Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

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Prepare for the SSGI Project Management Professional Certification Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready for your certification journey!

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How is Schedule Variance in Dollars calculated?

Earned Value - Actual Cost
Planned Value - Earned Value
Actual Cost - Planned Value
Earned Value - Planned Value

The correct answer is: Planned Value - Earned Value

The calculation of Schedule Variance in Dollars is done using the formula: Earned Value - Planned Value. This formula assesses how much work has actually been completed compared to what was planned at a specific point in time within the project timeline. To break it down further, Earned Value (EV) represents the value of the work actually performed, while Planned Value (PV) indicates the estimated value of the work that was scheduled to be completed by that point in time. By subtracting Planned Value from Earned Value, you can determine if you are ahead of schedule (a positive variance) or behind schedule (a negative variance). This is critical for project managers as it helps in evaluating project performance and guiding decisions about resource allocation and project adjustments to stay on track. The other options do not accurately reflect the calculation of Schedule Variance, as they either incorporate Actual Cost or misplace the relative positions of the values involved.