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Create a decision tree illustrating the cost and probability

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Reference no: EM132116093

Quantitative Risk Analysis: Individual Project Build vs. Buy Decision

As the manager of a new website project for your company, you need to decide whether to create a new web application in-house or send the project out to a developer.

The developer has quoted a project cost of $175,000. Based on previous work with this developer, you are 85 percent certain they will finish the work on time.

Your in-house development team has quoted a project cost of $165,000. Based on previous work with the in-house team, you are 75 percent certain they will complete the work on time.

Create a decision tree illustrating the cost and probability of each option and then identify the best decision for the project. A labeled diagram must be created in Excel.

Reference no: EM132116093

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