Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen. If this event does happen, how much will Donna have left in the risk…

The correct answer is D. $6,700. This question references a figure (not shown here) containing risk events with their probabilities and monetary impacts. The contingency reserve is built from the sum of all risks' Expected Monetary Values (EMV = Probability × Impact). If Risk Event D occurs, the amount spent…

Risk Monitoring and Reporting

Question

Donna is the project manager of the QSD Project and she believes Risk Event D in the following figure is likely to happen. If this event does happen, how much will Donna have left in the risk contingency reserve if none of the other risk events have happened?

Options

A$35,000
B$41,700
C$14,000
D$6,700

How the community answered

(44 responses)

A
2% (1)
B
14% (6)
C
5% (2)
D
80% (35)

Explanation

This question references a figure (not shown here) containing risk events with their probabilities and monetary impacts. The contingency reserve is built from the sum of all risks' Expected Monetary Values (EMV = Probability × Impact). If Risk Event D occurs, the amount spent from the reserve equals its EMV. The remaining balance after paying out for Risk Event D would be $6,700, calculated as: Total Reserve minus Risk Event D's EMV. The other answer choices represent either the total reserve, Risk D's EMV, or incorrect partial calculations.

Topics

#Risk Contingency Reserve#Expected Monetary Value (EMV)#Risk Budget Management#Quantitative Risk Analysis

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