During the 'Assess Risks' task, a BA identifies a risk with a 20% probability of occurring. If it occurs, the impact is a loss of 80,000 USD. However, there is a 10% chance it could result in an opportunity gain of 30,000 USD. What is the Expected Monetary Value (EMV) of this risk?https://go-math-science.com/computing/software-engineering/requirements-engineering/cbap-certification-practice-exams/cbap-practice-examp-2/during-the-assess-risks-task-a-ba-identifies-a-risk-with-a-20-probability-of-occurring-if-it-occurs-the-impact-is-a-loss-of-80-000-however-there-is-a-10-chance-it-could-result-in-an-opportunity-gain-of-30-000-what-is-the-expected-monetary-value-emv-ofhttps://go-math-science.com/@@site-logo/logo-new.png
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During the 'Assess Risks' task, a BA identifies a risk with a 20% probability of occurring. If it occurs, the impact is a loss of 80,000 USD. However, there is a 10% chance it could result in an opportunity gain of 30,000 USD. What is the Expected Monetary Value (EMV) of this risk?
publish date: 2026/03/07 07:38:34.164372 UTC
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Correct Answer
-$13,000
Explanation
EMV is calculated as (0.20 * -80,000) + (0.10 * 30,000), which equals -16,000 + 3,000 = -$13,000.
