CAPM Predictive Plan-Based Methodologies Practice Question
A project is in the execution phase. The earned value analysis shows a Cost Performance Index (CPI) of 0.8 and a Schedule Performance Index (SPI) of 0.9. What is the best interpretation of these metrics?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The project is over budget and behind schedule.
A CPI of 0.8 (less than 1) indicates the project is over budget (cost overrun), and an SPI of 0.9 (less than 1) indicates the project is behind schedule. Option B is wrong because it claims the project is under budget, but CPI < 1 means over budget. Option C is wrong because it claims ahead of schedule, but SPI < 1 means behind schedule. Option D is wrong because it claims both under budget and ahead of schedule, which is the opposite of the metrics.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The project is over budget and behind schedule.
Why this is correct
CPI = 0.8 means the project is over budget (cost overrun), SPI = 0.9 means behind schedule.
- ✗
The project is under budget but behind schedule.
Why it's wrong here
CPI < 1 indicates over budget, not under budget.
- ✗
The project is over budget but ahead of schedule.
Why it's wrong here
SPI < 1 indicates behind schedule, not ahead.
- ✗
The project is under budget and ahead of schedule.
Why it's wrong here
CPI < 1 indicates over budget, not under budget; SPI < 1 indicates behind schedule.
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