Which value for TCPI indicates the project is under budget?Multiple choice question.0.781.001.78

Break Down the Problem

1. Identify the concept of TCPI (To Complete Performance Index) and its implications for project management.
2. Examine the provided options to determine which indicates that the project is under budget.

Relevant Concepts

TCPI is calculated using the formula:

$TCPI = \frac{BAC - EV}{BAC - AC}$

Where:

• $BAC$ = Budget at Completion
• $EV$ = Earned Value
• $AC$ = Actual Cost

A TCPI value less than 1 indicates that the project is under budget, meaning the remaining work can be completed within the budget.

Analysis and Detail

1. Values:

   • $TCPI < 1$ means the project is under budget.
   • $TCPI = 1$ indicates the project is on budget.
   • $TCPI > 1$ suggests the project is over budget.

2. Evaluating the options:

   • 0.78 (Under budget)
   • 1.00 (On budget)
   • 1.78 (Over budget)

Verify and Summarize

Since a TCPI value less than 1 means that the project is under budget, we can conclude that the best choice is:

Final Answer

0.78 indicates the project is under budget.