In a hospital renovation project using PERT data, what is the expected completion time for activity A given optimistic 7, most likely 9, pessimistic 14 days?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

In a hospital renovation project using PERT data, what is the expected completion time for activity A given optimistic 7, most likely 9, pessimistic 14 days?

Explanation:
The PERT approach uses a weighted average where the most likely duration has the greatest influence: E = (O + 4M + P) / 6. With optimistic 7 days, most likely 9 days, and pessimistic 14 days, you get E = (7 + 4×9 + 14) / 6 = (7 + 36 + 14) / 6 = 57 / 6 = 9.5 days. So the expected completion time is 9.5 days. This weighting pulls the estimate toward the most probable duration, reflecting the belief that 9 days is the best realistic duration while still accounting for uncertainty from the optimistic and pessimistic bounds. For comparison, a simple average of the three values would give 10 days, which demonstrates why PERT uses the 4M weight to produce a slightly lower/weighted estimate.

The PERT approach uses a weighted average where the most likely duration has the greatest influence: E = (O + 4M + P) / 6. With optimistic 7 days, most likely 9 days, and pessimistic 14 days, you get E = (7 + 4×9 + 14) / 6 = (7 + 36 + 14) / 6 = 57 / 6 = 9.5 days. So the expected completion time is 9.5 days. This weighting pulls the estimate toward the most probable duration, reflecting the belief that 9 days is the best realistic duration while still accounting for uncertainty from the optimistic and pessimistic bounds. For comparison, a simple average of the three values would give 10 days, which demonstrates why PERT uses the 4M weight to produce a slightly lower/weighted estimate.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy