While performing a cost-benefit analysis, the Product Owner of a project determined that the project has 45% probability of incurring a loss of $800,000 due to the latest Land Reform Bill. Which of the following techniques is being used by the Product Owner to perform cost-benefit analysis?
The technique being used is Expected Monetary Value (EMV). EMV is a statistical technique in risk management used to quantify potential outcomes. In this case, the Product Owner calculates the probability and impact of a risk, which is a hallmark of EMV. By determining the 45% probability of incurring a loss of $800,000, the EMV can be calculated by multiplying the loss amount by the probability, which is the basis of this technique.
Wouldn't the correct answer be A?
Respuesta A
A page 124 of the SBOK, 7.4.2.1. - 5. Expected Monetary Value (EMV)