# !2018 – PMI’s PMP_1

EAC practice question:

The project has 105 communication channels in the planning phase; in the execution phase the communication channels increase to 300.  What is the net increase in stakeholders in this project?

A. 5 stakeholders

B. 10 stakeholders

C. 15 stakeholders

D. 20 stakeholders

Explain:

B: (15×14)/2    = 105   (25×24)/2   = 300;
EAC practice question:

BAC: \$ 1,200

EV: \$ 800

AC: \$ 1,400

The EAC for the project is:

A.  \$ 2,100

B. \$ 1,800

C. \$ 2,000

D. \$ 1,900
B. Hope my understanding was correct this time.
1There is a fundamental misconception in this question –
“The EAC” implies there is but one answer. The first word in “EAC” is “Estimate.” There are many ways to calculate estimates. The example would fit the answer choices if asked “Based on performance experienced to date, the EAC for the project is:” To put it in basic terms, the cumulative cost variance is -\$600 (\$800 – \$1,400), or .75 of EV (600/800). If efficiency does not change, the project will overrun budget by 75% of BAC, or \$900 for a final cost of \$2,100. Thus Ron DeJonckheere is correct but only given that assumption about performance. (I could create a formula to support any of those answers, but that’s just creative mathematics, not performance management.)

My experience shows that \$2,100 is the minimum possible EAC because at this stage of completion (2/3 complete) performance trends are well established.
Sorry Jose S. Morales Brunet but Ron DeJonckheere’s question about your source is valid. The “ascending ETC” formula is not logical. Another way to think of it is the remaining PV is \$400. If remaining work is performed at the same cumulative efficiency of .75, AC would be \$700. Added to the \$1,400 AC, the final cost would be \$2,100.
I hope this helps people understand. A very important final point is that formulas are no substitute for management. Think of it this way – you explain to management “If performance continues as we have seen to date, this would be an estimate. However, if it improves to X (or deteriorates to Y) this would be another estimate. That kind of discussion will help to identify and clarify risk and to make better-informed decisions by understanding the range of possible estimates, not a point estimate blindly using a formula.

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Procurement Management practice question:

The Project Manager has to make a decision between buying a computer system or leasing it. The cost of leasing the computer system is \$ 265 per day.  If the computer system is purchased the cost is \$2,750, in addition it has maintenance costs of \$ 15 per day.  How much time is required for leasing to be the best decision you can make in this project?

A. More than 10 days

B. Less than 11 days

C. 12 days or less

D. 13 days or less

CThe 15 per day is on the purchase not the lease.

Formula looks like this:

265x=2750+15x so 265x-15x=2750

250x=2750 so x=2750÷250=11

Solve for x. x=11   or

265* x = 2750 + 15*x,  by rearranging 265x-15x = 2750, therefore 250x = 2750, hence x = 2750/250 = 11 days. It is exactly 11 days, so less than 11 days would be better for leasing.

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Resource Management practice question

You finish the performance evaluation of one of the project team members. When you show the evaluation to the resource manager, she recommends that you lower the level of performance because this person has a reputation of being a type X employee. This is an example of (choose the best answer):
A. Theory of constraints

B.  Halo effect

C.  Autocratic style of leadership

D. Coercive power
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