Which One of the Following Statements About Project Evaluation and Review

question 76

Multiple Choice

Which one of the following statements about Project Evaluation and Review Technique (PERT) is TRUE?

• A) The expected time is given and not computed using formulas.
• B) The probability of completing the project on time is 0 when the project target completion time equals the expected time.
• C) The normal probability distribution is not used in PERT methods.
• D) The variance in project duration is given by the sum of the variances of the critical path activities.

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Definitions:

Market

An arrangement or venue where parties engage in exchange of goods and services.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction or activity in which they did not directly participate.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

Marginal Private Cost

The cost incurred by a firm for producing one additional unit of a good, exclusive of any external costs.