Question: 2. Impact Assessment Consider the simplified model for risk shown in class. Assume the following parameters l 1 = .8/day , l 2 = .3

2. Impact Assessment Consider the simplified model for risk shown in class.

Assume the following parameters l 1 = .8/day , l 2 = .3 days , l 3 = 2 days , l 4 = .5 days

Assume Time intervals T2 = 1 day, T3 = 1day. Assume assets of $ 1.1 million.

a. Compute the Risk per day.

b. Modify elements you as a designer might control to adjust the risk to $ .01 Million/day

3. Develop a Monte Carlo simulation of the Risk model developed in class. Assume the variables as in problem 2. Plot the model variables for increments of 10 minutes over the 24 hour day to demonstrate the successful modeling.

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