Exam PgMP topic 1 question 60 discussion

Actual exam question from PMI's PgMP

Question #: 60
Topic #: 1

You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent $789,000. The program is supposed to be 35 percent complete but do to some delays you're slightly behind schedule. Based on this information, how many pennies is the program losing per dollar invested in the program work?

A. 17
B. 11
C. 15
D. 14

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Suggested Answer: B 🗳️

by Stu1900 at July 7, 2021, 2:51 p.m.

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07ea001

3 weeks, 6 days ago

Selected Answer: B

To determine "how many pennies the program is losing per dollar invested", we need CPI If CPI = 1, the program is exactly on budget If CPI < 1, the program is over budget (losing dollars) ---> our answer lies in this If CPI > 1, the program is under budget (saving money) So, let us calculate CPI (1) BAC: $2345900 (given) (2) AC (cost): $789000 (given) (3) We need to calculate EV. Since it is "30% complete", EV = 30% of BAC=$703770 (4) Note extra information provided in the question to confuse. "supposed to be 35 percent complete". This info is not needed (5) Calculate CPI, which is EV/AC = 703770/789000= 0.8919 (6) Per dollar we are losing 1 - 0.8919= 0.1080. Since they want how many pennies it will be = 10.80 pennies. Since pennies don't have decimals, round it off to 11. Hence B is the correct answer

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