Question 470
In a predictive project, an earned-value report shows cost efficiency but ignores a slipping regulatory review needed for market launch. An earned-value report for the same project gives EV = $900,000, PV = $1,000,000 and AC = $850,000. What is the schedule performance index (SPI), rounded to two decimal places?
Explanation
Correct Answer
0.90 — SPI = EV / PV = $900,000 / $1,000,000 = 0.90, indicating less work earned than planned at the status date.
Incorrect Answers
0.85 — This is actual cost divided by planned value, not the SPI formula.
1.06 — This approximates EV / AC, a cost performance ratio, not schedule performance.
1.11 — This reverses the SPI calculation and computes PV / EV instead of EV / PV.