The Greatest Project Risk Occurs When

question 22

Multiple Choice

The greatest project risk occurs when:

• A)The probability of the event is high and the consequences of the event are high.
• B)The probability of the event is high and the consequences of the event are low.
• C)The probability of the event is low and the consequences of the event are high.
• D)The probability of the event is low and the consequences of the event are low.

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Definitions:

Substitution

The process of replacing one item with another due to changes in price, preference, or functionality.

Satisfaction

The feeling of pleasure or contentment that comes from fulfilling a desire, expectation, or need, or achieving a goal.

Marginal Rate

The rate at which one additional unit of something affects an outcome, often used in the context of taxes or production.

Substitution

The economic concept where consumers replace more expensive items with less costly alternatives, influencing demand and market dynamics.