Question

What information does this trend chart provide? (IMAGE DESCRIPTION: Sample chart showing monthly management reserve (MR) usage, cost variance (CV), and schedule variance (SV) from May 14 through September 14. Approximate MR values are: May 2.2, June 2.1, July 1.5, August 1.3, September 1.2. Approximate CV values are: May -0.4, June -1.0, July -0.7, August -0.8, September -0.7. Approximate SV values are: May -0.7, June -0.8, July -0.9, August -1.1, September -0.9.) It shows a dramatic increase in the amount of Management Reserve (MR) over time due to the fact that cost performance is so favorable. The chart provides information on trend data that is of no use to EVM analysts because Management Reserve (MR) and cost variances should have no relationship. It shows trends in Management Reserve (MR) usage and cost variances, which can be useful in detecting whether sufficient MR exists given remaining risks and potential misuse of MR to offset cost variances. It shows trends in Management Reserve (MR) usage and cost variances, which can be used to verify the MR is being distributed to offset cost overruns.

Answer 1

It shows a dramatic increase in the amount of Management Reserve (MR) over time due to the fact that cost performance is so favorable.

The chart provides information on trend data that is of no use to EVM analysts because Management Reserve (MR) and cost variances should have no relationship.

It shows trends in Management Reserve (MR) usage and cost variances, which can be useful in detecting whether sufficient MR exists given remaining risks and potential misuse of MR to offset cost variances.

It shows trends in Management Reserve (MR) usage and cost variances, which can be used to detect the proper use of MR to offset cost variances.