25. Softside Systems has a $100,000 fixed-price contract for installation of a new application system. The project
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25. Softside Systems has a $100,000 fixed-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 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: 9780367277345,9781000092561
6th Edition
Authors: John M. Nicholas , Herman Steyn
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