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Risk Question

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sshey36
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Risk Question

Postby sshey36 Wed Apr 12, 2017 4:31 am

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VCAB
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Re: Risk Question

Postby VCAB Thu Apr 13, 2017 12:22 pm

The answer would be B

The question provides information as follows
SPI= 1.1
AC= 1,200,000 or 1.2
PV= 1,300,000 or 1.3
and then it ask that we find CPI and CV

First we need to find EV, which can be derived from the using the formula for SPI and solve for EV (since all other components are provided)

SPI= EV/PV
1.1= EV/1.3
1.1 x 1.3= EV
EV= 1,430,000 or 1.43

Then since EV is solved then we use the CPI formula
CPI= EV/AC
1.43/1.2= 1.19

CV= EV-AC
1.43-1.2= 230

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