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Risk analysis of contingency reserve

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You are planning the project to modify an existing product. Your analysis has come up with the following dollar amount for each negative and positive risk, as well as the total contingency/risk reserve that is appropriate.

"Notional" WBS ID# Risk description Impact Probability Cost Calculations Result (in dollars,)
1.2.1 If there is a delay in receipt of parts, then there will be a delay to the project. $9,000 30 %
2.4.3 If price discounts can be negotiated, then the parts will cost less. $10,000 20%
3.2.1 If the parts do not fit together when installed, then there will be increased reengineering costs. $3,500 25%
4.5.5.7 If the manufacture of parts is simpler than expected then there will be a cost savings. $2,500 30%
5.6.7 If there is a defect in the network design, then there re-design will be required. $5,000 5%
2.3.6 If shipment of parts from the overseas vendor (only source identified for this part) is delayed, then the schedule will need to be slipped. $11,500 30%
7.5.8 If the software development process can be leaned by prototype demos, then there will be an efficiency savings. $1,700 22%
4.3.2 If Subcontractor X is late in server delivery, then the project schedule will slip. $1,000 0%
Total contingency / risk reserve that you would request from the sponsor $

What is the TOTAL dollar amount of contingency / risk reserve that you would request from the sponsor?

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The solution guides the student through the calculation of contingency reserve. It also provides details of the calculation.

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You are planning the project to modify an existing product. Your analysis has come up with the following dollar amount for each negative and positive risk, as well as the total contingency/risk reserve that is appropriate.

What is the TOTAL dollar amount of contingency / risk reserve that you would request from the sponsor?

"Notional" WBS ID# Risk description Impact Probability Cost Calculations Result (in ...

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