Are you studying for the PMP certification?
Skillset can help you prepare! Sign up for your free Skillset account and take the first steps towards your certification.
Skillset can help you prepare! Sign up for your free Skillset account and take the first steps towards your certification.
Fred is currently managing a project that is that is significantly behind schedule, he started to calculate his estimate to completion. The following parameters were used: EAC=$500,000, AC= $750,000, and CPI not expected to be the same for remainder of project. Which is the correct ETC calculation for his project?
ETC=Re-estimate from Bottom up
ETC= (BAC/CPI) -AC
ETC =AC+BAC-EV
ETC =EAC-AC
ETC=(BAC/CPI)-AC is incorrect as BAC/CPI assumes an EAC at same rate for remainder of project which will not be accurate if you are significantly behind on schedule. ETC=AC+BAC-EV is incorrect it is the formula for EAC not ETC. ETC=EAC-AC is incorrect as this formula for ETC assumes work was on plan. ETC=Re-estimate from Bottom up is the correct answer as it shows we need to re-estimate work from bottom up since we are significantly behind. (PMBOK 2013 Rev 5th Edition, pgs 217-225).
Train with Skillset and pass your certification exam. Faster. Guaranteed.
Study thousands of practice questions that organized by skills and ranked by difficulty.
Create a tailored training plan based on the knowledge you already possess.
Know when you’re ready for the high-stakes exam. Have the confidence that you will pass on your first attempt.