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

EAC = BAC / CPI = $400,000 / 0.75 = $533,333, reflecting that every budgeted dollar is only generating $0.75 of earned value.

Question 2

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

Accepted Answer

Budget at Completion (BAC)

Answer

At 100% completion, all budgeted work has been accomplished, so EV = BAC by definition.

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

A bottom-up re-estimate is appropriate when the original plan is no longer a valid basis for forecasting due to major scope changes or fundamentally flawed assumptions.

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

Re-baselining revises the PMB — the time-phased budget — and typically includes a new BAC, requiring formal change control approval.

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 incorporates all performance data to date, smoothing out one-time events and making it a more stable and reliable basis for EAC forecasting.

EVM Certification Practice Test

EVM Certification Practice Test

EVM Certification Forecasting & Estimates at Completion 3