Question $3$

$($Marks: $20)$

A project task was estimated to cost R$100000.$

A risk has been identified that will affect the project's cost by an additional R$50000$ if nothing is done to prevent the risk, the probability of this risk occurring is $60\%.$

Two strategies have been investigated to prevent the risk of occurring.

Strategy A would cost R$20000$ to implement and has a $90\%$ success rate prevent the risk.

Strategy B would cost R$10000$ to implement and has a $60\%$ success rate to prevent the risk.

Q$\mathrm{.}3\mathrm{.}1$ Draw the completed decision tree for the above situation and the respective

$(10)$

strategies.

Q$\mathrm{.}3\mathrm{.}2$ Calculate the expected cost of the strategies and do a paragraph motivation to the

$(10)$

sponsor on the best strategy to implement.