Suppose a Project Is Subject to the Following Risk Events

question 74

Multiple Choice

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

• A) II; IV
• B) III; IV
• C) I; III
• D) I; II
• E) II; III

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Definitions:

Frederick W. Taylor

A pioneering engineer and management consultant best known for his principles on scientific management, aiming to improve industrial efficiency.

Management Theory

A collection of ideas and principles that prescribe the management of an organization, including how to plan, organize, lead, and control operations.

Myers-Briggs-Type Indicator

A personality assessment tool that categorizes people into 16 distinct personality types based on preferences in how they perceive the world and make decisions.

Human Personalities

The combination of emotional, attitudinal, and behavioral response patterns that define an individual's character and ways of interacting with the world.