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:

November 45 Call

A type of option contract that gives the holder the right, but not the obligation, to buy a stock or another financial instrument at a specified price (in this case, $45) on or before November's expiration date.

Risk-Free Rate Of Return

The assumed rate of return on an investment that carries no risk, typically illustrated by the return on government securities.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying asset.

Market Value

The total value of a company, measured through the market price of its outstanding shares.