The Expected Activity Time in PERT Analysis Is Calculated As

question 57

Multiple Choice

The expected activity time in PERT analysis is calculated as:

• A) the simple average of the optimistic, pessimistic, and most likely times.
• B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
• C) the sum of the optimistic, pessimistic, and most likely times.
• D) the sum of the optimistic, pessimistic, and most likely times, divided by six.
• E) the sum of the activity variances, divided by six.

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Definitions:

Income Stream

A regular flow of money from an investment, property, or other financial assets.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.

Perfect Substitute

Two or more goods that can be used interchangeably with no loss of utility by the consumer.

Consumption

The process or activity of using goods and services, reflecting the end-use of products that directly satisfies human needs or desires.