Lau, Hon-Shiang; Lau, Amy Hing-Ling; Ho, Chrwan-Jyh - In: Management Science 44 (1998) 3, pp. 346-351
PERT-type subjective estimations are used in many stochastic decision models to estimate the random variables' mean and standard deviation (s.d.). The approach is based on the beta-distribution assumption; also, most PERT-type formulas use only three estimated fractiles. We point out that: (i)...