Informatics System Analysis and Design (C798)

Correct Answer

a. Logical judgments applied to the knowledge base

Explanation

Inference rules in an expert system represent logical conditions and relationships that help draw conclusions from the knowledge base. These rules function as "if-then" statements, allowing the system to apply logic and derive solutions based on stored expert knowledge.

Why other options are wrong

b. Guidelines for determining users' permissions levels

User permissions levels are typically handled by access control mechanisms in an organization's IT security system, not by inference rules in an expert system. Inference rules focus on reasoning and decision-making rather than security protocols.

c. Restrictions based on inventory and manufacturing capabilities

Expert systems do not primarily impose restrictions on inventory and manufacturing. Instead, they use logical reasoning to assist in complex problem-solving across various domains, including medical diagnosis, troubleshooting, and decision support.

d. Algorithms used to predict and analyze data trends to make decisions

While expert systems can assist in decision-making, they do so using inference rules rather than predictive algorithms. Predictive analytics relies on statistical models and machine learning techniques, whereas expert systems rely on rule-based reasoning.

Correct Answer

b. To manage and process data from daily business transactions

Explanation

A transaction processing system (TPS) is designed to handle and process business transactions efficiently and accurately. These systems ensure that daily operations, such as sales, inventory updates, and financial transactions, are recorded in real time. TPS is essential for businesses to maintain up-to-date records and streamline workflows without interruptions.

Why other options are wrong

a. To analyze market trends and generate reports

Transaction processing systems do not focus on analyzing market trends; instead, they handle real-time business transactions. Market analysis is typically performed using decision support systems (DSS) or business intelligence tools that aggregate and interpret data.

c. To develop software applications for business use

Developing software applications is not the function of a transaction processing system. Software development falls under the domain of application development frameworks and integrated development environments (IDEs), while TPS is primarily for executing business transactions.

d. To provide customer support and service management

While transaction processing systems may be used in customer service processes, their primary role is not customer support. Customer relationship management (CRM) systems are specifically designed for handling customer interactions, service requests, and support management.

Correct Answer

c. A model where businesses sell products or services directly to individual consumers, exemplified by platforms like Amazon.com.

Explanation

In a B2C (business-to-consumer) model, businesses sell products or services directly to individual customers through online platforms, retail stores, or other channels. Companies like Amazon, Walmart, and Netflix follow the B2C model, catering directly to end consumers rather than other businesses.

Why other options are wrong

a. A model where businesses sell directly to other businesses, such as wholesalers to retailers.

This describes the B2B (business-to-business) model, where companies sell goods or services to other businesses rather than individual consumers.

b. A model that facilitates transactions between consumers and government entities.

This represents the G2C (government-to-consumer) model, where individuals interact with government services, such as tax payments or license renewals.

d. A model focused on business partnerships and collaborations to enhance service delivery.

This is more characteristic of B2B or B2B2C models, where businesses work together to improve service delivery, rather than directly selling to consumers.

Correct Answer

A. Systems Development Life Cycle (SDLC)

Explanation

The Systems Development Life Cycle (SDLC) is the traditional methodology for analyzing, designing, implementing, and maintaining information systems. It consists of structured phases such as planning, analysis, design, development, testing, deployment, and maintenance. The SDLC ensures a systematic approach to system development and minimizes risks.

Why other options are wrong

B. Information Development Life Cycle (IDLC)

This is not a recognized methodology in systems development. The correct term is Systems Development Life Cycle (SDLC).

C. Component Development Life Cycle (CDLC)

While components may have their own life cycle within a system, there is no recognized methodology called CDLC in systems analysis.

D. Analysis Development Life Cycle (ADLC)

Systems analysis is just one phase within SDLC, not a separate methodology on its own. The ADLC is not a formally recognized framework in system development.

Correct Answer

B. Return on investment

Explanation

Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment. It is calculated as:

$ROI=\frac{Total Benefits-Total Costs}{Total C\mathrm{os}ts}$

This formula helps businesses assess whether an investment is worthwhile by determining how much profit is gained relative to the costs incurred. A higher ROI indicates a more profitable investment.

Why other options are wrong

A. Cash flow

Cash flow refers to the movement of money into and out of a business over a specific period. It does not involve the comparison of total benefits and costs in the way ROI does.

C. Break-even point

The break-even point is the point at which total revenues equal total costs, meaning there is no profit or loss. It does not involve dividing net benefits by total costs.

D. Net present value

Net Present Value (NPV) measures the value of future cash flows discounted to present-day values. It helps determine whether an investment will be profitable over time. Ramya’s calculation does not involve discounting future cash flows.

E. Internal rate of return

The Internal Rate of Return (IRR) is the discount rate that makes the NPV of an investment equal to zero. It requires iterative calculations and is not the same as the ROI formula.

Correct Answer

c. About 51.7%

Explanation

Return on Investment (ROI) is calculated using the formula:

ROI=(Total Benefits−Total CostsTotal Costs)×100ROI = \left( \frac{\text{Total Benefits} - \text{Total Costs}}{\text{Total Costs}} \right) \times 100

Substituting the given values:

ROI=(182,000−120,000120,000)×100ROI = \left( \frac{182,000 - 120,000}{120,000} \right) \times 100 ROI=(62,000120,000)×100≈51.67%ROI = \left( \frac{62,000}{120,000} \right) \times 100 \approx 51.67\%

This means that the return on investment is approximately 51.7%, making option c the correct answer.

Why other options are wrong

a. $62,000

This is the net benefit (total benefits minus total costs), not the ROI percentage. ROI is a percentage measure, not a dollar value.

b. About 34%

This percentage is incorrect. Using the correct formula, the ROI is much higher than 34%.

d. About 65.3%

This is an overestimation of the actual ROI, which is around 51.7%.

e. Less than 20%

The ROI is significantly higher than 20%, making this option incorrect.

Correct Answer

A. a working model of an information system

Explanation

A prototype is a preliminary version of an information system that allows users to interact with it and provide feedback. It helps in identifying requirements, testing design concepts, and refining functionality before full-scale development.

Why other options are wrong

B. a completed information system

A prototype is not a final system; it is an initial version meant for evaluation and improvement. The completed system comes after refinement and full implementation.

C. the same as an entity-relationship diagram

An entity-relationship diagram (ERD) is a visual representation of database relationships, while a prototype is a functional model of a system. They serve different purposes.

D. a blueprint of an information system

A blueprint is a design or conceptual model, whereas a prototype is an interactive and functional model that users can test.

Correct Answer

E. Is an international standard for creating business process diagrams

Explanation

BPMN is a globally recognized standard for visually representing business processes. It provides a consistent method for documenting and communicating workflows using predefined symbols to ensure clarity and standardization across industries.

Why other options are wrong

A. Depicts the logical layout of an information network

BPMN is used for modeling business processes, not for illustrating information networks. Logical network diagrams are different from process models.

B. Is only a manual graphical technique; it cannot be implemented on a computer

BPMN can be implemented in various software tools such as Microsoft Visio, Bizagi, and Camunda. It is not limited to manual drawing.

C. Depicts the physical layout of an information system

BPMN focuses on business process workflows, not the physical architecture of an information system.

D. Can use any graphical symbols that a user likes, such as those in his or her computer's font set

BPMN has a standardized set of symbols that must be followed for consistency. It does not allow users to create their own arbitrary symbols.

Correct Answer

A. They have provided enormous reductions in costs.

Explanation

Transaction-processing systems (TPSs) automate business transactions, reducing manual work, increasing efficiency, and lowering costs. By streamlining data processing and reducing human errors, TPSs have contributed to significant cost reductions for businesses.

Why other options are wrong

B. They do not focus on data collection.

This statement is false because data collection is a primary function of TPSs. These systems collect, store, and process transaction data to support business operations.

C. They primarily focus on generating business intelligence (BI).

TPSs are designed to process routine transactions efficiently, not to generate business intelligence. While data from TPSs can be used in BI systems, their primary function is operational rather than analytical.

D. They do not have the capacity to handle enormous sources of data.

This is incorrect because TPSs are built to handle large volumes of transaction data in real time. They are designed to support high transaction loads efficiently, making them critical for businesses with frequent transactions, such as banks and retailers.