Perform Quantitative Risk Analysis

Question 1

What is the purpose to Perform Quantitative Risk Analysis?

Answer 1

The process of numerically analyzing the effects of identified risks on the overall project objectives.

Question 2

What are the tool and techniques to Perform Quantitative Risk Analysis?

Answer 2

1) Interviewing, 2) Probability Distributions, 3) Sensitivity Analysis, 4) Expected Monetary Value Analysis, 5) Decision Tree, 6) Monte Carlo Analysis (using many iterations to predict)

Question 3

What is Sensitivity Analysis?

Answer 3

Analyze which variables have the greatest impact on the project. (Tornado Diagram)

Question 4

What is Expected Monetary Value Analysis?

Answer 4

Statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen.

Question 5

What is the formula to find Expected Monetary Value Analysis (EVM)?

Answer 5

EVM = Probability x Impact (positive is expressed as opportunities and negative as threats)

Question 6

What is a Decision Tree Analysis?

Answer 6

Using EMV to make a decision.

Question 7

What is the output to Perform Quantitative Risk Analysis?

Answer 7

Risk Register Update

Question 8

What are 3 data gathering and representation techniques?

Answer 8

1) Probability distributions, 2) Beta distributions, 3) Triangular distributions