A Simple CPM Network Has Five Activities, A, B, C

question 102

Multiple Choice

A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of B and of C. B is an immediate predecessor of D and of E. C is an immediate predecessor of E. Which of the following statements is TRUE?

• A) There are two paths in this network.
• B) There are four paths in this network.
• C) There are five paths in this network.
• D) There are three paths in this network.
• E) There are six paths in this network.

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Definitions:

Elasticity

An economic measure of how sensitive the quantity demanded or supplied of a good or service is to a change in price.

Option Price

The amount per share that an option buyer pays to the seller for the rights granted by an option contract, which can be influenced by factors such as the underlying asset's price, time to expiration, and volatility.

Call-Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Stock Price

The amount at which a share of stock is bought or sold on the market.