Contract Requirements State That a Project Must Be Completed Within

question 85

Multiple Choice

Contract requirements state that a project must be completed within 180 working days, or it will incur penalties for late completion. Analysis of the activity network reveals an estimated project time of 145 working days with a project variance of 400. What is the probability that the project will be completed before the late-payment deadline?

• A) 0.04006
• B) 0.45994
• C) 0.80511
• D) 0.95994
• E) near 1.00000, or almost certain

Understand how correlation affects predictability between variables.

Recognize examples of correlations in real-world contexts.

Understand the importance of sample representativeness in research studies.

Learn the relationship between correlation strength and predictability.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for running day-to-day operations.

Annual Cost Savings

The reduction in expenses that a company achieves within one year through cost-cutting measures or process improvements.

Pretax Return

The income or profit that a company generates before any taxes have been applied.

Discount Factor(s)

A mathematical factor used to calculate the present value of a future amount of money or stream of cash flows.