Question

Suppose a project is subject to the following risk events (each with a given probability of occurring and a cost associated with that occurrence): Event Probability Cost($000s) I .2 53 II .6 54 III .1 12 IV .3 21 Given these, Event _____ should probably get the most attention and Event _____ should probably get the least.

Answer 1

Event II should probably get the most attention and Event III should probably get the least.

Step-by-step explanation:

From the given information, we have an event, the probability and the cost. Event II has a probability of 0.2 and a cost of 53. This means that it should be given the utmost importance because the event has the highest cost among all other events.

On the flip side, Event III should probably get the least attention because the cost involved is the least. Event III has a probability of 0.1 and a cost of 12.

Therefore, Event II should probably get the most attention and Event III should probably get the least.