ISDS 3115 EXAM 1 QUESTIONS WITH
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Shortening the project's duration by deleting unnecessary activities is called "project crashing"
T or F - ANS False
Which of the following statements regarding PERT analysis is true?
A. The most likely time is equivalent to the expected activity time.
B. Only critical activities contribute to the project variance.
C. Each activity has two estimates of its duration.
D. Project standard deviation is the sum of all critical activity standard deviations.
E. Project variance is the sum of all activity variances. - ANS B. Only critical activities
contribute to the project variance.
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and
pessimistic = 8. What is its expected activity time and variance? - ANS 3.67, 1
O=2
M=3
P=8
Duration = O + 4 x M + P
Variance = ((P-O)/6)^2
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, Mean squared error and exponential smoothing are two measures of the overall error of a
forecasting model. T or F - ANS False
One use of short-range forecasts is to determine:
A. facility location.
B. job assignments.
C. capital expenditures.
D. planning for new products.
E. research and development plans. - ANS B. job assignments
Increasing the number of periods in a moving average will accomplish greater smoothing, but at
the expense of:
A. sensitivity to real changes in the data.
Your answer is correct.
B. stability.
C. accuracy.
D. manager understanding.
E. All of the above are diminished when the number of periods increases. - ANS A. Sensitivity
to real changes in the data
A fundamental distinction between trend projection and linear regression is that: - ANS in
trend projection the independent variable is time; in linear regression the independent variable
need not be time, but can be any variable with explanatory power
Which of the following is an example of a "hidden" production function?
A. transplanting a liver
B. manufacturing a television
C. producing a computer
D. assembling a motorcycle - ANS A. Transplanting a liver
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Shortening the project's duration by deleting unnecessary activities is called "project crashing"
T or F - ANS False
Which of the following statements regarding PERT analysis is true?
A. The most likely time is equivalent to the expected activity time.
B. Only critical activities contribute to the project variance.
C. Each activity has two estimates of its duration.
D. Project standard deviation is the sum of all critical activity standard deviations.
E. Project variance is the sum of all activity variances. - ANS B. Only critical activities
contribute to the project variance.
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and
pessimistic = 8. What is its expected activity time and variance? - ANS 3.67, 1
O=2
M=3
P=8
Duration = O + 4 x M + P
Variance = ((P-O)/6)^2
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Mean squared error and exponential smoothing are two measures of the overall error of a
forecasting model. T or F - ANS False
One use of short-range forecasts is to determine:
A. facility location.
B. job assignments.
C. capital expenditures.
D. planning for new products.
E. research and development plans. - ANS B. job assignments
Increasing the number of periods in a moving average will accomplish greater smoothing, but at
the expense of:
A. sensitivity to real changes in the data.
Your answer is correct.
B. stability.
C. accuracy.
D. manager understanding.
E. All of the above are diminished when the number of periods increases. - ANS A. Sensitivity
to real changes in the data
A fundamental distinction between trend projection and linear regression is that: - ANS in
trend projection the independent variable is time; in linear regression the independent variable
need not be time, but can be any variable with explanatory power
Which of the following is an example of a "hidden" production function?
A. transplanting a liver
B. manufacturing a television
C. producing a computer
D. assembling a motorcycle - ANS A. Transplanting a liver
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
