Monte Carlo Simulation

How are the cost and schedule effects of a rick estimated in the Monte Carlo simulation?

• These are manually inserted by the project manager

• From the project plan

• Using the industry average

• From the probability distribution

What does a sensitivity analysis calculate?

• The cumulative impact of all risk on the project objectives

• The cumulative impact of all risk on the annual profit

• The impact of each individual risk on the project objectives

• The impact of each individual risk on the annual sales

Monte Carlo Simulation can be used to:

• Calculate the risks in schedule and cost in a project

• Calculate profit from sales

• Calculate loss from failed project

• None of the answers are correct

Risk analysis using Monte Carlo Simulation is performed

• At any stage during project

• At the end of the project

• At the beginning of the project

• At the end of project delivery

What can be expected at the end of Monte Carlo Simulation?

• A conservative outcome

• All outcomes from all possible probabilities exercise

• A decision backed by number that makes the decision maker confident about moving forwad