PERT Calculations Typically Include the Duration Variance of Each Activity

question 32

Essay

PERT calculations typically include the duration variance of each activity. What is the purpose of this calculation-what's the role of variances in PERT analysis?

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Definitions:

Shortage

A shortage occurs when the demand for a product exceeds the supply of that product at a specific price.

Price Floor

A government-imposed minimum price charged for a commodity, aimed at preventing prices from falling too low.

Surplus

In economic terms, it refers to the amount by which production, assets, or resources exceed the portion used, often leading to excess supply in markets.

Shortage

A condition where the market's demand for a good or service outstrips its supply.