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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

  1. $25,200
  2. $20,160 
  3. $17,640 
  4. $15,120  
in IS&Software Engineering by Boss (30.2k points)
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1 Answer

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Answer B

In the application, 

  • Number of reusable components planned =60
  • Part of reusable components actually included=70%
  • Number of components developed freshly = 30% of 60=18
  • Development cost = 18 x 100 x 14$ 
  • Probability of occurrence of risk =80%
  • Risk exposure = 0.8 x 18 x 100 x 14 = 20160$
by Boss (32.5k points)
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