Equations

Question 1

Present Value

Answer 1

PV = FV/(1+i)^t

FV = Future value
i= interest rate
t= time

Question 2

PERT

Answer 2

Program Evaluation and Review Technique

PERT = (P+4ML+O)/6 P=pessimistic, ML= Most Likely, O=Optimistic

Question 3

One Standard Deviation

Answer 3

1 Standard Deviation = |(P-O)/6|

1 Standard Deviation = |((UCL-LCL)/6)|

Question 4

Variance

Answer 4

Variance = (SD)^2

Question 5

CV

Answer 5

Current value (CV)=EV-AC EV=earned value, AC=actual cost

Question 6

Cost Performance Index (CPI)

Answer 6

CPI=EV/AC

Question 7

Schedule Variance (SV)

Answer 7

SV = EV-PV EV=earned value, PV = planned value

Question 8

Schedule Performance Index (SPI)

Answer 8

SPI= EV/PV

Question 9

Estimate at Completion (EAC): Assume we will continue to spend at the same rate

Answer 9

EAC=BAC/CPI BAC=budget at completion, CPI=cost performance index

Question 10

Estimate to Complete (ETC): Assume we will continue to spend at the same rate

Answer 10

ETC=EAC-AC EAC=estimate at completion, AC=actual cost

Question 11

Variance at Completion (VAC)

Answer 11

VAC=BAC-EAC

Question 12

TCPI: using BAC

Answer 12

TCPI=(BAC-EV)/(BAC-AC)

Question 13

TCPI: using EAC

Answer 13

TCPI=(BAC-EV)/(EAC-AC)

Question 14

Number of communications channels

Answer 14

of channels = (n(n-1))/2

Question 15

Point of Total Assumption (PTA)

Answer 15

PTA= target cost+((ceiling price-target price)/buyer’s share ratio)

Question 16

Estimate at Completion (EAC): Assume the remaining work will be accomplished at the original planned rate

Answer 16

EAC=AC+(BAC-EV)

Question 17

Estimate at Completion (EAC): Assume both CPI and SPI will influence remaining work

Answer 17

EAC=AC+((BAC-EV)/(SPI*CPI))

Question 18

Estimate at Completion (EAC): Assume plan and current spending do not represent future

Answer 18

EAC=AC+bottom-up ETC

Question 19

Estimate to Complete (ETC): Assume need to reestimate

Answer 19

ETC=Bottom-up ETC