Which of the following correctly describes probability? It involves the effect a risk will have on a project. It is used to establish project time frames. It is used to analyze stakeholder expectations. It involves the likelihood a risk will occur in a project.

Probability is all about the likelihood of specific events occurring under defined circumstances. In project management, this means assessing the chances that various risks will manifest, potentially impacting the project's path. By using probability, project managers can make informed decisions about risk management strategies. In the real world, probability plays a vital role in various fields, from finance to engineering. For example, when launching a new product, companies analyze the probability of its success based on market trends, consumer behavior, and competitive analysis, which helps them allocate resources wisely and mitigate risks effectively.