Q2: (a) Draw Beta distribution of the given data and identify whether the distribution is skewed or not? If skewed, comment what does skewness of the...
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Q2: (a) Draw Beta distribution of the given data and identify whether the distribution is skewed or not? If skewed, comment what does skewness of the figure tells you about project risk ? ELEMENT LOW MOST LIKELY HIGH Building new plant $ 3 M $ 4 M $ 5 M Improving existing plant $ 5M $ 8 M $ 10 M Total $ 8 M $ 12 M $ 15 M Probability 0.50 0.40 0.1 (02+01+02 = 05) (b) Using cost risk analysis as simulation technique for Quantitative Risk Analysis, evaluate (using above data) whether current reserves will be enough or not (as per most likely opinion of stake holders)? If not, compute what percent of additional funds will be required as reserves? (02+01+02 = 05)

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