Most important formulas to memorize for PMP exam

Discussion in 'PMP' started by Randall Cooper, Jan 9, 2015.

  1. Randall Cooper

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    There are so many formulas associated with project management and many covered on the PMI exam. Can you tell me which formulas would be most important to memorize for best results on the exam?
     
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  2. Cora Lucas

    Cora Lucas Member

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    Lots of formulas associated with project management. However, the most important formulas are for Earned Value.
    You should memorize all formulas that concern depreciation, net present value, determining float, risk weighting, decision trees, PERT, CPM, communication and estimate percentages. You should be able to calculate contract costs and quality standard deviation.
     
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  3. Siggy

    Siggy Active Member
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    Check these out:
     

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  4. Praveenkumar E

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    Most important formulas are from Earned Value Management. I would suggest you derive the formulas instead of blindly by-hearting them. This will help you deduce them under pressure situation also (inside prometric center).

    Different types of pricing, PERT, communication channels are other ares where you will get no. of questions in exam.
     
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  5. Miguel Price

    Miguel Price Member

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    Here's a brief summary of the most important formulas to memorize for your PMP exam.

    Variance Calculation
    1. CV = EV – AC
    2. SV = EV – PV
    3. CPI = EV / AC
    4. SPI = EV/PV
    5. VAC = BAC – EAC

    Forecasting
    1. EAC = AC + ETC ( Re-estimating at NORMAL scenarios)
    2. EAC = AC + (BAC-EV) ( Re-estimating at ATYPICAL scenarios)
    3. EAC = BAC/ CPI ( Re-estimating at TYPICAL scenarios)
    4. ETC = EAC – AC

    Three Point Estimation
    1. EV = Optimistic + Pessimistic + {( 4 * Most Likely)/6 }
    2. SD = (Pessimistic – Optimistic )/ 6
    PV = Planned Value
    EV = Earned Values
    AC = Actual Cost
    BAC = Budgeted At Completion
    EAC = Estimate At Completion
    ETC = Estimate To Completion
    CV = Cost Variance
    SV = Schedule Variance
    CPI = Cost Performance Index
    SPI = Schedule Performance Index
    VAC = Variance At Completion
    EV = Expected Value
    SD = Standard Deviation
     
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  6. MukeshShende

    MukeshShende Member
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    One must clearly understand Earned Value and Project Selections Method formulas as there will be questions on it for sure. Siggy and Miguel has already called out.

    On the side not I would like to share my experience...
    Each one of us will have different methods to remember the things. I went old school way to write them at least thousand times 2 months before exam. My plan was to use first 6-8 minutes write them at the start the exam on rough sheet so that I don't have to get distracted middle of exam by trying to remember under time pressure. I am glad it worked wonderfully for me.
     
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