Ch. 5 (IST 352), Ch. 6 (IST 352)
16) Referencing the Management Issues section of the Baseline Project Plan, the communication plan provides a description of the team member roles and reporting relationships.
FALSE
17) Referencing a walkthrough, the maintenance oracle ensures that the work product adheres to organizational technical standards.
FALSE
21) As observations are unbiased, they are preferable to other requirements determination techniques.
FALSE
23) When performing observations, it is best to select typical people and sites as opposed to atypical people and sites.
FALSE
27) If you encounter contradictory information about procedures from interviews, questionnaires, or observations, you should reconcile the contradictions before proceeding to other analysis tasks.
FALSE
29) When gathering system requirements, document analysis and observation are used the least.
FALSE
3) Challenging yourself to look at the organization in new ways describes the impertinence characteristic that a systems analyst should exhibit during the requirements determination phase.
FALSE
3) The Project Scope Statement clearly outlines the objectives and constraints of the project for the development group.
FALSE
31) When comparing observations and document analysis, the chances for follow-up and probing with document analysis are rated high to excellent.
FALSE
35) Referencing a JAD session, the sponsor is the individual responsible for organizing and running a JAD session.
FALSE
37) The goal with using prototyping to support requirements determination is to build the ultimate system from prototyping.
FALSE
101) During requirements determination, the systems analyst characteristic that says you should question everything is ________.
Impertinence
85) Referencing a walkthrough meeting, the ________, reviews the work product in terms of future maintenance activities.
maintenance oracle
12) Using a discount rate of 14%, the present value of a $10,000 benefit received 5 years from now is $5,500.49.
FALSE
13) If the NPV of all costs is $100,000 and the NPV of all benefits is $170,000, then the ROI would be 35%.
FALSE
13) Unstructured questions are questions in interviews that have no prespecified answers.
FALSE
38) The rate of return used to compute the present value of future cash flows refers to: A) discount rate B) investment rate C) transfer rate D) future cash flow rate
A
19) As a rule of thumb estimate, what percentage of the entire development effort should be devoted to the project initiation and planning process? A) between 10 and 20 percent B) less than 5 percent C) less than 10 percent D) between 20 and 30 percent
A
20) Which of the following is not an element of project initiation? A) establishing management procedures B) dividing the project into manageable tasks C) establishing a relationship with the customer D) establishing the project initiation team
A
21) The objective of the project planning process is: A) the development of a Baseline Project Plan and Project Scope Statement B) the development of a Systems Service Request C) the development of entity relationship diagrams D) the development of transitional operations plans
A
22) A major outcome and deliverable from the project initiation and planning phase that contains the best estimate of a project's scope, benefits, costs, risks, and resource requirements defines the: A) Baseline Project Plan B) Information Systems Plan C) Mission Statement D) Statement of Work
A
28) The reduction of waste creation is an example of a(n): A) intangible benefit B) qualitative benefit C) tangible benefit D) operational benefit
A
35) A cost resulting from the ongoing evolution and use of a system refers to a(n): A) recurring cost B) one-time cost C) incremental cost D) frequent cost
A
36) Application software maintenance, new software and hardware leases, and incremental communications are examples of: A) recurring costs B) one-time costs C) incremental costs D) frequent costs
A
41) The ratio of the net cash receipts of the project divided by the cash outlays of the project, enabling tradeoff analysis to be made between competing projects is often referred to as: A) return on investment (ROI) B) break-even analysis (BEA) C) net present value (NPV) D) future value (FV)
A
44) An assessment of the development group's understanding of the possible target hardware, software, and operating environments, system size, complexity, and the group's experience with similar systems should be included as part of: A) technical feasibility B) political feasibility C) operational feasibility D) schedule feasibility
A
48) To gain an understanding of the likelihood that all potential time frame and completion date schedules can be met and that meeting these dates will be sufficient for dealing with the needs of the organization is the purpose of: A) schedule feasibility B) operational feasibility C) technical feasibility D) political feasibility
A
53) A peer group review of any product created during the system development process refers to: A) walkthrough B) feasibility assessment C) joint application discussion D) product evaluation
A
53) The reframing characteristic of a good systems analyst is represented by which of the following statements? A) You must challenge yourself to look at the organization in new ways. B) Every fact must fit with every other fact. C) Assume anything is possible, and eliminate the infeasible. D) You should question everything.
A
57) Techniques developed to keep the analysis effort minimal, yet still effective include: A) JAD B) interviewing C) observations D) quiz sessions
A
60) Which of the following is NOT a major section of the Baseline Project Plan? A) design issues B) introduction C) system description D) feasibility assessment
A
63) Which of the following is an advantage of closed-ended questions? A) Interviews based on closed-ended questions do not necessarily require a large time commitment, so more topics can be covered. B) Closed-ended questions enable the analysts to explore information that does not quite fit defined answers. C) The analyst can obtain previously unknown information. D) Closed-ended questions often put the interviewee at ease.
A
81) Which of the following is a true statement regarding JAD? A) The primary purpose of using JAD in the analysis phase is to collect systems requirements simultaneously from the key people involved with the system. B) JAD follows a particular structure of roles and agenda that are similar to the group interview. C) JAD sessions are usually conducted in the organization's conference room. D) A JAD session is inexpensive to conduct.
A
95) Which of the following was developed by Kent Beck, and is distinguished by its short cycles, its incremental planning approach, its focus on automated tests written by programmers and customers to monitor the process of development, and its reliance on an evolutionary approach to development that lasts throughout the lifetime of the system? A) eXtreme programming B) evolutionary prototyping C) rapid application development D) object-oriented analysis and design
A
99) Referencing eXtreme programming, who plays the Iteration Planning Game? A) programmers B) business managers and analysts C) end users, business managers, and analysts D) programmers, analysts, and end users
A
129) Briefly identify and describe the participants of a JAD session.
A JAD session consists of a JAD session leader, users, managers, sponsors, systems analysts, a scribe, and information systems staff. The JAD session leader is responsible for running the session. The scribe is the individual who takes notes during the session. Users are important because they understand the current system. Managers are needed to provide insight into new organizational directions, motivations, organizational impacts of systems, and support for requirements determined during the JAD. As new systems cost money, high-level management support is demonstrated through the appearance of system sponsors. Attendance by these individuals is usually at the beginning or ending of the session. Systems analysts are present so they can learn from the users and managers. Information systems staff can contribute ideas to the process as well as learn from it.
89) Describe the differences between tangible and intangible benefits and costs, and between one-time and recurring benefits and costs.
A tangible benefit refers to a benefit derived from the creation of an information system that can be measured in dollars and with certainty. Examples include reduced personnel expenses, lower transaction costs, and higher profit margins. Intangible benefit refers to a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty. Examples include competitive necessity, promotion of organizational learning and understanding, and improved asset utilization. While tangible costs are costs associated with an information system that can be measured in dollars and with certainty, intangible costs are costs associated with an information system that cannot be easily measured in terms of dollars or with certainty. Hardware costs, labor costs, and operational costs are tangible costs. Loss of customer goodwill, employee morale, and operational inefficiency are intangible costs. One-time costs are costs associated with project start-up and development or system start-up. This type of cost includes hardware and software purchases, user training, and site preparation. Recurring costs are costs resulting from the ongoing evolution and use of a system. New software and hardware leases, incremental communications, and incremental data storage expense are recurring costs.
90) Briefly define walkthrough and describe the role of each participant.
A walkthrough is a peer group review of any product created during the systems development process. During the review users, management, and the development group participate through various roles. These roles are coordinator, presenter, user, secretary, standards bearer, and maintenance oracle. The coordinator is the person who plans the meeting and facilitates a smooth meeting process. The presenter is the individual who describes the work product to the group. Ensuring that the work product meets the needs of the project's customers is the role fulfilled by the user. The person taking notes and recording decisions or recommendations made by the group is the secretary. The standards bearer role is to ensure that the work product adheres to organizational technical standards. The maintenance oracle is the individual who reviews the work product in terms of future maintenance activities.
107) ________ describes a project that has bogged down in an abundance of analysis work.
Analysis paralysis
29) Which of the following would be classified as a tangible cost? A) loss of customer goodwill B) cost of hardware C) employee morale D) operational inefficiency
B
31) Infrastructure replacement/improvements, system maintenance costs, and user training and support are examples of: A) project-related costs B) operating costs C) start-up costs D) procurement costs
B
34) A cost associated with project start-up and development or system start-up refers to a(n): A) recurring cost B) one-time cost C) incremental cost D) infrequent cost
B
39) The current value of a future cash flow is referred to as its: A) future value B) present value C) investment value D) discount rate
B
42) The analysis technique that finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment is referred to as: A) return on investment (ROI) B) break-even analysis (BEA) C) net present value (NPV) D) future value (FV)
B
46) A new system or the renovation of existing systems, user perceptions, and management commitment to the system are examples of which of the following risk factors? A) development group B) project structure C) project size D) user group
B
49) The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities refers to: A) schedule feasibility B) operational feasibility C) technical feasibility D) political feasibility
B
50) The process of assessing potential legal and contractual ramifications due to the construction of a system refers to: A) technical feasibility B) legal and contractual feasibility C) economic feasibility D) operational feasibility
B
52) The following are elements of project planning: A) describing the physical design statement B) describing the project scope, alternatives, and feasibility C) describing the identification of the business mission D) describing the logical design statement
B
54) At a walkthrough meeting, the person who plans the meetings and facilitates a smooth meeting process is referred to as the: A) presenter B) coordinator C) standards bearer D) maintenance oracle
B
55) At a walkthrough meeting, the person (or group) who ensures that the work product meets the needs of the project's customers is referred to as the: A) coordinator B) user C) maintenance oracle D) standards bearer
B
58) At walkthrough meetings, there is a need to have individuals play specific roles such as: A) operating system manager B) presenter C) DBA D) top management
B
59) Which of the following is a traditional method of collecting systems requirements? A) Group support systems B) Group interviews C) Joint Application Design D) Rapid Application Development
B
73) If your analysis of several written procedures reveals a duplication of effort in two jobs, you should: A) indicate that one job be deleted from the new system B) call the duplication to the attention of management as an issue to be resolved before system design can proceed C) justify the duplication of effort D) restructure the tasks so that the duplication is removed
B
75) The way a system actually works is referred to as a(n): A) unofficial system B) informal system C) actual system D) formal system
B
83) The trained individual who plans and leads Joint Application Design sessions is referred to as the: A) scribe B) JAD session leader C) JAD manager D) JAD contributor
B
89) The structured, measured set of activities designed to produce a specific output for a particular customer or market best defines: A) formal systems B) key business processes C) secondary activities D) production systems
B
91) Which of the following technologies disrupted the business rule that information can appear only in one place at a time? A) high-performance computing B) distributed databases C) expert systems D) advanced telecommunications networks
B
97) Referencing eXtreme programming, which of the following is not a Planning Game phase? A) exploration B) design C) commitment D) steering
B
62) The ________ is the major outcome and deliverable from the project initiation and planning phase that contains the best estimate of the project's scope, benefits, costs, risks, and resource requirements.
Baseline Project Plan
74) ________ finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment.
Break-even analysis
87) Briefly identify three commonly used economic cost-benefit analysis techniques.
Break-even analysis (BEA) is the process of finding the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment. Net present value (NPV) uses a discount rate determined from the company's cost of capital to establish the present value of a project. Return on investment (ROI) is the ratio of the net cash receipts of the project divided by the cash outlays of the project. A tradeoff analysis can be made between competing projects.
119) ________ is the search for, and implementation of, radical change in business processes to achieve breakthrough improvements in products and services.
Business process reengineering
24) Cost reduction and avoidance, error reduction, and increased flexibility are examples of: A) intangible benefits B) qualitative benefits C) tangible benefits D) legal and contractual benefits
C
25) A savings of $3,000 resulting from a data entry error correction would most likely be classified as a(n): A) intangible benefit B) qualitative benefit C) tangible benefit D) operational benefit
C
26) A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n): A) intangible benefit B) qualitative benefit C) tangible benefit D) operational benefit
C
32) Which of the following would be classified as an intangible cost? A) hardware costs B) labor costs C) employee morale D) operational costs
C
33) A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty refers to: A) economic cost B) tangible cost C) intangible cost D) one-time cost
C
37) The concept of comparing present cash outlays to future expected returns best defines: A) cost/benefit analysis B) internal rate of return C) time value of money D) investment return analysis
C
40) The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called: A) return on investment (ROI) B) break-even analysis (BEA) C) net present value (NPV) D) future value (FV)
C
43) To gain an understanding of the organization's ability to construct the proposed system is the purpose of: A) operational feasibility B) schedule feasibility C) technical feasibility D) political feasibility
C
47) The number of members on the project team, project duration, and the number of organizational departments involved in the project are examples of which of the following risk factors? A) development group B) project structure C) project size D) user group
C
51) To gain an understanding of how key stakeholders within the organization view the proposed system is the purpose of: A) technical feasibility B) legal and contractual feasibility C) political feasibility D) operational feasibility
C
57) At a walkthrough meeting, the person who reviews the work product in terms of future maintenance activities is referred to as the: A) coordinator B) user C) maintenance oracle D) standards bearer
C
61) One advantage of open-ended questions in an interview is: A) a significant amount of time can be devoted to each interviewee B) the interviewee is restricted to providing just a few answers C) previously unknown information can result D) they work well when the answers to the questions are well known
C
69) Which of the following is a reason for directly observing end users? A) The analyst gets a snap-shot image of the person or task being observed. B) Observations are not very time consuming. C) People often do not have a completely accurate appreciation of what they do or how they do it. D) Employees will alter their performance if they know that they are being observed.
C
77) Forms are most useful: A) when they do not contain any data B) during the initial planning stages C) when they contain actual organizational data D) during the design stage
C
79) When comparing observations and document analysis: A) the time required to conduct observations compared to document analysis is low B) the observee is not known to the interviewer C) the potential audience of the observation method is limited D) with document analysis, a clear commitment is discernible
C
93) Continual user involvement works best when: A) the number of end users is large B) the number of end users is small C) the development group is small D) the development group is large
C
23) The Project Scope Statement: A) is a short document prepared for the customer that describes what the project will deliver and outlines all work required to complete the project B) is useful for ensuring that both you and your customer gain a common understanding of the project C) is a very easy document to create because it typically consists of a high-level summary of the BPP information D) all of the above
D
27) Tangible benefits would include: A) improved organizational planning B) ability to investigate more alternatives C) improved asset control utilization D) lower transaction costs
D
30) Capital costs, management and staff time, and consulting costs are examples of: A) project-related costs B) operating costs C) start-up costs D) procurement costs
D
45) When conducting a technical risk assessment, which of the following is true? A) A project has a greater likelihood of experiencing unforeseen technical problems when the development group lacks knowledge related to some aspect of the technology environment. B) Large projects are riskier than small projects. C) Successful IS projects require active involvement and cooperation between the user and development groups. D) All of the above.
D
55) The primary deliverables from requirements determination include: A) sets of forms, reports, and job descriptions B) transcripts of interviews C) notes from observation and from analysis documents D) all of the above
D
56) At a walkthrough meeting, the person who ensures that the work product adheres to organizational technical standards is referred to as the: A) coordinator B) user C) maintenance oracle D) standards bearer
D
59) Which of the following is NOT a role at a walkthrough meeting? A) coordinator B) user C) secretary D) support staff
D
65) Good interview guidelines consist of: A) phrasing the question to illicit the correct response B) typing your notes within two weeks of the interview C) establishing expectation levels about the new system D) seeking a variety of perspectives from the interviews
D
67) Which of the following is a disadvantage to group interviewing? A) Group interviewing does not effectively utilize your time. B) Interviewing several people together allows them to hear the opinions of other key people. C) Group interviewing requires significantly more time than does the JAD process. D) Scheduling group interviews can be a problem.
D
71) The analysis of documents can help you identify: A) problems with existing systems B) special information processing circumstances that occur irregularly and may not be identified by any other requirements C) the reason why current systems are designed the way they are D) all of the above
D
85) Drawbacks to prototyping include: A) a tendency to avoid creating formal documentation of systems requirements that can then make the system more difficult to develop into a fully working system B) prototypes becoming very idiosyncratic to the initial user and difficult to diffuse or adapt to other potential users C) prototypes being built as stand-alone systems D) all of the above
D
87) In BPR, which of the following questions are used to identify activities for radical change? A) How important is the activity to delivering the outcome? B) How feasible is changing the activity? C) How dysfunctional is the activity? D) All of the above are correct.
D
121) ________ are technologies that enable the breaking of long-held business rules that inhibit organizations from making radical business changes.
Disruptive technologies
64) ________ is the process of identifying the financial benefits and costs associated with a development project.
Economic feasibility
123) ________, ________, and ________ are the three phases of the Planning Game.
Exploration, commitment, steering
10) Intangible benefits are benefits associated with project start-up, development, or system start-up.
FALSE
4) The Statement of Work is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.
FALSE
45) Referencing requirements determination using Agile Methodologies, the Continual User Involvement technique does not work well with small and dedicated development teams.
FALSE
5) Finding the best solution to a business problem or opportunity describes the attention to details characteristic that a systems analyst should exhibit during the requirements determination phase.
FALSE
7) Increased flexibility is an intangible benefit.
FALSE
9) Contrary to popular belief, interviewing is not one of the primary ways analysts gather information about an information systems project.
FALSE
9) Management, operation, and planning personnel are examples of start-up costs.
FALSE
125) Briefly identify several characteristics for a good systems analyst to have during requirements determination.
Five characteristics that will come in handy during the requirements determination stage are impertinence, impartiality, relax constraints, attention to details, and reframing. Impertinence questions everything. Impartiality describes your quest to find the best solution to a business problem or opportunity. Assuming anything is possible, and eliminating the infeasible defines the third characteristic, relax constraints. By making sure that every fact fits with every other fact, the analyst is paying attention to details. Since analysis is a creative process, the analyst should challenge himself to look at the organization in new ways. This characteristic is referred to as reframing.
80) ________ is the process of assessing potential legal and contractual ramifications due to the construction of a system.
Legal and contractual feasibility
76) ________ uses a discount rate determined from the company's cost of capital to establish the present value of the project.
Net present value
113) The ________ is a facilitated process that supports idea generation by groups; at the beginning of the process, group members work alone to generate ideas, which are then pooled under the guidance of a trained facilitator.
Nominal Group Technique
69) ________ are costs associated with project start-up and development, or system start-up.
One-time costs
111) ________ are usually used to probe for information when you cannot anticipate all possible responses or when you do not know the precise questions to ask.
Open-ended questions
78) ________ is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.
Operational feasibility
81) ________ is the process of evaluating how key stakeholders within the organization view the proposed system.
Political feasibility
73) ________ is the current value of a future cash flow.
Present value
63) The ________ is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.
Project Scope Statement
70) ________ are costs resulting from the ongoing evolution and use of a system.
Recurring costs
75) ________ is the ratio of the net cash receipts of the project divided by the cash outlays of the project.
Return on investment
68) An ________ is a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.
intangible cost
79) ________ is the process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.
Schedule feasibility
1) Proper and insightful project planning, including determining project scope as well as identifying project activities, can easily reduce time in later project phases.
TRUE
1) Requirements determination and requirements structuring are the two subphases to systems analysis.
TRUE
11) Neutrality is a guideline for effective interviewing.
TRUE
11) The time value of money compares present cash outlays to future expected returns.
TRUE
14) Most techniques for analyzing economic feasibility employ the time value of money concept.
TRUE
15) Generally speaking, legal and contractual feasibility is a greater consideration if your organization has historically used an outside organization for specific systems or services that you now are considering handling yourself.
TRUE
15) Open-ended questions can put the interviewee at ease because she can respond in her own words using her own structure.
TRUE
17) Closed-ended questions work well when the major answers to the questions are known.
TRUE
18) Walkthroughs are a common occurrence in most system development groups.
TRUE
19) Multiple choice, rating, and ranking are types of closed-ended questions.
TRUE
2) Project planning focuses on defining clear, discrete activities and the work needed to complete each task.
TRUE
25) In documents you can find information about special information processing circumstances that occur irregularly.
TRUE
33) The primary purpose of using JAD in the analysis phase is to collect systems requirements simultaneously from the key people involved with the system.
TRUE
39) The idea behind BPR is to reorganize the complete flow of data in major sections of an organization to eliminate unnecessary steps, achieve synergies among previously separate steps, and become more responsive to future changes.
TRUE
41) The skills of a systems analyst are often central to many BPR efforts.
TRUE
43) Key business processes are the structured, measured set of activities designed to produce a specific output for a particular customer or market.
TRUE
47) The Agile Usage-Centered Design focuses on user roles, user goals, and the tasks necessary to achieve those goals.
TRUE
49) Determining systems requirements for an Internet-based electronic commerce application is no different than the process followed for other applications.
TRUE
5) The culmination of the feasibility analyses form the business case that justifies the expenditure of resources on the project.
TRUE
51) Exploration, commitment, and steering are the three phases of the Iteration Planning Game.
TRUE
6) Economic feasibility is the process of identifying the financial benefits and costs associated with a development project.
TRUE
7) Joint Application Design and prototyping can help keep the analysis effort at a minimum yet still effective.
TRUE
8) Site preparation is an example of a one-time cost.
TRUE
77) ________ is the process of assessing the development organization's ability to construct a proposed system.
Technical feasibility
93) Assume a proposed system has a useful life of 5 years, one-time costs of $1,000,000, recurring costs of $250,000 per year, and tangible benefits of $750,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?
The overall NPV is $895,393; the overall ROI is .46, and break-even occurs in year 3.
88) What is a Project Scope Statement and Baseline Project Plan? How are they different?
The Baseline Project Plan and the Project Scope Statement are the major outcomes and deliverables for the project initiation and planning phase. All information collected and analyzed during this phase is contained in the BP. This plan reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements. It also specifies detailed project activities for the following phase and more general specifications for the remaining phases. The BPP can be used by the project selection committee to determine the project worth - accept, reject, or modify. The project Scope Statement is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project. The PSS consists of a high-level summary of the BP. While the actual role of the PSS can vary, the PSS can be used by the analyst and the customer to gain an understanding of the project.
133) What is the Nominal Group Technique? How is it beneficial to requirements determination?
The Nominal Group Technique is a facilitated process that supports idea generation by groups. At the beginning of the process, group members work alone to generate ideas, which are then pooled under the guidance of a trained facilitator. During requirements determination, the group will identify and prioritize a list of problems associated with the existing system, or they may identify and prioritize a list of requirements for the new system.
131) Identify four drawbacks to using prototyping as a requirements determination tool.
The four drawbacks mentioned in the textbook are: (1) a tendency to avoid creating formal documentation of system requirements; (2) prototypes become very idiosyncratic to the initial user and difficult to diffuse or adapt to other potential users; (3) prototypes are often built as stand-alone systems, often ignoring issues of sharing data, interactions with other existing systems, and scaling up applications; and (4) checks in the SDLC are bypassed so that some more subtle system requirements might be forgotten.
94) Assume a proposed system has a useful life of 5 years, one-time costs of $50,000, recurring costs of $25,000 per year, and tangible benefits of $35,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?
The overall NPV is $12,092, and the overall ROI is negative. Based on the information given, this project will not break-even during its useful life.
91) Assume a proposed system has a useful life of 5 years, one-time costs of $50,000, recurring costs of $25,000 per year, and tangible benefits of $45,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?
The overall NPV is $25,816; the overall ROI is .18, and break-even occurs in year 4.
95) Assume a proposed system has a useful life of 5 years, one-time costs of $1,000,000, recurring costs of $250,000 per year, and tangible benefits of $750,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?
The overall NPV is $895,393 and the overall ROI is .46. The project breaks even in year 3.
109) Traditional methods of collecting system requirements include ________, ________, and ________.
interviews, observations, business documents
92) Assume a proposed system has a useful life of 5 years, one-time costs of $250,000, recurring costs of $80,000 per year, and tangible benefits of $175,000 per year. If the cost of capital is 12%, what is the overall NPV? Overall ROI? Break-even point?
The overall NPV is $92,454; the overall ROI is .17, and break-even occurs in year 4.
86) Briefly identify and define the six major categories of feasibility.
The six feasibility categories are economic, technical, operational, schedule, legal and contractual, and political. The specifics of a particular project will determine the emphasis placed on each of the feasibility criteria. Economic feasibility seeks to identify the financial benefits and costs associated with the project. Technical feasibility seeks to determine if the organization is capable of developing the new system. Operational feasibility examines the degree of likelihood that the candidate system will be able to solve the business problem or take advantage of opportunities. Schedule feasibility examines the likelihood that all potential time frame and completion date schedules can be met. Legal and contractual feasibility tries to assess the potential legal ramifications due to the construction of the new system. Determining stakeholder's views of the candidate system is the intent of political feasibility.
61) A ________ is the justification for an information system, presented in terms of the tangible and intangible economic benefits and costs and the technical and organizational feasibility of the proposed system.
business case
66) An ________ is a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.
intangible benefit
83) Referencing a walkthrough meeting, the ________ plans the meeting and facilitates a smooth meeting process.
coordinator
72) The ________ is the rate of return used to compute the present value of future cash flows.
discount rate
127) What is eXtreme programming?
eXtreme programming is an approach developed by Kent Beck. This approach is distinguished by its short cycles, its incremental planning approach, its focus on automated tests written by programmers and customers to monitor the process of development, and its reliance on an evolutionary approach to development that lasts throughout the lifetime of the system.
115) An ________ is the way a system actually works.
informal system
105) During requirements determination, challenging yourself to look at the organization in new ways corresponds to the systems analyst characteristic of ________.
reframing
103) During requirements determination when you assume anything is possible and eliminate the infeasible, this corresponds to the systems analyst characteristic of ________.
relaxing of constraints
117) A ________ is the person who makes detailed notes of the happenings at a Joint Application Design session.
scribe
84) Referencing a walkthrough meeting, the ________ ensures that the work product adheres to organizational technical standards.
standards bearer
65) A ________ is a benefit derived from the creation of an information system that can be measured in dollars and with certainty.
tangible benefit
67) A ________ is a cost associated with an information system that can be easily measured in dollars and with certainty.
tangible cost
71) The ________ is the concept of comparing present cash outlays to future expected returns.
time value of money
82) A ________ is a peer group review of any product created during the systems development process.
walkthrough
