1. Net revenue calculated from the Cost Benefit Analysis is not necessarily equal to the expected net revenue. 2. The distribution of the net revenue random variable is not necessarily normal. 3. The intuitive interpretation of risk can lead to significant errors. In addition to these specific conclusions, several more general conclusions can be made. On the negative side, the model can be costly and difficult to develop. On the positive side, the approach provides valuable risk information concerning the range of expected outcomes to supplement the expected value.
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