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NEW QUESTION 28
When using PERT (Program Evaluation Review Technique), the expected time for an activity when given an optimistic time (a), a pessimistic time (b), and a most likely time (m) is calculated by which one of the following formulas?

• A. (a +b) + 2
• B. (a+4m+b) / 6
• C. (4abm) / 6
• D. (b-a) + 2

Answer: B

Explanation:
PERT was developed to aid managers in controlling large, complex projects. PERT analysis includes probabilistic estimates of activity completion times. Three time estimates are made Optimistic, most likely, and pessimistic. The time estimates for an activity are assumed to approximate a beta probability distribution. PERT approximates the mean of the beta distribution by dividing the sum of the optimistic time, the pessimistic time, and four times the most likely time by six.

NEW QUESTION 29
From the viewpoint of the investor, which of the following securities provides the east risk?

• A. Subordinated debenture.
• B. Mortgage bond.
• C. Debentures.
• D. Income bond.

Answer: B

Explanation:
A mortgage bond is secured with specific fixed assets, usually real property. Thus, under the rights enumerated in the bond indenture, creditors will be able to receive payments from liquidation of the property in case of default. In a bankruptcy proceeding, these amounts are paid before any transfers are made to other creditors, including those preferences. Hence, mortgage bonds are less risky than the others listed.

NEW QUESTION 30
How can the concept of relevant cost help management with behavioral analyses?

• A. It enables management to predict how costs such as the depreciation of equipment will be affected by a change in business decisions
• B. It explains the assumption mat both costs and revenues are linear through the relevant range
• C. It enables management to make business decisions, as it explains the cost that will be incurred for a given course of action
• D. It enables management to calculate a minimum number of units to produce and sell without having to incur a loss.

Answer: C

NEW QUESTION 31
Which of the following risks is more likely to be encountered in an end-user computing EUC) environment as compared with a centralized environment?

• A. User input screens without a graphical user interface GUI).
• B. Lack of adequate utility programs.
• C. Applications that are difficult to integrate with other information systems.
• D. Inability to afford adequate uninterruptible power supply systems.

Answer: C

Explanation:
The risk of allowing end users to develop their own applications is decentralization of control. End-user developed applications may not be subject to an independent outside review by systems analysts and are not created in the context of a formal development methodology. These applications may lack appropriate standards, controls, and quality assurance procedures. Moreover, when end users create their own applications and files, private information systems may proliferate in which data are largely uncontrolled. These systems may contain the same information, but end-user applications may update and define the data in different ways. Thus, determining the location of data and ensuring data consistency become more difficult because the applications are difficult to integrate.

NEW QUESTION 32
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