A PERT/CPM Activity Has an Optimistic Time Estimate of 3

question 65

Multiple Choice

A PERT/CPM activity has an optimistic time estimate of 3 days, a most likely time estimate of 8 days, and a pessimistic time estimate of 10 days. The standard deviation of this activity is:

• A) 7/9
• B) 7/6
• C) 1/3
• D) 2/3

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Definitions:

Financing

The process of providing funds for business activities, making purchases, or investing.

Minimum Cash Balance

The lowest amount of cash that a company or individual seeks to maintain on hand to meet immediate expenses.

Raw Material

Basic materials used in the production process, which are transformed into finished goods.

Finished Goods

Units of product that have been completed but not yet sold to customers.