1. If there is a 30% chance that a machine will break during your project, and if a new machine costs $90,000, what is the expected value of this risk? (2 points)
2. If there is a 20% chance that it will rain while you are replacing the roof on your house, and water damage to your house will cost $20,000 to repair, what is the expected value of this risk? (2 points)
3. You are managing a website development project using some new technologies. The computer programmers you have chosen are fairly new to these technologies. There is a 10% chance they will not be able to properly finish the site, and you'll have to scrap their work and start over from scratch. If the programmers will cost $100,000 total to develop this site, what is the expected value of the risk that they will not be able to complete the site? (2 points)
4. For the scenarios in questions 1,2 and 3, what are three ways in which you could manage the risks that you have identified in these projects? GIVE THREE PRACTICAL EXAMPLES. You can apply all three examples to a single scenario above, give one example per scenario, or any combo you want. But you'll be providing three practical examples of how risk can be managed.