What is CPI for "10% under budget" ?
Submitted by pmpopolis on Sun, 01/20/2013 - 17:28
I am told that CPI for "10% under budget" is 1.10 but I am thinking that it is 1.1111...
Conversely, I am thinking tat CPI for "10% over budget" would be 0.9090... and that it would not be 0.90.
In other words, I am thinking that the old "inverse fraction math" is at play here. That is, when we are 10% under budget that means that our cost is at 90% of the budget - in which case we would divide 1 by 0.9 (or 100%/90%) and would end up with a CPI of 1.1111...
What do you think and please explain?
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Mon, 01/21/2013 - 05:10
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10% over budget would mean
10% over budget would mean Actual cost is 110 instead of 100 and CPI should be 100/110 , so yes CPI is 0.909. Just use the given forumlas you should be fine.