Question

If the project is finished within 26 weeks of its start, the project manager will receive a bonus of $1,000; and if the project is finished within 27 weeks of its start, the bonus will be $500. Find the probability of each bonus. (Round Mean, Standard Deviation, z-value to 2 decimal places and Probability to 4 decimal places.) Path Mean Std. Dev. a-d-e-h 24.33 1.35 a-f-g 15.50 1.26 b-i-j-k 14.83 1.02 c-m-n-o 26.17 1.66 Probability ($1,000) .4099

Answer 1

(a) Probability of $1,000 bonus = 0.4099

(b) Probability of $500 bonus = 0.6742

1. path a-d-e-h

Mean = 24.33 Standard Deviation = 1.35 z-value = 1.23

2. Path a-f-g

Mean = 15.50 Standard Deviation = 1.26 z-value = 8.35

3. Path b-i-j-k

Mean = 14.83 Standard Deviation = 1.02 z-value = 11.02

4. Path c-m-n-o

Mean = 26.17 Standard Deviation = 1.66 z-value = -0.10

Explanation:

See the attached for the calculations