Task 2. Effects of correlation.

2.1 Does accounting for correlation increase or decrease the total uncertainty (variability) of the project cost? Explain why.

2.2 Does counting for correlation increase or decrease the cost overrun risk of the project? Are the results intuitively acceptable or counter-intuitive for you? Explain why or why not.

2.3 Explain why correlation can be crucially important in particular for large-scale project risk analyses.