26) [15 points] Suppose you have a project with the following failure characteristics: Impact (0-1) 0.5 Potential Consequence Significant cost over-run Significant schedule slippage Performance not per contract Law suit Potential Problem Likelihood (0-1) Key Team Member Leaves 0.3 Required technology unavailable Equipment failure Subcontractor goes out of business Required permits not obtained 0.2 0.5 0.7 0.2 0.2 0.3 0.1 a) Compute an overall risk factor for this project. (You must show all computations to receive credit). Ans: b) Would you classify this as a "risky" project? Why or why not? Ans:

26 [15 points] Suppose you have a project with the following failure characteristics: Potential Problem Key Team Member Leaves Required technology unavailable Equipment failure Subcontractor goes out of business Required permits not obtained Likelihood (0-1) 0.3 0.2 0.7 02 0.1 Potential Consequence Significant cost over-un Significant schedule slippage Performance not per contract Lawsuit Impact (0-1) 0.5 0.5 0.2 0.3 a) Compute an overall risk factor for this project. (You must show all computations to receive credit) Ans b) Would you classify this as a "risky" project? Why or why not? Aus