When Using the Beta Probability Distribution to Estimate Activity Times,which

question 16

Multiple Choice

When using the beta probability distribution to estimate activity times,which of the following statements is TRUE?

• A) The project manager is usually the only person involved in making time estimates, since obtaining estimates from workers involved in the activities would result in inconsistent estimates.
• B) The beta distribution is used as a way of approximating a normal probability distribution for time estimates.
• C) The use of most optimistic, most likely, and most pessimistic times for an activity will result in a determination of the expected times for that activity.
• D) The larger the difference between most pessimistic time and most optimistic time for an activity, the smaller the variance of that time estimate.

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Definitions:

Bonds Payable

Long-term liabilities representing money a company owes to holders of its bond issues, often with fixed interest payments.

Long-Term Lease Liabilities

Financial obligations resulting from leasing contracts that extend beyond one year, recorded on the balance sheet under liabilities.

Compound Interest

A method where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Equal Annual Withdrawals

A method of evenly distributing the total amount of an investment or asset over a fixed number of years.