AMBONG, JOSEFINA O.

MBHRM501A-QUANTITATIVE METHODS FOR BUSINESS

SEATWORK No:

10

1. A project involving the installation of a computer system consists of eight activities. The
immediate predecessor and activity time in weeks are shown below:
Activity

Immediate
Predecessor
A
B,C
D
E
B,C
F,G

A
B
C
D
E
F
G
H

Time (weeks)
3
6
2
5
4
3
9
3

a. Draw the PERT/CPM network for this project.

b. What are the critical patch activities?
c. What is the expected project completion time?
SOLU TION
a.

2
A

D
6

9
B

b.
Activity
A
B
C
D
E
F
G
H

Activit
y Time
3
6
2
5
4
3
9
3

ES

EF

LS

LF

Slack

0
0
3
6
11
15
6
18

3
6
5
11
15
18
15
21

1
0
4
6
11
15
9
18

4
6
6
11
15
18
18
21

1
0
1
0
0
0
3
0

Critical
Path
No
Yes
No
Yes
Yes
Yes
No
Yes

Critical path
B-D-E-F-H
c. Expected Project Completion = 21 weeks

AMBONG, JOSEFINA O.

SEATWORK No:

11

MBHRM501A-QUANTITATIVE METHODS FOR BUSINESS

2. Piccadilly College is considering building a new multipurpose athletic complex on campus.
The complex would provide a new gymnasium for intercollegiate football games, expanded
office space, classrooms, and intramural facilities. The activities that would have to be
undertaken before beginning constructing are shown in Table below.

Activity

Description

Immediate
Predecess
or

Time (weeks)

A
B
C
D
E
F
G
H

Survey building Site

Develop initial design
Obtain board approval
Select architect
Establish budget
Finalize design
Obtain financing
Hire contractor

A,B
C
C
D,E
E
F,G

6
8
12
4
6
15
12
8

a. Develop a PERT/CPM network for this project.

b. Identify the critical path.
c. Develop the activity schedule for the project.
d. Does it appear reasonable that construction of the athletic complex could begin 1 year after
the decision to begin the project with the site survey and initial design plans? What is the
expected completion time for the project?
6
4

15

122

12

b. Critical path = B-C-E-F-H

c. Target Completion = 49 weeks
Activit
y
A
B
C
D
E
F
G
H

Description
Survey building Site
Develop initial design
Obtain board
approval
Select architect
Establish budget
Finalize design
Obtain financing
Hire contractor

AMBONG, JOSEFINA O.

Activity Time
(weeks)
6
1
12

ES

EF

LS

LF
8
8
20

Slac
k
2
0
0

Critical
Path
No
Yes
Yes

0
0
8

6
8
20

2
0
8

4
6
15
12
8

20
20
26
26
41

24
26
41
38
49

22
20
26
29
41

26
26
41
41
49

2
0
0
3
0

No
Yes
Yes
No
Yes

SEATWORK No:

12

MBHRM501A-QUANTITATIVE METHODS FOR BUSINESS

3. Use a simple regression to forecast sales for 2011. Use 1998 as year 1.
YEAR
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2010
2008
2009
2011

SALES
212,000
297,000
439,000
653,000
856,000
573,000
797,000
1,004,000
1,012,000
1,007,000
1,213,098
1,100,456
1,157,765
1,361,687.50

Solution:
y=ax+b
y

= (226,207.73*14) + 81,105.70
= 1,361,687.50

SUMMARY OUTPUT
Regression Statistics
0.9512020
Multiple R
51
0.9047853
R Square
42
Adjusted R
0.8961294
Square
64
107021.20
Standard Error
68
Observations

13

ANOVA
df
Regression

Residual

11

Total

12

SS
1.19722E+
12
1.25989E+
11
1.32321E+
12

MS
1.19722E+
12
114535387
07

F
104.528
43

Significance
F
5.92281E07

P-value

Lower 95%

Coefficient
s

Standard
Error

Intercept

226,207.73

62,965.76

3.59

0.00

X Variable 1

81,105.70

7,932.94

10.22

0.00

t Stat

Upper
95%

Lower
95.0%

Upper
95.0%

87,620.97

364,794.5
0

87,620.97

364,794.50

63,645.41

98,565.99

63,645.41

98,565.99