Other combining operations

Evaluation of uncertainty in a cost estimate may involve multiplication ('product') and division ('quotient') operations. Evaluation of profit may involve subtraction ('difference') operations. Evaluation of precedence networks can involve 'greatest' operations at a merge event. The mathematics can become more complex. In particular, simple common interval calculations become much more complex than the calculation of Table 11.2. However, the principles remain the same and the effects of positive and negative correlation can become even more important. For example, if costs are perfectly positively correlated with revenues, profit is assured, while perfect negative correlation implies a high gearing up of the risk.

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