Hello everyone! Here is this week's free PMP exam sample question from the PM Exam Simulator.
You are managing an amusement park development project. You received the following estimates for site excavation and area development activity, which are critical to the success of your project. The most likely estimate is $100,000, the optimistic estimate is $90,000, and the pessimistic estimate is $120,000. What is the variance of the data?
HINT: Calculate the standard deviation using the PERT method and then calculate the variance from it.
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Answer and Explanation:
The correct answer is A.
The standard deviation can be calculated as (Pessimistic - Optimistic) / 6. Variance can be calculated by squaring the standard deviation. For the given data, the variance is $25,000,000 and the standard deviation is $5,000. Note: Whenever any question asks about weighted average, standard deviation or the variance from given three estimates, always use PERT formulas to calculate the required outcome. This needs to be done even if the question doesn't explicitly tell you to use PERT formulas.