Solving

Question 4 (4 points) Imagine you are planning the manufacture of modifications to an existing product. Your analysis has come up with the following information. Risk A: There is a 30% probability of a delay in the receipt of parts, with a cost to the project of $9000 Risk B: There is a 20% probability that the parts will cost $10000 less than expected. Risk C: There is a 25% probability that two parts will not fit together when installed, costing an extra $3500. Risk D: There is a 30% probability that the manufacture may be simpler than expected, saving $2500. Risk E: There is a 5% probability of a design defect, causing $5000 of rework. 1. What would be the continegency reserve calculated for this project? 2. What are the two risk response strategies that you can use for both threats and opportunities? 3. What would be the most appropriate risk response strategy for Risk B and why? 4. What about Risk C? Question 4 (4 points) Imagine you are planning the manufacture of modifications to an existing product. Your analysis has come up with the following information. Risk A: There is a 30% probability of a delay in the receipt of parts, with a cost to the project of $9000 Risk B: There is a 20% probability that the parts will cost $10000 less than expected. Risk C: There is a 25% probability that two parts will not fit together when installed, costing an extra $3500. Risk D: There is a 30% probability that the manufacture may be simpler than expected, saving $2500. Risk E: There is a 5% probability of a design defect, causing $5000 of rework. 1. What would be the continegency reserve calculated for this project? 2. What are the two risk response strategies that you can use for both threats and opportunities? 3. What would be the most appropriate risk response strategy for Risk B and why? 4. What about Risk C