### Calculating Expected Costs

Posted:

**Thu Jan 05, 2017 11:23 am**How do you calculate an expected value for the cost of a project?

This forum includes discussions about project risk analysis software and project risk management software RiskyProject: theory, software features, best practices, possible problems, and user experience.

http://intaver.com/IntaverFrm/

Page **1** of **1**

Posted: **Thu Jan 05, 2017 11:23 am**

How do you calculate an expected value for the cost of a project?

Posted: **Thu Jan 05, 2017 11:27 am**

Expected values are calculated automatically as part of the Monte Carlo simulation and can be derived as cumulative probability or percentile. In the example below, the project has an expected value (EV) of $17,152,674.94 at the p80. In laymanâ€™s terms this means that the cost of the project will be at or below this cost 8 out of 10 times.