Final answer:
When the Cost Performance Index (CPI) is less than 1, it indicates that the project is over budget, thus the project will likely cost more than planned. Assessing this figure helps project managers control expenses and is part of a mathematical model to manage financial performance. Option D is correct.
Step-by-step explanation:
The Cost Performance Index (CPI) is an important metric in project management that indicates the financial efficiency of a project. When the CPI is less than 1, it suggests that the project is costing more than planned for the work being completed, which implies inefficient use of resources or underestimating the true costs. Without a change in the project scope, an inference can be made regarding the potential outcomes based on this situation.
If the CPI is less than 1, it is far less likely than expected to complete the project within the initial budget, hence the project will likely cost more than planned. This mathematical model helps project managers assess financial performance and make appropriate adjustments to control costs. It is also a valuable tool for estimating costs for various approaches and solutions throughout the project life cycle.
Checking the answer to determine if it is reasonable is crucial. Assumptions that are made during the idea generation phase must be validated with actual performance metrics, such as the CPI. Moreover, it serves as a math connection by providing a numeric expression of cost efficiency which is standard practice in engineering and business to analyze the linkage between the science and the cost of implementing a project.