Question 1

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

Accepted Answer

A) Capability. 
B) Ease of use. 
C) Flexibility. 
D) Realism. 
A) Capability. 
B) Ease of use. 
C) Flexibility. 
D) Realism.

Question 2

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,building codes,among others,is called:

Accepted Answer

A) Ease of use. 
B) Cost. 
C) Capability. 
D) Flexibility. 
A) Ease of use. 
B) Cost. 
C) Capability. 
D) Flexibility.

Question 3

The ________ step in the process phase for project selection involves ensuring that projects fit in the company's broader strategic goals.

Accepted Answer

A) individual project analysis 
B) screening 
C) prescreening 
D) portfolio selection 
A) individual project analysis 
B) screening 
C) prescreening 
D) portfolio selection

Question 4

The present value of money is lower the further out in the future I expect to spend it.

Accepted Answer

A) True 
 B)False

Question 5

Which statement about the use of the profile model is BEST?

Accepted Answer

A) The profile model requires careful calculation of the percentage risk for each possible project. 
B) The scale used for the profile model can be any two numerical variables that a company deems important. 
C) The efficient frontier in the profile model is where return is 100% (or greater)and risk is 0%. 
D) For a given level of risk,a positive move on the return axes would indicate a superior project. 
A) The profile model requires careful calculation of the percentage risk for each possible project. 
B) The scale used for the profile model can be any two numerical variables that a company deems important. 
C) The efficient frontier in the profile model is where return is 100% (or greater)and risk is 0%. 
D) For a given level of risk,a positive move on the return axes would indicate a superior project.

Question 6

If an organization that currently is managing a vast and well-balanced portfolio of projects decides on a new strategic direction,it will initially face the problem of:

Accepted Answer

A) Scarce resources. 
B) A conservative technical community. 
C) Out-of-sync projects and portfolios. 
D) Unpromising projects. 
A) Scarce resources. 
B) A conservative technical community. 
C) Out-of-sync projects and portfolios. 
D) Unpromising projects.

Question 7

Numeric project selection models,by their very nature,employ objective values.

Accepted Answer

A) True 
 B)False

Question 8

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen? $$\begin{array} { | l | l | l | l | } 
\hline & & \text { Irportance } & \
\text { Project } & \text { Criterin } & \text { Weight } & \text { Score } \
\hline & & & \
\hline & 1 & 1 & 2 \
\hline\text { White } & 2 & 2 & 2 \ 
\hline & 3 & 3 & 3 \
\hline & & & \
\hline & 1 & 1 & 3 \
\hline \text { Pinkman } & 2 & 2 & 3 \
\hline & 3 & 3 & 2 \
\hline & & & \
\hline & 1 & 1 & 3 \
\hline \text { Fring } & 2 & 2 & 2 \
\hline & 3 & 3 & 3 \
\hline & & & \
\hline & 1 & 1 & 3 \
\hline \text { Salamanca } & 2 & 2 & 1 \
\hline & 3 & 3 & 3 \
\hline
\end{array}$$

Accepted Answer

A) Project White 
B) Project Pinkman 
C) Project Fring 
D) Project Salamanca 
A) Project White 
B) Project Pinkman 
C) Project Fring 
D) Project Salamanca

Question 9

The pairwise comparison approach:

Accepted Answer

A) Is a method to split the weights assigned to subcriteria. 
B) Is a method to compare pairs of hierarchies prior to any further analysis. 
C) Is a means of achieving all project objectives within the allocated time frame. 
D) May be used instead of AHP if time is limited. 
A) Is a method to split the weights assigned to subcriteria. 
B) Is a method to compare pairs of hierarchies prior to any further analysis. 
C) Is a means of achieving all project objectives within the allocated time frame. 
D) May be used instead of AHP if time is limited.

Question 10

Personnel costs comprise one of the highest sources of project expense.

Accepted Answer

A) True 
 B)False

Question 11

Once individual analysis is performed on project opportunities,they are assessed against objective company criteria and are determined to either be non-viable or remain as legitimate investment opportunities.

Accepted Answer

A) True 
 B)False

Question 12

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 15% required rate of return and expects a 5% rate of inflation for the following five years.What is the discounted payback of a project that has cash flows as shown in the table? $$\begin{array} { | l | l | } 
\hline \text { Year } & \text { Cash Flow } \
\hline 0 & -\$ 500,000 \
\hline 1 & \$ 50,000 \
\hline 2 & \$ 75,000 \
\hline 3 & \$ 150,000 \
\hline 4 & \$ 150,000 \
\hline 5 & \$ 750,000 \
\hline
\end{array}$$

Accepted Answer

A) 3.9 years 
B) 4.3 years 
C) 4.6 years 
D) 4.1 years 
A) 3.9 years 
B) 4.3 years 
C) 4.6 years 
D) 4.1 years

Question 13

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.Both estimates are correct within a fraction of a percent.We could describe this factoid as:

Accepted Answer

A) Numeric and subjective. 
B) Numeric and objective. 
C) Non-numeric and subjective. 
D) Non-numeric and objective. 
A) Numeric and subjective. 
B) Numeric and objective. 
C) Non-numeric and subjective. 
D) Non-numeric and objective.

Question 14

An internal operating issue in project screening and selection is:

Accepted Answer

A) Expected return on investment. 
B) Change in physical environment. 
C) Patent protection. 
D) The chance that the firm's goodwill will suffer due to the quality of the finished project. 
A) Expected return on investment. 
B) Change in physical environment. 
C) Patent protection. 
D) The chance that the firm's goodwill will suffer due to the quality of the finished project.

Question 15

The most important thing to remember when using project selection models is to be consistent and objective.

Accepted Answer

A) True 
 B)False

Question 16

Which statement regarding project selection and screening criteria is BEST?

Accepted Answer

A) The most complete model in the world is still only a partial reflection of organization reality. 
B) It is possible,given enough time and effort,to identify all relevant issues that play a role in project selection. 
C) Decision models are either objective or subjective. 
D) For many projects,more than 80% of the decision criteria are vital. 
A) The most complete model in the world is still only a partial reflection of organization reality. 
B) It is possible,given enough time and effort,to identify all relevant issues that play a role in project selection. 
C) Decision models are either objective or subjective. 
D) For many projects,more than 80% of the decision criteria are vital.

Question 17

Which of these statements about valuation models is NOT correct?

Accepted Answer

A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. 
B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. 
C) If cash flows are not normal,IRR may arrive at multiple solutions. 
D) IRR is a more robust determinant of project viability than NPV. 
A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. 
B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. 
C) If cash flows are not normal,IRR may arrive at multiple solutions. 
D) IRR is a more robust determinant of project viability than NPV.

Question 18

A proactive project portfolio:

Accepted Answer

A) Is as simple as moving from one project opportunity to another project opportunity. 
B) Is an integrated family of projects with a common strategic goal. 
C) Is a collection of projects under the umbrella of single project manager carrying the title of portfolio manager. 
D) Is developed with respect to short-term operational concerns. 
A) Is as simple as moving from one project opportunity to another project opportunity. 
B) Is an integrated family of projects with a common strategic goal. 
C) Is a collection of projects under the umbrella of single project manager carrying the title of portfolio manager. 
D) Is developed with respect to short-term operational concerns.

Question 19

Which statement regarding project selection is BEST?

Accepted Answer

A) Organizational reality can be perfectly captured by most decision-making models. 
B) Before selecting any project,the team should identify all the relevant issues that play a role in project selection. 
C) Decision models must contain either objective or subjective factors. 
D) Every decision model has both objective and subjective factors. 
A) Organizational reality can be perfectly captured by most decision-making models. 
B) Before selecting any project,the team should identify all the relevant issues that play a role in project selection. 
C) Decision models must contain either objective or subjective factors. 
D) Every decision model has both objective and subjective factors.

Question 20

A principal cause of portfolio underperformance is:

Accepted Answer

A) Conservative technical communities. 
B) Government intervention. 
C) Out-of-sync projects. 
D) Scarce resources. 
A) Conservative technical communities. 
B) Government intervention. 
C) Out-of-sync projects. 
D) Scarce resources.

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,building codes,among others,is called:

The ________ step in the process phase for project selection involves ensuring that projects fit in the company's broader strategic goals.

The present value of money is lower the further out in the future I expect to spend it.

Which statement about the use of the profile model is BEST?

If an organization that currently is managing a vast and well-balanced portfolio of projects decides on a new strategic direction,it will initially face the problem of:

Numeric project selection models,by their very nature,employ objective values.

The pairwise comparison approach:

Personnel costs comprise one of the highest sources of project expense.

Once individual analysis is performed on project opportunities,they are assessed against objective company criteria and are determined to either be non-viable or remain as legitimate investment opportunities.

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.Both estimates are correct within a fraction of a percent.We could describe this factoid as:

An internal operating issue in project screening and selection is:

The most important thing to remember when using project selection models is to be consistent and objective.

Which statement regarding project selection and screening criteria is BEST?

Which of these statements about valuation models is NOT correct?

A proactive project portfolio:

Which statement regarding project selection is BEST?

A principal cause of portfolio underperformance is:

Introduction: Why Project Management

The Organizational Context: Strategy, Structure, and Culture

Leadership and the Project Manager

Scope Management

Project Team Building, Conflict, and Negotiation

Risk Management

Cost Estimation and Budgeting

Project Scheduling: Networks, Duration Estimation, and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 3: Project Selection and Portfolio Management

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,building codes,among others,is called:

The ________ step in the process phase for project selection involves ensuring that projects fit in the company's broader strategic goals.

The present value of money is lower the further out in the future I expect to spend it.

Which statement about the use of the profile model is BEST?

If an organization that currently is managing a vast and well-balanced portfolio of projects decides on a new strategic direction,it will initially face the problem of:

Numeric project selection models,by their very nature,employ objective values.

The pairwise comparison approach:

Personnel costs comprise one of the highest sources of project expense.

Once individual analysis is performed on project opportunities,they are assessed against objective company criteria and are determined to either be non-viable or remain as legitimate investment opportunities.

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.Both estimates are correct within a fraction of a percent.We could describe this factoid as:

An internal operating issue in project screening and selection is:

The most important thing to remember when using project selection models is to be consistent and objective.

Which statement regarding project selection and screening criteria is BEST?

Which of these statements about valuation models is NOT correct?

A proactive project portfolio:

Which statement regarding project selection is BEST?

A principal cause of portfolio underperformance is:

Introduction: Why Project Management

The Organizational Context: Strategy, Structure, and Culture

Leadership and the Project Manager

Scope Management

Project Team Building, Conflict, and Negotiation

Risk Management

Cost Estimation and Budgeting

Project Scheduling: Networks, Duration Estimation, and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters