Formulas

Question 1

PERT

Answer 1

Aka beta distribution or weighted average
O+(4 x R)+P/6 = PERT

Question 2

Standard Deviation

Answer 2

P - O/6

Question 3

Cost Variance

Answer 3

CV = EV - AC

Question 4

Schedule Variance

Answer 4

SV = EV - PV

Question 5

Cost Performance Index

Answer 5

CPI = EV / AC

Question 6

Schedule Performance Index

Answer 6

SPI = EV/PV

Question 7

Estimate at Completion

Answer 7

EAC = Budget at Completion/CPI

Question 8

Estimate to Complete

Answer 8

ETC = EAC - AC

Question 9

Variance at Completion

Answer 9

VAC = BAC - EAC

Question 10

To Complete Performance Index

Answer 10

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

Question 11

Present Value Formula

Answer 11

PV = FV/(1+R)n

Question 12

Communication Channels

Answer 12

N(N-1)/2

Question 13

Expected Monetary Value

Answer 13

EMV = Probability / MV of impact

Question 14

Point of Total Assumption

Answer 14

PTA = ((Ceiling Price - Target Price)/Buyers Share) +Target Cost

Question 15

Future Value

Answer 15

FV = PV x (1+R)n

Question 16

Net Present Value

Answer 16

(CF1/(1+r)) x (CF2/(1+r)) - Investment

Question 17

Early Finish

Answer 17

Early finish/EF = earliest start + duration – 1

Question 18

Late Start

Answer 18

Late Start/LS = LF – duration + 1.

Question 19

Standard depreciation

Answer 19

(cost of assets – scrap value)/useful life

Question 20

BAC

Answer 20

BAC = estimated cost + contingency reserves + management reserves.

Question 21

Planned Value

Answer 21

PV = % of work completed x BAC

Question 22

Earned Value

Answer 22

EV = % of work completed x BAC

Question 23

Expected Present Value

Answer 23

EPV = Probability of PV x PV

Question 24

Rolled Throughput yield

Answer 24

RTY = Y1 x Y2 x Y3 x….

Question 25

Activity duration

Answer 25

Work = duration/days x units/hours

Question 26

Safety margin

Answer 26

1/2 way between average and worst

Question 27

Ceiling Price

Answer 27

Ceiling Price is: (Target Cost + Buyer’s Share of the cost overruns + Seller’s Target Profit or Fixed Fee).

Question 28

Target Price

Answer 28

Target Price will be: (Target Cost + Seller’s Target Profit or Fixed Fee)

Question 29

Cost Overrun

Answer 29

Cost Overrun = Actual Cost – Target Cost

Question 30

Buyer’s share of cost overrun

Answer 30

Buyer’s share of Cost overrun = Buyer’s ratio x cost overrun

Question 31

Seller’s share of cost overrun

Answer 31

Seller’s share of Cost overrun = seller’s ratio x cost overrun

Question 32

Payback period

Answer 32

Investment / periodic cash flow

Question 33

Finding slack for a single activity not on the critical path

Answer 33

Critical path days – activity path days = slack for the activity.

Question 34

Return on Investment

Answer 34

ROI = Financial value - project cost / project cost x 100

Question 35

Total Float

Answer 35

Using any activity not on the critical path. Late finish date - Early finish date

OR

Sum of critical path days - sum of non critical path days

Question 36

Free float

Answer 36

For a single task: ES of the successor activity - EF of the current activity - 1

Question 37

burn rate

Answer 37

Actual Cost/ Earned Value

Question 38

Probability of occurrence

Answer 38

Prob of Oc = # of favorable events that can occur / # of total events that can occur

Question 39

triangular distribution in 3 point estimating

Answer 39

Aka simple averages.
= O+P+R / 6

Question 40

Throughput yield

Answer 40

of quality products / total # of products