FORMULA based questions are more than just ‘solving for the median’ or ‘calculating the earned value’. You will have you solve for an unknown by using mathematical formulas. These questions are quick wins for easy points on your exam. There are numerous PMP exam formulas that you’ll need to know front to back in order to pass the PMP Exam. Understanding them thoroughly down to the importance of each element will give you the decision-making criteria to include or exclude the values in the PMP exam question. They test your understanding of the formulas and your knowledge of their specific applications. You’ll need to know which formula to use and when and how to calculate the result. These questions may come from concepts such as critical path method, PERT, earned value management, etc.

FORMULA based questions Example – 01

You’re working as a project manager for an aircraft parts company. Your team is determining the possible risks in a project for a new type of airline seat. They have identified a possible threat that the new airline seat may not be approved by the FAA, and it has a 50-50 chance this threat will occur. If it does, the cost impact on the project will be $100,000. The team is also identified a threat of a change in technology for the audio systems of the new seat. This threat has a 20% chance of occurring and would cost the project $100,000. What is the total EMV of these threats?

1. $200,000
2. $150,000
3. $100,000
4. $70,000

Explanation: When calculating the expected monetary value (EMV), the formula is EMV = probability X impact. In this case, there is a 50% chance the FAA will not approve the seat, therefore the EMV of this threat is $50,000. The second threat has a 20% chance of occurrence and costs $100,000, so the EMV is $20,000. Adding both of these threats together equals $70,000.

Hence, the answer is “4”.

 FORMULA based questions Example – 02

Sonya is a PM and has set up a meeting with senior management, stakeholders, and the customer. The purpose of the meeting is to demonstrate to all parties the progress and status of the project. She provides the following metrics: PV = $55,300; EV = $49,400; AC = $47,400. Which of the following statements is incorrect?

1. SV = $5,900 and the project is ahead of schedule
2. CPI = 1.04 and the project is under budget
3. SPI = 0.89 and the project is behind schedule
4. CV is $2,000 and the project is under budget

Explanation: In this example, SV is actually -5,900 which shows it is behind schedule. SV = EV-PV (49,400 – 55,300 = -5,900). The CPI = EV/AC (49,400/47,400 = 1.04). The SPI = EV/PV (49,400/55,300 = .89), and CV = EV-AC (49,400 – 47,400 = 2000).

Hence, the answer is “1”.

Here’s how to study for this type with 2 key factors:

Make sure you know the purpose of every component of the formula. Take the time to know each variable and picture how it applies in the real world. Use a relationship chart to form a visual context in your mind where and how schedule, cost, values, budget, and baselines relate. Draw this chart in the same spot on a piece of paper every time you study.

Cement the formulas in your mind. Every time you begin and end a study session, grab two sheets of paper and develop a “brain dump”. In other words, start with 2 or 3 formulas and write them down on the page in a way that makes sense to you. At the end of your study session, grab another page and do the same thing, but add one formula. The next time you study grab 2 other sheets of paper and write down the chart mentioned above and the same formulas, adding new ones, until you can write down everyone on the page.

When the exam day comes you’ll know each component and be so familiar with the formulas, you’ll be able to write them down on two sheets of paper immediately when the exam starts.

Purchase PMP Practice Exams (720 Questions) from UDEMY: Click Here

PMP Certification: Types of Questions 

Refer below for details on the different types of questions you may face in the PMP certification exam.

1. FORMULA based questions
2. SITUATIONAL based questions
3. DEFINITION based questions
4. KNOWLEDGE based questions
5. INTERPRETATIONAL based questions
6. SPECIFIC TECHNIQUE based questions
7. PMBOK GUIDE KNOWLEDGE based questions
8. ITTO (Inputs, Tools, Techniques & Outputs) based questions
9. Professional and Social Responsibility based questions. 
10. Combination questions 

PMP Exam: Click Here