A Project Being Analyzed by PERT Has 50 Activities, 12

question 115

Multiple Choice

A project being analyzed by PERT has 50 activities, 12 of which are on the critical path. If the estimated time along the critical path is 176 days with a project variance of 144, the probability that the project will take 194 days or less to complete is

• A) near zero.
• B) 0.0126.
• C) 0.0668.
• D) 0.9332.
• E) 2.00.

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Definitions:

Cash Break-even

Cash break-even is the point at which a business generates just enough revenue to cover its cash outflows, without making a profit or loss.

Financial Break-even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, decay, or decline in value.

Contribution Margin

The portion of sales revenue that exceeds variable costs, contributing towards covering fixed costs and generating profit.