In Making an Estimate of the Most Pessimistic Time for an Activity

question 136

Multiple Choice

In making an estimate of the most pessimistic time for an activity, a manager deliberately estimates this time too high (i.e., longer than it should be) . What is the result of this action, assuming the beta distribution is being used to make time estimates?

• A) The most likely time for this activity will be larger than it should be.
• B) The variance of the activity will be smaller than it should be.
• C) The beta distribution will be symmetric around its mean.
• D) The expected time for this activity will be larger than it should be.

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Definitions:

Baldwin Properties

A name that could refer to a specific company or properties associated with a name "Baldwin," not a widely recognized legal or real estate term.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Hostile Takeover

The acquisition of a company against the wishes of its management and board of directors by another company or investor.

Supreme Court Of Delaware

The highest court in the U.S. state of Delaware, primarily dealing with appeals on the interpretation of state law.