A systems analyst is examining three candidate solutions for developing a web ba

Question

A systems analyst is examining three candidate solutions for developing a web based financial information system. The three candidate solutions are developed in three different technical platforms - ASP.Net, JAVA and PHP. Each candidate solution could be exposed to either high or low levels of security risks. The probability of occurance of high level of risk is 0.6 and the probability of occurance of low level of risk is 0.4. The costs associated in addressing the security risks for the three solutions are given below:

Use a Decision Tree approach and find the overall cost of developing a web based solution using ASP.Net.

Answer

$96,000

$ 90,000

$ 108,000

$ 104,000

Candidate Solution Level of Security Risk Cost associated in addressing risk ASP.NET High $ 110,000 ASP.NET Low $ 60, 000 JAVA High $ 120,000 JAVA Low $ 80, 000 PHP High $ 100,000 PHP Low $ 90,000

Explanation / Answer

The Answer is b. $ 90,000.

Using a decision tree type approach,

Developing Solution using ASP.net has 2 types of occurences of risk.

1) High risk.

Probability =0.6

=> Total Amount spent = 0.6 * 110000 = $66000 -------------------------1

2) Low Risk

Probability = 0.4

=> Total Amount Spent = 0.4*60000 = $24000 ----------------------------2

Adding 1 and 2

=> Total amount = $66000+$24000 = $90000

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