Schedule risk analysis with RiskyProject: What statistical distribution should you use?
Schedule risk analysis with RiskyProject: What statistical distribution should you use?
Schedule risk analysis with RiskyProject: What statistical distribution should you use?
click to play
This video will discuss a common question that we receive from the users of our project risk management software RiskyProject? What type of statistical distribution should we use? When performing Monte Carlo schedule or cost risk analysis, one of the choices you must make is the type of statistical distribution to apply to your 3 point estimates: Low, Most Likely, and High cost, duration or other parameters. This selection can be somewhat confusing as RiskyProject has multiple statistical distributions from which to choose and users are unclear regarding what impact different statistical distributions will have on their analysis.
In the video we will look at the results using two statistical distributions that are commonly used for risk analysis using standard statistical measures to see how they impact the results of the analysis. As we will show, in the vast majority of cases the selection does not make much of a difference on the results and users should default to a triangular distribution unless there are compelling reasons to select another.
About Intaver Institute:
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
www.intaver.com
Schedule risk analysis with RiskyProject: What statistical distribution should you use?
click to play
This video will discuss a common question that we receive from the users of our project risk management software RiskyProject? What type of statistical distribution should we use? When performing Monte Carlo schedule or cost risk analysis, one of the choices you must make is the type of statistical distribution to apply to your 3 point estimates: Low, Most Likely, and High cost, duration or other parameters. This selection can be somewhat confusing as RiskyProject has multiple statistical distributions from which to choose and users are unclear regarding what impact different statistical distributions will have on their analysis.
In the video we will look at the results using two statistical distributions that are commonly used for risk analysis using standard statistical measures to see how they impact the results of the analysis. As we will show, in the vast majority of cases the selection does not make much of a difference on the results and users should default to a triangular distribution unless there are compelling reasons to select another.
About Intaver Institute:
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
www.intaver.com