Your company is considering submitting a bid on a major project.You determine that the expected completion time is 150 weeks and the standard deviation is 10 weeks.It is assumed that the normal distribution applies.You wish to set the due date for the project such that there is a 95 percent chance that the project will be finished by this time.What due date should be set?
A)108.0
B)160.4
C)166.5
D)135.0
E)None of the above

Question

Quizplus · Accepted Answer

The first step is to calculate the z-score of the 95th percentile, which is 1.645 (found in a standard normal distribution table).

Next, we use the formula: due date = expected completion time + (z-score)(standard deviation)
due date = 150 + (1.645)(10) = 166.45, rounded to 166.5

Therefore, the due date that should be set is 166.5 weeks. Choice C is the only one that matches this answer.

Your Company Is Considering Submitting a Bid on a Major