A project costs Rs 1,00,000 and has a 15% chance of failing. What is the estimated cost of project risk?
The estimated risk cost is Rs 15,000. Risk exposure is the probability of failure multiplied by the associated loss: 0.15 × Rs 1,00,000 = Rs 15,000.
Choose your answer
A project costs Rs 1,00,000 and has a 15% chance of failing. What is the estimated cost of project risk?
Answer and explanation
Correct answer A
The estimated risk cost is Rs 15,000. Risk exposure is the probability of failure multiplied by the associated loss: 0.15 × Rs 1,00,000 = Rs 15,000.
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Telangana SET (TG SET)