PMP Equations

Question 1

PERT Triangle
EAD =
Estimated Activity Duration

Answer 1

EAD = (𝑂 + 𝑀 + 𝑃)/3
Optimistic (O), Most Likely (M) and Pessimistic (P)
calculate duration, cost, and resource estimates

Question 2

PERT Beta
EAD =
Estimated Activity Duration

Answer 2

EAD=(𝑂+4𝑀+𝑃)/6
Optimistic (O), Most Likely (M) and Pessimistic (P)
calculate duration, cost, and resource estimates

Question 3

PERT Standard deviation

Answer 3

(SD)=(𝑃−𝑂)/6

Question 4

PERT Range of activity duration

Answer 4

Activity Duration = EAD±(SD)

Question 5

Total Float =

Answer 5

time deliverable can be delayed without impacting schedule
=Late Start (LS) – Early Start (ES)
=Late Finish (LF) – Early Finish (EF)

Question 6

EV

Answer 6

Earned Value = value efforts created
=%completed * BAC

Question 7

PV

planned

Answer 7

Planned Value = planned value of work completed.
=Expected % completed * BAC

Question 8

AC

Answer 8

Actual Cost
=cost actually incurred to accomplish work.

Question 9

CV

Answer 9

Cost Variance
=EV-AC
negative CV (<0) = cost overrun
Positive CV (>0) = earned value exceeds actual cost

Question 10

SV

Answer 10

Schedule Variance = how much project is on track in $ (20% instead of a little bit behind)
=EV-PV

Question 11

CPI

Answer 11

Cost Performance Index = ratio of earned value vs actual value
=EV/AC
CPI<1 = project spent more than expected
CPI=1 = on budget
CPI>1 = spent less than expected.

Question 12

SPI

Answer 12

Schedule Performance Index
=EV/PV

Question 13

BAC

Answer 13

Budget at Completion
=Total Activity Cost Estimate + Total contingency cost reserves

Question 14

ETC

Answer 14

Estimate to Completion = amount until project is done
=EAC-AC

Question 15

EAC

Answer 15

Estimate at Completion = estimated total at expense when project is done
=AC+(BAC-EV)
=BAC/CPI
=AC+[(BAC-EV)/(CPIxSPI)]

Question 16

VAC

Answer 16

Variance at Completion = will project finish under, on, over budget?
=BAC-EAC
<0 = exceed budget
>0 = under budget
=0 = on budget

Question 17

TCPI

Answer 17

To-Complete Performance Index = cost to finish remaining work over remaining budget.
=(BAC-EV)/(BAC-AC)
=(BAC-EV)/(EAC-AC)

<1 over budget
=1 on budget
>1 under budget

Question 18

PV
Money

Answer 18

Present Value = Future value / (1+intrest rate)^number of periods
=FV/((1+r)^n)

Question 19

Number of Communication Channels

Answer 19

=N(N-1)/2

Question 20

EMV

Answer 20

Expected Monetary Value
EMV = Probability*Impact

Question 21

PTA

Answer 21

Point of Total Assumption
PTA=((Ceiling Price-Target Price)/buyer’s Sharing Ratio) + Target Cost
if PTA>EAC, seller profits will decrease dollar for dollar