Option #1: Application Development:

Option #1: 

Application Development: Build In-House or Outsource Decision Tree

Build a decision tree to decide if your project team should develop an application that will allow users to readily access their accounting spreadsheets, or if this effort should be outsourced to a contractor. The requirements were not completed accurately during the requirements gathering for this project; therefore, there is a risk that the final product will not pass customer acceptance testing. Although doing the project in-house will be expensive, the chances of user acceptance are high, thus preventing costly rework.

1. Use the information in the table below to decide whether you should build the application in-house or outsource it. 

2. Create a decision tree to show outcomes for each decision node using the SilverDecisions website (http://silverdecisions.pl/SilverDecisions.html?lang=en

http://silverdecisions.pl/SilverDecisions.html?lang=en (Links to an external site.)Links to an external site.). Note: While the SilverDecisions tool is intuitive, you can find a manual at http://silverdecisions.pl/

. 

3. Calculate the expected value of each outcome and show your calculations (Probability x Impact). 

4. Export your decision tree as a .png file and save it on your computer.

5. Explain the best option based on the outcome and why.

Cost to build application in-house