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Cost-Benefit Analysis - ES fondi

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EN<br />

Risk<br />

analysis<br />

41<br />

Risk analysis<br />

• Need to assume probability distributions<br />

for the critical variables identified in the<br />

sensitivity analysis<br />

• Probability distributions can be discrete<br />

or continuous and can be based on<br />

objective (e.g. time series) or subjective<br />

(e.g. experts opinion) data<br />

• Once the probability distributions for the<br />

critical variables are defined it is<br />

possible to determine the project<br />

expected performance indicators

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