Suppose You Are Offered the Following Two Prospects, A: (0

question 83

Multiple Choice

Suppose you are offered the following two prospects, a: (0, 1, 0: 3000, 2000, 1000) or b: (1/2, 1/4, 1/4: 3000, 2000, 1000) . You are risk averse if:

• A)b is preferred to a.
• B)you cannot rank the two prospects.
• C)a is preferred to b.
• D)you are indifferent between a and b.

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Definitions:

Pessimistic Time

The maximum possible time that a task or project phase is expected to take, assuming worst-case scenarios.

Optimistic Time

The shortest amount of time in which a task or project phase can realistically be completed, assuming everything proceeds better than is normally expected.

Crash Duration

The minimum time period needed to complete an activity or project phase by allocating the maximum resources.

Crash Cost

The additional costs associated with rushing or compressing a project schedule to complete it in the shortest time possible.