Question 112pts

Below is a graph that shows the results from a contingency analysis by exclusion with respect to three risk drivers: R1, R2, and R3.

Which of the three risks has the most impact on the risk-adjusted budget at the 90% confidence level?

Cost Base vs. Factored by Exception $16.58 $24.90 13.5% 59.846 26.796 5.0% 95.0% 0.0% 1.0 0.8 Without R1 0.6 Without R2 . . ..... Without R3 0.4 - Without R1,R2,R3 0.2- Show AB Simulations Scenario [Scenario R2.R3 0.0 Scenario R1,R3 $10 $15 $20 135 $40 Scenario R1,R2 Figure D. Contingency analysis by exclusion.