An Activity on a PERT Network Has These Time Estimates

question 91

Multiple Choice

An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. Its expected time and variance (if it is a critical activity) are

• A) 3.67; 1
• B) 3.67; 6
• C) 4.33; 1
• D) 4.33; 6
• E) none of these

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Definitions:

Price Expectations

The beliefs or forecasts that consumers and producers have regarding future prices, which can influence their economic decisions.

Long-run Phillips Curve

A concept suggesting that in the long term, there is no trade-off between inflation and unemployment, implying that efforts to reduce unemployment will not lead to higher inflation in the long run.

Long-run Phillips Curve

A graphical representation suggesting that in the long run, there is no trade-off between inflation and unemployment.

Higher Inflation

Higher Inflation occurs when there is a sustained increase in the general price level of goods and services, reducing purchasing power over time.