Assume that the software team defines a project risk with 80% probability of…
2014
Assume that the software team defines a project risk with 80% probability of occurrence of risk in the following manner :
Only 70 percent of the software components scheduled for reuse will be integrated into the application and the remaining functionality will have to be custom developed. If 60 reusable components were planned with average component size as 100 LOC and software engineering cost for each LOC as $ 14, then the risk exposure would be
- A.
$ 25,200
- B.
$ 20,160
- C.
$ 17,640
- D.
$ 15,120
Attempted by 77 students.
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Correct answer: B
Key idea: compute the additional development cost caused by failed reuse, then multiply by the probability to get risk exposure.
Planned reusable LOC = 60 components × 100 LOC/component = 6000 LOC.
Portion that must be custom developed = 100% − 70% = 30% → 0.30 × 6000 LOC = 1800 LOC.
Additional development cost (loss) = 1800 LOC × $14/LOC = $25,200.
Risk exposure = probability × loss = 0.80 × $25,200 = $20,160.
Final answer: The risk exposure is $20,160.