A Company Wants to Use PERT to Manage a Project

question 17

Multiple Choice

A company wants to use PERT to manage a project. They have developed the following spreadsheet for the problem. If The Risk Solver Platform (RSP) is used, what formula should go in cell F3 of the spreadsheet to compute the Activity Time when simulating a PERT analysis?

• A) =IF(E3  (C3-E3)/(D3-B3),D3-SQRT((D3-B3)*(D3-C3)*(1-E3)),B3+SQRT((D3-E3)*(C3-B3)*E3))
• B) =IF(E3  (D3-B3)/(C3-E3),B3+SQRT((D3-E3)*(C3-B3)*E3),D3-SQRT((D3-B3)*(D3-C3)*(1-E3)))
• C) =IF(E3  (C3-E3)/(D3-B3),B3-SQRT((D3-E3)*(C3-B3)*E3),D3+SQRT((D3-B3)*(D3-C3)*(1-E3)))
• D) =PsiTriangular(B3,C3,D3)

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Definitions:

Demand Deposits

Bank account balances that can be accessed and withdrawn by the depositor at any time without advance notice.

Money Supply

The complete value of all money resources in an economy during a particular time frame.

Checking Account

A bank account that allows easy access to funds, typically through checks and electronic debits, for everyday transactions.

Newly Received Loan

Funds borrowed for the first time, typically involving an agreement on repayment terms and interest rates.