Formulas

Question 1

Budget at completion (BAC) definition

Answer 1

Total cost planned or Total PV

Question 2

Planned Value (PV) definition and what it equals

Answer 2

Def: Value “should” have achieved to do

PV =

Question 3

Earned Value (EV) definition and formula

Answer 3

Def: Value of work completed to date

EV = PV x % completed

Question 4

Actual Cost (AC) definition

Answer 4

Costs incurred to date

Question 5

Cost Variance (CV) definition and formula

Answer 5

Def:
over budget or negative is BAD.
under budget or positive is GOOD.

CV= EV-AC
Cost variance = Earned Value - Actual Cost

Question 6

Schedule Variance (SV) definition and formula

Answer 6

Def:
Behind schedule or negative is BAD.
Ahead of schedule or positive is GOOD.

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

Question 7

Cost Performance Index (CPI) definition and formula

Answer 7

Def:
Getting $____ of every $1 spent.

CPI = EV / AC
Cost Performance Index = Earned Value / Actual Cost

Question 8

Schedule Performance Index (SPI) definition and formula

Answer 8

Def:
Progressing _____% of planned

SPI = EV / PV
Schedule Performance Index = Earned Value / Planned Value

Question 9

Estimate at Complete (EAC) formula for NO CHANGE

Answer 9

NO CHANGE - estimate total to date

EAC = BAC/CPI
Estimate at Complete = Budget at complete / Cost performance index

Question 10

Estimate at Complete (EAC) formula for ATYPICAL

Answer 10

ATYPICAL variance
EAC = AC + (BAC-EV)

Estimate at complete = Actual Cost + (Budget at complete - Earned Value)

Question 11

Estimate at Complete (EAC) definition and formula for FLAWED

Answer 11

FLAWED estimate

EAC = AC + Bottom-up ETC

Question 12

Estimate to Complete (ETC) def and formula

Answer 12

Def:
How much more?

ETC = EAC - AC
Estimate to complete = Estimate at complete - Actual Cost

Question 13

Variance at complete (VAC) def and formula

Answer 13

Def:
Over/under budget at complete

VAC = BAC - EAC
Variance at complete = budget at complete - estimate at complete

Question 14

To-complete performance index (TCPI)

efficiency needed to hit ORIGNAL budget

Answer 14

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

To-complete performance index = (Budget at complete - Earned Value) / (Budget at complete - actual cost)

Question 15

To-complete performance index (TCPI)

efficiency needed to hit NEW budget

Answer 15

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

To-complete performance index = (Budget at complete - Earned Value) / (Estimate at complete - actual cost)

Question 16

PERT Estimate

Def and formula

Answer 16

Def: 3-point (pessimistic, most likely, optimistic)

(P + 4M + O) / 6

Question 17

Standard deviation

Def and formula

Answer 17

Def: % off mean

SD = (P - O) / 6
Standard deviation = (Pessimistic - Optimistic) / 6

Question 18

Communication Channels

Def and formula

Answer 18

N = number of channels/lines

C = N (N-1) / 2

Question 19

Expected Monetary Values (EMV) Def and formula

Answer 19

Def:
Probability and impact

EMV = P x I

Question 20

Rough order of Magnitude estimate (ROM) def and percentage

Answer 20

Accuracy range - high level (initiating)

-25% to + +75%

Question 21

Definitive estimate

Def and percentages

Answer 21

Accuracy range - detailed (planning)

-5% to +10%

Question 22

1 Sigma
2 Sigma
3 Sigma
6 Sigma

Answer 22

+/- 68.26%
+/- 95.46%
+/- 99.73%
+/- 99.99% or 99.99966%