CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM exam with our comprehensive quiz that includes engaging questions, detailed explanations, and ample practice resources to help you succeed.

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The performance estimate low formula is most applicable under what condition?

Future variances are projected to differ significantly from current variances
The project is ahead of schedule
Future variances are projected to approximate the same level as current variances
The project is significantly under budget

The correct answer is: Future variances are projected to approximate the same level as current variances

The performance estimate low formula is most applicable when future variances are projected to approximate the same level as current variances. This formula helps in estimating the lowest possible final project performance based on the current trends and variances. It is used to provide a conservative estimate that takes into account the possibility of variances continuing at their current level. Option A is incorrect because the formula is not based on projecting significant differences in future variances from current variances. Option B is incorrect because being ahead of schedule does not necessarily trigger the use of the performance estimate low formula. Option D is incorrect because the formula is not specifically designed for situations where the project is significantly under budget.