advanced business statistics homework 2

A typical business request is to submit a budget—this can include budgets for funding a project, a planned business trip, and even operating costs for an office location. In the file “Budget.xlsx” a typical line item budget estimate is provided for a radiology department at a small hospital. Develop a forecasted budget using the PERT methodology (explained below) and compute the expense point where you are at least 95% sure that your expenses will not exceed this amount.

Use the file: “Budget.xlsx” to get you started and the information below to help guide you through the PERT methods.

Write a one-page paper summary of your findings and submit both the excel file and your document to Canvas. Your summary should include a written explanation of your “most likely” estimates, the type of value for each of the categories (deterministic vs probabilistic and why), and a written explanation of what the expense point means.

 

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