Formulas & Use Definitions

Question 1

Planned Value (PV)

Answer 1

Planned Value = Budgeted cost of work scheduled
PV = BCWS
PV = EV-SV

Question 2

Schedule Variance (SV)

Answer 2

SV = EV-PV

Question 3

Earned Value (EV)

Answer 3

Earned Value (EV) = Budgeted cost of Work Performed
Earned Value = BCWP
EV = Sum of PLANNED value of work completed to date
EV = CV+AC

Question 4

Actual Costs (AC)

Answer 4

Actual Cost (AC) = Actual Cost of Work Performed
AC = ACWP
AC = EV-CV

Question 5

Cost Variance (CV)

Answer 5

CV = EV - AC

Question 6

Estimate At Completion (EAC)

If Original is flawed

Answer 6

EAC = AC + New ETC
AC = Actual costs
New ETC = new estimate to complete

Question 7

Estimate to Complete (ETC)

Answer 7

ETC = EAC - AC

Question 8

Estimate At Completion (EAC) (atypical)
If BAC remains the same
Accepting performance to date, but staying within budget

Answer 8

EAC = AC + BAC - EV

Question 9

Estimate at Complete (EAC) (typical)

if CPI is expected to remain the same to end of project

Answer 9

EAC = BAC/CPI

Question 10

TCPI using BAC (assuming budgeted cost)

Answer 10

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

Question 11

TCPI using EAC (assuming deviation from budget)

Answer 11

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

Question 12

Schedule Performance Index (SPI)

Answer 12

SPI = EV/PV

Question 13

Cost Performance Index (CPI)

Answer 13

CPI = EV/AC

Question 14

Budget at Completion (BAC)

Answer 14

BAC = PV (at project completion) or BAC at point in time = PV

Question 15

Communication Channels

Answer 15

n(n-1)/2

Question 16

EAC assuming varied schedule performance (both SPI and CPI not equal to 1)

Answer 16

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

Question 17

Triangular Distribution (used when triangular estimate or triangular distribution)

Answer 17

E = (O + M + P)/3
O=Optimistic estimate
M= most likely estimate
P=pessimistic estimate

Question 18

PERT Estimation
Beta Distribution (assumes normal distribution)

Answer 18

E = (O + 4M + P)/6
O=Optimistic estimate
M= most likely estimate
P=pessimistic estimate

Question 19

Standard Deviation (Need further definition for Task Variance and Project Standard deviation)

Answer 19

StdDev= (P-O)/6

Std Dev +/- 3 sigma = 99.73% probability

Question 20

Expected Monetary Value (EMV) ???

Answer 20

Sum of (Cost x probability)

Question 21

Total Float

Answer 21

Late Start - Early Start (LS - ES)

Question 22

Early Finish calculated by:

Answer 22

ES + Duration - 1

Question 23

Late Start calculated by:

Answer 23

Late Finish - duration + 1

Question 24

Initial Risk Rating

Answer 24

Probability x Impact

Question 25

Current Risk Rating

Answer 25

CRR= [IRR+(Likelihood of mitigation * impact of mitigation)]/2

Question 26

BAC

Answer 26

BAC = EAC * CPI

Question 27

Point of Total Assumption (PTA)

Answer 27

PTA = [(ceiling price - target price)/Buyer’s share ratio] + target cost

Target price = target cost + profit

Question 28

Net Present Value (NPV)

Answer 28

NPV = Future values / (1+r)^n

Question 29

EV with SV & PV

Answer 29

EV = SV + PV

Question 30

EV with CPI & AC

Answer 30

EV = CPI * AC

Question 31

Budget at Completion (BAC)

Answer 31

The sum of all planned budgets for the work to be performed