A Project Being Analyzed by PERT Has 50 Activities, 12

question 13

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 more to complete is

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

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Definitions:

Economic Profit

The variation between total income and total expenditures, encompassing both direct and indirect costs, within a business.

Competitive Market

A competitive market is one where there are many buyers and sellers, so no single participant has significant power to dictate the price of goods or services.

Long Run

A period of time in which all factors of production and costs are variable, allowing for full adjustment to changes.

Profit-Maximizing Firms

Businesses that operate with the primary goal of maximizing their profit, which is achieved by increasing income while minimizing costs.