Question 1

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?

Accepted Answer

A)  planning horizon 
B)  people 
C)  padding estimates 
D)  profit 
E)  project structure 
A)  planning horizon 
B)  people 
C)  padding estimates 
D)  profit 
E)  project structure

Question 2

Consider a five-mile-long railroad tunnel. Tunnel experts and advocates estimate the total cost to be $200 million. What is the reference class for this project? But reference class projects in this area have been over-budget by 30%. So, what should the actual revised budget number be for this proposed five-mile tunnel project?

Accepted Answer

A)  Past bridge projects, $230 million 
B)  Past tunnel projects, $260 million 
C)  Past highway projects, $200 million 
D)  Past building projects, $230 million 
E)  Past construction projects, $230 million 
A)  Past bridge projects, $230 million 
B)  Past tunnel projects, $260 million 
C)  Past highway projects, $200 million 
D)  Past building projects, $230 million 
E)  Past construction projects, $230 million

Question 3

Project managers typically use ________, also called analogous estimating or the ______ method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two-to-five years out because, as estimating methods go, it is faster and less expensive.

Accepted Answer

A)  top-down, apportion 
B)  bottom-up, range estimating 
C)  bottom-up, learning curve 
D)  top-down, phase estimating 
E)  top-down, range estimating 
A)  top-down, apportion 
B)  bottom-up, range estimating 
C)  bottom-up, learning curve 
D)  top-down, phase estimating 
E)  top-down, range estimating

Question 4

In practice, estimating processes are frequently classified as

Accepted Answer

A)  top down / bottom up. 
B)  rough / polished. 
C)  precise / order of magnitude. 
D)  draft / final. 
E)  broad / specific. 
A)  top down / bottom up. 
B)  rough / polished. 
C)  precise / order of magnitude. 
D)  draft / final. 
E)  broad / specific.

Question 5

A way to improve estimates on future projects is to collect and archive data on past project estimates and actuals. Creating ___________ for estimating is a way to achieve this goal.

Accepted Answer

A)  time and cost databases 
B)  history databases 
C)  estimating and forecasting databases 
D)  structured databases 
E)  Any of these alternatives are correct. 
A)  time and cost databases 
B)  history databases 
C)  estimating and forecasting databases 
D)  structured databases 
E)  Any of these alternatives are correct.

Question 6

Project costs such as labor and materials are typically classified as ___________ costs.

Accepted Answer

A)  general and administrative overhead 
B)  direct 
C)  direct project overhead 
D)  fixed 
E)  interaction 
A)  general and administrative overhead 
B)  direct 
C)  direct project overhead 
D)  fixed 
E)  interaction

Question 7

The salary of the project manager would be an example of what type of cost found in a project?

Accepted Answer

A)  Labor 
B)  Direct 
C)  Direct project overhead 
D)  General and administrative overhead 
E)  Salary 
A)  Labor 
B)  Direct 
C)  Direct project overhead 
D)  General and administrative overhead 
E)  Salary

Question 8

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

Accepted Answer

A) True 
 B)False

Question 9

Thinking holistically, suppose a new, unique project is being estimated in which there is unstable scope. There is high uncertainty in the duration and cost of each work package. Uncertainty as to which work packages to include / exclude is abundant. A project of this type has never been done before and the customer is uncertain of what they want. There are no previous similar projects or a history data base of work package durations and costs to work from. Top-down estimates of total project cost and duration do not exist. You have a dedicated team of ten seasoned project professionals working for you. You worked hard to develop a well-structured WBS for the project. Each work package (there are ten) has been assigned (by you as project manager) to exactly one project professional to develop and complete. You wish to do a bottom-up definitive determination of overall project duration and cost. The customer wants cost and duration details. Under such circumstances, how would you proceed? What assumptions would you have to make? How would you come up with estimates as to duration and cost for each work package?

Accepted Answer

The project manager can ask each project

Question 10

Estimates that are typically based on estimates of elements found in the work breakdown structure are called bottom-up estimates.

Accepted Answer

A) True 
 B)False

Question 11

As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.

Accepted Answer

A) True 
 B)False

Question 12

The salary of the project manager and temporary rental space for the project team would be classified as __________ costs.

Accepted Answer

A)  general and administrative overhead 
B)  direct 
C)  direct project overhead 
D)  fixed 
E)  interaction 
A)  general and administrative overhead 
B)  direct 
C)  direct project overhead 
D)  fixed 
E)  interaction

Question 13

After averaging out the underestimates and overestimates, a long-duration project is more likely to be on target than a short-term, small project.

Accepted Answer

A) True 
 B)False

Question 14

The bottom-up method of estimating where work package time and costs for past projects are used as a starting point for a new project and adjustments are made based on differences in the new project is known as the ___________.

Accepted Answer

A)  range estimating 
B)  parametric procedure 
C)  template method 
D)  phase estimating method 
E)  WBS method 
A)  range estimating 
B)  parametric procedure 
C)  template method 
D)  phase estimating method 
E)  WBS method

Question 15

Costs that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks are known as ____________ costs.

Accepted Answer

A)  direct 
B)  interaction 
C)  general and administrative (G&
A)  overhead costs 
D)  things go wrong 
E)  coordination 
A)  direct 
B)  interaction 
C)  general and administrative (G&
A)  overhead costs 
D)  things go wrong 
E)  coordination

Question 16

A project to return Americans to the moon has been estimated to cost $100 billion and take five years to complete, but past similar projects have cost 30% more and taken 20% longer. What should the revised estimates for cost and time be? Because of the long duration, the effects of the time value of money should be taken into consideration-what does this do to the estimated budget and duration. Assume a 3% annual inflation rate.

Accepted Answer

Based on Reference Class Forecasting, th

Question 17

The top-down method of estimating project time and costs that is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive, is the ______________.

Accepted Answer

A)  ratio 
B)  consensus 
C)  apportion 
D)  function point 
E)  learning curves 
A)  ratio 
B)  consensus 
C)  apportion 
D)  function point 
E)  learning curves

Question 18

If a project is internal to the company and relatively small, the bottom-up approach to estimating time and costs for the project is the best choice.

Accepted Answer

A) True 
 B)False

Question 19

List and briefly explain two reasons why estimates may need to be refined.

Accepted Answer

Changes oc

Question 20

Typical kinds of costs found in a project include all of the following EXCEPT

Accepted Answer

A)  direct costs. 
B)  project overhead costs. 
C)  general and administrative overhead costs. 
D)  labor. 
E)  All of these are examples of costs found in a project. 
A)  direct costs. 
B)  project overhead costs. 
C)  general and administrative overhead costs. 
D)  labor. 
E)  All of these are examples of costs found in a project.

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?

Project managers typically use __, also called analogous estimating or the method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two-to-five years out because, as estimating methods go, it is faster and less expensive.

In practice, estimating processes are frequently classified as

A way to improve estimates on future projects is to collect and archive data on past project estimates and actuals. Creating ___________ for estimating is a way to achieve this goal.

Project costs such as labor and materials are typically classified as ___________ costs.

The salary of the project manager would be an example of what type of cost found in a project?

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

Estimates that are typically based on estimates of elements found in the work breakdown structure are called bottom-up estimates.

As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.

The salary of the project manager and temporary rental space for the project team would be classified as __________ costs.

After averaging out the underestimates and overestimates, a long-duration project is more likely to be on target than a short-term, small project.

The bottom-up method of estimating where work package time and costs for past projects are used as a starting point for a new project and adjustments are made based on differences in the new project is known as the ___________.

Costs that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks are known as ____________ costs.

The top-down method of estimating project time and costs that is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive, is the ______________.

If a project is internal to the company and relatively small, the bottom-up approach to estimating time and costs for the project is the best choice.

List and briefly explain two reasons why estimates may need to be refined.

Typical kinds of costs found in a project include all of the following EXCEPT

Modern Project Management

Organization Strategy and Project Selection

Organization: Structure and Culture

Defining the Project

Developing a Project Schedule

Managing Risk

Scheduling Resources and Costs

Reducing Project Duration

Being an Effective Project Manager

Managing Project Teams

Outsourcing: Managing Interorganizational Relations

Progress and Performance Measurement and Evaluation

Project Closure

Agile Project Management

International Projects

Filters

Exam 5: Estimating Project Times and Costs

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?

Project managers typically use ________, also called analogous estimating or the ______ method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two-to-five years out because, as estimating methods go, it is faster and less expensive.

In practice, estimating processes are frequently classified as

A way to improve estimates on future projects is to collect and archive data on past project estimates and actuals. Creating ___________ for estimating is a way to achieve this goal.

Project costs such as labor and materials are typically classified as ___________ costs.

The salary of the project manager would be an example of what type of cost found in a project?

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

Estimates that are typically based on estimates of elements found in the work breakdown structure are called bottom-up estimates.

As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.

The salary of the project manager and temporary rental space for the project team would be classified as __________ costs.

After averaging out the underestimates and overestimates, a long-duration project is more likely to be on target than a short-term, small project.

The bottom-up method of estimating where work package time and costs for past projects are used as a starting point for a new project and adjustments are made based on differences in the new project is known as the ___________.

Costs that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks are known as ____________ costs.

The top-down method of estimating project time and costs that is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive, is the ______________.

If a project is internal to the company and relatively small, the bottom-up approach to estimating time and costs for the project is the best choice.

List and briefly explain two reasons why estimates may need to be refined.

Typical kinds of costs found in a project include all of the following EXCEPT

Modern Project Management

Organization Strategy and Project Selection

Organization: Structure and Culture

Defining the Project

Developing a Project Schedule

Managing Risk

Scheduling Resources and Costs

Reducing Project Duration

Being an Effective Project Manager

Managing Project Teams

Outsourcing: Managing Interorganizational Relations

Progress and Performance Measurement and Evaluation

Project Closure

Agile Project Management

International Projects

Filters

Project managers typically use __, also called analogous estimating or the method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two-to-five years out because, as estimating methods go, it is faster and less expensive.