Suppose you are deciding which of two projects to work on. Project 1 has a 70 percent chance of earning $500,000 and a 30 percent chance of losing $100,000. Project 2 has a 20 percent chance of earning $2 million, a 20 percent chance of earning $1 million, and a 60 percent chance of losing $500,000. What is the EMV for each project? Which project would you rather work on? B2) Exercise on project risk: Assume that you are a project manager and that you would require employing two contract staff to perform certain important project management related functions for your project. However, hiring contract staff has risks because they may not have necessary expertise in project management areas. Identify how would you avoid and mitigate this risk. B3) Another exercise on project risk assessment: Following are two scenarios that represent risk response. Match each scenario with one of the four possible risk responses (accept, avoid, transfer, mitigate) and explain your answer. Scenario 1 : Two critical tasks in a project that you are involved with address complex database design issues. You have negotiated with the supervisor of the data management group to get the groups best worker in this area, John. The problem is that a rumour has surfaced that John is looking for a new job and may leave the company at any time. To make sure your project will be less affected if John leaves, you have built some contingency funds and extra time into project schedule. You have also contacted several local consulting companies that have expertise in database design, just in case. Scenario 2 : The current project is to add a new information section to your companys web site for the marketing department. The project is not particularly complex, but you have worked with the marketing department before and know that the people there are difficult to work with because of their lack of technology expertise and their travel schedules. As the project leader, you have decided to adopt a more agile development methodology with short development time intervals. You have also asked the market department to dedicate one individual as a key contact. B4) Look at the Fishbone (also known as Ishikawa) diagram (figure 1) showing cause and effect of a number of factors that may contribute to late delivery of an IT application. Draw such a diagram to highlight the causes that could help explain the effect of a student receiving a poor grade for their project management unit.