Task $2.$ Total Cost

Compute the mean and variance of the total cost using the two rules for the sum of independent random variables.

Task $3.$ Cost Risk Assessment using PERT

Using the PERT results from Task $2,$ answer the questions below.

Q $3\mathrm{.}1$ Determine the most likely cost of the total cost.

Answer:

Q $3\mathrm{.}2$ The probability of completing the project within $$260,000$ would be most likely $q,$

$($A$)$ About $10\%$

$($B$)$ About $20\%$

$($C$)$ About $50\%$

$($D$)$ About $70\%$

Q$3\mathrm{.}3$ Determine the total cost when the required probability of completing the project within the budget is $90\%.$

Answer: