Below Are the Data for a Time-Cost CPM Scheduling Model

question 37

Multiple Choice

Below are the data for a Time-Cost CPM Scheduling model analysis.The time is in days and the costs include both direct and indirect costs. $\begin{array}{|l|l|l|l|l|l|}\hline & \text { Immediate } & \text { Normal } & \text { Crash } & \text { Normal } & \text { Crash } \\\hline \text { Activity } & \text { Predecessor } & \text { Time } & \text { Time } & \text { Cost } & \text { Cost } \\\hline \text { A } & \text { None } & 3 & 2 & \$ 200 & \$ 400 \\\hline \text { B } & \text { A } & 4 & 3 & \$ 300 & \$ 600 \\\hline \text { C } & \text { A } & 1 & 1 & \$ 300 & \$ 300 \\\hline \text { D } & \text { B and C } & 3 & 2 & \$ 500 & \$ 550 \\\hline \text { E } & \text { D } & 2 & 1 & \$ 500 & \$ 900 \\\hline\end{array}$
If you crash this project to reduce the total time by one day what is the total time of the project and total cost?

• A)Total time is 13 days,total cost is $1,500
• B)Total time is 12 days,total cost is $2,000
• C)Total time is 12 days,total cost is $2,300
• D)Total time is 11 days,total cost is $1,850
• E)Total time is 11 days,total cost is $2,350

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Definitions:

Diversification Benefits

The advantages gained by investing in a variety of assets to reduce risk in a portfolio.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Minimum-Variance Portfolio

An investment portfolio designed to achieve the lowest possible risk level for its expected rate of return.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the risk of a financial instrument.