CAPM | FROM QUESTION TO PERFECTION| STUDY WITH
CONFIDENCE!
5 process groups Answer: Initiating
Planning
Executing
Monitoring and Controlling
Closing
ten knowledge areas Answer: Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula Answer: total float = late finish - early finish
normal distribution Answer: bell curve - symmetrical distribution - 50% chance of falling
below the mean and 50% chance of falling above the mean (1sigma=68.27%. 2sigma = 95.45%.
3sigma= 99.73%)
triangular distribution Answer: when there are 3 possible values w/ equal probability -
distribution is a triangle. A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) Answer: triangular distribution w/ more weight given to the most
likely estimate (can be asymmetrical). O = optimistic estimate, ML=most likely estimate,
P=pessimistic estimate
mean for a beta distribution Answer: mean = (O + 4ML + P)/6
standard deviation for beta distribution Answer: standard deviation = (P-O)/6
statistical sums Answer: project mean is the sum of the means of the individual tasks. project
standard deviation is the square root of the project variance
APPHIA – Crafted with Care and Precision for Academic Excellence.
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, earned value management Answer: used to monitor the progress of a project and is an analytical
technique. uses 3 independent values - PV, AC, EV
planned value (PV) Answer: the budget or the portion of the approved cost estimate planned to
be spent during a given period
actual cost (AC) Answer: the total of direct and indirect costs incurred in accomplishing work
during a given period
earned value (EV) Answer: the budget for the work accomplished in a given period
cost variance (CV) Answer: CV = EV - AC
schedule variance (SV) Answer: SV = EV - PV
cost performance index (CPI) Answer: CPI = EV/AC
schedule performance index (SPI) Answer: SPI = EV/PV
positive CV indicates, negative CV indicates Answer: costs are below budget, costs are overrun
positive SV indicates, negative SV indicates Answer: a project is ahead of schedule, a project is
behind schedule
CPI greater than 1.0 indicates Answer: costs are below budget
SPI greater than 1.0 indicates Answer: project is ahead of schedule
CPI less than 1.0 indicates Answer: costs are over budget
SPI less than 1.0 indicates Answer: a project is behind schedule
estimate at completion (EAC) Answer: the amount we expect the total project to cost on
completion and as of the "data date" (time now)
new estimate technique for finding EAC Answer: EAC = AC/new estimate for remaining work
new estimate is most applicable when: Answer: the actual performance to date shows that the
original estimates were fundamentally flawed or when they are no longer accurate because of
changes in conditions relating to the project
original estimate technique for finding EAC Answer: EAC = AC/(BAC - EV)
original estimate is most applicable when: Answer: actual variances to date are seen as being
the exception, and the expectations for the future are that the original estimates are more reliable
than the actual work effort efficiency date
performance estimate low technique for finding EAC Answer: EAC = AC + (BAC - EV)/CPI or
EAC = BAC/CPI
performance estimate low formula is most applicable when: Answer: future variances are
projected to approximate the same level as current variances
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
CONFIDENCE!
5 process groups Answer: Initiating
Planning
Executing
Monitoring and Controlling
Closing
ten knowledge areas Answer: Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
total float formula Answer: total float = late finish - early finish
normal distribution Answer: bell curve - symmetrical distribution - 50% chance of falling
below the mean and 50% chance of falling above the mean (1sigma=68.27%. 2sigma = 95.45%.
3sigma= 99.73%)
triangular distribution Answer: when there are 3 possible values w/ equal probability -
distribution is a triangle. A= lowest value, B= highest value, M = most likely value
beta distribution (PERT) Answer: triangular distribution w/ more weight given to the most
likely estimate (can be asymmetrical). O = optimistic estimate, ML=most likely estimate,
P=pessimistic estimate
mean for a beta distribution Answer: mean = (O + 4ML + P)/6
standard deviation for beta distribution Answer: standard deviation = (P-O)/6
statistical sums Answer: project mean is the sum of the means of the individual tasks. project
standard deviation is the square root of the project variance
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
, earned value management Answer: used to monitor the progress of a project and is an analytical
technique. uses 3 independent values - PV, AC, EV
planned value (PV) Answer: the budget or the portion of the approved cost estimate planned to
be spent during a given period
actual cost (AC) Answer: the total of direct and indirect costs incurred in accomplishing work
during a given period
earned value (EV) Answer: the budget for the work accomplished in a given period
cost variance (CV) Answer: CV = EV - AC
schedule variance (SV) Answer: SV = EV - PV
cost performance index (CPI) Answer: CPI = EV/AC
schedule performance index (SPI) Answer: SPI = EV/PV
positive CV indicates, negative CV indicates Answer: costs are below budget, costs are overrun
positive SV indicates, negative SV indicates Answer: a project is ahead of schedule, a project is
behind schedule
CPI greater than 1.0 indicates Answer: costs are below budget
SPI greater than 1.0 indicates Answer: project is ahead of schedule
CPI less than 1.0 indicates Answer: costs are over budget
SPI less than 1.0 indicates Answer: a project is behind schedule
estimate at completion (EAC) Answer: the amount we expect the total project to cost on
completion and as of the "data date" (time now)
new estimate technique for finding EAC Answer: EAC = AC/new estimate for remaining work
new estimate is most applicable when: Answer: the actual performance to date shows that the
original estimates were fundamentally flawed or when they are no longer accurate because of
changes in conditions relating to the project
original estimate technique for finding EAC Answer: EAC = AC/(BAC - EV)
original estimate is most applicable when: Answer: actual variances to date are seen as being
the exception, and the expectations for the future are that the original estimates are more reliable
than the actual work effort efficiency date
performance estimate low technique for finding EAC Answer: EAC = AC + (BAC - EV)/CPI or
EAC = BAC/CPI
performance estimate low formula is most applicable when: Answer: future variances are
projected to approximate the same level as current variances
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
