CPSM CSPM Time, Cost & Resource Management 2 — Questions and Answers
Question 1: A project manager finds that the Schedule Performance Index (SPI) is 0.85. What does this indicate?
- The project is 15% under budget
- The project is progressing at 85% of the planned rate (Correct answer)
- The project has completed 85% of its scope
- The project will finish 15% early
Correct answer: The project is progressing at 85% of the planned rate
An SPI of 0.85 means the project is only accomplishing 85 cents worth of planned work for every dollar of scheduled work, indicating it is behind schedule.
Question 2: Which resource leveling technique adjusts the project schedule to accommodate resource constraints without changing the project end date when possible?
- Resource smoothing (Correct answer)
- Fast tracking
- Crashing
- Critical path compression
Correct answer: Resource smoothing
Resource smoothing adjusts activities within their float to balance resource demand without extending the project finish date.
Question 3: In Earned Value Management, what formula calculates the Estimate to Complete (ETC) when current variances are expected to continue?
- ETC = BAC – EV
- ETC = (BAC – EV) / CPI (Correct answer)
- ETC = AC + BAC – EV
- ETC = EAC – AC
Correct answer: ETC = (BAC – EV) / CPI
When current CPI variances are expected to persist, ETC = (BAC – EV) / CPI, reflecting the adjusted cost efficiency for remaining work.
Question 4: A project has a Total Float of zero on the critical path. If a critical task is delayed by 3 days, what is the impact on the project finish date?
- No impact because other tasks can absorb the delay
- The project finish date is delayed by 3 days (Correct answer)
- The project finish date is delayed by less than 3 days due to compression opportunities
- The delay affects only the task's free float
Correct answer: The project finish date is delayed by 3 days
A delay on a critical path task with zero float directly shifts the project finish date by the same duration.
Question 5: What is the primary purpose of a resource histogram in project management?
- To show task dependencies across the schedule
- To display resource usage over time to identify over-allocation (Correct answer)
- To track earned value against planned value
- To map resources to WBS work packages
Correct answer: To display resource usage over time to identify over-allocation
A resource histogram visually shows resource demand over time, making over-allocation or under-utilization easy to identify.
Question 6: A project manager is using three-point estimating with optimistic = 4 days, pessimistic = 16 days, and most likely = 7 days. What is the PERT estimate?
- 9 days
- 8 days (Correct answer)
- 7.5 days
- 9.5 days
Correct answer: 8 days
PERT = (O + 4M + P) / 6 = (4 + 28 + 16) / 6 = 48 / 6 = 8 days.
Question 7: Which cost estimation technique relies on statistical relationships between historical data and project variables?
- Analogous estimating
- Parametric estimating (Correct answer)
- Bottom-up estimating
- Expert judgment
Correct answer: Parametric estimating
Parametric estimating uses statistical models derived from historical data to calculate cost or duration based on project parameters.
CPSM CSPM Time, Cost & Resource Management 2
A project manager finds that the Schedule Performance Index (SPI) is 0.85.
What does this indicate?