Problem 1
The executive committee wants to know the probability of completing the project before a
scheduled time of 68 days. Using the information from , we derived the following:
Using these inputs in :
Referring to the standard normal distribution tabl
Chapter 5
Review Question #3: Top-down estimating approach is a strategy to estimate a project when
some information is not available yet. They are usually derived from top managers who use
experience and/or information to determine the project duration a
Section A
Performance- Constrained
When analyzing the total scope of the project, it is evident that the project performance is
critical and therefore categorized as Constrained in the project priority matrix as seen in .
Through the companys decision for
Using the NPV formula: , I was able to calculate the NPV for Omega Company to be
$119,689.07, and the NPV for the Alpha Company to be $176,525.49. This being said, I
would fund the Alpha Company.
Times Fade Away: NPV = ($25,090.02)
On the Beach: NPV = $3
Problem 3
Tom, the senior applications developer at AET, is asked by the executive committee to provide
an estimated probability of reducing his expected project duration by two days. Using the
information from , we derive the following:
Using these input
Section B & C
To generate probabilities for time estimates, we will use the Program Evaluation and
Review Technique (PERT). Within this method, three time estimates are calculated for each
activity: Optimistic activity time (a), pessimistic activity time