Analysis of Cost of the Project
Discussion and Analysis of Recommendations From the above analysis, firstly, it can be deduced that activity 1 is better that both activity 2 and 3. This is in case of occurrence of risk, such as strike that will cause delays. Thus, activity 1 will not be highly affected by the strike.
Secondly, activity 4 provides an alternative that will facilitate completion of other remaining activities, in case of the strike. Moreover, it gives alternatives, in case the laborers are forced to do nothing with risks, such as extreme cold. Thus, option 4 is more powerful, as it gives more alternatives. Thirdly, activity 4 has a lower E(x). However, it has a higher SD(x).
It can also be observed that is has a higher range of losses which is about $ 0 to $ 76,000 in comparison to activity 1. The project managers are advised to select the most appropriate risk profile that will enable the management to select the best risk strategy that fits the corporation. Fourthly, in case the corporation is prone to the risk, it could select activity 1, where losses are more spread within the range of about $20,000 to $ 53,000. Moreover, activity 1 has a lower uncertainty (SD(x) compared to activity 4. Finally, the duration of the project entails making decisions by the management.
Time spent will also depend on whether there are projects on hold, due to insufficient resources or not.