Question

Economic Risk Analysis

The Module 9 readings discussed probabilistic risk analysis and presented various statistical and probability concepts that illustrated that the consequences of engineering alternatives can never be known with certainty (such as Monte Carlo simulation techniques and decision tree analysis). Cash inflow and outflow factors, along with project life, were modeled as a discrete and continuous random variable.

In your opinion, how do you think risk can best be managed or controlled? Is there a method we have not discussed that you find more effective/beneficial? Please explain. Make sure to apply concepts from this module week in your post.

1 year ago

Answer