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Exam CBAP topic 1 question 412 discussion

Actual exam question from IIBA's CBAP
Question #: 412
Topic #: 1
[All CBAP Questions]

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?

  • A. $695,448
  • B. $453,635
  • C. $653,934
  • D. $207,790
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️

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siliconvalleykam
Highly Voted 3 years, 3 months ago
217978*3 + 1*1000 +1 *789 + 25* 1589 = 695448
upvoted 10 times
...
Farooq_95
Most Recent 2 weeks, 1 day ago
Selected Answer: 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
upvoted 1 times
...
HSinghM
9 months, 2 weeks ago
A 217978*3 + 1*1000 +1 *789 + 25* 1589 = 695448
upvoted 2 times
...
TheBusBus
1 year, 2 months ago
Selected Answer: A
"A" is the correct answer. 217978*3 + (25* 1589+1*1000 +1 *789) = $695,448.
upvoted 2 times
...
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