All project variables are random variables

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All project variables - cost, schedule, technical and operational performance, risk are random variables. These variables represent uncertainty in the outcome of the project. This uncertainty creates risk. This risk must be "handled" in some way or it will unfavorably impact the success of the proejct.

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All project variables are random variables

  1. 1. !  Naturally  occurring    uncertainty   and  its  resul.ng  risk,  impacts   the  probability  of  a  successful   outcome.   What  is  the  probability  of   making  a  desired  comple6on   date  or  cost  target?   1   All  Program  Ac.vi.es  have   Naturally  Occurring  Uncertainty   !  The  irreducible  sta.s.cal  behavior  of  these  ac.vi.es,   their  arrangement  in  a  network  of  ac.vi.es,  and   correla.on  between  their  behaviors  creates  risk.   !  Adding  margin  protects  the  outcome  from  the  impact  of   this  naturally  occurring  uncertainty   14.  Risk  

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