Drmagedezzatgeorgy variable variable risks the

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Unformatted text preview: s or extensive analysis. Dr. Maged Ezzat Georgy Variable Variable Risks The average risk allowance (contingency) for a certain variable risk is the risk-induced cost with 50% chance of being exceeded. 50% 50% Dr. Maged Ezzat Georgy Variable Risks The maximum risk allowance (contingency) for a certain variable risk is the risk-induced cost with 10% chance of being exceeded. 90% Dr. Maged Ezzat Georgy 10% Fixed Fixed Risks Let us take an example... Risk Ult. Cost Average Maximum Productivity $100k $25,000 $80,000 Exchange rate $200k $30,000 $130,000 Subsurface cond. $80k $12,000 $55,000 . $67,000 $265,000 . Σ Dr. Maged Ezzat Georgy Decision Trees Decision Decision Trees Primarily used in the field of decision-making. In quantitative risk analysis, this technique is a way of looking at multiple interdependent risks. In a way, it expands on the expected value approach. Dr. Maged Ezzat Georgy What’s a De...
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