Examine the figure given below.

What will be the expected monetary value of Risk C?

A.
-$113,750

B.
-$27,000

C.
-$175,000

D.
$175,000 if the risk event actually happens

Explanation:

The expected monetary value is found by multiplying the probability times the impact. In this example it would be 0.30 times -$90,000 for -$27,000.
Answer option C is incorrect. This is not a valid calculation for the expected monetary value. Answer option A is incorrect. This is not a valid calculation for the expected monetary value. Answer option D is incorrect. The expected monetary value is based on the current probability and impact. Reference: “Project Management Body of Knowledge (PMBOK Guide), Fourth Edition”