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Question:

Using the estimates given, calculate the beta distribution: most likely estimate (ML) = 72, optimistic estimate (O) = 55, pessimistic estimate (P) = 85. Round to one decimal point.

A
71.3

Explaination

A beta distribution calculation involves giving a greater weight to the most likely estimate. Simply multiply the most likely estimate by four, add the result with the other two estimates, and divide by six: (4 × (ML) $72 + (O) $55 + (P) $85) ÷ 6 = $71.3.

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