Sample Question(s) 1

Assume project A shown in diagram 1 in Appendix A.

a) Three risks may appear during the project A.

Risk R1:

Occurs in task B1, with a probability of 10%. It will increase tasks duration by 23%.

Risk R2:

Occurs in task A2, with a probability of 50%. It will increase tasks duration by 3%.

Risk R3:

Occurs in task B1, with a probability of 25%. It will increase tasks duration by 5%.

1. Calculate the severity of each risk.

2. If the two most severe risks occur, how will they affect the project?

3. Assume the cost of actions required to prevent risks R1 and R2. Calculate the corresponding RRL for each risk. Which risk would you tackle first?

4. What is the probability of finishing the project on time, as specified by the customer?

5. How long will it take to finish the project with a probability 90%?

6. Assume that the customer specifies the required duration of the project at D1 months. Suppose a longer estimated duration project (ED1), so that ED1>D1. How would you approach this situation?

7. Assume that the customer specifies the required cost of the project at C1 dollars. Suppose a larger estimated project cost (EC1), so that EC1>C1. How would you approach this situation?

8. Assume that the customer specifies the required duration of the project at D1 months and its associated cost at C1 dollars. Suppose a longer estimated duration project (ED1), so that ED1>D1. How would you approach this situation?

9. Suppose task A1 is completed. Task B is completed by 15%. Calculate the remaining time and cost of the project.

Appendix A You may need to use the following formulas. X XI = X2 x; Y2 Yi Y - Yi Assume the following project network. Assume data as required to answer the questions that follow below: 4 B1 4 B3 A1 5 6 1 2 5 2 B2 A2 6 5 3 Diagram 1: Project A Network Appendix A You may need to use the following formulas. X XI = X2 x; Y2 Yi Y - Yi Assume the following project network. Assume data as required to answer the questions that follow below: 4 B1 4 B3 A1 5 6 1 2 5 2 B2 A2 6 5 3 Diagram 1: Project A Network