Application Development: Build In-House or Outsource Decision Tree

Choose one of the following two assignments to complete this week. Donot do both assignments. Identify your assignment choice in the titleof your submission.

Option #1: Application Development: Build In-House or Outsource Decision Tree
Build a decision tree to decide if your project team should developan application that will allow users to readily access their accountingspreadsheets, or if this effort should be outsourced to a contractor.The requirements were not completed accurately during the requirementsgathering for this project; therefore, there is a risk that the finalproduct will not pass customer acceptance testing. Although doing theproject in-house will be expensive, the chances of user acceptance arehigh, thus preventing costly rework.

1. Use the information in the table below to decide whether youshould build the application in-house or outsource it. Pick the decisionwith the lower investment required.
2. Create a decision tree to show outcomes for each decision node using the SilverDecisions website (http://silverdecisions.pl/SilverDecisions.html?lang=en (Links to an external site.)). Note: While the SilverDecisions tool is intuitive, you can find a manual at http://silverdecisions.pl/ (Links to an external site.).
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 $95,000
Cost to outsource the task of developing the application $80,000
Probability of passing user acceptance testing if built in-house 90%
Probability of passing user acceptance testing if work is outsourced 30%
Cost of rework after user acceptance testing if built in-house $50,000
Cost of rework after user acceptance testing if work is outsourced $25,000
Be sure to properly organize your writing and include a cover page,an introduction, headings/subheadings for the body of your work,analysis, and recommendations, a conclusion, an appendix, and a list ofreferences. Consult this assignment template for a more complete list ofrequirements: http://csuglobal.libguides.com/ld.php?content_id=21534702 (Links to an external site.).

Your response should be 1-2 pages in length, including your decision tree, and conform to the CSU-Global Guide to Writing & APA (Links to an external site.). Copy and paste your exported SilverDecisions.png file into a Microsoft Word document for submission.

Refer to the Critical Thinking Assignment grading rubric below formore information on assignment expectations and grading. For assistancewith creating a decision tree, review Section 11.4.2.5 in the PMBOK Guide (6th ed.), paying particular attention to Figure 11-15.

Option #2: New Versus Used Car Decision Tree
Build a decision tree to help you decide if you want to purchase anew car or a used car. The biggest concern or risk with purchasing aused car is the potential need for repairs and not knowing about anyprevious problems the car might have had. There is a 40% chance that aused car will need to be repaired within a one-year period; however,there is a 90% chance that the new car will not need any repairs duringthe same period. The cost for a used car is $7,500, and the cost for anew car is $15,000.

1. Use the information in the table below to decide whether youshould buy a used car versus a new car. Pick the decision with the lowerinvestment required.
2. Create a decision tree to show outcomes for each decision node using the SilverDecisions website (http://silverdecisions.pl/SilverDecisions.html?lang=en (Links to an external site.)). Note: While the SilverDecisions tool is intuitive, you can find a manual at http://silverdecisions.pl/ (Links to an external site.).
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.