Following Are Four Sets of Most Optimistic, Most Likely, and Most

question 81

Multiple Choice

Following are four sets of most optimistic, most likely, and most pessimistic times (in weeks) for an activity. Which one of the four sets will have a mean estimated time equal to the most likely time?

• A) 1, 9, 9
• B) 1, 5, 9
• C) 1, 1, 9
• D) 1, 5, 5

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Interest

The charge for borrowing money or the return on invested capital, typically expressed as an annual percentage rate.

EBITDA Coverage Ratio

A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.