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:

Long Run

A time period in economics during which all inputs or factors of production can be varied, and no costs are fixed.

Expenditures

Money spent on goods, services, or other expenses by individuals, businesses, or governments.

Long Run Cost Curve

A graphical representation that shows the minimum cost at which any given level of output can be produced in the long term, once all inputs are variable.

Expansion Path

A line that shows the combination of inputs that a firm will use to maximize output for any given level of total cost.