Question: During risk management planning, your team has identified three risks with probabilities of 15%, 52%, and 35%. If the first two risks occur, they will

  1. During risk management planning, your team has identified three risks with probabilities of 15%, 52%, and 35%. If the first two risks occur, they will cost you 6,500 USD and 7,800 USD; however, you will gain 9,400 USD if the third risk occurs. Determine the EMV of these risk events.
  2. You are planning to implement a change in your project. There is a 72% chance that it will help your organization to save 120,000 USD. However, there is a 28% chance of losing 61,000 USD. Calculate the contingency reserve required for this project.

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