Question

As a manager of the NHQ project, you are performing quantitative risk analysis. You have discovered that one project risk has a 40 percent probability of occurring and would cost the project $67,000. What is the expected monetary value of the risk event

Answer 1

Answer:

$26,800

Explanation:

Data given in the question

Probability of the risk = 40%

Cost of the project = $67,000

So by considering the above information

The expected monetary value of the risk event is

= Probability of the risk × cost of the project

= 40% × $67,000

= $26,800

By multiplying the probability with the cost of the project, the expected monetary value could come