This exercise will show how you can use Monte Carlo simulation to allocate risk response funds (from your contingency reserve) in the best possible manner. We have simplified the scenario so it does not take much time, but the reasoning here can be extended to more complex situations. Consider the following hypothetical project with five activities (A, B, X, P, and Q) on the critical path. The mean duration and standard deviations are shown for each activity, meaning that the variation in each duration is a normal curve with the mean and standard deviation shown. The variations (standard deviations) take risk into account. Assume that all other begin-end paths in the network diagram are far shorter than the total duration of the critical path (70)