Central and Eastern Industries is planning to introduce a new mobile phone service.
To do so, the following activities are necessary:
Activity Preceding
Activity
Expected
Time
(weeks)
Standard
Deviation
(weeks)
A – 6 1.0
B – 3 0.5
C A 5 1.0
D A 4 1.0
E A 3 0.5
F C 3 0.5
G D 5 1.0
H B, D, E 5 1.0
I H 2 0.5

J F, G, I 3 1.0
The Costs of the project are estimated to be Sh. 10 million. If the project is
completed within 24 weeks the expected net revenue will be about Sh. 100 million but
if the deadline of 24 weeks is not met, the service will fail to penetrate the market and
a net revenue of Sh. 2 million is expected.
Required:
(a) Determine how long the project would take. (8 marks)
(b) If the start of activities B, E and G are respectively delayed by 3, 2 and 2 weeks,
how would this affect the total project time? (6
marks)
(c) Determine a 95% confidence interval for the expected time of the project and
explain your answer. Ignore the delays referred to in (b) above.
(3 marks)
(d) Determine the expected profit on this project. Again ignore the delays referred
to in (b) above. (3
marks)