Reference no: EM132914313

Problem: Consider the project information in the table (time in weeks) ACTIVITY a m most pessimistic

Start - A 10 15 26

Start - B 8 10 18

Start - D 10 12 14

A-C 4 5 6

B-C 0 0 0

D-E 1 2 3

D-F 1 3 11

C-G 1 2 3

E-G 0 0 0

G-H 1 2 3

F-H 0 0 0

H-J 0 0 0

F-I 3 4 5

I-J 1 2 3

J-Finish 1 2 3

A. Draw an activity network .

B. Answer the following questions base on the activity network

1) What is the critical path

2) How soon at the earliest can the production process be completed?

3) What is the time estimated for event A

4) The time estimated for event B.

5) The time estimated for event D. 

DECISIONS THEORY

Use the decision tree analysis in solving the problem below.

Problem : Mrs. Sumicat , the president of Marginette Corporation is faced with deciding whether to purchase a patent to develop a new product or not. If the company purchases the patent, it should develop the product. The selling price of the patent Is P50,000. There are two ways of developing the product: the Modern Method and the Traditional method. It costs P20,000 to use the Modern Method, and P15,000 for the Traditional Method. The probability of success in the Modern Method is 60%, while it is 70% for the Traditional Method. If the product is successfully developed, it will give an income of P500,000. Should the company purchase the patent? If so, what method of development should be used?