In: Finance
Problem 12-09 (Algorithmic)
A project has four activities (A, B, C, and D) that must be performed sequentially. The probability distributions for the time required to complete each of the activities are as follows:
Activity |
Activity Time (weeks) |
Probability |
||
A | 3 | 0.29 | ||
4 | 0.38 | |||
5 | 0.29 | |||
6 | 0.04 | |||
B | 7 | 0.22 | ||
9 | 0.53 | |||
11 | 0.25 | |||
C | 9 | 0.05 | ||
11 | 0.24 | |||
13 | 0.36 | |||
15 | 0.19 | |||
17 | 0.16 | |||
D | 10 | 0.59 | ||
12 | 0.41 | |||
Activity | Base case | Worst case | Best case |
---|---|---|---|
A | _____weeks | _____weeks | _____weeks |
B | weeks | weeks | weeks |
C | weeks | weeks | weeks |
D | weeks | weeks | weeks |
Total | weeks | weeks | weeks |
Activity | Random Number | Completion Time |
---|---|---|
A | 0.7584 | ____weeks |
B | 0.7279 | weeks |
C | 0.4741 | weeks |
D | 0.9526 | weeks |
Total | weeks |
T | p | A=T*p | |||||
ACTIVITY | Activity Time (weeks) | Probability | Activity Time*Probability | ||||
A | 3 | 0.29 | 0.87 | ||||
4 | 0.38 | 1.52 | |||||
5 | 0.29 | 1.45 | |||||
6 | 0.04 | 0.24 | |||||
SUM | 4.08 | ||||||
Base Case Time for Activity A | 4.08 | ||||||
B | 7 | 0.22 | 1.54 | ||||
9 | 0.53 | 4.77 | |||||
11 | 0.25 | 2.75 | |||||
SUM | 9.06 | ||||||
Base Case Time for Activity B | 9.06 | ||||||
C | 9 | 0.05 | 0.45 | ||||
11 | 0.24 | 2.64 | |||||
13 | 0.36 | 4.68 | |||||
15 | 0.19 | 2.85 | |||||
17 | 0.16 | 2.72 | |||||
SUM | 13.34 | ||||||
Base Case Time for Activity C | 13.34 | ||||||
D | 10 | 0.59 | 5.9 | ||||
12 | 0.41 | 4.92 | |||||
SUM | 10.82 | ||||||
Base Case Time for Activity D | 10.82 | ||||||
Time in Weeks | |||||||
Activity | Base case | Worst case | Best case | ||||
A | 4.08 | 6 | 3 | ||||
B | 9.06 | 11 | 7 | ||||
C | 13.34 | 17 | 9 | ||||
D | 10.82 | 12 | 10 | ||||
Total | 37.30 | 46.00 | 29.00 | ||||
SIMULATION | |||||||
ACTIVITY A | |||||||
Mapping of Random Number | |||||||
Activity Time | Probability | Cumulative Probability | Mapped Random Number | ||||
3 | 0.29 | 0.29 | 00-28 | ||||
4 | 0.38 | 0.67 | 29-66 | ||||
5 | 0.29 | 0.96 | 67-95 | ||||
6 | 0.04 | 1 | 96-99 | ||||
Activity | Random Number | First two Digits | Activity Time | Mapped Numbers | |||
A | 0.7584 | 75 | 5 | 67-95 | |||
ACTIVITY B | |||||||
Mapping of Random Number | |||||||
Activity Time | Probability | Cumulative Probability | Mapped Random Number | ||||
7 | 0.22 | 0.22 | 00-21 | ||||
9 | 0.53 | 0.75 | 22-74 | ||||
11 | 0.25 | 1 | 75-99 | ||||
Activity | Random Number | First two Digits | Activity Time | Mapped Numbers | |||
B | 0.7279 | 72 | 9 | 22-74 | |||
ACTIVITY C | |||||||
Mapping of Random Number | |||||||
Activity Time | Probability | Cumulative Probability | Mapped Random Number | ||||
9 | 0.05 | 0.05 | 00-04 | ||||
11 | 0.24 | 0.29 | .05-28 | ||||
13 | 0.36 | 0.65 | 29-64 | ||||
15 | 0.19 | 0.84 | 65-83 | ||||
17 | 0.16 | 1 | 84-99 | ||||
Activity | Random Number | First two Digits | Activity Time | Mapped Numbers | |||
C | 0.4741 | 47 | 13 | 29-64 | |||