Assume that the software team defines a project riskin the following manner: * r

Question

Assume that the software team defines a project riskin the following manner:
* risk identification: only 70 percent of the software componentsscheduled for reuse will, in fact, be integrated into theapplication. The remaining functionality will have to be customdeveloped.
* risk probability: 80 %
* risk impact: 60 reusable software components were planned. Ifonly 70 % can be used, 18 components would have to be developedfrom scratch ( in addition to other custom software that has beenscheduled for development), since the average components is 100 LOCand local data indicate that the software engineering cost for eachLOC is $14, the overall cost (impact) to develop the componentswould be 18 * 100 * 14 = $25,200
The risk exposure , RE = .80 * $25,200 ~ $20,200

* Recompute the risk exposure when cost/LOC is $16 and theprobability is 60 % .

Explanation / Answer

Given cost/LOC = $16, and the risk probability = 60% Suppose if 60 reusable software components are planned. if only 70%can be used, 18 components must be developed from scratch Therefore overall cost to develop components = 18 * 100 * 16                                                                        = 28800 dollars Therefore risk exposure RE = risk probability * cost                                               = 0.6 * 28800                                               = 17280 dollars

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