In the context of failure modes and effects analysis,which of the following formulas is used to calculate the risk priority number?
A) Risk priority number = total profits from new products/total expenditures
B) Risk priority number = total profits from new products - total expenditures
C) Risk priority number = successful projects/total project portfolio
D) Risk priority number = severity × likelihood of occurrence × inability of controls to detect

Question

Quizplus · Accepted Answer

The formula used to calculate the risk priority number in failure modes and effects analysis is severity x likelihood of occurrence x inability of controls to detect. This formula takes into account the severity of the potential failure, the likelihood of it occurring, and the inability of current controls to detect or prevent it. A higher risk priority number indicates a higher priority for implementing preventive measures. Choices A, B, and C are not relevant formulas for calculating risk priority numbers in this context.

In the Context of Failure Modes and Effects Analysis,which of the Following