A Project Has 3 Independent Stages That Must Be Completed

question 29

Multiple Choice

A project has 3 independent stages that must be completed in sequence. The time to complete each stage is a random variable. The standard deviations of the completion times for the stages are σ₁ = 5, σ₂ = 4, σ₃ = 6. The standard deviation of the overall project completion time is:

• A)8.77
• B)15.0
• C)14.2
• D)9.24

---

Definitions:

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.

Disposable Income

The financial capabilities households have for saving and spending endeavors post income tax deductions.

Consumption

The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.

Induced Consumption

The portion of consumer spending that increases or decreases as disposable income increases or decreases, respectively.