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Question 362

An insurance company wants to implement a business intelligence solution to consolidate data from various different internal systems to provide a better understanding of their customer base.

A business analyst (BA) is engaged to put together a tender (bid) to be sent to various business intelligence providers and implementation partners. Among other information, the business analyst requests the following:

✑ Licensing costs for Year 0 based on meeting 1 Central Processing Unit (CPU) license

✑ Licensing costs for specific user types such as Report Creators. Online Analytical Processing (OLAP) users and Power uses Predicted licensing costs for renewing in Years 1 ad 2

✑ Full implementation costs

After reviewing the received vendor responses the project team shortlists the candidates to 3 and the BA structures the received information as follows:

The BA also conducts a sensitivity analysis to compare the expected costs should the company's needs grow based on the following information:

Scenario 1: Ten extra report creator, 1 extra OLAP user and 1 extra power user licenses and 2 extra CPU licenses

Scenario 2: Twenty five extra report creator, 1 extra OLAP user and 1 extra power user licenses and 3 extra CPU licenses

What is the increased cost in Scenario 2 for Company C?

    Correct Answer: A

    In Scenario 2 for Company C, we need to consider the cost increase for three additional CPU licenses, twenty-five report creator licenses, one OLAP user license, and one power user license. The increased cost calculation is as follows: 3 additional CPU licenses at $217,978 each amounts to 3 * $217,978 = $653,934. Twenty-five report creator licenses at $1,589 each amount to 25 * $1,589 = $39,725. One OLAP user license costs $1,000. One power user license costs $789. Therefore, the total increased cost is $653,934 (CPUs) + $39,725 (report creators) + $1,000 (OLAP user) + $789 (power user) = $695,448.

Discussion
siliconvalleykamOption: A

217978*3 + 1*1000 +1 *789 + 25* 1589 = 695448

HSinghMOption: A

A 217978*3 + 1*1000 +1 *789 + 25* 1589 = 695448

TheBusBusOption: A

"A" is the correct answer. 217978*3 + (25* 1589+1*1000 +1 *789) = $695,448.

Farooq_95Option: A

For Company C and Scenario 2, the increased cost is computed as follows: Price increases for CPU = 3 * $217,978 = $653,934 Report Creator License cost increase = 25 * $1,589 = $39,725 OLAP user license cost increase = 1 * $1,000 = $1,000 Power user license cost increase = 1 * $789 = $789 Total increase in cost = $653,934 + $39,725 + $1,000 + $789 = $695,448