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You are considering three projects, Projects A, B and C, and you have the resources to select only one. Your decision is based on several
You are considering three projects, Projects A, B and C, and you have the resources to select only one. Your decision is based on several criteria but after a thorough study you were able to simplify the decision process by providing an overall score which is calculated by providing a weight to all the objectives. Your study resulted in the following cumulative risk profile for the overall score of Projects A, B and C (Notice that a higher overall score is preferred). a) If you are comparing Projects A and C only, would you always choose one over the other? Explain. b) Which of the three projects has the highest variability? Lowest? c) What is the probability the overall score of Project B is higher than the overall score of Project C? d) When comparing Projects A and C only, can you state with a 100% certainty that one of the projects will alwavs vield a higher overall score? Explain. You are considering three projects, Projects A, B and C, and you have the resources to select only one. Your decision is based on several criteria but after a thorough study you were able to simplify the decision process by providing an overall score which is calculated by providing a weight to all the objectives. Your study resulted in the following cumulative risk profile for the overall score of Projects A, B and C (Notice that a higher overall score is preferred). a) If you are comparing Projects A and C only, would you always choose one over the other? Explain. b) Which of the three projects has the highest variability? Lowest? c) What is the probability the overall score of Project B is higher than the overall score of Project C? d) When comparing Projects A and C only, can you state with a 100% certainty that one of the projects will alwavs vield a higher overall score? Explain
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