Given an Activity's Optimistic, Most Likely, and Pessimistic Time Estimates

question 18

Multiple Choice

Given an activity's optimistic, most likely, and pessimistic time estimates of 3, 7, and 11 days respectively, compute the expected time for this activity.

• A)5
• B)6
• C)7
• D)12

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Definitions:

Futures Market

An exchange where participants can engage in the trading of futures contracts that are standardized. These contracts stipulate the buying of certain quantities of a commodity or financial instrument at a fixed price, with delivery arranged for a designated future time.

Spot Prices

The present selling or buying price of an asset available for immediate transfer.

Transaction Costs

The expenses incurred when buying or selling securities, including broker fees and taxes.