Formulate, analyze, and illustrate a decision situation involving risk.

Formulate, analyze, and illustrate a decision situation involving risk. Describe or propose a specific decision situation in which you see away of quantifying probabilities and consequences (i.e., do risk assessment) for different “actions” or “strategies”, one often being the “reference action” (“do nothing”, “status quo”, “business as usual”). Then illustrate the use of a methodology of risk management to arrive at the “best action”. The decision considered may be “terminal” (design, regulation, operating rule, strategy) or “preterminal” (further investigation, inspection, data acquisition) or both. The report would normally consist of the following components:

• A description of the problem being addressed, along with the uncertainties involved.
• The decision-making framework
• A decision on the criterion for the “best” decision.
• A systematic evaluation of all design alternatives, weighting the various possible outcomes by their consequences and associated probabilities of occurrence.
• A summary and discussion of the results found above and a
  conclusion regarding which design alternative is considered to be best.
• As with any report, also a list of any references made
  use of to support and/or illustrate the arguments made in the document.

More details in the project file, there is a example report for you to compare. There is a outline for the report, please use the topic in the outline file.