Which of the Following Is Not a Fundamental, Inherent Weakness

question 18

Multiple Choice

Which of the following is not a fundamental, inherent weakness in the probabilistic approach to PERT?

• A)One may have difficulty in obtaining three reliable time estimates for each activity.
• B)There is the possibility of large variances for non-critical activities.
• C)The assumption that activity times are independent of each other.
• D)The assumption that possible overall project completion times are Beta-distributed.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Compound Interest

Interest that is computed on the original amount of a loan or deposit, incorporating all the interest accumulated from earlier periods.

Annuity Conditions

Terms that specify how an annuity is to be paid out, including timing, the potential for beneficiaries, and the calculation of payments.

Compounded

The process where the value of an investment increases because the earnings on an investment, both capital and interest, earn interest as time passes.