A Contractor's Project Being Analyzed by PERT Has an Estimated

question 92

Multiple Choice

A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. The probability that the project will take 130 or more days to complete is

• A) 0.1057
• B) 0.1335
• C) 0.8512
• D) 0.8943
• E) 1.29

---

Definitions:

Depreciated Value

The reduced valuation of an asset after accounting for wear and tear, age, or obsolescence.

Market Value

The price at which an asset would trade in a competitive auction setting.

Opportunity Cost

The expense incurred from bypassing the next most favorable choice when a decision is made.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.