Contingency Reserve Total: US$213,000 Due to a mitigation strategy. Risk 4's probability has been reduced to 40%. What would be the new contingency reserve total?
A.
US$92,400
B.
US$145,800
C.
US$157,000
D.
Unable to calculate a total due to lack of pertinent information.
Answer is D
Lets see the contingency reserve calculated for Risk 4 with .80 probability is incorrect. So if you divide it by 2 and then add through the result is wrong. So Answer id D
risk 4 reserve has been reduced by half from $112,000 to $56,000. therefore the total contingency reserve is also reduced by $56,000 --> $213,000- $56,000=$157,000
c is correct
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