Consider the Following Table of Activities That Describes a Project

question 12

Multiple Choice

Consider the following table of activities that describes a project network. Is this network sensitive? Suppose indirect costs are $550 / day. For how many days could you crash this network and still be saving money because crash costs / day are less than the indirect costs / day that would be saved?

• A) Yes, sensitive. 30 days.
• B) Yes, sensitive. 25 days.
• C) No, insensitive. 25 days.
• D) No, insensitive. 30 days.
• E) Neither sensitive nor insensitive. 35 days.

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Definitions:

Maximax Criterion

A decision rule used under uncertainty, selecting the option with the maximum possible return, focusing on the most optimistic outcome.

Row Maximums

The highest values within each row of a matrix or table, typically used in data analysis and optimization problems.

Equally Likely Criterion

A decision-making principle where all outcomes are considered to have the same probability of occurring.

Perfect Information

Perfect information refers to a theoretical scenario where all participants in a market have complete and instantaneous knowledge of all market conditions and variables, leading to an optimal decision-making environment.