CAPM Equations

Question 1

Three Point Estimation (aka Triangular distriubtion)

Answer 1

Estimate = (Optimistic + Most Likely + Pessimistic) / 3

Question 2

PERT Estimation Formula

Answer 2

Estimate = (Optimistic + 4*Most Likely + Pessimistic ) / 6

Question 3

Schedule Variance (SV)

Answer 3

SV = EV - PV

SV = schedule variance
EV = earned value
PV = present value

SV < 0 = behind schedule
SV > 0 = ahead of schedule

Question 4

Cost Variance (CV)

Answer 4

CV = EV - AC

CV = cost variance
EV = earned value
AC = actual value

CV < 0 = over budget
CV > 0 = withing budget

Question 5

Variance at Completion (VAC)

Answer 5

VAC = BAC - EAC

VAC = variance at completion
BAC = budget at completion
EAC = estimate at completion

VAC < 0 = over budget
VAC > 0 = within budget

Question 6

Schedule Performance Index (SPI)

Answer 6

SPI = EV/PV

SPI = schedule performance index
EV = earned value
PV = present value

SPI < 1 behind schedule
SPI > 1 = ahead of schedule

Question 7

Cost Performance Index (CPI)

Answer 7

CPI = EV/AC

CPI = cost performance index
EV = earned value
AC = actual value

CPI < 1 = over budget
CPI > 1 = within budget

Question 8

Estimate at Completion (EAC)

Answer 8

EAC = BAC/CPI

Question 9

Estimate to Completion (ETC)

Answer 9

ETC = EAC - AC

Question 10

Planned Value (PV)

Answer 10

PV = planned % complete * BAC

Question 11

Earned Value (EV)

Answer 11

EV = actual % complete * BAC

Question 12

Actual Cost (AC)

Answer 12

No equation
This should be the total amount already spent

Question 13

Budget at Completion (BAC)

Answer 13

No equation
This is the original budget