PMstudy free mock question query

Submitted by amber on Wed, 02/20/2013 - 18:55

 For below qyestion on what basis it is assumed that EAC formula qiven in solution will be applied as question does not states that  current variances are typical. Please advise.

You are working on a 12 month assignment to build a website with 4000 pages for $ 1,000,000. You are supposed to spend $ 250,000 every 3 months. After 6 months, you determine that only $ 400,000 of work is completed and cost incurred is $ 800,000. What is the ETC?
 
 
  Choice 1 $ 2,000,000
 
  Choice 2 $ 1,500,000
 
  Choice 3 $ 1,000,000
 
  Choice 4 1,200,000
 
 
  Correct Choice : 4
 
  Justification : 
 
  The default value of EAC (assuming current variances are typical) is calculated as below: EAC= AC + (BAC-EV)/CPI = $800,000 + ($ 1,000,000 - $ 400,000)/($ 400,000 / $ 800,000) = $ 800,000 + ($ 600,000/0.5) = $ 2,000,000 
So, ETC = EAC – AC = $ 2,000,000 - $ 800,000 = $ 1,200,000 

 

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sgadewar

Fri, 02/22/2013 - 17:59

Wow this is a PMP Q 

AP

Fri, 02/22/2013 - 18:12

Hi All,


I came across a page in Deep Fried Brain (http://www.deepfriedbrainproject.com/2010/01/solving-estimate-at-completion-puzzle.html).


It says that the formula (for typical variances) EAC = AC+((BAC-EV)/CPI) was from third edition of PMBOK and the current edition has simplified the same formula to EAC = BAC/CPI.


Aplpying the latest formula for the above question,


EAC = 10,00,000/(4,00,000/8,00,000) = 20,00,000


ETC = EAC - AC = 20,00,000-8,00,000 = 12,00,000 - Same answer as above.


Hence I believe that we can use the simplified formula (EAC = BAC/CPI) for typical variances in the exam. Please correct me if I'm wrong.


Regards,


Arun.