PMP exam Formulas

Here are some important formulas which you should understand and remember for PMP exam perspective.

1. Present Value=(Future Value)/(1+r)^n

Where r is rate of return.

n is number of time period.

2. Expected Activity Duration(3 point estimate)

triangular distribution- (P+M+O)/3

beta distribution=(P+4M+O)/6

Where P=Pessimistic Estimate

M=Most likely Estimate

O=Optimistic estimate

3. Standard deviation =(P-O)/6

4 Activity Variance =((P-O)/6)^2

5. Range of estimate =Expected Activity Duration(+ - )Standard deviation

6. Point of total Assumption= (ceiling Price-Target Price)/Buyer's Share ratio + target cost

7. Cost Variance (CV)= Earned Value(EV)-Actual cost(AC)

8. Schedule Variance(SV)=Earned Value(EV)- Planed Value(PV)

9. Variance at Completion(VAC)=Budget At Completion(BAC)-Estimate At completion(EAC)

10. Cost Performance Index(CPI)=EV/AC

11.Schedule Performance Index(SPI)=EV/PV

12. Estimate at Completion(EAC)=

i)BAC/CPI - Current Performance will continue.

ii)AC+(BAC-EV)- Future work will be at per plan

iii)AC+Bottom up ETC- Re planning remaining work

iv)AC+(BAC-EV)/(CPI*SPI)- Taking cost and schedule on remaining work.

13. Estimate To Complete(ETC)=

i)Estimate at completion(EAC)- Actual Cost(AC)

ii)Re estimate

14. To complete performance Index(TCPI)=

i)Remaining work/Remaining Cost=(BAC-EV)/(BAC-AC)

ii)Remaining work/New Estimated Remaining cost=(BAC-EV)/(EAC-AC)

15. Expected Monetary Value (EMV)=Probability(P)* Impact(I)

16. Total Float =

i)Late Start(LS)- Early Start(ES)

ii)Late Finish(LF)-Early Finish(EF)

17.Communication Channel =n*(n-1)/2.

Where n is number of stakeholders.