Concept:
In CPM (Critical Path Method) and PERT networks, a dummy activity is an activity that:
• Consumes no time
• Requires no resources
• Is represented by a dotted arrow
Dummy activities are introduced only to maintain proper logical relationships in the network diagram.
Step 1: Analyze statement A.
A dummy activity is not used to represent the starting activity of a project.
Hence, statement A is incorrect.
Step 2: Analyze statement B.
Dummy activities are used to maintain logical relationships between parallel activities and dependent operations.
Hence, statement B is correct.
Step 3: Analyze statement C.
In CPM networks, dummy activities help avoid two arrows having the same start and end nodes.
Hence, statement C is correct.
Step 4: Analyze statement D.
The longest duration path is represented by the critical path, not by a dummy activity.
Hence, statement D is incorrect.
Step 5: Analyze statement E.
Dummy activities are not used to represent the shortest path of the network.
Hence, statement E is incorrect.
Step 6: Choose the correct option.
Correct statements are B and C.
Therefore, the correct answer is:
\[
{\text{(B) B and C}}
\]