Answer a :-
Answer b :-
Option 1 - Buy two limousine together .
Probability | Impact | Risk Contingency |
0.35 | 65000 | 22750 |
0.65 | 100000 | 65000 |
EMV |
87750 |
Option 2 - Buy one limousine only.
Probability | Impact | Risk Contingency |
0.35 | 55000 | 19250 |
0.65 | 50000 | 32500 |
EMV | 51750 |
Option 3 - Buy another limousine after some time .
Probability | Impact | Risk Contingency |
0.35 | 55000 | 19250 |
0.65 | 80000 | 52000 |
EMV | 71250 |
Maximum EMV = $87750
Number of limousine that should be purchased initially = 2 limousine
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