SOFTWARE PROJECT MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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AVendor 1 with an 80% probability of success and profit of $20, 000
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BVendor 2 with a 90% probability of success and profit of $19, 000
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CVendor 3 with a 75% probability of success and profit of $18, 000
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DVendor 4 with an 85% probability of success and profit of $20, 000ets
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Detailed explanation-1: -To figure this out, you calculate the EMV by multiplying the value of each possible outcome (impact) by its likelihood of occurrence (probability) and then adding the results-which leads us back to our original topic. A common use of EMV is found in decision tree analysis.
Detailed explanation-2: -Expected Monetary Value (EMV) Formula You multiply the probability by the impact of the identified risk to get the EMV. You will add the EMVs of all risks if you have multiple risks. This will be the expected monetary value of the project.
Detailed explanation-3: -Determine the probability (P) an outcome will occur. Determine the monetary value or impact (I) of the outcome. Multiply P x I to calculate the EMV. 21-Jul-2021