Question

1, Discuss in detail the quantitative risk evaluation technique, including both cut-set probabilities of system failure and the economics management theory equation of expected values.

Answer 1

The quantitative risk evaluation technique:

A quantitative risk evaluation technique is an examination of consequences and probable risks.

Cut-set probabilities:

A cut-off probability is when actual events are used but determined by boundaries that can cut at different points closing the chance of involving other items. An example is the counting of gates of homesteads.

The economics management theory equation of expected values:

An economic management theory equation is a way of taking care of resources in maximizing yields. The expected values of economics management theory equation are:

• Manufacturing activities
• Stock markets
• Retail sales
• inventory levels