Dealing with Risk and Uncertainty 157
❏ The focus of your risk management efforts should be on
addressing the “downside” effects of risk—or threats.
5
10
15
20
25
30
35
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45
50
$897K $1,118K $1,293K
0.1
0.2
0.3
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0.5
0.6
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1.0
$897K $1,118K $1,293K
Total Project Cost
Total Project Cost
Probability of Underrunning
Frequency of Occurrence
Figure 8-8. Top (a) Frequency distribution chart; bottom (b) proba-
bility curve