PRE2 – Information Systems Analysis and Design

Multiple Choice Questions

Group 3

1. Which statement is incorrect when defining a cost and benefits?

a. Must always be considered together because they are interrelated

b. Must always be considered together because they are interdependent
c. Because it will be based on a cost-benefit analysis and on information requirements.
d. Because it will be based on a cost-benefit analysis, not on information requirements.

2. What is the type of forecasting that means the analyst isn’t required to find or identify any causal
relationships?
a. Conditional Forecasting
b. Unconditional Forecasting
c. Graphical Forecasting
d. Weather Forecasting

3. Which of the following is not included on common methods of conditional forecasting?

a. Correlation
b. Regression
c. Moving average
d. Leading indicators

4. Which of the following is not included in the example of intangible benefits?

a. Enhancing Accuracy
b. Maintaining a good business image
c. Increase in the speed of processing
d. Becoming in more competitive in customer service

5. It is defined as the advantages measurable in dollars that accrue to the organization through the use of
the information system?
a. Tangible cost
b. Tangible benefits
c. Intangible cost
d. Intangible benefits

6. What best describes as PERT?

a. PERT is represented by a network of nodes and arrows that are then evaluated to determine the
critical activities, improve the schedule if necessary, and review progress once the project is
undertaken.
b. PERT is an easy way to schedule tasks. It is a chart on which bars represent each task or
activity. The length of each bar represents the relative length of the task.
c. PERT helps the systems analyst to present to business decision makers the time value of
the investment in the information system as well as the cash flow
d. PERT examines the direction, size, and pattern of cash flow that is associated with the
proposed information system.

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7. All of the following are included in tangible cost, except?
a. Declining company image
b. Other employees salaries
c. Cost of resources
d. Cost of system analyst time

8. Which of the following is not included in guidelines for analysis?

a. Use break-even analysis if the project needs to be justified in terms of cost, not benefits, or if
benefits do not substantially improve with the proposed system.
b. Use payback when the improved tangible benefits form a convincing argument for the proposed
system.
c. Use cash-flow analysis when the project is expensive relative to the size of the company or when
the business would be significantly affected by a large drain (even if temporary) on funds.
d. Use present value analysis when the payback period is short or when the cost of borrowing money
is low.

9. It is an easy way to schedule tasks. It is a chart on which bars represent each task or activity.
a. Intangible benefits
b. Tangible benefits
c. Tangible cost
d. Gantt charts

10. Which is PERT stands for?

a. Program Evaluation and Review Techniques
b. Program Excavation and Review Techniques
c. Program Evacuation and Review Techniques
d. Program Equation and Review Techniques