PTT Week 3 Chat Q's PDF

1\. \*\*What is the primary challenge of estimating early in the project lifecycle?\*\* \- A) The lack of available estimating techniques \- B) High levels of uncertainty due to incomplete information \- C) The abundance of skilled labor to assist with estimates \- D) Inability to create a proje...

1\. \*\*What is the primary challenge of estimating early in the project lifecycle?\*\* \- A) The lack of available estimating techniques \- B) High levels of uncertainty due to incomplete information \- C) The abundance of skilled labor to assist with estimates \- D) Inability to create a project budget baseline \*\*Answer:\*\* B) High levels of uncertainty due to incomplete information 2\. \*\*In cost estimation, what does the \'accuracy trumpet\' depict?\*\* \- A) The increasing variance in project costs as the project progresses \- B) The decreasing range of estimation error as the project planning improves \- C) The maximum cost estimate acceptable for contingency reserves \- D) The allocation of costs to different project phases \*\*Answer:\*\* B) The decreasing range of estimation error as the project planning improves 3\. \*\*Which estimation method is most appropriate when a project scope is well defined and historical data is available?\*\* \- A) Top-down/Analogous Estimating \- B) Parametric Estimating \- C) Three-Point Estimating \- D) Bottom-up Estimating \*\*Answer:\*\* D) Bottom-up Estimating 4\. \*\*What is a key disadvantage of using a \'parametric estimation\' approach?\*\* \- A) It is highly time-consuming and resource-intensive \- B) It relies heavily on historical data, which may not be accurate \- C) It only considers optimistic scenarios \- D) It is limited to use only at the end of the project lifecycle \*\*Answer:\*\* B) It relies heavily on historical data, which may not be accurate 5\. \*\*In the context of estimating, what does \'padding\' refer to?\*\* \- A) Including allowances for additional costs in the estimate \- B) A deliberate underestimation of project costs \- C) Adding unnecessary tasks to inflate the project budget \- D) Using a single cost figure without accounting for variability \*\*Answer:\*\* A) Including allowances for additional costs in the estimate 6\. \*\*The \'Three-Point Estimating\' method uses which formula for the Beta (PERT) estimate?\*\* \- A) (O + P + M) / 3 \- B) (O + 4M + P) / 6 \- C) (O + M) / 2 \- D) (M + P - O) / 4 \*\*Answer:\*\* B) (O + 4M + P) / 6 7\. \*\*When should the \'Rough Order of Magnitude\' (ROM) estimate be used?\*\* \- A) During project execution \- B) In the early project initiation phase \- C) After the project closure \- D) Only when the project scope is finalized \*\*Answer:\*\* B) In the early project initiation phase 8\. \*\*How can the impact of optimistic bias in estimates be minimized?\*\* \- A) By using the most optimistic scenarios for all estimates \- B) By avoiding the use of historical data \- C) Through independent reviews and using Three-Point Estimating \- D) By assigning estimates only to the most optimistic team members \*\*Answer:\*\* C) Through independent reviews and using Three-Point Estimating 9\. \*\*The learning curve effect is most useful when:\*\* \- A) Tasks are performed by inexperienced staff only once \- B) Repeated tasks show a reduction in effort over time \- C) Tasks are complex and performed under different conditions each time \- D) The project requires a high degree of multitasking \*\*Answer:\*\* B) Repeated tasks show a reduction in effort over time 10\. \*\*Which of the following is NOT a typical component of a project cost baseline?\*\* \- A) Direct costs \- B) Contingency reserves \- C) Management reserves \- D) Overhead costs \*\*Answer:\*\* C) Management reserves 1\. \*\*You are tasked with preparing a quick estimate for a project with limited scope definition. The project sponsor needs this estimate within the hour. Which estimation method should you use?\*\* \- A) Bottom-up Estimating \- B) Parametric Estimating \- C) Analogous Estimating \- D) Monte Carlo Simulation \*\*Answer:\*\* C) Analogous Estimating 2\. \*\*Your team has consistently underestimated task durations due to optimism bias. What is the best approach to mitigate this in future estimates?\*\* \- A) Increase the contingency reserve for all tasks \- B) Use Three-Point Estimating to account for uncertainty \- C) Use the most optimistic estimates from historical projects \- D) Assign the tasks to faster team members \*\*Answer:\*\* B) Use Three-Point Estimating to account for uncertainty 3\. \*\*You are preparing a cost estimate for a project that involves complex, repetitive tasks. What method would most likely yield the most accurate estimate?\*\* \- A) Expert Judgment \- B) Learning Curve Analysis \- C) Rough Order of Magnitude (ROM) \- D) Top-down Estimating \*\*Answer:\*\* B) Learning Curve Analysis 4\. \*\*The project sponsor has requested a detailed estimate for a critical deliverable that has a high level of risk and uncertainty. Which estimating technique should you apply?\*\* \- A) Analogous Estimating \- B) Parametric Estimating \- C) Bottom-up Estimating \- D) Expert Judgment \*\*Answer:\*\* C) Bottom-up Estimating 5\. \*\*A stakeholder is concerned that your estimates may be padded. How can you justify your estimates and demonstrate transparency?\*\* \- A) Show the range of estimates using Three-Point Estimating and explain the variance \- B) Increase the estimate to include an extra 10% contingency \- C) Use only historical data to create a single-point estimate \- D) Agree to reduce the estimate to satisfy the stakeholder \*\*Answer:\*\* A) Show the range of estimates using Three-Point Estimating and explain the variance 6\. \*\*You are working with a team member who consistently applies deliberate padding to their estimates due to fear of missing deadlines. What is the best approach to handle this issue?\*\* \- A) Reduce their estimates by 20% to remove the padding \- B) Use a Three-Point Estimating approach to balance optimistic, most likely, and pessimistic estimates \- C) Accept the padded estimates to ensure a buffer for the project \- D) Instruct them to provide single-point estimates without any buffer \*\*Answer:\*\* B) Use a Three-Point Estimating approach to balance optimistic, most likely, and pessimistic estimates 7\. \*\*The project involves tasks that your team has never performed before, and there is limited historical data available. What estimating method should you consider using?\*\* \- A) Parametric Estimating \- B) Analogous Estimating \- C) Expert Judgment \- D) Bottom-up Estimating \*\*Answer:\*\* C) Expert Judgment 8\. \*\*Your team has completed a rough order of magnitude (ROM) estimate early in the project. As the project progresses and more information becomes available, what should you do with the initial estimate?\*\* \- A) Keep the ROM estimate unchanged as a baseline \- B) Refine the estimate using a more detailed estimating method like Bottom-up Estimating \- C) Discard the ROM estimate and start fresh \- D) Add a 10% contingency to the original ROM estimate \*\*Answer:\*\* B) Refine the estimate using a more detailed estimating method like Bottom-up Estimating 9\. \*\*You notice that several tasks in your project have been underestimated due to the \'Student Syndrome.\' What is a practical solution to mitigate this behavior in future estimates?\*\* \- A) Increase the overall project schedule \- B) Implement shorter task durations with regular progress checkpoints \- C) Add more resources to complete the tasks faster \- D) Ignore the issue as it's part of normal project variability \*\*Answer:\*\* B) Implement shorter task durations with regular progress checkpoints 10\. \*\*Your sponsor is concerned about the accuracy of the project's cost estimates, given the volatile market conditions. Which action would best address this concern?\*\* \- A) Apply a fixed percentage increase to all estimates \- B) Use a parametric estimate based on current market data and regularly update it \- C) Shift to a top-down estimating approach for simplicity \- D) Ignore the market conditions as they are beyond control \*\*Answer:\*\* B) Use a parametric estimate based on current market data and regularly update it 11\. \*\*A client has requested an estimate for a project where the scope is vaguely defined and may change. Which estimation method would provide the most flexibility?\*\* \- A) Bottom-up Estimating \- B) Rough Order of Magnitude (ROM) \- C) Three-Point Estimating \- D) Parametric Estimating \*\*Answer:\*\* B) Rough Order of Magnitude (ROM) 12\. \*\*During the estimation process, you discover that several team members are affected by Parkinson's Law. How should you address this issue in your estimates?\*\* \- A) Extend the project timeline to accommodate the extra work time \- B) Set strict deadlines with limited flexibility for early completion \- C) Increase the level of detail in the work breakdown structure (WBS) \- D) Add more resources to speed up the tasks \*\*Answer:\*\* B) Set strict deadlines with limited flexibility for early completion 13\. \*\*A project requires multiple iterations of a complex deliverable, with each iteration expected to become more efficient. Which estimating technique would best account for this learning effect?\*\* \- A) Expert Judgment \- B) Analogous Estimating \- C) Learning Curve Analysis \- D) Parametric Estimating \*\*Answer:\*\* C) Learning Curve Analysis 14\. \*\*Your project involves significant overtime, and you notice an increase in defects and errors. What should be your next step?\*\* \- A) Ignore the defects as they are typical with overtime \- B) Re-evaluate the schedule to reduce the reliance on overtime \- C) Increase overtime hours to catch up on the project timeline \- D) Implement stricter quality control measures \*\*Answer:\*\* B) Re-evaluate the schedule to reduce the reliance on overtime 15\. \*\*A stakeholder demands a highly precise estimate early in the project, but the scope is still unclear. How should you respond?\*\* \- A) Provide a detailed estimate using Bottom-up Estimating \- B) Offer a Rough Order of Magnitude (ROM) estimate and explain its limitations \- C) Agree to provide a highly precise estimate despite the uncertainty \- D) Delay the estimate until the scope is finalized \*\*Answer:\*\* B) Offer a Rough Order of Magnitude (ROM) estimate and explain its limitations 16\. \*\*You have been assigned to estimate a project with several unknown risks. What should you include in your estimates to account for these uncertainties?\*\* \- A) Increase the estimate by a fixed percentage \- B) Include a contingency reserve based on risk analysis \- C) Use only optimistic estimates to reduce costs \- D) Apply a learning curve adjustment \*\*Answer:\*\* B) Include a contingency reserve based on risk analysis 17\. \*\*Your client requests a detailed estimate breakdown for a project using a Three-Point Estimating method. They want to understand the most likely, optimistic, and pessimistic scenarios. What is your next step?\*\* \- A) Provide a single-point estimate for simplicity \- B) Calculate and present estimates for each scenario using (O + 4M + P) / 6 \- C) Use historical data to justify only the most likely estimate \- D) Avoid sharing the pessimistic scenario to maintain client confidence \*\*Answer:\*\* B) Calculate and present estimates for each scenario using (O + 4M + P) / 6 18\. \*\*During a review of your estimates, you identify that some tasks have been influenced by the \'planning fallacy.\' What is a good approach to correct this bias?\*\* \- A) Extend the project schedule by 20% \- B) Use reference class forecasting to adjust the estimates based on historical data \- C) Apply a rough order of magnitude (ROM) estimate instead \- D) Ignore the fallacy as it's part of normal project optimism \*\*Answer:\*\* B) Use reference class forecasting to adjust the estimates based on historical data 19\. \*\*The project sponsor has requested an aggressive timeline that significantly shortens the estimated duration. What is the best approach to handle this request?\*\* \- A) Reduce the quality of deliverables to meet the timeline \- B) Implement schedule compression techniques like crashing or fast-tracking \- C) Extend the timeline to avoid compromising the project \- D) Add more resources regardless of their availability \*\*Answer:\*\* B) Implement schedule compression techniques like crashing or fast-tracking 20\. \*\*You are using a bottom-up estimating approach, but one task has highly uncertain resource requirements. What should you do to improve the accuracy of your estimate?\*\* \- A) Use expert judgment to override the bottom-up estimate \- B) Switch to a top-down estimating method for this task \- C) Incorporate a range of estimates using Three-Point Estimating \- D) Use parametric estimation based on unrelated tasks \*\*Answer:\*\* C) Incorporate a range of estimates using Three-Point Estimating 21\. \*\*A key deliverable in your project has a high degree of variability in its cost due to fluctuating material prices. How can you best manage this in your estimate?\*\* \- A) Apply a fixed price regardless of market conditions \- B) Include an economic price adjustment clause in the estimate \- C) Use a single-point estimate to simplify the process \- D) Increase the contingency reserve without justification \*\*Answer:\*\* B) Include an economic price adjustment clause in the estimate 22\. \*\*A task has been completed faster than estimated, but the project budget remains unchanged. What is a potential consequence of this outcome?\*\* \- A) The project's total cost will decrease \- B) Parkinson's Law may take effect, leading to unnecessary rework \- C) The project will be completed ahead of schedule \- D) The contingency reserves will be released \*\*Answer:\*\* B) Parkinson's Law may take effect, leading to unnecessary rework 23\. \*\*Your estimates are being challenged for being too conservative. What can you do to address these concerns while maintaining a realistic project timeline?\*\* \- A) Reduce the estimates by 10% to appease stakeholders \- B) Present historical data and explain the basis of your estimates \- C) Agree to use optimistic estimates moving forward \- D) Increase the project contingency to cover any shortfall \*\*Answer:\*\* B) Present historical data and explain the basis of your estimates 24\. \*\*You are finalizing a cost estimate for a complex deliverable. The team has provided a range of optimistic and pessimistic values. Which method would help you develop a balanced estimate?\*\* \- A) Analogous Estimating \- B) Three-Point Estimating (Beta distribution) \- C) Parametric Estimating \- D) Rough Order of Magnitude (ROM) \*\*Answer:\*\* B) Three-Point Estimating (Beta distribution) 25\. \*\*You have been asked to provide a final estimate for a deliverable with high uncertainty due to ongoing market fluctuations. How should you approach the estimation to account for this risk?\*\* \- A) Use a single-point estimate based on the most likely scenario \- B) Increase the project budget by a fixed percentage to cover any potential changes \- C) Include a management reserve and apply Monte Carlo simulation for risk analysis \- D) Ignore the fluctuations and use historical cost data for consistency \*\*Answer:\*\* C) Include a management reserve and apply Monte Carlo simulation for risk analysis 11\. \*\*Which estimating technique uses historical project data and adjusts for differences in project size and complexity?\*\* \- A) Bottom-up Estimating \- B) Expert Judgment \- C) Parametric Estimating \- D) Top-down/Analogous Estimating \*\*Answer:\*\* D) Top-down/Analogous Estimating 12\. \*\*The use of a learning curve in estimating assumes that:\*\* \- A) Resources will maintain consistent productivity throughout the project \- B) The time required to complete repetitive tasks will decrease with experience \- C) Estimates are always based on pessimistic scenarios \- D) The accuracy of estimates decreases over time \*\*Answer:\*\* B) The time required to complete repetitive tasks will decrease with experience 13\. \*\*What is a significant risk when relying solely on expert judgment for project estimates?\*\* \- A) Overestimating due to historical data analysis \- B) The introduction of subjective bias and optimistic forecasting \- C) Increased complexity in the estimation process \- D) Lack of flexibility in adjusting the project scope \*\*Answer:\*\* B) The introduction of subjective bias and optimistic forecasting 14\. \*\*When should you use the \'parametric estimating\' method in a project?\*\* \- A) When the project scope is unclear and needs rough estimates \- B) When there is a large dataset available for similar activities \- C) When the team lacks historical data or experience \- D) Only at the final stages of the project \*\*Answer:\*\* B) When there is a large dataset available for similar activities 15\. \*\*Which of the following best describes the relationship between the accuracy of an estimate and the level of project planning completed?\*\* \- A) Accuracy decreases as planning progresses \- B) Accuracy increases with the refinement of the project scope and WBS \- C) Estimates become less reliable as more details are added \- D) Accuracy remains constant throughout the project lifecycle \*\*Answer:\*\* B) Accuracy increases with the refinement of the project scope and WBS 16\. \*\*In which scenario would you prefer a Rough Order of Magnitude (ROM) estimate over a Bottom-up estimate?\*\* \- A) When detailed project requirements are defined \- B) During the initiation phase with minimal information available \- C) In the final stages of the project when costs need to be precise \- D) When developing estimates for individual work packages \*\*Answer:\*\* B) During the initiation phase with minimal information available 17\. \*\*How does Parkinson's Law affect project estimation?\*\* \- A) It encourages early task completion \- B) It leads to inflated estimates as tasks expand to fill the available time \- C) It reduces the overall project duration \- D) It decreases the need for contingency reserves \*\*Answer:\*\* B) It leads to inflated estimates as tasks expand to fill the available time 18\. \*\*What is the main advantage of using Three-Point Estimating with the Beta distribution (PERT)?\*\* \- A) It provides a precise single-point estimate \- B) It reduces the need for contingency reserves \- C) It considers a range of scenarios (optimistic, most likely, pessimistic) \- D) It simplifies the estimation process by eliminating variance \*\*Answer:\*\* C) It considers a range of scenarios (optimistic, most likely, pessimistic) 19\. \*\*Why is it important to document the assumptions used in the estimation process?\*\* \- A) To reduce the project scope \- B) To provide a basis for revising estimates if assumptions change \- C) To increase the overall project budget \- D) To eliminate the need for risk management \*\*Answer:\*\* B) To provide a basis for revising estimates if assumptions change 20\. \*\*Which method is most suitable when estimating costs for a project deliverable that has been repeated multiple times across past projects?\*\* \- A) Rough Order of Magnitude (ROM) \- B) Parametric Estimating \- C) Expert Judgment \- D) Bottom-up Estimating \*\*Answer:\*\* B) Parametric Estimating 21\. \*\*In what situation would a management reserve be applied to a project estimate?\*\* \- A) When all project risks are known and documented \- B) To account for unforeseen changes outside the project scope \- C) To adjust the estimate based on optimistic scenarios \- D) When the contingency reserve has been exhausted \*\*Answer:\*\* B) To account for unforeseen changes outside the project scope 22\. \*\*What is the primary purpose of using a \'basis of estimate\' document?\*\* \- A) To track the project's actual costs against the budget \- B) To provide detailed information on how the estimate was developed \- C) To reduce the project duration \- D) To justify the use of historical data only \*\*Answer:\*\* B) To provide detailed information on how the estimate was developed 23\. \*\*Which of the following is a potential drawback of using a Bottom-up Estimating approach?\*\* \- A) It provides less accurate estimates than top-down methods \- B) It can be time-consuming and require significant resources \- C) It relies heavily on market conditions \- D) It cannot be used for complex projects \*\*Answer:\*\* B) It can be time-consuming and require significant resources 24\. \*\*In the estimation process, what does \'contingency reserve\' specifically cover?\*\* \- A) Costs related to unknown unknowns \- B) Adjustments for inflation \- C) Identified risks with a known probability of occurrence \- D) Bonuses for early task completion \*\*Answer:\*\* C) Identified risks with a known probability of occurrence 25\. \*\*What is the main difference between \'direct costs\' and \'overhead costs\' in project estimating?\*\* \- A) Direct costs are fixed, while overhead costs are variable \- B) Direct costs are tied to specific project tasks, while overhead costs cover general administrative expenses \- C) Overhead costs are always included in the project's contingency reserve \- D) Overhead costs are included in the cost baseline, while direct costs are not \*\*Answer:\*\* B) Direct costs are tied to specific project tasks, while overhead costs cover general administrative expenses