓ ETC = (BAC − EV)/CPI
How is PERT used? Ans✓✓✓ To estimate activity duration times; it uses a
statistical approach to estimate the time that will be required to complete project
work activities
How is schedule variance calculated? Ans✓✓✓ SV = EV − PV
,How is the activity estimate range calculated? Ans✓✓✓ Pessimistic estimate
minus optimistic estimate (P-O)
How is the activity estimate standard deviation calculated? Ans✓✓✓ Activity
estimate range (P-O) divided by six
How is the beta distribution calculated? Ans✓✓✓ Add the pessimistic estimate,
the optimistic estimate, and four times the most likely estimate; divide the result
by six
How is the payback period calculated? Ans✓✓✓ Estimated cost/monthly return
(estimated cost divided by monthly return)
How is the percent complete index calculated if the original baseline budget
stands? Ans✓✓✓ PCIB = EV/BAC
How is the percent complete index calculated when the customer has agreed to a
new budget at completion (BAC)? Ans✓✓✓ PCIC = AC/*EAC
How is the schedule performance index (SPI) calculated? Ans✓✓✓ SPI = EV/PV
How is the to complete performance index (TCPI) calculated? Ans✓✓✓ TCPI =
(BAC − EV)/(BAC − AC) if the project is under budget; TCPI = (BAC − EV)/(EAC − AC)
if the project is over budget
How is the triangular distribution/simple average determined? Ans✓✓✓ Add the
optimistic, most likely, and pessimistic estimates and divide by three
, How must criteria be answered in a scoring model for project selection?
Ans✓✓✓ With a scale
In project management, what is a duration? Ans✓✓✓ A term used to describe
the number of time periods required to complete some portion of the work
In project management, what is a stakeholder? Ans✓✓✓ Anyone who has an
impact on or is impacted by the project
In project management, what is a variance? Ans✓✓✓ A difference between
actual performance and the baseline scope
In project management, what term is used to describe connecting project
outcomes to company goals? Ans✓✓✓ Alignment
In which phase of the project life cycle does collecting customer requirements
occur? Ans✓✓✓ Planning phase
True/False: Checklists assign weights to each selection criterion? Ans✓✓✓ False
True/False: The functional organizational structure represents a traditional
hierarchy within a firm. Ans✓✓✓ True
Using the competitive necessity model, what is the decision to approve or
disapprove a project based on? Ans✓✓✓ Whether implementing the project will
ensure the viability of the company in the competitive market
