$199

Explanation
The most common formula for EAC is AC + bottom-up ETC. Plugging in the numbers from the question,
you get $138 + $62 = $200.

Question: 2
Correct

You are in charge of a software project and you are almost 40%
complete. The project stakeholders want a performance report to
date. You had planned to use Earned Value Management
methodology. You come up with the following numbers: EV = 100
AC = 300 PV = 150 BAC = 600. You and your team have faced
numerous issues till now. However, you choose to ignore the
current work performance and decide to go with what was
originally planned. Based on this information, what would be the
EAC for the project?

800

200

600

1200

Explanation

PMP Math
 It is stated that the issues experienced in the project were ignored, so the past performance is not
considered and the planned values are considered. So, the formula: EAC = AC + (BAC - EV) = 300 +
(600 - 100) EAC = 800.

Question: 3
Correct

You are managing a project responsible for doing plantation on a

large reserve land. You have created the schedule network
diagram and have identified two paths. Path 1 consists of two
activities of a duration of 2 and 5 weeks, respectively. Path 2
consists of 3 activities with durations of 1, 3, and 3 weeks,
respectively. Which of the two paths is the Critical Path?

Both Paths 1 and 2 are Critical Paths

Neither

Path 2

Path 1

Explanation
The duration of both the paths is 7 weeks. Remember that the path with the longest duration is the critical
path and you can have more than one Critical Path.

Question: 4
Correct

PMP Math
 As a part of the Executive Management team, you have a number
of project managers reporting to you. One of the project
managers has reported the data for their project that has got you
worried regarding the health of the project. EV = $ 300000, PV = $
550000, AC = $ 200000. You are worried since, as per your
calculations, the project is behind schedule. However, the Project
Manager disagrees and feels the project is ahead of schedule.
What is the correct interpretation of the data?

You are correct as the project is behind schedule

The Project Manager is correct as the project is ahead of schedule

Both you and the project manager are correct as interpretation is very subjective

Both you and the project manager are incorrect

Explanation
SPI = EV / PV = 300000/550000 = less than 1. An SPI less than 1 indicates the project is behind
schedule.

Question: 5
Correct

You are responsible for a project with high risks, particularly

during the early phases. Your sponsor has asked for performance

PMP Math
 reports on a monthly basis. At the end of the first month, you
report a CPI greater than 1 and also the SPI greater than 1. What
would this mean?

The project is ahead of schedule and under budget

The project is behind schedule and over budget

The project is ahead of schedule but over budget

The project is behind schedule but under budget

Explanation
SPI greater than 1 indicates the project is ahead of schedule, while a value less than 1 indicates the
project is behind schedule. CPI value greater than 1 indicates project is under budget, while a value less
than 1 indicates the project is over budget.

Question: 6
Correct

You are in the process of making a cost estimate for a large

prestigious project. You decide to use the Three-Point Estimation
technique with Triangular Distribution. Based on your analysis
and understanding, you are confident that the project would be
completed with a total cost of $108,000. You also estimate that a
best-case estimate would be $90000, while a worst-case scenario
would result in the costs incurred to shoot up to $138000. What

PMP Math
 would the Three-point Cost estimate be using Triangular
Distribution?

$112000

$110000

$28000

$113000

Explanation
The question states the use of Three point estimate using triangular distribution. The formula for this
estimation technique is a + b + c /3, where a = Most Likely estimate, b = Estimate based on analysis of
the Best-case scenario, and c = Estimate based on analysis of the Worst-case scenario. So, the Three-
point estimate using Triangular distribution is 108000 + 90000 + 138000 / 3 = 336000/3 = $ 112000.

Question: 7
Correct

An activity has an Early Start (ES) of 5 days and Late Start (LS) of
16 days. What is the activity's float?

11 days

21 days

PMP Math
 Question: 9
Correct

You have been assigned as a project manager for a project

expected to last five months. The project has a budget of
$450,000 and should be implemented in three different
departments in your organization. While reviewing the status of
the project after two months, you find that the project is 35
percent complete. Which of the following statements is TRUE
about your project?

Your project is behind schedule

Your project is on schedule

Your project is ahead of schedule

You cannot determine if your project is behind or ahead of schedule from the information
given.

Explanation
The project is 5 months long, so you are scheduled to complete 20 percent of the work every month. We
know PV=BAC*planned % complete After two months, the planned value (PV) should be $450,000*40%
= $180,000 We know EV=BAC*actual % complete After two months, you completed 35% of the work, so
the earned value (EV) is $450,000*35%=$157,500 We know SPI=EV/AC=157,000/180,000=.875

Question: 10
Correct

PMP Math
 You are the project manager overseeing the development of a
new console video game. It has 10 components, and 5 team
members are working on it. There are 15 stakeholders for this
project, and one of the stakeholders is the previous owner of the
company. One of the components is of major concern because it
is a difficult one to implement. You find out that it will take 10
days to complete the component. You also find out that as of now
the CPI=.81, and the SPI=1.2. What should be your main concern
in this project at this time?

Cost

Number of stakeholders in this project

Schedule

The stakeholder who was the previous owner

Explanation
Your SPI is more than 1, which indicates that you are ahead of schedule, but your CPI is less than 1,
which suggests that you are over budget. Cost should be the main concern at this time.

Question: 11
Correct

While reviewing the status of your project, you found that for a

PMP Math
 given time period, your AC is $390,000 and PV is 380,000. Your
have a budget of $900,000 and so far have completed 40 percent
of the work. What should you report to the management about
your project?

The project is behind schedule and over budget

The project is behind schedule and under budget

The project is progressing according to the plan

The project is ahead of schedule and under budget

Explanation
EV= BAC* actual % complete So, EV = 900000*40 percent = $360,00 SV = EV-PV So, SV = 360,000 -
$380,000= -$20000 CV= EV ' AC So, CV = $360,000- $390,000 = -$30000 Since both CV and SV are
negative, you are over budget and behind the schedule. We know EV= BAC * actual % complete So, EV
= 900000 * 40 percent = $360,00 SV= EV-PV So, SV = 360,000 - $380,000= -$20000 CV= EV ' AC So,
CV = $360,000- $390,000 = -$30000 Since both CV and SV are negative, you are over budget and
behind the schedule.

Question: 12
Correct

You are managing a hotel construction project, and you have

asked your project team to calculate the current earned value
metrics to determine the project performance. Your team reports
back that the project's to-complete performance index (TCPI) is

PMP Math
 0.9 based on the budget at completion (BAC). Which of the
following is true regarding your project's current situation as
reflected by this TCPI value?

The project is within budget

The project is over budget

The project is behind schedule

The project is ahead of schedule

Explanation
The to-complete performance index (TCPI) is a measure of the cost performance that is required to be
achieved with the remaining resources in order to meet a specified management goal, expressed as the
ratio of the cost to finish the outstanding work to the remaining budget. A TCPI value equal to 1.0 means
you are right on budget, and as long as you maintain the present cost performance index (CPI), you
should not exceed the project budget. A TCPI value greater than 1.0 means you need to take a stricter
cost management approach or you will exceed your budget at completion (BAC). A TCPI value less than
1.0 indicates you are within your budget and have done an excellent job of managing project costs.

Question: 13
Correct

As a manager, you would like to get the status on the remaining

work with respect to the remaining funds. Which of the following
measures will give you the information?

PMP Math
 To-Complete Performance Index

Earned Value Technique Performance

Variance Analysis

Trend Analysis

Explanation
To-Complete Performance Index (TCPI) is the calculated projection of cost performance that must be
achieved on the remaining work to meet a specified management goal. The formula to calculate TCPI is
Work Remaining (BAC-EV)/Funds Remaining (BAC-AC) or (EAC-AC), where AC is the Actual Cost, EV
is the Earned Value, EAC is Estimate at Completion, and BAC is Budget at Completion.

Question: 14
Correct

You found the following earned value analysis information for a

project that was recently closed-out: SPI = 0.7, CPI = 1.0

The project has been cancelled while it was executed. At that time the project was behind
schedule and on budget.

The project's deliverables have all been finished. The project came in behind schedule but
on budget.

The project's deliverables have all been finished. The project came in ahead of schedule but
on budget.

PMP Math
 The project's deliverables have all been finished. The project came in on schedule but over
budget.

Explanation
When the project is completed all of the planned values will have been earned. so there is no variance (
PV=EV ). In the above scenario the project was recently closed out and SPI =0.7, this means that the
project terminated before finished all deliverables. The project has been canceled while it was executed.
At that time the project was behind schedule and on budget.

Question: 15
Correct

A project was planned to take 5 months. The team is currently 3

months into it and has completed half of the work. Applying
Earned schedule technique, what are the performance data of the
project?

SV: -0.1 months, SPI: 0.83

SV: 1.5 months, SPI: 1.5

SV: -2,5 months, SPI: 0.83

SV: 0.5 months, SPI: 1.83

Explanation
PV=3/5=0.6 & EV=2.5/5= 0.5 So SV=EV-PV= 0.5-0.6=-0.1 && SPI= EV/PV=0.83

PMP Math
 Question: 16
Correct

In the monthly financial report, you see the following information:

CPI =1.1, SPI=.9, PV=$500, SV=-$200. You cannot find the CV so
you need to calculate it. What is the CV?

$41

$300

$450

$409

Explanation
CV=EV-AC. Since these are not given, we need to calculate these. Since EV=SPI*PV,
EV=.9*$500=$450. CPI=EV/AC therefore AC= EV/CPI= $450/1.1 = $409. Now we calculate CV=$450-
$409=$41

Question: 17
Correct

You are managing a project with a budget at completion (BAC)

$70,000. The actual cost to date you have seen is $22,000 and the
earned value is $19,000. You calculate estimate to complete (ETC)
to $75,000 by doing bottom-up sum of all costs. After so many
calculations, what is the estimate at completion (EAC) for the

PMP Math
 project?

$97,000

$145,000

$94,000

$80,500

Explanation
Estimate at Completion , i.e. EAC = AC + bottom-up ETC, EAC = $22,000 + $75,000 = $97,000.

Question: 18
Correct

When collecting cost estimates from your team, a certain member

reported $500 cost estimate for an activity under normal
conditions, $900 under unfavorable, and $400 under favorable
conditions. What is your conclusion about the cost of this
activity?

$550

$600

PMP Math
 $500

$400

Explanation
Using the PERT of 3-point estimate formula expected cost = (O+4xML+P)/6 = (400+4x500+900)/6, we
get $550.

Question: 19
skipped

A private engineering company has bagged a contract to design

and build coaches for the railway ministry. 10 coaches have to be
supplied in 2 months. The total budget is $200,000. Assume that
the design is over and only coach building & budget allocation
has to be done at the same rate over the 2 months. At the end of 1
month, the actual spend was $150,000 and 5 coach were built.
What are the values of SPI and CPI, and what is the status of the
project?

SPI=1, CPI=0.67, on schedule, over budget

SPI=1, CPI=0.67, on schedule, within budget

SPI=0.67, CPI=1, on schedule, over budget

SPI=0.67, CPI=1, on schedule, over budget

PMP Math
 Explanation
CPI = EV/AC = 100000/150000 = 0.67; SPI = EV/PV = 100000/100000 (5 coaches built as per plan)

Question: 20
Correct

You are managing a project with a budget of $20,000. You have

spent $17,000 so far, and the project is 75% complete. After
performing variance analysis, you have determined that the
original project budget is no longer viable, and you were able to
get approval for the new project budget of $25,000. What is the to-
complete cost performance index (TCPI) if you want to complete
your project within the newly approved
budget?

0.625

1.6

1.25

1.667

Explanation
The question is asking about the efficiency that must be maintained to complete the project within the
estimate at
completion (EAC) rather than the original budget at completion (BAC). The formula required
for this calculation is TCPI =
(BAC - EV) / (EAC - AC). The BAC is the initial project budget which is
$20,000. The project's current earned value (EV)
is $15,000, which is calculated by multiplying the actual
percent complete (75% or 0.75) by the BAC ($20,000). The EAC
is the new budget of $25,000, and the
actual cost (AC) is $17,000. Following are the detailed calculations for the correct
answer to this

PMP Math
 question:
BAC = $20,000
EV = 0.75 * $20,000 = $15,000
EAC = $25,000
AC = $17,000
Therefore:
TCPI
= (BAC - EV) / (EAC - AC) = ($20,000 - $15,000) / ($25,000 - $17,000) = $5,000 / $8,000 = 0.625

PMP Math