New PMP Question & Answers with explanation
A project sponsor is risk averse and is therefore concerned about negative impacts on the project. To help with this concern, the project team identifies four project risks and then evaluates both the probability of occurrence and the impact of the risk if it occurs. The team uses a 1-5 scale, 1 being the lowest and 5 being the highest.
Based on the table, in what order should the project manager rank these risks for risk management purposes?
Your sponsor has committed to building a high-speed rail from one major inland city, Azules, to the coast. You have two possible routes, either Brazos or Corazon. Given each route's costs, odds, and rewards of high demand and low demand in this decision tree, how would you quantify the expected monetary value of the route to Brazos?