CAPM (Certified Associate in Project Management) Practice Exam

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How is ETC calculated when past variances are considered atypical?

ETC = AC - EV
ETC = BAC - AC
ETC = BAC - EV
ETC = EV - AC

The correct answer is: ETC = BAC - EV

When past variances are considered atypical, it implies that the project's actual performance is not reflective of what was initially planned. In such situations, it is more appropriate to rely on the original project baseline to estimate the remaining work. Therefore, the correct formula to calculate the Estimate to Complete (ETC) in this scenario is ETC = BAC - EV. Option A (ETC = AC - EV) and Option D (ETC = EV - AC) are incorrect because they are formulas based on current project performance, which would not be suitable when past variances are considered atypical. Option B (ETC = BAC - AC) is also not the correct choice as it does not account for the work that still needs to be completed based on the original project baseline.