Consider a Project with the below activities in Table 1. The Project sponsor has estimated the cost per each activity and sum up the total cost of the project $10,124. Upon your assignment and the project charter has been issued and signed by the project sponsor, you assembled your team and start the project planning and cost estimation process. Your team started the process of bottom-up estimation for each activity of the project. According to your team estimations, the total cost of the project would be $13,200.

Activity	Immediate predecessor	Exact month where the activity will be executed	Duration(days)	Cost given by the sponsor	Historical cost (see ) below table) calculate for the year 2011	Cost given by team	Risk
A		1		$ 1000.00		1200.00	Red
B	A	3	10	1800.00		2000.00	Yellow
C	A	2	15	1100.00		1500.00	Green
D	A	2	15	200.00		250.00	Yellow
E	C	3	12	500.00		760.00	Green
F	C, D	3	14	1200.00		1900.00	Red
G	B	4	15	1600.00		2300.00	Green
H	E, F	4	5	670.00		890.00	Yellow
I	G, H	5	6	820.00		1100.00	Green
J	I	6	7	1234.00		1300.00	Red

Red - high risk

Yellow - medium risk

Green - low risk

You have conducted your own cost analysis using analogous cost estimation using information from a similar past project to estimate the cost and duration of the project. Table 2 summaries your finding for each activities from 2001 to 2010.

Table 2: Historical information from similar project from 2001 to 2010

Activity	Year 2001	2002	2003	2004	2005	2006	2007	2008	2009	2010
A	$800.00	820	840	860	880	900	920	940	1000	1200
B	930.00	950	970	990	1010	1030	1050	1070	2000	2300
C	840	860	880	900	920	940	960	1100	1200	1500
D	30	45	60	75	90	105	120	135	200	230
E	75	100	125	150	175	200	225	250	550	600
F	245	367	489	611	733	855	977	1099	1200	1300
G	457	556	655	754	853	952	1051	1150	1249	2257
H	124	189	254	319	384	449	514	579	670	734
I	90	176	262	348	434	520	606	692	820	860
J	756	790	824	858	892	926	960	994	1234	1300

You need to submit a final and more accurate project cost estimate to your project sponsor to establish project budget and get his approval. Questions and Requirements:

1. Draw the project Network Diagram (Note: it is VERY important that you consider the months of execution of the activities, this will give you a clear idea if the activities are done in parallel or not, i.e. the exact position of the activity in the space of time).

2. Calculate the total duration of the project. What is the Critical Path of the Project.

3. Calculate the total cost of the project, to do this consider the following actions:

a. Using the historical cost, calculate the project activity cost using linear regression analysis for the year 2011. What is the Total Project cost?

b. Using weighted average (PERT) per activity, What is the cost per each activity? Calculate the project total cost?

c. Calculate the standard deviation for each activity.

d. For high-risk activities, add the standard deviation to the cost of the activity.

e. For activities within the critical path, also add the standard deviation. If the critical path activity is also high risk, only add the standard deviation only once.

4. What is the probability that the project will cost $12,000?