CAPM STUDY GUIDE ANSWERS AND QUESTIONS
SET A+
5 process groups - ✔✔Initiating
Planning
Executing
Monitoring and Controlling
Closing
✔✔ten knowledge areas - ✔✔Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
✔✔total float formula - ✔✔total float = late finish - early finish
✔✔normal distribution - ✔✔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 - ✔✔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) - ✔✔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 - ✔✔mean = (O + 4ML + P)/6
,✔✔standard deviation for beta distribution - ✔✔standard deviation = (P-O)/6
✔✔statistical sums - ✔✔project mean is the sum of the means of the individual tasks.
project standard deviation is the square root of the project variance
✔✔earned value management - ✔✔used to monitor the progress of a project and is an
analytical technique. uses 3 independent values - PV, AC, EV
✔✔planned value (PV) - ✔✔the budget or the portion of the approved cost estimate
planned to be spent during a given period
✔✔actual cost (AC) - ✔✔the total of direct and indirect costs incurred in accomplishing
work during a given period
✔✔earned value (EV) - ✔✔the budget for the work accomplished in a given period
✔✔cost variance (CV) - ✔✔CV = EV - AC
✔✔schedule variance (SV) - ✔✔SV = EV - PV
✔✔cost performance index (CPI) - ✔✔CPI = EV/AC
✔✔schedule performance index (SPI) - ✔✔SPI = EV/PV
✔✔positive CV indicates, negative CV indicates - ✔✔costs are below budget, costs are
overrun
✔✔positive SV indicates, negative SV indicates - ✔✔a project is ahead of schedule, a
project is behind schedule
✔✔CPI greater than 1.0 indicates - ✔✔costs are below budget
✔✔SPI greater than 1.0 indicates - ✔✔project is ahead of schedule
✔✔CPI less than 1.0 indicates - ✔✔costs are over budget
✔✔SPI less than 1.0 indicates - ✔✔a project is behind schedule
✔✔estimate at completion (EAC) - ✔✔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 - ✔✔EAC = AC/new estimate for remaining
work
,✔✔new estimate is most applicable when: - ✔✔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 - ✔✔EAC = AC/(BAC - EV)
✔✔original estimate is most applicable when: - ✔✔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 - ✔✔EAC = AC + (BAC -
EV)/CPI or EAC = BAC/CPI
✔✔performance estimate low formula is most applicable when: - ✔✔future variances
are projected to approximate the same level as current variances
✔✔performance estimate high technique for finding EAC - ✔✔EAC = AC + (BAC - EV) /
(CPI)(SPI)
✔✔performance estimate high formula is most applicable when: - ✔✔the project is over
budget and the schedule impacts the work remaining to be completed
✔✔BAC - ✔✔budget at completion. the total budgeted cost of all approved activities
✔✔ETC - ✔✔estimate to complete - the estimate for completing the remaining work for
a scheduled activity
✔✔ETC when past variances are considered to be atypical - ✔✔ETC = BAC - EV
✔✔ETC when prior variances are considered to be typical of future variances - ✔✔ETC
= (BAC - EV)/CPI
✔✔communications channels - ✔✔channels = (n(n-1))/2. n - number of ppl
✔✔rule of seven - ✔✔if 7 or more observations occur in one direction, or a run of 7
observations occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
✔✔business value - ✔✔the entire value of a business - the total sum of all tangible and
intangible elements
✔✔colocation - ✔✔project team members are physically located close to one another in
order to improve communications, working relations, and productivity
, ✔✔constraint - ✔✔a restriction or limitation that may force a certain course of action or
inaction
✔✔enterprise environmental factors - ✔✔external or internal factors that can influence a
project's success. includes controllable factors such as the tools used in managing
project within the org, or uncontrollable factors that have to be considered by the project
manager such as market conditions or corporate culture
✔✔good practice - ✔✔a specific activity or application of a skill, tool, or technique that
has been proven to contribute positively to the execution of a process
✔✔operations - ✔✔ongoing work performed by ppl, constrained by resources, planned,
executed, monitored, and controlled. unlike a project bc they are repetitive
✔✔organizational process assets - ✔✔any formal or informal processes, plans, policies,
procedures, guidelines, and ongoing or historical project info such as lessons learned,
measurement data, project files, and estimates vs actuals
✔✔portfolio - ✔✔a collection of programs, projects, and additional work managed
together to facilitate the attainment of strategic business goals
✔✔product life cycle - ✔✔the collection of stages that make up the life of a product.
these stages are typically introduction, growth, maturity, and retirement
✔✔program - ✔✔a group of related projects managed in a coordinated way
✔✔progressive elaboration - ✔✔the iterative process of increasing the level of detail in
a project management plan as greater amounts of information and more accurate
estimates become available
✔✔project - ✔✔work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a unique
outcome
✔✔project life cycle - ✔✔the name given to the collection of various phases that make
up a project - make the project easier to control and integrate
✔✔project management - ✔✔the ability to meet project requirements by using various
knowledge, skills, tools, and techniques to accomplish project work
✔✔project management info system - ✔✔collection of tools, methodologies, techniques,
standards, and resources used to manage a project
SET A+
5 process groups - ✔✔Initiating
Planning
Executing
Monitoring and Controlling
Closing
✔✔ten knowledge areas - ✔✔Integration
Scope
Time
Cost
Quality
HR
Communications
Risk
Procurement
Stakeholder management
✔✔total float formula - ✔✔total float = late finish - early finish
✔✔normal distribution - ✔✔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 - ✔✔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) - ✔✔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 - ✔✔mean = (O + 4ML + P)/6
,✔✔standard deviation for beta distribution - ✔✔standard deviation = (P-O)/6
✔✔statistical sums - ✔✔project mean is the sum of the means of the individual tasks.
project standard deviation is the square root of the project variance
✔✔earned value management - ✔✔used to monitor the progress of a project and is an
analytical technique. uses 3 independent values - PV, AC, EV
✔✔planned value (PV) - ✔✔the budget or the portion of the approved cost estimate
planned to be spent during a given period
✔✔actual cost (AC) - ✔✔the total of direct and indirect costs incurred in accomplishing
work during a given period
✔✔earned value (EV) - ✔✔the budget for the work accomplished in a given period
✔✔cost variance (CV) - ✔✔CV = EV - AC
✔✔schedule variance (SV) - ✔✔SV = EV - PV
✔✔cost performance index (CPI) - ✔✔CPI = EV/AC
✔✔schedule performance index (SPI) - ✔✔SPI = EV/PV
✔✔positive CV indicates, negative CV indicates - ✔✔costs are below budget, costs are
overrun
✔✔positive SV indicates, negative SV indicates - ✔✔a project is ahead of schedule, a
project is behind schedule
✔✔CPI greater than 1.0 indicates - ✔✔costs are below budget
✔✔SPI greater than 1.0 indicates - ✔✔project is ahead of schedule
✔✔CPI less than 1.0 indicates - ✔✔costs are over budget
✔✔SPI less than 1.0 indicates - ✔✔a project is behind schedule
✔✔estimate at completion (EAC) - ✔✔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 - ✔✔EAC = AC/new estimate for remaining
work
,✔✔new estimate is most applicable when: - ✔✔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 - ✔✔EAC = AC/(BAC - EV)
✔✔original estimate is most applicable when: - ✔✔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 - ✔✔EAC = AC + (BAC -
EV)/CPI or EAC = BAC/CPI
✔✔performance estimate low formula is most applicable when: - ✔✔future variances
are projected to approximate the same level as current variances
✔✔performance estimate high technique for finding EAC - ✔✔EAC = AC + (BAC - EV) /
(CPI)(SPI)
✔✔performance estimate high formula is most applicable when: - ✔✔the project is over
budget and the schedule impacts the work remaining to be completed
✔✔BAC - ✔✔budget at completion. the total budgeted cost of all approved activities
✔✔ETC - ✔✔estimate to complete - the estimate for completing the remaining work for
a scheduled activity
✔✔ETC when past variances are considered to be atypical - ✔✔ETC = BAC - EV
✔✔ETC when prior variances are considered to be typical of future variances - ✔✔ETC
= (BAC - EV)/CPI
✔✔communications channels - ✔✔channels = (n(n-1))/2. n - number of ppl
✔✔rule of seven - ✔✔if 7 or more observations occur in one direction, or a run of 7
observations occurs either above or below the mean, they should be investigated to
determine if they have an assignable cause.
✔✔business value - ✔✔the entire value of a business - the total sum of all tangible and
intangible elements
✔✔colocation - ✔✔project team members are physically located close to one another in
order to improve communications, working relations, and productivity
, ✔✔constraint - ✔✔a restriction or limitation that may force a certain course of action or
inaction
✔✔enterprise environmental factors - ✔✔external or internal factors that can influence a
project's success. includes controllable factors such as the tools used in managing
project within the org, or uncontrollable factors that have to be considered by the project
manager such as market conditions or corporate culture
✔✔good practice - ✔✔a specific activity or application of a skill, tool, or technique that
has been proven to contribute positively to the execution of a process
✔✔operations - ✔✔ongoing work performed by ppl, constrained by resources, planned,
executed, monitored, and controlled. unlike a project bc they are repetitive
✔✔organizational process assets - ✔✔any formal or informal processes, plans, policies,
procedures, guidelines, and ongoing or historical project info such as lessons learned,
measurement data, project files, and estimates vs actuals
✔✔portfolio - ✔✔a collection of programs, projects, and additional work managed
together to facilitate the attainment of strategic business goals
✔✔product life cycle - ✔✔the collection of stages that make up the life of a product.
these stages are typically introduction, growth, maturity, and retirement
✔✔program - ✔✔a group of related projects managed in a coordinated way
✔✔progressive elaboration - ✔✔the iterative process of increasing the level of detail in
a project management plan as greater amounts of information and more accurate
estimates become available
✔✔project - ✔✔work performed by ppl, constrained by resources, planned, executed,
monitored and controlled. has a definite beginning and end and creates a unique
outcome
✔✔project life cycle - ✔✔the name given to the collection of various phases that make
up a project - make the project easier to control and integrate
✔✔project management - ✔✔the ability to meet project requirements by using various
knowledge, skills, tools, and techniques to accomplish project work
✔✔project management info system - ✔✔collection of tools, methodologies, techniques,
standards, and resources used to manage a project
