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1. Which of the following is not one of the potential approaches to quantifying

ID: 3707330 • Letter: 1

Question

1. Which of the following is not one of the potential approaches to quantifying the expected benefits of IT initiatives?

a. Real option theory.

b. Simulation.

c. External benchmarks.

d. Performance futures theory.

2. Which of the following would not be considered an indirect operating cost for an IT initiative?

a. End user data entry.

b. User peer support.

c. End user data management.

3. When considering the sensitivity of estimates used to evaluate IT initiatives, which of the following are you likely to do?

a. Test the impact of changes in assumptions on the various financial metrics.

b. Consider which groups in the organization will benefit.

c. Develop exact quantifications of costs and benefits.

Explanation / Answer

ANSWER:-

Question (1) Option d. Performance futures theory.

Question (2) Option a. End user data entry.

Question (3) Option a. Test the impact of changes in assumptions on the various financial metrics.