EVM Certification Forecasting & Estimates at Completion 3

Question 1

A project has CPI = 0.75 and BAC = $400,000. Using EAC = BAC / CPI, what is the EAC?

Accepted Answer

$533,333

Answer

$480,000

Answer

$510,000

Answer

$400,000

Question 2

At project completion (100% done), Earned Value (EV) should equal which value?

Accepted Answer

Budget at Completion (BAC)

Answer

Actual Cost (AC)

Answer

Planned Value (PV) at the original schedule end date

Answer

Estimate at Completion (EAC)

Question 3

When is a bottom-up re-estimate of ETC most justified in EVM practice?

Accepted Answer

When the original estimate was fundamentally flawed or scope has changed significantly

Answer

When the project CPI has been stable for several reporting periods

Answer

When CPI and SPI are both close to 1.0

Answer

When TCPI falls below 0.90

Question 4

In a formal re-baseline scenario, what primarily changes in the EVM system?

Accepted Answer

The Performance Measurement Baseline (PMB) is revised with a new time-phased budget

Answer

Only the EAC is updated; BAC remains fixed

Answer

Only the project schedule is revised, not the cost baseline

Answer

The TCPI resets to 1.0 automatically

Question 5

Why is cumulative CPI considered a more reliable predictor for EAC than periodic (single-month) CPI?

Accepted Answer

Cumulative CPI averages out short-term fluctuations over the entire project history

Answer

Cumulative CPI uses only the most recent actual costs

Answer

Cumulative CPI is always a higher value than periodic CPI

Answer

Cumulative CPI removes schedule impacts from cost data

Question 6

According to EVM research (e.g., Christensen), at approximately what percentage of project completion does cumulative CPI become highly stable for EAC prediction?

Accepted Answer

20-30% complete

Answer

10-15% complete

Answer

50-60% complete

Answer

75-80% complete

Question 7

A project manager wants to forecast EAC accounting for a known scope increase but trusts the original cost estimating efficiency going forward. Which approach is most appropriate?

Accepted Answer

EAC = AC + New bottom-up ETC for remaining scope

Answer

EAC = BAC / CPI using the original BAC

Answer

EAC = BAC + scope change cost / CPI

Answer

EAC = AC + (BAC - EV) assuming no efficiency loss