Final answer:
The fluctuating CPI values from a seven-month project, sometimes over and under the baseline of 1.0, best represent random variance. This type of variance is characterized as such because there's no consistent trend or specific cause, and it likely results from normal project operations or uncontrollable external factors.
Step-by-step explanation:
The results from calculating the CPI for a seven-month project show variances that fluctuate above and below the baseline of 1.0. These fluctuations indicate that in some months, the project had cost overruns (CPI > 1) while in other months, it was under budget (CPI < 1). Comparing these outcomes with conventional variance types, this pattern is best described as random variance.
Variance in CPI is a term used in project management that illustrates the efficiency of budget usage. A CPI of 1 means the project is exactly on budget, greater than 1 signifies better than expected performance (under budget), and less than 1 indicates over budget. Since the variances here do not show a consistent trend or specific assignable cause, they would not be considered abnormal, special, or controlled variances, but rather random fluctuations that might be due to normal project operations or external factors.