Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F'

if the statement is false.
1) The fact that organizations are flattening is one of the
reasons that project management is important.

⊚ true
⊚ false

2) Breakthrough projects are those that provide

fundamental improvements to existing products.

⊚ true
⊚ false

3) Derivative projects are those which address

incremental changes to products or processes.

⊚ true
⊚ false

4) A project may be defined as a series of related jobs

directed toward some major output and requiring a significant
period of time to perform.

⊚ true
⊚ false

Version 1 1
5) Project management can be defined as planning,
directing, and controlling resources to meet the technical,
cost, and time constraints of the project.

⊚ true
⊚ false

6) Upper-level management must decide between pure,

functional, and matrix structures as ways to organize projects.

⊚ true
⊚ false

7) The second step in project management is writing the

statement of work.

⊚ true
⊚ false

8) An event unit package is a subdivision of a project.

⊚ true
⊚ false

Version 1 2
9) Complex projects are often subdivided into a series of several months in duration.
tasks that are typically configured to be not longer than

⊚ true
⊚ false

10) A project milestone is a specific event to be reached at

a particular point in time.

⊚ true
⊚ false

11) One of the disadvantages of a pure project

organizational structure is that the project manager has full
authority over the project.

⊚ true
⊚ false

12) One of the advantages of a functional project

organizational structure is that a team member can work on
several projects.

⊚ true
⊚ false

13) A matrix project attempts to blend properties of functional and pure project

Version 1 3
structures.

⊚ true
⊚ false

14) A matrix project structure is often referred to as a

"skunkworks".

⊚ true
⊚ false

15) A disadvantage of a matrix project organizational

structure is that a project manager is held responsible for
successful completion of the project.

⊚ true
⊚ false

16) The Gantt chart is an example of a project control

chart.

⊚ true
⊚ false

17) Earned Value Management (EVM) is a technique for

measuring project progress in an objective manner.

Version 1 4
 ⊚ true ⊚ false

18) The valuations in an Earned Value Management

(EVM) analysis must be either profits or revenue.

⊚ true
⊚ false

19) Earned Value Management (EVM) has the capability

to combine measurements of scope, schedule, and cost in a
project.

⊚ true
⊚ false

20) The critical path of activities in a project is the

sequence of activities that forms the shortest chain in a project
network of activities.

⊚ true
⊚ false

21) CPM is an abbreviation for critical path method.

⊚ true
⊚ false

Version 1 5
22) The critical path in a project is that sequence of
activities that consumes the longest amount of time in a
project network of activities.

⊚ true
⊚ false

23) The critical path in a CPM analysis is always the

shortest path through the network.

⊚ true
⊚ false

24) A work breakdown structure is used in project

management but it is not used when the critical path method
is involved.

⊚ true
⊚ false

25) In CPM the late start time estimate is the latest time
you can start an activity and still keep the entire project on
schedule.

⊚ true ⊚ false

Version 1 6
26) Slack activity time is the difference between the early
start and the late finish of a project activity time.

⊚ true
⊚ false

27) In a CPM analysis if you subtract the late finish from

the early finish the result is the activity's slack time.

⊚ true
⊚ false

28) In a CPM analysis if you subtract the early start from

the late start the result is the activity's slack time.

⊚ true
⊚ false

29) The critical path in a CPM analysis is found by

locating the activities times with zero slack.

⊚ true
⊚ false

Version 1 7
30) Calculating the early start and early finish times for information.
each activity in a CPM analysis does not provide any useful

⊚ true
⊚ false

31) One of the assumptions made using CPM is that

project activities can be identified with clear beginning and
ending points.

⊚ true
⊚ false

32) One of the assumptions made using CPM is that

project activity sequence relationships can be specified and
networked.

⊚ true
⊚ false

33) The project indirect costs associated with a project

include overhead, facilities, and resource opportunity costs.

⊚ true
⊚ false

34) The activity direct costs associated with a project might include giving

Version 1 8
workers overtime to complete a project in less than the expected time.

⊚ true
⊚ false

35) You are managing a project and need to cut the cost of
the project. You decide to transfer workers to another job to
cut the project's costs. Costs associated with transferring the
workers are an example of project indirect costs.

⊚ true
⊚ false

36) Using the Time-Cost CPM model, the crash time is the
shortest possible time allowed for each activity in the project.

⊚ true
⊚ false

37) In the Time-Cost CPM model, cost is assumed to be a

linear function of time.

⊚ true
⊚ false

38) When reducing the planned duration of a project using the Time-Cost CPM model

Version 1 9
we select the activity to crash by determining the cost of each
alternative and selecting the one whose cost is the greatest.

⊚ true
⊚ false

39) The Project Management Institute operates a website

with the most up-to-date information about project
management software.

⊚ true
⊚ false

40) Project management software available today

combines CPM and other scheduling aids, like Gantt charting,
to aid in tracking progress of project completion.

⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that

best completes the statement or answers the question.
41) Which of the following is an advantage of a pure
project where self-contained teams work full time on a
project?

completed.
A) Team members can work on several projects. C) There are
B) Functional area is a "home" after the project is duplicated resources.

Version 1 10
 D) Lines of communication are shortened. ignored.
E) Overall organizational policies and goals can be

42) Some of the advantages of a functional project where

the project is housed in a functional division include which of
the following?

D) Needs of the
A) The project manager has full authority over the client are secondary.
project. E) None of these.
B) Team pride, motivation, and commitment are high.
C) A team member can work on several projects.

43) A series of projects that are organized in such a way

that each project utilizes people from different functional
areas is using which of the following organizational
structures?

D) Pure project.
A) Matrix project. E) Cross-functional
B) Integrated Task Force. flexible team.
C) Functional project.

44) A project can be subdivided into which of the

following?

D) Sub-paths.
A) Job orders. E) Events and
B) Sub-jobs. decisions.
C) Work packages.

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 D) A Gantt chart.
A) A Statement of Work. E) A latest-start-
B) Critical Path Method (CPM). time estimate.
C) A series of milestones.

46) What is a work breakdown structure?

D) A Gantt chart.
A) A list of the activities making up the higher levels E) A structure that
of the project. is incompatible with the
B) A definition of the hierarchy of project tasks, Critical Path Method.
subtasks, and work packages.
C) A depiction of the activities making up a project.

47) In a Gantt chart the horizontal axis is usually _____.

D) time
A) activities E) milestones
B) cost
C) profit

48) Which of the following is a graphic project report used

in project management?

E) Cost and
A) Project proposal. performance tracking
B) Approved project plan. schedule.
C) Humphrey chart.
D) Equipment and supplies chart.

49) You are looking at a chart that has the terms BCWS,
BCWP, and AC indicating lines on the chart. What kind of
chart are you looking at?

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 D) Total Program
A) Gantt Chart. Cost Breakdown.
B) PERT Chart. E) EVM Chart.
C) Bar/Milestone Chart.

50) PERT is an abbreviation for which of the following

methodologies?

E) It is a name, not
A) Product Evaluation, Result, and Treatment. an abbreviation for
B) Programming and Evaluation Realization anything.
Technology.
C) Program Evaluation and Review Technique.
D) Process Evaluation and Review Technology.

51) You have just been assigned to oversee a series of

projects. Functional areas will loan you personnel for each
project and separate project managers will be responsible for
separate projects. These project managers will report to you.
Which project management structure is being used?

D) Functional
A) Pure Project. Project.
B) Task force. E) PERT.
C) Matrix Project.

52) You have been placed in charge of a large project. pride, motivation, and
Shortened communication lines are required to ensure quick
resolution of problems as they arise. You recognize that the
project is going to take a lot of time and require a lot of team

Version 1 13
commitment by all members. Which project management
structure should you use in this situation?

Version 1 14
 D) Functional
A) Pure Project. Project.
B) Task force. E) PERT.
C) Matrix Project.

53) What does "EVM" stand for?

E) External
A) Extra Value Materials—premium quality raw Variance Measurement—
materials at the project site. identifying the degree to
B) Enterprise Vacation Matrix—a chart indicating which project time and
team members planned vacation absences cost variances were due to
C) Earned Value Management–a technique for forces and issues
measuring project progress objectively. uncontrollable by the
D) Early Vision Management—a technique used in project manager.
early project planning meetings for activities that set
expectations to highlight and avoid "scope creep."

54) The major goal of critical path analysis is to _____.

E) To determine
A) Estimate the project's completion date when each activity in the
B) Identify and manage the critical path project should be
C) Determine the latest feasible start date scheduled
D) Provide a visual aid that indicates precedent and
antecedent relationships

55) A simple project listing of five activities and their

respective time estimates are presented below:

Activity Immediate Time in B A 2

Predecessor Days C A 1
A None 1 D B and C 3

Version 1 15
 E D 2
Using CPM, which activities make up the critical path?

D) A, D, E
A) A, C, D, E E) None of these
B) A, B, D, E
C) A, C, B, D, E

56) A simple project listing of five activities, their

predecessors, and their respective time estimates are presented
below:

Activity Immediate Time in

Predecessor
A None
B A
C A
D B and C
E D
Days Using CPM, what is the
3 Latest Finish Time for the
2 last activity in this project
1 (i.e., the total time to
3 complete the project)?
4

D) 12 days
A) 10 days E) 9 days
B) 7 days
C) 8 days

57) A simple project listing of five activities, their

predecessors, and their respective time estimates are presented
below:

Activity Immediate Predecessor Time in D B and C 3

Days E D 1
A None 2
B A 2
C A 1

Version 1 16
Using the CPM, which activities have slack in this project?

C) C
A) A D) D
B) B

58) A company must perform a maintenance project

consisting of seven activities. The activities, their
predecessors, and their respective time estimates are presented
below:

Activity Design Immediate Time machin

ation Predecessor in es
Days Final G F 2
Break down both A None 3 test
machines Using CPM, which
Clean machine 1 B A 3 activities make up the
Clean machine 2 C A 3 critical path?
Re-set machine 1 D B 4
Re-set machine 2 E C 2
Re-calibrate both F D and E 1

D) A, D, E
A) A, B, D, F, G E) None of these
B) A, C, E, F, G
C) A, C, B, F, E

Version 1 17
 Activity Design Immediate Time Using CPM, what is the
ation Predecesso in Latest Finish Time for the
r Days last activity in this project
Break down both A None 3 (i.e., the total time to
machines
complete the project)?
Clean machine 1 B A 3
Clean machine 2 C A 3
Re-set machine 1 D B 1
Re-set machine 2 E C 2
Re-calibrate both F D and E 1
machines
Final test G F 2

Version 1 18
 D) 12 days
A) 9 days E) 13 days
B) 10 days
C) 11 days

60) A company must perform a maintenance project

consisting of seven activities. The activities, their
predecessors, and their respective time estimates are presented
below:

Activity Designa Immediate Time machine

tion Predecessor in s
Days Final G F 1
Break down both A None 3 test
machines Using CPM, which
Clean machine 1 B A 3 activities have slack in this
Clean machine 2 C A 3 project?
Re-set machine 1 D B 4
Re-set machine 2 E C 2
Re-calibrate both F D and E 1

D) C, E
A) A, B, C E) F, G
B) B, D
C) Only C

61) For an activity in a CPM analysis, the early start time

is 8 and the late start time is 10. Which of the following
statements is true?

E) The activity is
A) The Late Finish is 12. on the critical path.
B) The Early Finish is 10.
C) The slack for this activity is 2.
D) The duration of this activity is 2.

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62) For an activity in a CPM analysis the early finish time
is 20 and the late finish time is 20. Which of the following
statements is true?

D) The duration of
A) The activity's late start must happen before its early this task is zero.
start. E) The duration of
B) The activity is on the critical path. this task is 20.
C) The slack for this activity is 20.

63) A listing of immediate predecessor activities is

important information in a CPM analysis for which of the
following reasons?

final step of CPM.

A) It specifies the relationships in the CPM network of E) None of these.
activities.
B) It provides useful timing information.
C) It includes cost information.
D) It is the probability information required in the

64) You have just performed a CPM analysis and have

found that more than one path through the project network has
zero slack values. What can you conclude?

E) The project will

A) The analysis is performed incorrectly. not be completed by the
B) There are multiple critical paths. desired time.
C) Only one path is optimal.
D) More than one path is optimal.

Version 1 20
65) You have the following time and cost information activity?
below for use in a Time-Cost CPM Scheduling model.
What are the three costs per unit of time to expedite each

Activity Normal Crash Normal Crash

Time Time Cost Cost
A 3 2 $400 $ 600
B 5 3 $600 $1200
C 4 1 $300 $1500

A) A = $300, B = $200, C = $300

B) A = $100, B = $200, C = $400
C) A = $200, B = $200, C = $200
D) A = $100, B = $400, C = $300
E) A = $200, B = $300, C = $400

66) Below are the data for a Time-Cost CPM Scheduling

model analysis. The time is in days and the costs include both
direct and indirect costs.
What are the total time of this project and total normal cost?

Activit Immediate Normal Cras Norma Cras

y Predecessor Time h l h A) Total time is 13
Time Cost Cost days, total cost is $1200.
A Non 3 2 $200 $400
e
B) Total time is 12
B A 4 3 $300 $600
days, total cost is $1700.
C A 1 1 $200 $200
C) Total time is 11
D B 3 2 $500 $550
days, total cost is $1600.
and
D) Total time is 10
C
days, total cost is $1750.
E D 2 1 $500 $900
E) Total time is 9
days, total cost is $1700.

67) Below are the data for a Time-Cost CPM Scheduling direct and indirect costs.
model analysis. The time is in days and the costs include both If you crash this project to

Version 1 21
reduce the total time by one day what is the total time of the project and total cost?

Activit Immediate Normal Crash Normal Crash

y Predecessor Time Time Cost Cost A) Total time is 13
A No 3 2 $200 $400 days, total cost is $1500.
ne
B A 4 3 $300 $600 B) Total time is 12
C A 1 1 $300 $300 days, total cost is $2000.
D B 3 2 $500 $550 C) Total time is 12
an
days, total cost is $2300.
d
D) Total time is 11
C
days, total cost is $1850.
E D 2 1 $500 $900
E) Total time is 11
days, total cost is $2350.

68) Below are the data for a Time-Cost CPM Scheduling time by four days, what is
analysis. The time is in days and the costs include both direct the total time of the project
and indirect costs. If you crash this project to reduce the total and total cost?

Activit Immediate Normal Crash Normal Crash

y Predecessor Time Time Cost Cost A) Total time is 10
A No 3 2 $200 $400 days, total cost is $2,500.
ne
B A 4 3 $300 $600 B) Total time is 9
C A 1 1 $300 $300 days, total cost is $2,300.
D B 3 2 $500 $550 C) Total time is 8
an
days, total cost is $2,750.
d
D) Total time is 8
C
days, total cost is $14,800.
E D 2 1 $500 $900
E) Total time is 9
days, total cost is $2350.

69) You have collected the data for a Time-Cost CPM The indirect costs for the
Scheduling model analysis. The time is in days and the project are determined on a
project "direct costs" are given below. daily duration basis. If the

Version 1 22
project lasts 16 days the total indirect costs are $400, 15 days the total (i.e., direct and
they will be $250, 14 days they will be $200, and 13 days indirect) project cost?
they will be $100. If you crash this project by one day what is

Activ Immediate Norma Crash Normal Crash

ity Predecessor l Time Cost(Dir Cost(Dir
Time ect) ect)
A N 3 2 $300 $400
o
n
e
B A 3 3 $100 $100
C A 1 1 $200 $200
D B 3 2 $400 $550

a
n
d

C
E D 2 1 $500 $900
F E 3 3 $200 $200
G F 2 2 $100 $100

A) $2,150
B) $2,300
C) $2,400
D) $2,450
E) $2,500

Version 1 23
70) You have collected the data for a Time-Cost CPM
Scheduling model analysis. The time is in days and the
project "direct costs" are given below.
The indirect costs for the project are determined on a daily
duration basis. If the project lasts 16 days the total indirect
costs are $400, 15 days they will be $250, 14 days they will
be $200, and 13 days they will be $100. At what day do we
achieve the lowest total project cost (i.e., direct plus indirect
costs)?

Activ Immediate Norma Crash Normal Crash

ity Predecessor l Time Cost(Dir Cost(Dir
Time ect) ect)
A N 3 2 $300 $400
o
n
e
B A 3 3 $100 $100
C A 1 1 $200 $200
D B 3 2 $400 $550

a
n
d

C
E D 2 1 $500 $900
F E 3 3 $200 $200
G F 2 2 $100 $100

A) 16 days
B) 15 days
C) 14 days
D) 13 days
E) 12 days

Version 1 24
71) You have arrived at the optimal solution using Time-
Cost CPM Scheduling model analysis. When it had
happened?

E) You have run

A) You have found the critical path. out of crash costs.
B) You have run out of crash time.
C) You no longer have a linear relationship with costs.
D) You have reached the minimum total cost.

72) In CPM analysis it is generally expected that the

relationship between activity direct costs and project indirect
costs will be _____.

D) not related
A) positively related E) fractionally
B) optimally related related
C) negatively related

73) In a project analysis using three time estimates with

more than one critical path existing, how does the project
manager decide which variances to use in arriving at the
probability of meeting the project due date?

D) The project
A) The project manager averages the variances and manager uses the largest
uses that. variances in order to
B) The project manager uses the smallest variance in understate the probability
order to get the highest probability of on-time completion. of on-time completion.
C) The project manager uses the variances considered E) The project
most correct. manager uses the most

Version 1 25
likely estimate plus the amount of slack time in the project.

Version 1 26
74) You have just used the network planning model and
found the critical path length is 30 days and the variance of
the critical path is 25 days. The probability that the project
will be completed in 33 days or less is equal to (2 decimal
accuracy) _____.

D) 0.27
A) 0.73 E) 0.60
B) 0.55
C) 0.12

75) You have just used the network planning model and
found the critical path length is 60 days and there are two
critical paths. The standard deviation of the first critical path
is 10 days and the s.d. of the second critical path is 15 days.
The probability that the project will be completed in 70 days
or less is equal to (2 decimal accuracy) _____.

D) 0.75
A) 0.84 E) 0.66
B) 0.25
C) 0.16

76) You have just used the network planning model for a confidence level. What
county road resurfacing project and found that the critical should be that time (in
path length is 40 days and the standard deviation of the days and round to the
critical path is 10 days. Suppose you want to pick a time (in nearest whole number.)?
days) within which you will complete the project with 90%

Version 1 27
 D) 29
A) 40 E) 53
B) 13
C) 45

Version 1 28
Answer Key

Test name: Chapter 05 Test Bank - Static

1) TRUE
As organizations flatten (through handled within
reengineering, downsizing, outsourcing), more departments.
will depend on projects and project leaders to
get work done, work that previously was
2) FALSE
Breakthrough projects involve major changes improvements to
that create entirely new markets. Platform existing products.
projects are those that provide fundamental
3) TRUE
Derivative projects are those that produce
incremental changes such as new product
packaging or no-frills versions.

Version 1 29
4) TRUE
A project may be defined as a series of related time to perform.
jobs usually directed toward some major
output and requiring a significant period of
5) TRUE
Project management can be defined as
planning, directing, and controlling resources
(people, equipment, material) to meet the
technical, cost, and time constraints of the
project.

Version 1 30
6) TRUE
Before the project starts, senior management matrix project.
must decide which of three organizational
structures will be used to tie the project to the
parent firm: pure project, functional project, or
7) FALSE
A project starts out as a statement of work
(SOW).

Version 1 31
8) FALSE
There is no such item as an event unit package described in the
text.
9) TRUE
A task is a subdivision of a project. It is organization.
usually not longer than several months in
duration and is performed by one group or
10) TRUE
Specific events to be reached at points in time are called project
milestones.
11) FALSE
The project manager having full authority text.
over the project is listed as an advantage in the
12) TRUE
That a team member can work on several structure is listed as
projects in a functional organizational an advantage in the
text.
13) TRUE
The classic specialized organizational form, structures.
the “matrix project," attempts to blend
properties of functional and pure project
14) FALSE
A pure project is nicknamed skunkworks.

Version 1 32
15) FALSE
A project manager is held responsible for structure.
successful completion of the project is listed
as an advantage of a matrix organizational
16) TRUE
Gantt charts, sometimes referred to as bar performed.
charts, show both the amount of time involved
and the sequence in which activities can be
17) TRUE
EVM is a technique for measuring project progress in an
objective manner.
18) FALSE
The valuations could be based on either a measure.
value measure (revenue or profit) or a cost
19) TRUE
EVM has the ability to combine a project.
measurements of scope, schedule, and cost in
20) FALSE
The critical path of activities in a project is the chain in terms of
sequence of activities that forms the longest their time to
complete.
21) TRUE
CPM is defined as an abbreviation for critical path method in the
text.

Version 1 33
22) TRUE
The critical path of activities in a project is the chain in terms of
sequence of activities that form the longest their time to
complete.
23) FALSE
The critical path of activities in a project is the chain in terms of
sequence of activities that form the longest their time to
complete.
24) FALSE
Activities are identified as part of the work the critical path
breakdown structure. Activities are also the method is involved.
essence of the Critical Path Method. Hence,
the work breakdown structure is used when
25) TRUE
The late start and late finish are the latest delaying the project.
times activities can start and finish without
26) FALSE
The difference between the late start time and early start time is
the slack time.
27) FALSE
The difference between the late start time and early start time is
the slack time.
28) TRUE
The difference between the late start time and early start time is

Version 1 34
the slack time.
29) TRUE
The critical path is the longest sequence of is defined as the
connected activities through the network and path with zero slack
time.
30) FALSE
One motivation for using a late start schedule circumstances on
is that savings are realized by postponing non-critical
purchases of materials, the use of labor, and activities without
other costs until necessary. Using an early disrupting critical
start schedule allows handling unforeseen path activities.

31) TRUE
From the text, we are assuming that the must have clear
activity times are known. Hence each activity beginning and
ending points.
32) TRUE
Determine the required sequence of activities
and construct a network reflecting the
precedence relationships.

Version 1 35
33) TRUE
The costs associated with sustaining the costs.
project are termed project indirect costs:
overhead, facilities, and resource opportunity
34) TRUE
The costs associated with expediting activities
are termed activity direct costs and add to the
project direct cost. Some may be worker-
related, such as overtime work, hiring more
workers, and transferring workers from other
jobs; others are resource-related, such as
buying or leasing additional or more efficient
equipment and drawing on additional support
facilities.

Version 1 36
35) FALSE
The costs associated with expediting activities buying or leasing
are termed activity direct costs and add to the additional or more
project direct cost. Some may be worker- efficient equipment
related, such as overtime work, hiring more and drawing on
workers, and transferring workers from other additional support
jobs; others are resource-related, such as facilities.

36) TRUE
Crash time (CT): is defined as the shortest possible activity
time.
37) TRUE
We assume a linear relationship between time expedite
and cost. This assumption is common in
practice and helps us derive the cost per day to
38) FALSE
The easiest way to proceed is to start with the lowest-cost activity.
normal schedule, find the critical path, and
reduce the path time by one day using the
39) TRUE
For the most up-to-date information about (www.pmi.org).
software available, check out the Web site of
the Project Management Institute
40) TRUE
See the highlighted box on in the text "Project Management

Version 1 37
Information Systems"
41) D
42) C
An advantage of the functional project member can work
structure listed in the text is that a team on several projects.

43) A
The matrix project utilizes people from different functional
areas.
44) C
45) A
A project starts out as a statement of work.
46) B
The work breakdown structure defines the packages.
hierarchy of project tasks, subtasks, and work
47) D
See exhibit 5.4a.

Version 1 38
 48) E
49) E
50) C
51) C
The matrix projects borrow resources from functional areas.

52) A
53) C
54) E
55) B

Version 1 39
There are two paths: A, B, D, E and A, C, D, critical path because
E. ABDE will take 8 days while ACDE will there is one day of
take 7 days. ABDE, therefore, is the critical slack in that
path for this project. Activity C is off the activity.

56) D
57) C
58) A
There are only two paths, ABDFG & ACEFG. days. ABDFG
ABDFG takes 13 days while ACEFG takes 11 (answer A) is the
critical path.
59) C
There are two paths, ABDFG & ACEFG. days is the correct
ABDFG takes 10 days while ACEFG takes 11 answer.
days. ACEFG is the critical path and C) 11
60) D
There are two paths, ABDFG & ACEFG. The correct answers
ABDFG takes 12 days while ACEFG takes 10 are C &E.
days. ABDFG is the critical path. Activities C
& E have 2 days of slack time in this project.
61) C
The difference between the late start time and early start time is
the slack time.
62) B
The critical path is the longest sequence of connected activities

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through the network and is defined as the path late start = zero) is
with zero slack time. Since the critical path on the critical path.
has zero slack time each activity on the path
must have zero slack time. It follows that an
activity with zero slack time (e.g., early start =
63) A
The immediate predecessors are the activities relationships in the
that need to be completed immediately before CPM network.
an activity. They therefore specify
64) B
It is possible and it often happens that there paths.
are multiple paths of the same length through
the network so there are multiple critical
65) E
Using (Crash cost − Normal cost) / (Normal exhibit 5.11)
time – Crash time) = Cost per unit of time, A A. Calculating Cost
= (600 − 400) / (3 − 2) = $200; B = (1200 − per Day to Expedite
600) / (5 − 3) = $300; and C = (1500 − 300) / Each Activity
(4 − 1) = $400. The correct answer is E. (See
ACT CC — NT — CC — NC / COST MAXIMUM D $9 3 $9 — $2 2
IVI NC CT NT — CT PER NUMBER OF — — $5 /
TY DAY DAYS $5 1 3 —
TO ACTIVITY MAY 1
EXPED BE SHORTENED
ITE
B. Reducing the
A $10 — 2 — 1 $10 — $6 / $4 1 Project Completion
$6 2 — 1 Time One Day at a
B $18 — 5 — 2 $18 — $9 / $3 3
$9 5 — 2 Time
C $8 — 4 — 3 $8 — $6 / $2 1
$6 4 — 3

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 CURREN REMAINING COST PER LEAST— COST OF PROJECT
T NUMBER OF DAY TO COST All COMPLET
CRITIC DAYS EXPEDITE ACTIVITY ACTIVITI
AL ACTIVITY EACH TO ES IN
PATH(S MAY BE ACTIVITY EXPEDITE NETWORK
) SHORTENED
ABD All $2 10
activity 6
times
and
costs
are
normal.
ABD A-1, B-3, A-4, B-3, D 30 9
D-2 D-2
ABD A-1, B-3, A-4, B-3, D 30 8
D-1 D-2
ABD A-1, B-3 A-4, B-3 B 33 7
ABD A-1, B-2, A-4, B-3, A* 37 6
ACD C-1 C-2
ABD B-2, C-1 B-3, C-3 B&C' 42 5
ACD
ABD B-1 B-3 B* 45 5
ACD
*To reduce the cntical path by one day, reduce
either A alone or B and C together at the same
time (either B or C by itself just modifies the
cittical path without shortening It).
'B and C must be crashed together to reduce
the path by one day.
+Crashing activity B does not reduce the
length of the project, so this additional cost
would not be Incurred.

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66) B
67) D
68) C
69) A
70) B
71) D
See exhibit 5.12.

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72) C
Activity direct costs and project indirect costs are opposing costs
dependent on time.
73) D
A conservative approach dictates using the
critical path with the largest total variance to
focus management's attention on the activities
most likely to exhibit broad variations.

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74) A
Note that variance of 25 implies that the s.d. is to the probability of
sqrt(25) = 5. Z value corresponding to 33 is 0.73.
equal to Z = [(33 − 30)/5] = 0.6, which leads
75) D
Note that standard deviation of the critical which leads to the
path is the larger of the two standard probability of 0.75.
deviations, namely 15. Z value corresponding
to 70 is equal to Z = [(70 − 60)/15] = 0.6667,
76) E
First find the Z value corresponding to 90% 52.81, rounded to
confidence level, (using =normsinv(.9) 53 days.
function) which will be 1.2815. Time (X) =
mu + Z* sigma, that is 40 + 1.2851*10 =

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