Three Point Estimate question

 Together with your team, you applied three-point estimation on a Critical path which consists of two activities. The following duration uncertainties are all calculated assuming a ±3sigma Confidence interval. The duration uncertainty—defined as pessimistic minus optimistic estimate—of the first activity is 18 days; the second estimate has an uncertainty of 24 days. Applying the PERT formula for paths, what is the duration uncertainty of the entire path? 94

o 21 days
o 30 days
o 42 days
o No statement is possible from the information given.

 18 + 4x + 24

__________    =  x

            6

 

 

= 21

 Thanks . But seems like correct answer is 30 days ?. 

I am lost in question. Please explain the question and than answer.


Here P-O is 18 and 24. So standard deviation is P-O/6 i.e. 3 and 4. Sigma level is 3. so Activity standard deviation is 9 and 12. Activity variance is 81 and 144. Total is 225. Standard deviation for the project is  sq root of 225 which is 15.


I think I am somewhere wrong. Please explain.


 


 

The key word in this question is 3 Sigma.

Our normal calculations are for 1 sigma or 50% confidence level. 

Definition (Rita):

Uncertainity is the lack of knowledge about an event that reduces confidence in conclusions drwan from the data.

Note, 3 Sigma = 99.73%, seems to be a distracter(as Rita puts it). I can think of two solutions, but not sure what exactly is it.

SOLUTION 1:

The duration of uncertainity (Pessimistic-Optimistic) is already calculated for the activities, so just adding up the two durations would give total duration of uncertainity for entire path.

Duration uncertainity of entire path = duration uncertainity of activity 1  + duration uncertainity of activity 2

Duration = 18+24 = 42

ANSWER: D

 

SOLUTION 2:

STEPS:

1. Calculate standard deviation of activities; SD = (P - O) / 6

2. Calculate variance of activities; variance = SD²

3. Calculate Total variance

4. Calculate Uncertainity; U = P-O

 

Given, uncertainity => U = P-O

Given, standard deviation => SD = (P - O) / 6

Given, variance = SD²

Given A1 = 18, A2=24

 

STEP 1:

SD = U/6

SD1 = A1/6 = 18/6 = 3

SD2 = A2/6 = 24/6 = 4

 

STEP 2:

V1 = SD1² = (3)² = 9

V2 = SD2² = (4)² = 16


STEP 3:

Total V  = V1 + V2 = 9 + 16 = 25


STEP 4:

Given V = SD², or

25=SD² => SD = 5

U = (P-O)

SD = U/6, or

U = SD x 6 = 5 x 6 = 30

 

ANSWER: B

 

 Need someone whos an authority on PMBOK, to "authenticate" the correct answer.

Does this sort of question "REALLY" a part of PMP exam?

B- 30 days is correct answer and this sort of question can be a part of PMP exam. It is simple.Not complex as you described.


 


Data given is P minus O for A1 is 18 & A2 is 24.We want P minus O for Whole project.


1)Standard deviation is (P-O)/6 - for A1 is 3 and A2 is 4.


2)Activity Duration variance for A1 is 9 & A2 is 16.


3) Total activity variance is 25 for the project. Hence SD for project is 5.


4)  (P-O)/6 =5


Answer : Duration Uncertainty for entire project =P minus O = 6*5 =30.


 


Raj


 

Good job!

 Hi,

 

Before I go to the answer I would like to share my view on the question itself:

 

First of all, I would respectfully state that the question is not stated correctly. The terms 1sigma, 2sigma,…, 6sigma and their respective population percentages all applies to data that is normally distributed (in other words the sampling distribution and population distribution forms a normal distribution). Formulas for statistics such as standard deviation are different for different statistical distributions. To apply normal distributions we need at least 30 samples (if we are unsure regarding the population distribution). At lest 30 samples means at least 30 points.

 

When we don’t have at least 30 points, we can’t use normal distribution to estimate population parameters. PERT is based on 3-point estimate. Since we can’t use normal distribution for PERT, we use triangular distribution as this distribution is based on 3-points (a triangle).

 

I would only accept this question, if the term 3sigma was used to create a distraction. Even if that’s the case, you won’t find similar clashing-concepts distractions in the real PMP exam. If there should be any distraction, it should be totally irrelevant to the question. Relax you won’t find such a question on the exam.

 

Okay let’s assume that the term 3sigma was a distracter; let’s focus on the remaining part of the question. It is stated that the network has only two activities. First activity’s uncertainty is 18 days. Then it is mentioned that the “the second estimate has an uncertainty of 24 days”. Now this term is ambiguous. Does the author want to state that the “second activity’s” uncertainty is 24 days or the secondary estimate of the first activity resulted in the uncertainty of 24 days? Since the first one make more sense, I would again assume that it’s the uncertainty of the second activity.

 

We can’t add the uncertainties together to get the project uncertainty. I would agree with the “standard deviation” technique used by a couple of people over here, yielding a total uncertainty of 30 days. But for that I again have to make an assumption. If I assume that these two activities have a finish-to-start relationship, I would say, based on the “standard deviation technique”, the total uncertainty is 30 days. But what if the two activities have a start-to-start relationship? Nobody thought of this? In that case the total uncertainty will be the greater of the two uncertainties, i.e., 24 days.

 

In short, I would have to make a number of assumptions in order to say that the total uncertainty of the project is 30 days. Hence, I would go for the last choice, that is, “No statement is possible from the information given”. I would go for this choice since this one makes more sense to me.

 

Regards,

 

Exam Support Team

The PM PrepCast - http://www.premiumcast.com/vp/50398/16780/10399/

The ans is obviously 30 as calculated by SD. The question says the tasks are in Critical Path. Do you think the only 2 tasks in Critical path has SS relationship? Lets not assume things !!!

Ok guys, I found the context of this answer.

The question comes from Oliver F. Lehmann's 175 Prep Questions, Question # 94. And he says the right answer is B, which means 30.

Following is the answer description:

94 Monitoring and controlling

Answer: 2

References:

Project Management JumpStart by Kim Heldman, page 171, pmi.books24x7.com/viewer.asp?bkid=10556&destid=398&destid=389&destid=389&term=standard+deviation+in#398;

Project Management: A Systems Approach to Planning, Scheduling, and Controlling by H. Kerzner, 10th Edition, page 513, pmi.books24x7.com/viewer.asp?bkid=32027&destid=788#788.
 

@PM Prepcast: Do you have any comments, because honestly, I would have selected the choice D. It seems that there can be questions which "can" have multiple answers, if answered by multiple PMP Writers.

 

Guys,

I can't get this one... I have some questions.....

Qustion 1 )
Since the question ask "Applying the PERT formula for paths, what is the duration uncertainty of the entire path?"

And PERT is ( P + ML4 + ) / 6

I guess we need to include ML4 in the formula... and it's not there ..

Can you explain this, ? why we dont work with ML or ML4 ?

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Question 2 )

The last part of the Calculation that everybody do..

We get the Total Variation of the Path = OK, I understand that..

We Find the Total Standard Deviation from that, as Total V is SD^2 if we do Square of Total V ( 25 ) we get SD of the total path which is 5

My question is, Why we can't just took the initial information from the Question,
Activity A Uncertain P-O= 18
Activity B Uncertain P-O= 24

And find the SD from that.. by /6 ex : 18/6 = 3 and 24/6 = 4

Why this is not the right things to do to get the Standard Deviation ?

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Thanks guys !