In the context of the Project Evaluation and Review Technique (PERT), which of the following is true of the beta probability distribution approach?
A) It allows managers to identify the best case, worst case, and most likely case for activity times.
B) It describes the inherent similarity in the optimistic, most probable, and pessimistic time estimates.
C) It is rigid in characterizing the distribution of times.
D) It forces activity times to a symmetric normal probability distribution.

Question

Quizplus · Accepted Answer

The beta probability distribution approach allows managers to identify the best case, worst case, and most likely case for activity times. This approach uses a weighted average of the optimistic, most probable, and pessimistic time estimates to estimate the expected time for an activity. It assumes that the activity times follow a beta probability distribution, which is flexible in characterizing the distribution of times and can account for skewness and asymmetry. This approach does not force activity times to a symmetric normal probability distribution.

In the Context of the Project Evaluation and Review Technique