In a PERT Network, Non-Critical Activities That Have Little Slack

question 17

Multiple Choice

In a PERT network, non-critical activities that have little slack need to be monitored closely:

• A) because PERT treats all activities as equally important.
• B) because near-critical paths could become critical paths with small delays in these activities.
• C) because slack is undesirable and needs to be eliminated.
• D) because they are causing the entire project to be delayed.
• E) because they have a high risk of not being completed.

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Definitions:

Bond Ratings

A grade given to bonds that indicates their credit quality, with higher ratings suggesting a lower risk of default.

DBRS

A credit rating agency that evaluates the creditworthiness of entities and their issued debt.

Default Risk

The risk associated with the possibility of a borrower failing to make required payments on their debt obligations.

Interest Rate Risk Premium

The compensation investors demand for bearing interest rate risk.