Figure 11-7. Cost Risk Simulation

return to model

This cumulative likelihood distribution reflects the risk of oferrunning the cost estimate assuming triangular distributions with the range data contained in Figure 11-4. It shows that the project is only 12 percent likely to meet the $41 estimate. If a conservative organization wants a 75 percent likehood of success, a budget of $50 (a contingency of nearly 22 percent is required.


  previous      next