1) What should the Earned Value Management (EVM) analyst do based on the informa
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Question
1) What should the Earned Value Management (EVM) analyst do based on the information in this trend chart? (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 2.05, August 2.0 September 1.0. Approximate CV values are: May -0.4, June -0.6, July -1.1, August -1.2, September -0.2. Approximate SV values are: May -0.7, June -0.8, July -0.9, August -0.95, September -1.0.)
Explanation / Answer
Answer
One possible course of action open to the analyst is to compute the multiple correlation coefficient of MR with CV and SV. If it is statistically significant, fit a multiple regression of MR on CV and SV. This will help him to predict MR based on CV and SV.
To make it finer, he could first find the partial correlation coefficient of MR and CV eliminating the effect of SV and also the partial correlation coefficient of MR and SV eliminating the effect of CV. Depending on the significance of these he can decide to go for multiple regression.
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