Essential Mathematical Formulas for PMP Certification Test
A = B + C
Example
Assume you’re hosting a fundraiser event and your goal is to raise $5,000. However, as the event continues, you begin to compare the actual cash gathered to your earlier estimate.
Let’s dissect it:
– Funds expected to be raised: $5,000
– Total amount collected: $4,000
The difference between the estimated and actual funds collected is the variance estimate:
[Variance Estimate = Expected Funds – Actual Funds]
In this instance:[Estimated Variance = $5,000 – $4,000 = $1,000]
As a result, the fundraising event’s Variance Estimate is $1,000. It is the gap between what you intended to raise and what you actually raised. A positive variance indicates that you gathered less than expected, whereas a negative variance indicates that you collected more than expected. This estimation assists project managers in understanding and tracking variations from their initial plans, allowing them to make revisions or corrective steps as needed.
