Formulas

Question 1

PERT Triangular Distribution

Answer 1

Estimated Activity Duration (EAD) = Optimistic + Most Likely + Pessimistic divided by 3

EAD = (O+M+P)/3

Question 2

PERT Beta Distribution

Answer 2

Estimated Activity Duration (EAD) = Optimistic + (4 x Most Likely) + Pessimistic divided by 6

EAD = (O+4M+P)/6

Question 3

Standard Deviation (SD) of Activity

Answer 3

Standard Deviation (SD) = Pessimistic - Optimistic divided by 6

SD = (P-O)/6

Question 4

Variance of an Activity

Answer 4

Variance = Pessimistic - Optimistic divided by 6 squared

[(P - O)/6 ]^2

Question 5

Range of Activity Duration

Answer 5

Range of an Activity Duration=Estimated Activity Duration (EAD) ± Standard Deviation (SD)

Range = EAD ± SD

Question 6

Total Float (how long activity can be delayed before affecting end date)

Answer 6

Total Float = Late Start (LS) - Early Start (ES)
TF = LS - ES

OR
Total Float = Late Finish (LF) - Early Finish (EF)
TF = LF-EF

Question 7

Cost Variance (CV)

Answer 7

Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC)

CV = EV-AC

Question 8

Schedule Variance (SV)

Answer 8

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)

SV = EV-PV

Question 9

Cost Performance Index (CPI)

Answer 9

Cost Performance Index (CPI) = Earned Value divided by Actual Cost

CPI = EV/AC

Question 10

Schedule Performance Index (SPI)

Answer 10

Schedule Performance Index (SPI) = Earned Value (EV) divided by Planned Value (PV)

SPI = EV/PV

Question 11

Budget at Completion (BAC)

Answer 11

BAC includes contingency reserves for activities and defines how much money will be spent during project in total

Question 12

Estimate to Complete (ETC)

Answer 12

Estimate to Complete (ETC) is the estimation of the remaining work

ETC = Estimate at Completion (EAC) - Actual Cost (AC)
ETC = EAC-AC

Question 13

Estimate at Completion (EAC)

Answer 13

@budgeted rate:
Estimate at Completion (EAC) = Actual Cost (AC) + (Budget At Completion (BAC) - Earned Value (EV))
EAC = AC+(BAC-EV)

@same cost performance:
EAC = BAC divided by Cost Performance Index (CPI)
EAC = BAC/CPI
EAC = BAC/(EV/AC)

@rate that considers cost and schedule
EAC = AC + [(BAC-EV)/CPI x Schedule Performance Index (SPI)]
EAC = AC + [(BAC-EV)/(CPISPI)]
EAC = AC + [(BAC-EV)/((EV/AC)(EV/PV))]

Question 14

Variance at Completion (VAC)

Answer 14

Variance at Completion (VAC) = Budget at Completion (BAC) - Estimate at Completion (EAC)

VAC = BAC-EAC

Question 15

To-Complete Performance Index (TCPI)

Answer 15

without EAC Value:
To-Complete Performance Index (TCPI) = Budget at Completion (BAC) - Earned Value (EV) divided by BAC - Actual Cost (AC)
TCPI = (BAC-EV)/(BAC-AC)

With EAC Value:
TCPI = BAC-EV divided by Estimate at Completion (EAC) - AC
TCPI = BAC-EV/EAC-AC

Question 16

Present Value (PV)

Answer 16

Present Value (PV) is the value of a future cash flow

PV = Future Value (FV) divided by 1 + Interest Rate (r) the Number of Periods (N)

PV = FV/(1 + r)^n

Question 17

Number of Communication Channels (NNC)

Answer 17

Number of Communication Channels (NCC) is the number of communication channels based on the number of stakeholders

NCC = Number of Stakeholders (N) times N-1 divided by 2
NCC = N(N-1)/2

Question 18

Expected Monetary Value (EMV)

Answer 18

Expected Monetary Value (EMV) = Probability*Impact

Question 19

Point of Total Assumption

Answer 19

Point of Total Assumption (PTA) is only for FPIF contracts (goal is to stay below this number)
PTA = (Ceiling Price (CP) - Target Price (TP) divided by Buyer’s Sharing Ratio(BSO)) + Target Cost (TC)
PTA = [(CP-TP)/BSO]+TC