Consider the Following Work Breakdown Structure What Is the Probability That This Project Will Be Completed

question 8

Multiple Choice

Consider the following work breakdown structure: $\begin{array}{cccccc}&\text { Start }&\text { Finish }&&\text { Duration (Days) } \\\text { Activity } & \text { Node } & \text { Node } & \text { Optimistic } & \text { Most Likely } & \text { Pessimistic } \\\hline \text { A } & 1 & 2 & 41 & 50 & 59 \\\text { B } & 1 & 3 & 54 & 60 & 66 \\\text { C } & 2 & 4 & 58 & 70 & 82 \\\text { D } & 3 & 4 & 32 & 41 & 44\end{array}$ What is the probability that this project will be completed within 130 days?

• A) .8413
• B) .90
• C) .9544
• D) .9772
• E) .9987

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements; it changes with the level of activity but not in direct proportion.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the squares of the differences between observed and predicted values.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, such as raw materials and labor.

Production Volume

The amount of products or services generated by a business over a particular time frame.