Project Management PMP Math: Exam Math Explained

Learn how to calculate payback period and conduct cost-benefit analysis to select projects using data-driven decision making by comparing upfront costs, annual benefits, and net benefits.

Learn how net present value and ROI analyze cash flows as project selection tools, discount future money to present value using a 10% rate, and interpret results.

Explore a project selection exercise and learn to compute payback period, cost-benefit, net present value, and return on investment using a 10 percent discount rate on a $300,000 upfront investment.

Learn to perform the forward pass in critical path analysis by building a left-to-right network diagram, calculating early start and finish, and understanding how dependencies converge to determine project timing.

Master the backward pass in critical path analysis by calculating late start and late finish from the forward pass. Apply the late start equals late finish minus duration plus one.

Identify the critical path as the longest project path and calculate total float by comparing late and early starts and finishes through forward and backward passes.

Master critical path analysis through forward and backward passes, calculating early and late starts, total float, and the shortest project duration from network diagrams.

Introduce lag and lead in network analysis, showing how lag adds breaks and lead creates overlap to fast-track the critical path, with forward and backward passes and float concepts.

Explore critical path analysis and the distinction between total float and free float, including early start, early finish, late start, and late finish, via network diagrams.

Learn to establish the schedule baseline from a Gantt chart by assigning plan start and finish dates, and derive the cost baseline for earned value.

Learn how to collect data for earned value analysis and build a cost baseline. Use earned value, planned value, schedule variance, and schedule performance index to forecast progress.

Evaluate cost performance by comparing earned value to actual cost against planned value and schedule variance, and explain CPI equals earned value divided by actual cost.

Explains earned value management equations, including plan value, earned value, and actual cost. Introduces CPI, SPI, and EAC to forecast project completion.

Use a four-sided fence project to demonstrate earned value analysis: compute planned value, earned value, and actual cost, then derive schedule and cost variances, CPI, SPI, and estimate to complete.

Learn earned value analysis (EVA) fundamentals, including earned value, actual cost, planned value, BAC, and EAC, and compute CPI, SPI, and schedule variance to forecast completion and budget.

Explore how to represent uncertainty in projects using probability distributions and historical data, turning risk events into quantified outcomes through charts and contingency planning.

Learn how to compute the expected value (EMV) as a weighted average of outcomes using probability distributions and historical data to quantify risk.

Explains the hockey expected value exercise for Flames vs. Oilers, multiplying outcomes by probabilities and summing to an EV of about 0.58, i.e., half a point on average.

Use a decision tree to apply expected value and probability distributions for making cost-based choices under uncertainty. Compare two airline options to identify the lowest expected cost.

Explore decision trees to compare indoor versus outdoor festival decisions and calculate expected value under weather uncertainty, then apply the newsvendor model to optimize newspaper orders using probability-based profits.

Use Monte Carlo simulation and a random number generator to model a six sided dice, estimate its expected value, and validate results with Excel tools.

Learn Monte Carlo simulation for estimating total project costs using three-point estimates and interpreting the resulting distribution, including most likely and average values.

Explore how simulation analyzes scheduling and the critical path between B and C. Learn three-point estimates, PERT, and probability distributions to assess project duration and risk.

Finish the final wrap-up video by reinforcing PMP exam math concepts, upskilling for certification, and sharing practical terms and tips to apply in future projects.