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Goryan [66]
3 years ago
10

Suppose a project is subject to the following risk events (each with a given probability of occurring and a cost associated with

that occurrence): Event Probability Cost($000s) I .2 53 II .6 54 III .1 12 IV .3 21 Given these, Event _____ should probably get the most attention and Event _____ should probably get the least. a. I; III b. II; IV c. I; II d. III; IV e. II; III
Business
1 answer:
gulaghasi [49]3 years ago
5 0

Answer :

Correct answer is Option (e)

Explanation :

As per the data given in the question,

Option (e) is the correct answer, which indicates that Event 2nd should probably get the most attention and Event 3rd should probably get the least.

The reason behind it is Event 2nd has the highest probability of occurrence at 0.6 and cost associated with it is also the greatest at $54,000. Event 3rd has the least probability of occurrence at 0.1 and the cost associated with its occurrence is also the smallest at $12,000.Therefore this Event should be given least importance.

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