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Chapter 11 - test bank

Quantitative Business Analysis (Al Ain University)

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Quantitative Analysis for Management, 13e (Render et al.)

Chapter 11 Project Management

1) PERT and CPM are quantitative analysis tools designed to schedule and control large projects.
Answer: TRUE
Diff: Easy
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

2) PERT is a deterministic analysis tool allowing for precise times of activities within a project.
Answer: FALSE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

3) CPM is a probabilistic analysis of managing a project.

Answer: FALSE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

4) The first step in planning and scheduling a project is to develop the work breakdown structure.
Answer: TRUE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

5) A PERT/CPM network is a graphical display of a project that connects activities.

Answer: TRUE
Diff: Easy
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept
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6) The optimistic time is the greatest amount of time that could be required to complete an
activity.
Answer: FALSE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

7) CPM was developed for use in managing projects about which we have good information
about activity or task completion times.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

8) With PERT, we are able to calculate the probability of finishing the project within a specified
time.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

9) The identification of the project activities and their time, cost, resource requirements,
predecessors, and person(s) responsible is called PERT planning.
Answer: FALSE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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10) Before drawing a PERT or CPM network, we must identify all activities and their
predecessors.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

11) The three time estimates employed in PERT are optimistic time, average time, and
pessimistic time.
Answer: FALSE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

12) Given the variability of the activity completion times, the original critical path we identify in
our PERT analysis may not always be the actual critical path as the project takes place.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

13) In PERT, the earliest start time for an activity is equal to the latest of the earliest finish times
of all of its immediate predecessors.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

3
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14) PERT stands for Probabilistic Evaluation and Review Technique.

Answer: FALSE
Diff: Difficult
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

15) One of the most significant benefits of PERT is that it forces the project manager to sit down
and plan the project in great detail—and thus come to an understanding of relationships between
the activities.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

16) The longest time path through a PERT/CPM network is called the critical path.
Answer: TRUE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

17) In CPM, crashing an activity that is not on the critical path increases the cost of the project.
Answer: TRUE
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

4
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18) Through the use of PERT/CPM, astute managers can derive flexibility by identifying
noncritical activities and replanning, rescheduling, and reallocating resources such as personnel
and finances.
Answer: TRUE
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

19) One PERT/COST assumption is that money is spent at a constant rate over the time taken to
complete an activity.
Answer: TRUE
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Concept

20) Given the assumptions in PERT, the probability that a project will be completed in less time
than required by the activities on the critical path is approximately 50%.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

21) Gantt charts and PERT diagrams provide the same information, just in different formats.
Answer: FALSE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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22) Gantt charts contain information about the time taken by each activity, but not about the
sequential dependencies of the activities.
Answer: TRUE
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

23) Budgets are computed using only ES times.

Answer: FALSE
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Concept

24) The value of work completed is computed by multiplying budgeted cost by the percent
completion.
Answer: TRUE
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Concept

25) For projects that have a daily fixed cost, it is not possible to reduce the overall duration once
the cost of crashing exceeds the daily fixed cost.
Answer: FALSE
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

26) The activity crash cost is equal to the incremental cost of shortening the project.
Answer: FALSE
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

6
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27) Once the crash cost per time period value is negative, no additional crashing should be
performed.
Answer: FALSE
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

28) When crashing a project, all critical paths must be shortened by the same amount for activity
duration reductions to be cost-effective.
Answer: TRUE
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

29) The activity difference is the actual duration of an activity less the planned duration of that
same activity.
Answer: FALSE
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Concept

30) The critical path of a network is the

A) shortest time path through the network.
B) path with the fewest activities.
C) path with the most activities.
D) longest time path through the network.
Answer: D
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

7
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31) In a PERT network, the earliest (activity) start time is the

A) earliest time that an activity can be finished without delaying the entire project.
B) latest time that an activity can be started without delaying the entire project.
C) earliest time that an activity can start without violation of precedence requirements.
D) latest time that an activity can be finished without delaying the entire project.
Answer: C
Diff: Easy
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

32) Slack time in a network is the

A) amount of time that an activity would take assuming very unfavorable conditions.
B) shortest amount of time that could be required to complete the activity.
C) amount of time that you would expect it would take to complete the activity.
D) amount of time that an activity can be delayed without delaying the entire project.
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

33) The first step in planning and scheduling a project is to develop the
A) employee scheduling plan.
B) PERT/CPM network diagram.
C) critical path.
D) work breakdown structure.
Answer: D
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

8
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34) Which of the following is not a concept associated with CPM?

A) normal time
B) probability
C) normal cost
D) crash cost
Answer: B
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

35) PERT
A) assumes that we do not know ahead of time what activities must be completed.
B) assumes that activity time estimates follow the normal probability distribution.
C) is a network technique that uses three time estimates for each activity in a project.
D) is a deterministic network technique that allows for project crashing.
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

36) CPM
A) assumes we do not know ahead of time what activities must be completed.
B) assumes that activity time estimates follow the normal probability distribution.
C) is a deterministic network technique that allows for project crashing.
D) is a network technique that allows three time estimates for each activity in a project.
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

9
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37) The expected time in PERT is

A) a weighted average of the most optimistic time, most pessimistic time, and four times the
most likely time.
B) the modal time of a beta distribution.
C) a simple average of the most optimistic, most likely, and most pessimistic times.
D) the square root of the sum of the variances of the activities on the critical path.
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

38) Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 6, and 14 days
respectively, compute the PERT expected activity time for this activity.
A) 8
B) 6
C) 7
D) 9
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

39) Given an activity's optimistic, most likely, and pessimistic time estimates of 2, 5, and 14 days
respectively, compute the PERT expected activity time for this activity.
A) 6
B) 7
C) 9
D) 5
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

10
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40) Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 14, and 18
days respectively, compute the PERT expected activity time for this activity.
A) 14
B) 12
C) 11
D) 13
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

41) Given an activity's optimistic, most likely, and pessimistic time estimates of 2, 10, and 20
days respectively, compute the PERT variance for this activity.
A) 3
B) 6
C) 9
D) 18
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

42) Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 12, and 18
days respectively, compute the PERT variance for this activity.
A) 2.33
B) 5.44
C) 8.00
D) 64.00
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

11
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43) Given an activity's optimistic, most likely, and pessimistic time estimates of 3, 5, and 15
days, respectively, compute the PERT standard deviation for this activity.
A) 2
B) 4
C) 5
D) 15
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

44) Given the following small project, the critical path is ________ days.

Immediate Time
Activity Predecessor (days)
A - 10
B - 4
C A, B 6

A) 10
B) 14
C) 16
D) 20
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

12
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45) Given the following small project, the critical path is ________ days.

Immediate Time
Activity Predecessor (days)
A - 8
B A 4
C - 10

A) 4
B) 10
C) 12
D) 22
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

Table 11-1

The following represents a project with known activity times. All times are in weeks.

Immediate
Activity Predecessor Time
A - 4
B - 3
C A 2
D B 7
E C, D 4
F B 5

46) Using the data in Table 11-1, what is the minimum possible time required for completing the
project?
A) 8
B) 14
C) 25
D) 10
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

13
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47) Using the data in Table 11-1, what is the latest possible time that C may be started without
delaying completion of the project?
A) 0
B) 4
C) 8
D) 10
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

48) According to Table 11-1, compute the slack time for activity D.
A) 0
B) 5
C) 3
D) 6
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

49) Using the data in Table 11-1, compute the latest finish time for activity E.
A) 4
B) 10
C) 14
D) 25
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

14
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Table 11-2

The following represents a project with four activities. All times are in weeks.

Immediate Optimistic Most Likely Pessimistic

Activity Predecessor Time Time Time
A - 2 8 14
B - 8 8 8
C A 6 9 18
D B 5 11 17

50) According to the data in Table 11-2, what is the critical path?
A) A-B
B) A-C
C) B-D
D) A-B-C-D
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

51) According to the data in Table 11-2, what is the minimum expected completion time for the
project?
A) 18
B) 19
C) 37
D) 11
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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52) According to Table 11-2, there are four activities in the project. Assume the normal
distribution is appropriate to use to determine the probability of finishing by a particular time. If
you wished to find the probability of finishing the project in 20 weeks or fewer, it would be
necessary to find the variance and then the standard deviation to be used with the normal
distribution. What variance would be used?
A) 2
B) 4
C) 8
D) 12
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

53) According to Table 11-2, there are four activities in the project. Assume the normal
distribution is appropriate to use to determine the probability of finishing by a particular time.
What is the probability that the project is finished in 16 weeks or fewer? (Round to two
decimals.)
A) 0.07
B) 0.93
C) 0.43
D) 0.77
Answer: A
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

54) Consider a project that has an expected completion time of 60 weeks and a standard
deviation of five weeks. What is the probability that the project is finished in 70 weeks or fewer?
(Round to two decimals.)
A) 0.98
B) 0.48
C) 0.50
D) 0.02
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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55) Your company is considering submitting a bid on a major project. You determine that the
expected completion time is 100 weeks and the standard deviation is 10 weeks. It is assumed that
the normal distribution applies. You wish to set the due date for the project such that there is an
85 percent chance that the project will be finished by this time. What due date should be set?
A) 108.0
B) 110.4
C) 89.6
D) 85.0
Answer: B
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

Table 11-3

Immediate Most Standard

Activity Predecessor Optimistic Likely Pessimistic Deviation Variance
A -- 4 5 6 0.333 0.111
B -- 12 16 18 1.000 1.000
C A 2 8 14 2.000 4.000
D A 5 5 5 0.000 0.000
E B, C 6 7 8 0.333 0.111

56) According to Table 11-3, there are five activities in a PERT project. Which activities are on
the critical path?
A) A-C-E
B) B-D
C) A-B-C-D
D) B-E
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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57) According to Table 11-3, there are five activities in a PERT project. What is the variance of
the critical path?
A) 5.222
B) 4.222
C) 1.222
D) 1.111
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

58) According to Table 11-3, there are five activities in a PERT project. If the normal distribution
were used to find the probability of finishing this project in 24 weeks or fewer, what mean and
variance would be used?
A) 30 and 5.222
B) 20 and 5.222
C) 30 and 4.222
D) 22.667 and 1.111
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

59) The critical path of a network is the

A) path with the least variance.
B) path with zero slack.
C) path with the most activities.
D) path with the largest variance.
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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60) In a PERT network, the latest (activity) start time is the

A) earliest time that an activity can be finished without delaying the entire project.
B) latest time that an activity can be started without delaying the entire project.
C) earliest time that an activity can start without violation of precedence requirements.
D) latest time that an activity can be finished without delaying the entire project.
Answer: B
Diff: Easy
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

61) PERT stands for

A) probabilistic evaluation and review technique.
B) program evaluation and review technique.
C) probability of expected run times.
D) program of expected run times.
Answer: B
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

62) CPM stands for

A) critical path management.
B) critical project management.
C) critical project method.
D) critical path method.
Answer: D
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

19
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63) In PERT, we assume that

A) the times to complete individual activities are known with certainty.
B) all activities are carried out by staff from our own organization.
C) the total cost of a project is independent of the time to complete the project.
D) the total time to complete all activities on the critical path is described by a normal
distribution.
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

64) The two common techniques for drawing PERT networks are
A) NOA and NRA.
B) AON and AOA.
C) GANTT and NOA.
D) ONA and OAO.
Answer: B
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

65) In PERT analysis, the probability of the optimistic time occurring should be on the order of
A) 1/3.
B) 1/6.
C) 1/10.
D) 1/100.
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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66) Given an activity's optimistic, most likely, and pessimistic time estimates of 3, 7, and 11 days
respectively, compute the expected time for this activity.
A) 5
B) 6
C) 7
D) 12
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

67) Given an activity's optimistic, most likely, and pessimistic time estimates of 3, 5, and 13 days
respectively, compute the expected time for this activity.
A) 3
B) 4
C) 5
D) 6
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

68) Given an activity's optimistic, most likely, and pessimistic time estimates of 1, 9, and 23 days
respectively, compute the PERT expected activity time for this activity.
A) 10
B) 12
C) 9
D) 11
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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69) Given an activity's optimistic, most likely, and pessimistic time estimates of 3, 6, and 9 days
respectively, compute the PERT variance for this activity.
A) 3
B) 1
C) 9
D) 6
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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70) The project described by:

Immediate Time
Activity Predecessor (days)
A -- 10
B A 4
C A 6
D B 7
E C 5

is best represented by which of the following networks?

A)

B)

C)

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D)

Answer: A
Diff: Easy
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

71) The project described by

Immediate Time
Activity Predecessor (days)
A -- 10
B A 4
C A 6
D B, C 7
E C 5

has a critical path length of:

A) 21 days.
B) 14 days.
C) 23 days.
D) 32 days.
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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72) The project described by:

Immediate Time
Activity Predecessor (days)
A -- 6
B A 2
C -- 8
D B, C 5
E D 7

has a critical path of length of

A) 15 days.
B) 20 days.
C) 17 days.
D) 18 days.
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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Table 11-4

The following represents a project with known activity times. All times are in weeks.

Immediate
Activity Predecessor Time
A -- 4
B -- 3
C A 2
D B 7
E C, D 4
F B 5
G E, F 4

73) Using the data in Table 11-4, what is the minimum possible time required for completing the
project?
A) 8
B) 12
C) 18
D) 10
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

74) Using the data in Table 11-4, what is the latest possible time that C may be started without
delaying completion of the project?
A) 0
B) 4
C) 8
D) 10
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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75) Using the data in Table 11-4, compute the slack time for activity D.
A) 0
B) 5
C) 3
D) 6
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

76) Using the data in Table 11-4, compute the latest finish time for activity E.
A) 4
B) 10
C) 14
D) 25
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

77) Using the data in Table 11-4, determine the latest time activity A can be started without
delaying the project completion.
A) 4
B) 3
C) 8
D) 6
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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78) Using the data in Table 11-4, determine the latest time activity A can be finished and not
delay any activity?
A) 4
B) 0
C) 8
D) 5
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

79) Consider a project that has an expected completion time of 50 weeks and a standard
deviation of 9 weeks. What is the probability that the project is finished in 57 weeks or fewer?
(Round to two decimals.)
A) 0.68
B) 0.78
C) 0.22
D) 0.32
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

80) Your company is considering submitting a bid on a major project. You determine that the
expected completion time is 150 weeks and the standard deviation is 10 weeks. It is assumed that
the normal distribution applies. You wish to set the due date for the project such that there is a 95
percent chance that the project will be finished by this time. What due date should be set?
A) 108.0
B) 160.4
C) 166.5
D) 135.0
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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Table 11-5

Immediate
Activity Predecessor Time ES EF LS LF
A -- 4 0 4 6 10
B -- 5 0 5 0 5
C A 3 4 7 10 13
D B 8 5 13 5 13
E B 2 5 7 16 18
F C, D 3 13 16 15 18
G C, D 7 13 20 13 20
H E, F 2 16 18 18 20

81) How long could Table 11-5's activity E be delayed without delaying the completion of the
project?
A) 7
B) 16
C) 11
D) 18
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

82) How long could Table 11-5's activity F be delayed without delaying the project?
A) 2
B) 3
C) 14
D) 16
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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83) What is the minimum possible time required for completing the Table 11-5 project?
A) 14
B) 18
C) 17
D) 20
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

Table 11-6

Immediate Most
Activity Optimistic Pessimistic σ σ2
Predecessor Likely
A -- 2 3 4 0.333 0.111
B -- 2 5 8 1.000 1.000
C A 1 2 9 1.330 1.780
D A 5 5 5 0.000 0.000
E B, C 6 7 8 0.333 0.111
F B 14 14 14 0.000 0.000
G D, E 1 5 9 1.333 1.780
H G, F 1 4 8 1.167 1.362

84) Which activities are part of Table 11-6's critical path?

A) A-B-E-G-H
B) A-C-E-G-H
C) A-D-G-H
D) B-F-H
Answer: D
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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85) What is the variance of Table 11-6's critical path?

A) 5.222
B) 4.364
C) 5.144
D) 2.362
Answer: D
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

Figure 11-1

86) Given the network in Figure 11-1, the critical path is

A) A-C-F-H.
B) B-D-E-F-H.
C) A-C-E-G-H.
D) B-D-G-E-F-H.
Answer: B
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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87) Given the network in Figure 11-1, the time to complete those activities on the critical path is
expected to be
A) 20.
B) 22.
C) 25.
D) 26.
Answer: C
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

88) Given the network shown in Figure 11-1, assume that completion of A is delayed by two
days. What other activities are impacted?
A) B
B) D
C) E
D) C
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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89) Given the network shown in Figure 11-1 and the following information, what is the variance
of the critical path?

Activity Expected time Variance

A 3 2
B 5 3
C 6 3
D 4 1
E 5 1
F 4 2
G 6 2
H 7 2

A) 16
B) 7
C) 9
D) 8
Answer: C
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

90) PERT assumes that the total completion time of a project follows which of the following
probability distributions?
A) normal
B) exponential
C) binomial
D) Poisson
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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91) Activity D of a project has a budgeted cost of $45,000 and is 20% complete. What is the
value of work completed?
A) 450
B) 4500
C) 900
D) 9000
Answer: D
Diff: Easy
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

92) Activity B of a project has a budgeted cost of $50,000 and is 30% complete. The actual cost
of the activity is $12,000. What is the activity difference?
A) -15,000
B) -3,000
C) 0
D) 3,000
Answer: B
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

93) The value of work completed for an activity is determined by which of the following?
A) budgeted cost - actual cost
B) actual cost divided by budgeted cost
C) percentage of work completed multiplied by actual activity cost
D) percentage of work completed multiplied by budgeted activity cost
Answer: D
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Concept

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94) The crash time of an activity represents

A) the normal time to complete an activity.
B) the most pessimistic time to complete an activity.
C) the incremental decrease in the time to complete an activity.
D) the shortened activity time.
Answer: D
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

95) Reducing the overall activity time is based on which of the following steps?
A) crashing activities with the lowest overall crash cost
B) crashing activities with the lowest overall normal cost
C) crashing activities on the critical path based on lowest overall cost
D) crashing activities on the critical path based on lowest cost/week
Answer: D
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

96) An alternative approach to project crashing is to use which of the following techniques?
A) linear programming
B) nonlinear programming
C) Markov analysis
D) queuing theory
Answer: A
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

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97) Which of the following is not a decision variable when formulating the project crashing
problem as a linear program?
A) the early finish times of critical activities
B) the early finish times of noncritical activities
C) the finish time of the project
D) the early start times of all activities
Answer: D
Diff: Moderate
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

98) Which of the following statements about project crashing is false?

A) The crash cost is greater than or equal to the normal cost of an activity.
B) The crash time is less than or equal to the normal time to complete an activity.
C) Reducing the time of an activity on the critical path automatically reduces total project
duration.
D) It may not be possible to crash a particular activity.
Answer: C
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Concept

99) The process of smoothing out the utilization of resources in a project is called
A) CPM.
B) PERT.
C) project crashing.
D) resource leveling.
Answer: D
Diff: Easy
Topic: OTHER TOPICS IN PROJECT MANAGEMENT
LO: 11.4: Understand the important role of software in project management.
AACSB: Analytical thinking
Classification: Concept

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100) Which of these statements is best?

A) Slack is the time an activity can be delayed without impacting the completion time of the
project.
B) The variance of the project completion time is equal to the sum of the variances of all the
activities.
C) In PERT, we assume that the project completion time can be modeled by the beta distribution.
D) In PERT, the variance in completion time is equal to the variance of the most time-consuming
activity on the critical path.
Answer: A
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

101) Which of these statements is best?

A) PERT is a network technique similar to CPM, but PERT allows for project crashing, whereas
CPM does not.
B) In PERT, the most likely completion time of an activity is used to represent that activity's time
within a project.
C) The expected completion time and variance of an activity is approximated by the normal
distribution in a PERT analysis.
D) PERT was developed for a project for which activity or task times were uncertain.
Answer: D
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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Table 11-7

A project manager calculated early and late start and finish times for all activities in her eight-
activity project but spilled her energy drink on the paper and the acid in the beverage wiped out
some of the table entries. The remaining legible entries are correct.

Activity Predecessor Duration ES EF LS LF Slack

A --
B A 12 12
C A 5 18
D B 8
E C 9 0
F D,E 27 34 0
G E 6 33 1
H F,G 34 40

102) Consider the project summarized in Table 11-7. What is the slack for Activity C?
A) 0
B) 1
C) 5
D) 7
Answer: A
Diff: Difficult
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

103) Consider the project summarized in Table 11-7. What is the early finish time for Activity D?
A) 19
B) 20
C) 21
D) 22
Answer: B
Diff: Difficult
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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104) Consider the project summarized in Table 11-7. What is the early finish time for Activity E?
A) 25
B) 26
C) 27
D) 28
Answer: C
Diff: Difficult
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

105) Consider the project summarized in Table 11-7. What is the critical path?
A) ABDGH
B) ACEGH
C) ABDFH
D) ACEFH
Answer: D
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

106) Consider the project summarized in Table 11-7. What is the slack for Activity D?
A) 7
B) 5
C) 1
D) 0
Answer: A
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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107) Consider the project summarized in Table 11-7. What is the late start time for Activity G?
A) 27
B) 28
C) 29
D) 30
Answer: B
Diff: Difficult
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

Table 11-8

A mad scientist has identified the ten steps required to create a race of atomic supermen to
complete his plans for world conquest. The estimated time in weeks and cost in US dollars
appear in the table along with the shortest possible duration for each activity and cost of those
expedited activities. Activities are designated generically as A, B, and so on in order to avoid any
copycat projects of this nature.

Normal Crash Normal Crash

Activity Predecessor Time Time Cost Cost
A -- 12 7 2000 5500
B A 14 10 3000 5400
C A 13 11 4000 6000
D A 11 9 5000 9000
E B,C 9 7 3000 4300
F D 10 4 3500 5700
G D 15 10 15000 20000
H E 11 7 8000 11400
I F,G 9 8 4000 4750
J H,I 12 10 6000 7500

108) Consider the project summarized in Table 11-8. What is the minimum cost project in order
to finish in a year?
A) $58,500
B) $53,500
C) $51,750
D) 55,250
Answer: A
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application
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109) Consider the project summarized in Table 11-8. What activities should be expedited in order
to complete the project within a year at minimum cost?
A) F, B
B) A, I, J
C) F, B, E
D) B, E, A
Answer: B
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

110) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. Determine the minimum cost project factoring in both the costs of expediting and the
opportunity cost. What is the overall minimum cost?
A) $171,500
B) $166,250
C) $159,850
D) $152,700
Answer: C
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

111) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. Determine the minimum cost project factoring in both the costs of expediting and the
opportunity cost. What is the duration of the overall minimum cost project?
A) 49 weeks
B) 48 weeks
C) 47 weeks
D) 46 weeks
Answer: D
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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112) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. Which of these activities should not be reduced in an effort to deliver a minimum cost
(both project and opportunity cost) project?
A) F
B) H
C) G
D) E
Answer: A
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

113) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. Which of these activities should be crashed in an effort to deliver a minimum cost
(both project and opportunity cost) project?
A) F
B) H
C) D
D) C
Answer: B
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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114) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. These costs are easy to quantify, but it's difficult to stomach not controlling the world
when it's just a matter of a few extra dollars. What's the earliest this project can be completed and
what would the overall project cost be?
A) 38 weeks
B) 40 weeks
C) 44 weeks
D) 46 weeks
Answer: C
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

115) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. These costs are easy to quantify, but it's difficult to stomach not controlling the world
when it's just a matter of a few extra dollars. What's the cost of the minimum duration project?
A) $158,550
B) $163,850
C) $156,350
D) $161,550
Answer: D
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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116) Consider the following project schedule:

Immediate
Activity Time ES EF LS LF
Predecessor
A -- 4 0 4 6 10
B -- 5 0 5 0 5
C A 3 4 7 10 13
D B 8 5 13 5 13
E B 2 5 7 16 18
F C, D 3 13 16 15 18
G C, D 7 13 20 13 20
H E, F 2 16 18 18 20

(a) Which activities are critical?

(b) Which activity has the most slack?
Answer:
(a) B, D, G
(b) E
Diff: Easy
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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117) Consider the project with the following estimates for activity times and precedence
relationships:

Optimistic Most Pessimistic Immediate

Activity
Time Likely Time Time Predecessor(s)
A 3 4 5 --
B 5 7 9 --
C 2 3 10 A
D 2 5 8 B
E 1 7 7 B
F 3 5 7 C, D
G 7 8 9 D, E
H 2 6 10 F

(a) What is the expected duration of the project?

(b) What is the project variance?
(c) If the deadline of the project is 25 days, what is the probability of finishing the project on
time?
Answer:
(a) 23
(b) 3.67
(c) 0.8508
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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118) Consider the tasks, durations, and predecessor relationships in the following network. Draw
the network and answer the questions that follow.

Immediate Optimistic Most Likely Pessimistic

Activity
Predecessors) (Weeks) (Weeks) (Weeks)
A --- 4 7 10
B A 2 8 20
C A 8 12 16
D B 1 2 3
E D, C 6 8 22
F C 2 3 4
G F 2 2 2
H F 6 8 10
I E, G, H 4 8 12
J I 1 2 3

(a) What is the expected duration of the project?

(b) What is the probability of completion of the project before week 42?
Answer:

(a) 40
(b) 8079
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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119) Given:

Activity Optimistic Most Likely Pessimistic

A 3 4 5
B 6 7 14
C 6 9 12
D 0.5 1 1.5
E 2 3 10
F 4 5 12
G 1 3 11

Determine:
(a) the critical path.
(b) the probability that the project will be completed in 22 weeks.
Answer:
(a) Critical path is A-C-F. Expected time is 19.
(b) Variance for critical path is 2.889, so standard deviation is 1.70. P(X ≤ 22) = 0.9608.
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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120) A small software development project has five major activities. The times are estimated and
provided in the table below.

Immediate
Activity a m b
Predecessor
A -- 2 5 8
B -- 10 10 10
C A 4 7 10
D B 2 5 14
E C 3 3 3

(a) What is the expected completion time for this project?

(b) What variance would be used in finding probabilities of finishing by a certain time?
Answer:
(a) expected completion time = 16 (Activities B-D)
(b) variance = 0 + 4 = 4

Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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121) Development of a new deluxe version of a particular software product is being considered.
The activities necessary for the completion of this are listed in the table below (Time in weeks).

Normal Crash Normal Crash Immediate

Activity
Time Time Cost Cost Predecessor
A 4 3 2200 2600 --
B 2 1 2200 2800 --
C 3 3 500 500 --
D 8 4 2300 2600 A
E 6 3 900 1200 B
F 3 2 3000 4200 C
G 4 2 1400 2000 D, E

(a) What is the project completion date?

(b) What is the total cost required for completing this project on normal time?
(c) If you wish to reduce the time required to complete this project by one week, which activity
should be crashed, and how much will this increase the total cost?
Answer:
(a) Project completion time = 16 weeks (Activities A-D-G)
(b) Total cost = $12,300
(c) Crash D, one week at an additional cost of $75

Diff: Difficult
Topic: PERT/CPM and PROJECT CRASHING
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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122) Draw the PERT network associated with the following activities.

Immediate
Activity
Predecessor
A --
B A
C A
D B
E B
F C, E
G A, D
H F
I F
J G, H, I

Answer:

Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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123) Given (Time in weeks):

Activity Optimistic Most Likely Pessimistic

A 3 4 5
B 6 7 14
C 2 3 10
D 6 9 12
E 4 5 12
F 1 3 11
G 1 2 9
H 2 5 8
I 1 4 7

Determine:
(a) the critical path.
(b) the probability that the project will be completed in 22 weeks.
Answer:
(a) Critical path is B-E-G-I.
(b) Variance for critical path is 6.33; standard deviation is 2.51. The probability that the project
will be completed in 22 weeks = 0.65.
Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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124) A small software development project has four major activities. The times are estimated and
provided in the table below.

Immediate
Activity a m b
Predecessor
A -- 2 5 8
B A 3 6 9
C A 4 7 10
D B 2 5 14
E D 3 3 3
F C 6 8 10
G E, F 1 1 1
H C 6 10 14
I G, H 3 4 5

(a) What is the expected completion time for this project?

(b) What variance would be used in finding probabilities of finishing by a certain time?
Answer:
(a) expected completion time = 26 (Activities A-C-H-I)
(b) variance = 3.88

Diff: Difficult
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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125) An IT project requires 6 activities. The table below displays the expected time and budgeted
cost for each activity.

Expected time Budgeted Immediate

Activity
(weeks) Cost Predecessors
A 3 $2,000 None
B 4 $6,000 None
C 2 $7,000 A
D 5 $9,000 B
E 3 $3,000 C
F 6 $8,000 B,D

Develop a budget for the 15 weeks of the project using ES times.

Answer:

Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7

A 666.67 666.67 666.67

B 1500 1500 1500 1500
C 3500 3500
D 1800 1800 1800
E 1000 1000
F
Total in
Period 2166.67 2166.67 2166.67 5000 5300 2800 2800
Cumu-
lative
from start2166.67 4333.33 6500 11500 16800 19600 22400

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Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15

A
B
C
D 1800 1800
E 1000
F 1333.33 1333.33 1333.33 1333.33 1333.33 1333.33
Total in
Period 2800 1800 1333.33 1333.33 1333.33 1333.33 1333.33 1333.33
Cumu-
lative
from start25200 27000 28333.33 29666.67 31000 32333.34 33666.67 35000
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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126) An IT project requires 6 activities. The table below displays the expected time and budgeted
cost for each activity.

Expected Immediate
Activity Budgeted Cost
time (weeks) Predecessors
A 3 $2,000 None
B 4 $6,000 None
C 2 $7,000 A
D 5 $9,000 B
E 3 $3,000 C
F 6 $8,000 B,D

Develop a budget for the 15 weeks of the project using LS times.

Ans
wer
:
Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7

A
B 1500 1500 1500 1500
C
D 1800 1800 1800
E
F
Total in
Period 1500 1500 1500 1500 1800 1800 1800
Cumu-
lative
from start1500 3000 4500 6000 7800 9600 11400

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Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15

A 666.67 666.67 666.67

B
C 3500 3500
D 1800 1800
E 1000 1000 1000
F 1333.33 1333.33 1333.33 1333.33 1333.33 1333.33
Total in
Period 2466.67 2466.67 2000 4833.33 4833.33 2333.33 2333.33 2333.33
Cumu-
lative
from start13866.67 16333.33 18333.33 23166.67 28000 30333.34 32666.67 35000
Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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127) An IT project requires 6 activities. The table below displays the expected time and budgeted
cost for each activity.

Expected Immediate
Activity Budgeted Cost
time (weeks) Predecessors
A 3 $2,000 None
B 4 $6,000 None
C 2 $7,000 A
D 5 $9,000 B
E 3 $3,000 C
F 6 $8,000 B,D

Develop a budget for the 15 weeks of the project using LS times.

Answer:

Diff: Moderate
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

128) Activity C of a project has a budgeted cost of $40,000 and is 20% complete. The actual cost
is $10,000.

(a) What is the value of work completed?

(b) What is the activity difference?
Answer: (a) $8,000 (b) $2,000
Diff: Easy
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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129) Development of a new deluxe version of a particular software product is being considered.
The activities necessary for the completion of this are listed in the table below (Time in weeks).

Immediate
Activity a m b
Predecessor
A -- 2 5 8
B A 3 6 9
C A 4 7 10
D B 2 5 14
E D 3 3 3
F C 6 8 10
G E, F 1 1 1
H C 6 10 14
I G, H 3 4 5

(a) If you wish to reduce the time required to complete this project by two weeks, which
activity(ies) should be crashed, and how much will this increase the total cost?
(b) What would be the added cost if you wanted to complete the project in the minimum time
possible?
Answer:
(a) Crash D, two weeks at an additional cost of $100
(b) Crash D 4 weeks, G 2 weeks, E 3 weeks, A 1 week, and B 1 week, for a total additional cost
of $1,700

Diff: Difficult
Topic: PERT/CPM and PROJECT CRASHING
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Application

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130) PERT is the acronym for what?

Answer: Program Evaluation and Review Technique
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

131) In a PERT analysis, how is the optimistic time defined?

Answer: the estimated time for an activity, should circumstances go as well as possible (should
have a low probability of actual occurrence)
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

132) CPM is the acronym for what?

Answer: Critical Path Method
Diff: Moderate
Topic: INTRODUCTION
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

133) In PERT analysis, how is the pessimistic activity time defined?

Answer: the estimated time for an activity, based on unfavorable conditions (should have a low
probability of actual occurrence)
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

134) In PERT/CPM, what is meant by the critical path?

Answer: the series of activities in a network that has zero slack or the longest time path through
a network
Diff: Moderate
Topic: PERT/CPM
LO: 11.1: Understand how to plan, monitor, and control projects with the use of PERT and
CPM.
AACSB: Analytical thinking
Classification: Concept

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Table 11-7

A project manager calculated early and late start and finish times for all activities in her eight-
activity project but spilled her energy drink on the paper and the acid in the beverage wiped out
some of the table entries. The remaining legible entries are correct.

Activity Predecessor Duration ES EF LS LF Slack

A --
B A 12 12
C A 5 18
D B 8
E C 9 0
F D,E 27 34 0
G E 6 33 1
H F,G 34 40

135) Consider the project summarized in Table 11-7. Provide all missing information.
Answer:
Activity Predecessor Duration ES EF LS LF Slack
A -- 0 5 0 5 0
B A 7 5 12 12 19 7
C A 13 5 18 5 18 0
D B 8 12 20 19 27 7
E C 9 18 27 18 27 0
F D,E 7 27 34 27 34 0
G E 6 27 33 28 34 1
H F,G 5 34 40 34 40 0
Diff: Difficult
Topic: PERT/COST
LO: 11.2: Determine earliest start, earliest finish, latest start, latest finish, and slack times for
each activity, along with the total project completion time and total project cost.
AACSB: Analytical thinking
Classification: Application

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Table 11-8

A mad scientist has identified the ten steps required to create a race of atomic supermen to
complete his plans for world conquest. The estimated time in weeks and cost in US dollars
appear in the table along with the shortest possible duration for each activity and cost of those
expedited activities. Activities are designated generically as A, B, and so on in order to avoid any
copycat projects of this nature.

Normal Crash Normal Crash

Activity Predecessor Time Time Cost Cost
A -- 12 7 2000 5500
B A 14 10 3000 5400
C A 13 11 4000 6000
D A 11 9 5000 9000
E B,C 9 7 3000 4300
F D 10 4 3500 5700
G D 15 10 15000 20000
H E 11 7 8000 11400
I F,G 9 8 4000 4750
J H,I 12 10 6000 7500

136) Consider the project summarized in Table 11-8. What is the minimum cost project in order
to finish in a year? List the activities crashed and the total cost? What is the difference in the total
project cost before and after crashing?
Answer: The minimum cost 52-week project costs $58,500, which is $5,000 more than the
original project cost of $53,500.
Activity A should be reduced by 5 weeks at $700 per week
Activity I should be reduced by 1 week at $750
Activity J should be reduced by 1 week at $750
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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137) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. Determine the minimum cost project factoring in both the costs of expediting and the
opportunity cost. What is the overall minimum cost and duration of the project?
Answer: The original project cost is $53,500 plus $2,000/week times the 59-week duration for a
total cost of $171,500. Activities should be shortened as long as the cost of expediting does not
exceed $2000/week.
Activity A should be reduced by 5 weeks at $700 per week
Activity I should be reduced by 1 week at $750
Activity J should be reduced by 2 weeks at $750 per week
Activity B should be reduced by 1 week at $600
Activity E should be reduced by 2 weeks at $650 per week
Activity G should be reduced by 5 weeks at $1000 per week
Activity H should be reduced by 2 weeks at $850 per week
The crash cost of the 46-week project is $67,850 plus the fixed cost of $2,000/week for 46 weeks
of $92,000 for a total project cost of $159,850.
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

138) Consider the project summarized in Table 11-8. Suppose in addition to the costs shown in
the table, the mad scientist faces a $2,000 per week opportunity cost of not being in control of
the world. These costs are easy to quantify, but it's difficult to stomach not controlling the world
when it's just a matter of a few extra dollars. What's the earliest this project can be completed and
what would the overall project cost be?
Answer: The original project cost is $53,500 plus $2,000/week times the 59-week duration for a
total cost of $171,500.
Activity A should be reduced by 5 weeks at $700 per week
Activity I should be reduced by 1 week at $750
Activity J should be reduced by 2 weeks at $750 per week
Activity B should be reduced by 1 week at $600
Activity E should be reduced by 2 weeks at $650 per week
Activity G should be reduced by 5 weeks at $1000 per week
Activity H should be reduced by 4 weeks at $850 per week
Activity E should be reduced by 2 weeks at $2000 per week
The crash cost of the 44-week project is $73,550 plus the fixed cost of $2,000/week for 44 weeks
of $88,000 for a total project cost of $161,550.
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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Table 11-9

A mad scientist has identified the twelve steps required to complete his "take over the world"
rehabilitation. The estimated time in weeks and cost in US dollars appear in the table along with
the shortest possible duration for each activity and cost of those expedited activities.

Normal Crash Normal Crash

Activity Predecessor Time Time Cost Cost
A -- 12 9 5400 7200
B A 11 7 7300 9350
C A 10 5 6500 9500
D B 8 5 4400 6200
E C 6 5 3100 4300
F C 9 6 6250 7800
G B 11 8 7500 8500
H D, E 15 11 13500 15250
J F 16 11 12375 14875
K H, J 11 8 10500 12750
L K 10 6 8750 10370
M G, L 12 7 8000 9450

139) Consider the project summarized in Table 11-9. What is the duration of the normal
completion time and project cost at that time? What activities should be crashed to reduce
completion time by ten weeks as inexpensively as possible? What is the new project duration and
cost?
Answer: The normal completion time is 80 weeks at a cost of $93,575. To reduce the project ten
weeks these activities should be crashed:
Activity M should be reduced by 5 weeks at $290 per week
Activity L should be reduced by 4 weeks at $405 per week
Activity J should be reduced by 1 week at $500
A 70-week project will cost $97,145
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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140) Consider the project summarized in Table 11-9. In addition to the cost of the activities, the
mad scientist must rent a menagerie of comfort animals during his program. The menagerie
includes a number of animals, plus the feed, along with the services of a shepherd at a cost of
$700 per week. What is the duration of the normal completion time and total project cost at that
time? What activities should be crashed to minimize the total project cost? What is the new
project duration and cost?
Answer: The normal completion time is 80 weeks at a cost of $93,575 for the activities and
another $56,000 menagerie cost, for a total of $149,575.
To minimize the project cost these activities should be crashed:
Activity M should be reduced by 5 weeks at $290 per week
Activity L should be reduced by 4 weeks at $405 per week
Activity J should be reduced by 1 week at $500
Activity A should be crashed by 3 weeks at $600 per week
A 67-week project will cost $5370 in crash costs, $46,900 in menagerie costs plus the activity
costs of $93,575 for a total cost of $145,845.
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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141) Consider the project summarized in Table 11-9. In addition to the cost of the activities, the
mad scientist must rent a menagerie of comfort animals during his program. The menagerie
includes a number of animals, plus the feed, along with the services of a shepherd at a cost of
$700 per week. What is the duration of the normal completion time and total project cost at that
time? The mad scientist discovers he is allergic to llamas and decides to finish the project as
quickly as possible in order to get the animals out of his studio apartment in Greenwich Village.
What activities should be crashed to minimize the project duration? What is the new project
duration and cost?
Answer: The normal completion time is 80 weeks at a cost of $93,575 for the activities and
another $56,000 menagerie cost, for a total of $149,575.
To minimize the project cost these activities should be crashed:
Activity M should be reduced by 5 weeks at $290 per week
Activity L should be reduced by 4 weeks at $405 per week
Activity J should be reduced by 5 weeks at $500 per week
Activity A should be crashed by 3 weeks at $600 per week
Activity K should be crashed by 3 weeks at $750 per week
Activity H should be crashed by 4 weeks at $437.50 per week
Activity F should be crashed by 3 weeks at $516.67 per week
Activity B should be crashed by 4 weeks at $512.50 per week
Activity C should be crashed by 4 weeks at $600 per week
Activity D should be crashed by 3 weeks at $600 per week
A 53-week project will cost $19,170 in crash costs, $37,100 in menagerie costs plus the activity
costs of $93,575 for a total cost of $149,845.
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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142) Consider the project summarized in Table 11-9. In addition to the cost of the activities, the
mad scientist must rent a menagerie of comfort animals during his program. The menagerie
includes a number of animals, plus the feed, along with the services of a shepherd at a cost of
$700 per week. There is also a $500/week penalty imposed by the League of Justice for any
project lasting longer that 52 weeks. What is the duration of the normal completion time and total
project cost at that time? What activities should be crashed to minimize the total project cost?
What is the new project duration and cost?
Answer: The normal completion time is 80 weeks at a cost of $93,575 for the activities, another
$56,000 menagerie cost, plus $14,000 in penalty costs for a total of $163,575.
To minimize the project cost these activities should be crashed:
Activity M should be reduced by 5 weeks at $290 per week
Activity L should be reduced by 4 weeks at $405 per week
Activity J should be reduced by 5 weeks at $500 per week
Activity A should be crashed by 3 weeks at $600 per week
Activity K should be crashed by 3 weeks at $750 per week
Activity H should be crashed by 4 weeks at $437.50 per week
Activity F should be crashed by 3 weeks at $516.67 per week
Activity B should be crashed by 4 weeks at $512.50 per week
Activity C should be crashed by 1 week at $600 per week
A 56-week project will cost $15,570 in crash costs, $39,200 in menagerie costs, $2000 in penalty
costs plus the activity costs of $93,575 for a total cost of $150,345.
Diff: Difficult
Topic: PROJECT CRASHING
LO: 11.3: Reduce total project time at the least total cost by crashing the network using manual
and linear programming techniques.
AACSB: Analytical thinking
Classification: Application

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