problem in risk management knowledge area
Submitted by vijayavadrevu on Sat, 03/16/2013 - 11:54
Forums:
Question is:
A contractor estmates that a project has a 0.5 probability of $200,000 profit, 0.3 probability of $50,000 loss and 0.2 probability of break even. The risk score of this project is .....
Answer is given as $85000
I would like to know whether "0.2 probability of break even" has any significance here or not, as $85K will be the answer if it is not considered
