SOFTWARE PROJECT MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Your project has following estimates that 15% probability for $10, 000 profit, 50% probability for $40, 000 profit, and 25% probability for $50, 000 profit. What is the expected profit?
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$34, 000
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$38, 000
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$42, 000
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$43, 500
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Explanation:
Detailed explanation-1: -The expected value is defined as the difference between expected profits and expected costs. Expected profit is the probability of receiving a certain profit times the profit, and the expected cost is the probability that a certain cost will be incurred times the cost.
Detailed explanation-2: -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
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