1. Office Automation Inc., has developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communications for a particular company. Contained in the proposal is a list of activities that must be accomplished in order to complete the new office system project. Information about the activities is shown in the table below. Times are in weeks.

Data for Office Automation, Inc. (Times are given in weeks)
Activity	Description	Immediate Predecessors	Normal Time	Crash Time	Normal Cost ($)	Crash Cost ($)
A	Plan needs	-----------	10	8	30	70
B	Order equipment	A	8	6	120	150
C	Install equipment	B	10	7	100	160
D	Set up training lab	A	7	6	40	50
E	Training course	D	10	8	50	75
F	Testing system	C, E	3	3	60	-------

a). Show the network for the project.

b). Develop an activity schedule for the project using normal times.

c). What are the critical path activities and what is the expected project completion time?

2. Use the Trial and Error Method to solve problem 1 to crash 2 weeks of the project network. What is the Total Cost of Crashing including the Normal Cost?

3. Suppose that 15 components are sampled (n = 15) from a very large lot of components that have just been received. Assume that management decides to accept the lot only if no more than two nonconforming items are found in the sample; that is, c = 2. Although we do not have the actual percentage of nonconforming components in the lot, let us assume that this value is 5%. What is the probability that the lot will be accepted using this particular sampling plan? What happens if c = 3?