An Activity on a PERT Network Has These Time Estimates

question 29

Multiple Choice

An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. Its expected time and variance (if it is a critical activity) are

• A) 3.67; 1.
• B) 3.67; 6.
• C) 4.33; 1.
• D) 4.33; 6.
• E) 43.3; 1.

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Definitions:

Constant Dividend

A policy where a firm aims to distribute dividends that are consistent and do not vary with its yearly earnings or profits.

Required Rate

The minimum return that investors expect or require from an investment to make it worthwhile.

Sells

Transactions in which an asset is transferred from the seller to a buyer for a certain price.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans.