Softside Systems has a $100,000 fi xed price contract for installation of a new application system. The
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Softside Systems has a $100,000 fi xed price contract for installation of a new application system. The project is expected to take 5 weeks and cost $50,000.
Experience with similar projects suggests a 0.30 likelihood that the project will encounter problems that could delay it by as much as 3 weeks and increase the cost by $30,000. By increasing the project staff by 20 percent for an additional cost of $10,000, the likelihood of problems would be reduced to 0.10, and the delay and cost to 1 week and $8,000, respectively. Set up a decision tree to show whether Softside should increase the size of the project staff.
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Related Book For
Project Management For Engineering Business And Technology
ISBN: 9780080967042
4th Edition
Authors: John M. Nicholas, Herman Steyn
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