A project manager is leading a project to build a new office. The project is using a predictive lifecycle. The PM wants to ensure that the project is on track. The PM calculates the Critical Ratio (CR). CR = CPI * SPI. The CR is 1.1. What does this mean?

Answer options:

The project is performing well overall.

The project is in trouble.

The project is exactly on plan.

The project is over budget.

How to approach this question

Critical Ratio = CPI * SPI. >1 Good. <1 Bad.

Full Answer

A.The project is performing well overall.✓ Correct

Task 5 (Budget) and Task 6 (Schedule). Critical Ratio is a composite index. It helps identify if good performance in one area is offsetting bad performance in another, or if both are good.

Common mistakes

Not knowing the CR formula.

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