You are working on completing the budget for the 3.0 Administration workstream. In Assignment 4, after...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are working on completing the budget for the 3.0 Administration workstream. In Assignment 4, after the schedule compression, the cost estimate was below the $100,000 cost constraint. The last step you need to do to complete the project cost is to add in the contingency. This is what we have determined so far: Description Normal duration Compressed duration You have decided to use the simple simulation approach to size the cost contingency. The team has provided you with optimistic, most likely, and pessimistic cost estimates for each work package based on the compressed 40-day schedule. WBS Name 3.0 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3 3.3.1 3.3.2 3.3.3 3.4 3.4.1 3.4.2 3.4.3 Duration 50 days 40 days Administration Legal Lawyer hired Contracts. Contracts signed Legal requirements HR Firm hired Staff contracts New contracts Severance packages Staff communications Office move Plan move Office packed Office moved Project management Planning Status reports Admin completed Cost Estimate $75,000 $77,250 Optimistic $61,500 $19,000 $1,000 $12,000 $3,000 $3,000 $19,500 $3,000 $3,000 $5,000 $6,000 $2,500 $12,750 $1,500 $3,750 $7,500 $10,250 $4,750 $1,500 $4,000 Most Likely $77,250 $24,500 $1,250 $15,000 $4,250 $4,000 $25,750 $3,750 $3,750 $7,500 $8,250 $2,500 $15,250 $1,500 $6,250 $7,500 $11,750 $4,750 $3,000 $4,000 Pessimistic $175,000 $50,000 $5,000 $25,000 $10,000 $10,000 $65,000 $7,500 $15,000 $20,000 $20,000 $2,500 $28,000 $3,000 $10,000 $15,000 $32,000 $20,000 $8,000 $4,000 For your report to the Project Sponsor, you want to develop the answers to the following questions: 1. What is the expected cost for 3.0 Administration workstream with a 40-day duration? 2. What is the probability of completing the 3.0 Administration workstream for $100,000 or less? 3. What is the budget for the 3.0 Administration workstream to have an 80% probability of meeting the budget? You are working on completing the budget for the 3.0 Administration workstream. In Assignment 4, after the schedule compression, the cost estimate was below the $100,000 cost constraint. The last step you need to do to complete the project cost is to add in the contingency. This is what we have determined so far: Description Normal duration Compressed duration You have decided to use the simple simulation approach to size the cost contingency. The team has provided you with optimistic, most likely, and pessimistic cost estimates for each work package based on the compressed 40-day schedule. WBS Name 3.0 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3 3.3.1 3.3.2 3.3.3 3.4 3.4.1 3.4.2 3.4.3 Duration 50 days 40 days Administration Legal Lawyer hired Contracts. Contracts signed Legal requirements HR Firm hired Staff contracts New contracts Severance packages Staff communications Office move Plan move Office packed Office moved Project management Planning Status reports Admin completed Cost Estimate $75,000 $77,250 Optimistic $61,500 $19,000 $1,000 $12,000 $3,000 $3,000 $19,500 $3,000 $3,000 $5,000 $6,000 $2,500 $12,750 $1,500 $3,750 $7,500 $10,250 $4,750 $1,500 $4,000 Most Likely $77,250 $24,500 $1,250 $15,000 $4,250 $4,000 $25,750 $3,750 $3,750 $7,500 $8,250 $2,500 $15,250 $1,500 $6,250 $7,500 $11,750 $4,750 $3,000 $4,000 Pessimistic $175,000 $50,000 $5,000 $25,000 $10,000 $10,000 $65,000 $7,500 $15,000 $20,000 $20,000 $2,500 $28,000 $3,000 $10,000 $15,000 $32,000 $20,000 $8,000 $4,000 For your report to the Project Sponsor, you want to develop the answers to the following questions: 1. What is the expected cost for 3.0 Administration workstream with a 40-day duration? 2. What is the probability of completing the 3.0 Administration workstream for $100,000 or less? 3. What is the budget for the 3.0 Administration workstream to have an 80% probability of meeting the budget?
Expert Answer:
Answer rating: 100% (QA)
1 Expected cost is the average of the possible costs weighted by their probabilities To calculate the expected cost we need to multiply each cost esti... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these general management questions
-
Most of the black holes observed by astronomers have masses equal to a few solar masses (the result of the death of a high mass star) or have masses equal to several million solar masses (found at...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Compute the determinant below. 14 8 8 8 51 1000 8 7 3 0 0 0 8 8 8 8 8 2
-
Show that the greedy algorithm to minimize the mean completion time for multiprocessor job scheduling works.
-
Which of these taxes may be incurred by an S corporation? a. Alternative minimum tax. b. Tax on certain built-in gains. c. Property tax assessed by the county.
-
List five topics which are usually referred to in audit engagement letters.
-
Journal entries and T-accounts. Prepare journal entries and post them to T-accounts for all transactions in Exercise 7-26, including requirement 2. Summarize how these journal entries differ from the...
-
In the last column for NYTD,figure out how NYT'sDNA elements will impact their performance. What DNA elements should NYTD keep, what should it jettison, and what should it change? A element...
-
Bronys Bikes maintains two general demand deposit bank accounts and an imprest payroll account. One of the general bank accounts and the payroll account are with Dallas Dollar Bank. The second demand...
-
A company has budgeted direct materials purchases of $400000 in July and $560000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the...
-
Think of a current or recent problem you have encountered. Analyze your problem by identifying its component parts (present situation, obstacles, and goal). Pay particular attention to the obstacles...
-
Members of the Advisory Council of the College of Arts and Humanities where one of us works met one year to discuss creative fund-raising ideas to enhance the colleges endowment for student...
-
Describe brainstorming, synectics, and appreciative inquiry, and explain how they can be used to help enhance group creativity.
-
Define cognitive/informational diversity and explain how it can affect group outcomes.
-
We often assign our student groups to observe and gather information about other real-life groups. One of our groups observed another group of students working on a project for a marketing class....
-
10. How did Kettlewell test his hypothesis? 11. What were Dr. Kettlewell's conclusions after conducting his experiment? 12. Explain how the color of the moths increases or decreases their chances of...
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Mary paid $2,000 of state income taxes in 2012. The total sales tax she paid during 2012 was $5,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2012...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
William sold Section 1245 property for $25,000 in 2012. The property cost $35,000 when it was purchased 5 years ago. The depreciation claimed on the property was $16,000. a. Calculate the adjusted...
-
What is the change in velocity of \((a)\) cart 1 (b) cart 2 in Figure 4.6? (c) What do you notice about your two answers? Figure 4.6 Velocity-versus-time graph for two identical carts before and...
-
(a) Are the accelerations of the motions shown in Figure 4.1 constant? (b) For which surface is the acceleration largest in magnitude? Figure 4.1 Velocity-versus-time graph for a wooden block sliding...
-
The \(x\) component of the final velocity of the standard cart in Figure 4.8 is positive. Can you make it negative by adjusting this cart's initial speed while still keeping the half cart initially...
Study smarter with the SolutionInn App