Market Fresh Foods is developing a revolutionary new product. Having just taken over managing the project initiation process for Market Fresh from the previous project controller, Colin Alexander is trying to evaluate the project's risk. Specifically, Colin needs to uantity schedule risk associated with permitting delays. The table below presents the likely delays and Colin's estimates of the delay likelihood. Cost per day of delay is estimated at $22111. o properly quantify the risk, Colin is looking to determine the expected delay costs, probability of a delay, and the expected delay cost given a delay. Delay Probability 7.WOYE
Market Fresh Foods is developing a revolutionary new product. Having just taken over managing the project initiation process for Market Fresh from the previous project controller, Colin Alexander is trying to evaluate the project's risk. Specifically, Colin needs to uantity schedule risk associated with permitting delays. The table below presents the likely delays and Colin's estimates of the delay likelihood. Cost per day of delay is estimated at $22111. o properly quantify the risk, Colin is looking to determine the expected delay costs, probability of a delay, and the expected delay cost given a delay. Delay Probability 7.WOYE
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:Market Fresh Foods is developing a revolutionary new product. Having just taken over managing the project initiation process for Market Fresh from the previous project controller, Colin Alexander is trying to evaluate the project's risk. Specifically, Colin needs to
quantity schedule risk associated with permitting delays. The table below presents the likely delays and Colin's estimates of the delay likelihood. Cost per day of delay is estimated at $22111.
To properly quantify the risk, Colin is looking to determine the expected delay costs, probability of a delay, and the expected delay cost given a delay.
Delay
Probability
0
0.0723
8.68
0.0663
11.27 0.0994
14.28
0.0994
19.04
0.1325
21.81
0.0663
0.0994
0.0994
0.0994
26.6
32.46
40.14
43.4
83
0.0331
0.1325
Expected Impact:
Expected Impact Given Delay:
Probability of a Delay:
(enter answer to 2 decimal places)
(enter answer to 2 decimal places)
(enter answer to 4 decimal places)
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