Refer to the Following:
a Firm Is Considering Two Projects

question 15

Multiple Choice

Refer to the following:
A firm is considering two projects, A and B, with the following probability distributions for profit.
$$\begin{array} { c c c } \begin{array} { c } \text { Profit } \\\text { (\$1,000s) }\end{array} & \begin{array} { c } \text { Praject } A \\\text { Probability } ( \% ) \end{array} & \begin{array} { c } \text { Project B} \\\text { Prabability (\%) }\end{array} \\\hline \$ 20 & 10 & 10 \\40 & 15 & 15 \\{ 5 0 } & 50 & { 2 5 } \\{ 8 0 } & 15 & 40 \\100 & 10 & 10\end{array}$$
-The variance of project A is

• A) 7.07
• B) 50
• C) 440
• D) 4,000
• E) 380

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Definitions:

Optimal Assigning

The process of allocating resources, tasks, or personnel in a manner that maximizes efficiency and outcomes and minimizes costs or time.

Process Times

The cumulative duration required to perform all steps in a particular process, from start to completion.

Jobs Sequence

The order in which tasks or jobs are processed in a manufacturing or service operation, influencing efficiency and productivity.

Assignment Problem

A type of optimization problem in which tasks or resources are allocated to agents or locations in the most efficient way.