Which of the Following Statements Regarding PERT Analysis Is True

question 77

Multiple Choice

Which of the following statements regarding PERT analysis is true?

• A) Each activity has two estimates of its duration.
• B) Project variance is the sum of all activity variances.
• C) Project standard deviation is the sum of all critical activity standard deviations.
• D) Only critical activities contribute to the project variance.
• E) None of the above is true.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Reference Value

The benchmark or standard against which the performance or value of a product or service is compared.

Extra Value Meal

A marketing offer by fast-food restaurants where a combination of items is sold together at a reduced price, compared to buying each item separately.

Profit Equation

Profit = Total revenue − Total cost; or Profit = (Unit price × Quantity sold) − (Fixed cost + Variable cost).