A Local Project Being Analyzed by PERT Has 42 Activities

question 48

Multiple Choice

A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, the probability that the project will be completed in 95 days or less is

• A) -0.4
• B) 0.0228
• C) 0.3444
• D) 0.9772
• E) 4.2

---

Definitions:

Cash Flow Problems

Financial challenges that occur when a business does not have enough cash to cover its obligations, leading to potential insolvency.

Secured Loan

A loan backed by collateral, reducing the risk for lenders and often resulting in more favorable loan terms for the borrower.

Unsecured Loan

A loan that is issued and supported only by the borrower's creditworthiness, without any collateral.