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Project Management Professional-Chapter 13b (Answer key)

Chapter 13b: Answer key about COST MANAGEMENT 1. Answer: c Both the cost and accuracy of parametric models vary widely. They are most likely to be reliable when the historical information used to develop the model was accurate, the parameters used in the model are readily quantifiable, and the model is scalable (i.e., it works as well for a very large project as for a very small one). 2. Answer: b An analogous estimate is one that is arrived at by taking a project or part of a project that is already completed and adjusting the cost on the basis. | COST MANAGEMENT 1. Answer c Both the cost and accuracy of parametric models vary widely. They are most likely to be reliable when the historical information used to develop the model was accurate the parameters used in the model are readily quantifiable and the model rclrtk .e. irwortn well fore eery Preeeprojeesa tor a .eryrmall 2. Answer b An anal ieoiis estimate is one that is arrived at by taking a project or part of a project that is already completed and adjusting the cost on the basis of size. 3. Answer c A bottomepestimateisadet ledestimate takin.into cens de arirn a numbea of small estimates and summarizing them to a total for the project or subproject being usrimeled. A top down estimate is usually a less accurate method that krenrfrkearii preraoike of rn. . - or some other estimating method. A 4. Answer c The marnagemcns iarcrvc irmeneyrhat is set aside for dealing with unknown risks. These unknown risks cannot be specifically identified. The risks mentioned inahequestion are identified and therefore no money should be put into the management reserve for them. 5. Answer a The continaennyraserve ismoiiey thaiis set aside for dealing with known risks. These known risks can be specifically identified. The risks mentioned in the question artidentified and therefore money should be put into the contingency r fcs .ts. oe no uaees auagorfo .kei pht.rf k y rlsk hnveaprobablhtyet opiated with th rta . eik.idrtn some chance char the impact will not occur therefore rhe expected value i i j i r should be used. 333 334 Preparing for the Project Management Professional Certification Exam 6. Answer b The cost baseline is the time-phased budget for the project. It is usually shown as the PV curve on the earned value report and is usually shown as a cumulative value oftheproject budget over time. It will usually have a characteristic S shape toir. t contingencytesmvtphth the rnenagsrnem reserve ate adhed y the projecsbudgee andbtynhnetrhen end rbriteymue y retolce edSs .