PSI Project and Financial Management 2

Question 1

A project manager calculates the Cost Performance Index (CPI) as 0.85. What does this indicate?

Accepted Answer

The project is getting $0.85 in value for every $1 spent

Answer

A CPI of 0.85 means the project is over budget, earning only $0.85 of planned value for each dollar spent.

Question 2

Which scheduling technique uses probabilistic time estimates including optimistic, pessimistic, and most likely durations?

Accepted Answer

Program Evaluation and Review Technique (PERT)

Answer

PERT uses three-point estimates (optimistic, pessimistic, most likely) to account for uncertainty in activity durations.

Question 3

What is the primary purpose of a Work Breakdown Structure (WBS)?

Accepted Answer

To decompose project deliverables into manageable work packages

Answer

A WBS hierarchically decomposes project scope into smaller, manageable deliverables and work packages.

Question 4

A project has a Budget at Completion (BAC) of $200,000, Earned Value (EV) of $80,000, and Actual Cost (AC) of $100,000. What is the Estimate at Completion (EAC) using the CPI?

Accepted Answer

$250,000

Answer

EAC = BAC / CPI = $200,000 / (80,000/100,000) = $200,000 / 0.8 = $250,000.

Question 5

Which type of project dependency exists when one task cannot start until another has finished?

Accepted Answer

Finish-to-Start (FS)

Answer

A Finish-to-Start dependency means the successor activity cannot begin until the predecessor has completed.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI Project and Financial Management 2