RMP Math Guide

PMI-RMP Math Formulas 

All What you need to know to guarantee all math questions in the PMI-RMP exam, Written based on my personal experience .

By Shadi Al-Sha’er , PMP® , RMP® , PRINCE2 Practitioner ®, December,02,2018


For the PMI-RMP exam, you must know how to correctly answer questions with formulas about earned value, communications, procurement, expected monetary value, network diagrams, Contingency Reserves and Decision Tree Analysis. Now it’s the time to revisit the following topics, memorize their formulas for the exam and practice some questions:

  1. Activity Cost & Duration Estimates: Simple Average, Weighted Average, Standard Deviation and activity range of estimate .
  2. Critical Path Method: Early Start, Early Finish, Late Start and Late finish , Float calculations , Critical path determination .
  3. Earned Value Management: Cost and Schedule Variances , Cost and Schedule Performance Indexes , the 4 formulas of Estimate at Completion , Estimate to Complete , To Complete performance Index and Variance at completion .
  4. Numerical Risk Analysis: Expected Monetary Value , Decision Tree analysis , Contingency Reserve Calculations .
  5. Communication Channels : Communication Channels Formula
  6. Contracts Management: Make/Buy Analysis ,

You will see different question models testing your knowledge in the PMI-RMP Math Formulas, Questions that is straightforward questions where you are given values and are expected to apply the correct formula , Questions were you get a set of values and asked to calculate a result. At first these look as if you can simply apply one formula. But as you are applying this first formula you suddenly realize that one value is missing. This missing value must then first be calculated via a second formula , so in such type of questions you need to apply two formulas , In some type of questions you need to invert the formulas , For instance instead of asking “2+8=?” the question would be “2+?=10” and it is your job to invert the formula and calculate “10-2=8 , Specially for the earned value management questions you will be given the result of the formula ( Eg : Cost & Schedule Variance ) and you will be asked “ What does this result mean for the project?” , one of the complex questions you will see for the Estimate at Completion is to select the right formula you need to use in the scenario described in the question , also you will see questions testing your knowledge in the definition of each formula , it’s not only about memorizing the formula were numbers need to be inserted , you need to understand the definition of each formula !

What’s my advise ? Practice , Practice , Practice !

Below am listing the important formulas you need to MEMORIZE for the exam !

Practice Math Questions as much as possible, you can guarantee 10% of the exam questions , expect to see around 10-15 questions only on math formulas .

I have prepared a course on Udemy which was above the students expectations with more than 300 enrolled and a rating of 4.8, it contains 4.5 hours of recorded videos, going through each of the 6 topics and all math formulas included, In this course I will be solving with you 50+ exam questions, I recommend in it to master the mentioned above topics and formulas , you can enroll here for 19.99$ ( Skip the project selection methods section for the PMI-RMP exam ), an additional course about the risk analysis math only can be purchased here for $9.99 only .

 

Topic Term Definition Formulas
Activity cost/duration estimates Simple Average / Triangle Distribution Gives same weight for each of the three points estimates

 

(P+M+O ) / 3

P = Pessimistic

O = Optimistic

M= Most Likely

Weighted / Beta Average Gives stronger consideration to the most likely estimate (P+4M+O) /6

P = Pessimistic

O = Optimistic

M= Most Likely

Standard Deviation (SD) The possible range of the estimate, the greater the range created by the standard deviation calculation , the greater the risk . (P-O)/6

P = Pessimistic

O = Optimistic

  Range of Estimate A range of the estimate starts with EAD-SD and ends with EAD+SD

 

Range of estimate EAD ± SD

EAD : Expected Activity Duration

Critical Path Method Float The amount of time an activity can be delayed without delaying the project end date or project milestone. Float = LS – ES

         = LF – EF

ES : Early Start

EF : Early Finish

LS : Late Start

LF : Late Finish

 

Earned Value Management

 

Cost Variance (CV) Cost difference between planned and actual , target value is 0 , positive is good , Negative is bad = EV – AC

EV : Earned Value

AC : Actual Cost

Schedule Variance (SV) Schedule difference between planned and actual , target value is 0 , positive is good , Negative is bad

 

= EV – PV

EV : Earned Value

PV : Planned Value

Cost Performance Index (CPI) Ratio of planned to actual costs , target value is 1 , greater than one is good , less than 1 is bad

 

= EV/AC

EV : Earned Value

AC : Actual Cost

Schedule Performance Index ( SPI ) Ratio of planned to actual schedule, target value is 1 , greater than one is good , less than 1 is bad

 

= EV/PV

EV : Earned Value

PV : Planned Value

Estimate At Completion (EAC)

 

As of today, How much we expect the total project to cost?

 

 
EAC , Formula 1 This formula calculate the actual costs to date plus a new estimate for the remaining work . It is used when the original estimates assumptions are no longer valid = AC + ETC

AC : Actual Cost

ETC : Estimate To Complete

EAC , Formula 2 This formula is used if there is no variances from BAC .have occurred or you will continue in the same rate of spending. = BAC / CPI

BAC : Budget At Completion

CPI : Cost Performance Index

EAC , Formula 3 This formula calculate the actual costs to date plus remaining budget , it is used when current variances are through to be atypical of the future , It is the actual cost plus the remaining value of work to perform = AC + ( BAC-EV)

AC : Actual Cost

BAC : Budget At Completion

EV : Earned Value

EAC , Formula 4 This formula calculates actual to date plus the remaining budget modified by performance , It’s used when current variances are though to be typical of the future and when the project schedule constraints will influence the completion of the remaining efforts

 

= AC + ( BAC-EV)/(CPI*SPI)

AC : Actual Cost

BAC : Budget At Completion

EV : Earned Value

CPI : Cost Performance Index

SPI : Schedule Performance Index

Estimate To Complete ( ETC) How much more will the project cost?

 

EAC – AC

EAC : Estimate At Completion

AC : Actual Cost

Variance At Completion (VAC) As of today , how much over or under budget do we expect to be at the end of the project

 

 BAC-EAC

BAC : Budget At Completion

EAC : Estimate At Completion

  To Complete Performance Index (TCPI) The Formula divides the work remaining to be done by the money remaining to do it .The only index with below 1 is good , above 1 is bad !! = ( BAC-EV)/(BAC-AC)

BAC : Budget At Completion

AC : Actual Cost

EV : Earned Value

 

Risk Analysis Expected Monetary Value (EMV) While you are evaluation a risk you will look at the probability or impact, but calculating the expected monetary value is a better measure to determine an overall ranking of risk .

 

= P * I

P:  Probability

I: Impact

 

Communication Communication Channels Simple Concept , For each added stakeholder there should be increase in the number of communication channels = N(N-1) / 2

N : Number of Stakeholders

If you are welling to pass the PMI-RMP exam from your first attempt, this is a topic you cannot ignore! as i mentioned earlier, the PMPI-RMP math questions will have a share of around 10-15 questions, you need to memorize and understand all math formulas required, for a comprehensive explanation of the PMI-RMP math concepts and questions, you can enroll for my PMI-RMP detailed math concepts here .

Do not hesitate to contact me for guidance and help preparing for the PMI-RMP exam on info@eliteminds.co



Leave a Reply

Logged in as shadi alsha3er. Log out?