A project manager is calculating the Expected Monetary Value (EMV) for a risk event. The probability of the risk occurring is 20%, and the impact if it occurs is $50,000. What is the EMV?
Trap 1: $40,000
Incorrect calculation.
Trap 2: $250,000
Incorrect calculation.
Trap 3: $100,000
Incorrect calculation.
- A
$40,000
Why wrong: Incorrect calculation.
- B
$10,000
Correct: 20% of $50,000 = $10,000.
- C
$250,000
Why wrong: Incorrect calculation.
- D
$100,000
Why wrong: Incorrect calculation.