Exam PMI-SP topic 2 question 96 discussion

Actual exam question from PMI's PMI-SP

Question #: 96
Topic #: 2

You are the project manager of the GHY Project. This project is scheduled to last for one year and has a BAC of $4,500,000. You are currently 45 percent complete with this project, though you are upposed to be at your second milestone, which accounts for half of the project completion. There have been some errors in the project, which has caused you to spend $2,073,654. Based on the estimate at completion, what is this project's to-complete performance index?

A. -$108,120
B. 1.02
C. $4,608,120
D. 0.98

Show Suggested Answer

Suggested Answer: D 🗳️
The to-complete performance index when based on the estimate at completion uses the formula (BAC-EV)/(EAC-AC). In this instance, the answer is 0.98, which means the project is likely to reach its performance objectives. To-complete Performance Index (TCPI) is the measured projection of the anticipated performance required to achieve either the BAC or the EA
TCPI indicates the future required cost efficiency needed to achieve a target EAC (Estimate At Complete).Once approved, the EAC supersedes the BAC as the cost performance goal. Any significant difference between TCPI and the CPI needed to meet the EAC should be accounted for by management in their forecast of the final cost. The formula for TCPI is as follows: TCPI = {(BAC-EV)/(BAC-AC)}
Incorrect Answers:
A: -$108,120 is the variance at completion
B: This is the value of TCPI using the BAC approach.
C: This is the estimate at completion for this project.

by Mopar at July 28, 2020, 12:36 a.m.