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Topic History of : Risk Quantitative Analysis discussion

Max. showing the last 6 posts - (Last post first)
7 years 1 month ago #9949

Ha TR

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I'm trying to solve this question from HeadFirst Labs book, but I believe the answer the book is saying is incorrect. I think the answer should be a +30.7 and not -30.7, please let me know your thoughts on this:

Prob Imp
35% cost $48 to replace equipment
5% lose $750 in damage costs
15% save $800 in battery costs
10% cost $350 for last-minute rental

What is total EMV? The book says it should be a "-$30.70" and that if you add $30.7 to your budget you will account for risks? I am struggling with this, I think you should not reduce budget at all in this case since in fact you get a saving of $30.7 cumulative EMV of the risks. Let me know your thoughts please.

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Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®

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