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NEW QUESTION: 1
Calculate the composite index for the following portfolio having CPI weight = 80% and SPI weight = 20% Larger image
A. 0
B. 1.5
C. 1.1
D. 0.9
Answer: A
Explanation:
Explanation
Composite Index CI = [prioritized NPV] * [(CPI * CPI weight + SPI * SPI weight)] = [NPV / sum(NPVs)] *
[(CPI * CPI weight + SPI * SPI weight)]; when NPV is not present in the calculation, CI = (CPI * CPI weight
+ SPI * SPI weight). The following tables detail the calculation process.
For this example, and given the table in the question, you start by:
Calculating the NPV / sum(NPVs) for each component, in addition to (CPI * CPI weight + SPI * SPI weight) for each component. You will get the first table below.
What you do next is multiply both the calculated columns together for each row to get the composite index of each component to complete the formula previously cited. You will get the second table below.
The portfolio composite index is the summation of the composite indexes of each component; it reflects the overall performance of the portfolio. The composite index is 1 based on the above calculations.
This is a very important question for the exam and it occurs on nearly each and every exam. There is no information on this in the standard. We have included everything you need to know about the composite index and its validation in our QB
NEW QUESTION: 2
In this diagram, which zone(s) represent mixed zoning?
A. Zone 2
B. Zone 3
C. Zone 1
D. Zones 1 and 2
Answer: B
NEW QUESTION: 3
As a project manager, you have to balance three elements that compose the project triangle.
Suppose your customer requests that you add some new requirements to the project when you are halfway through.
If you agree to this request, how would it affect other aspects of the project?
A. Time to complete project will be reduced.
B. Cost of the project will increase.
C. Project scope will decrease.
D. Cost of the project will decrease.
Answer: B
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