The average annual revenue per customer for the mail order firm described in Problems and Exercises 12-33 and 12-35 is $100. The organization is planning a data quality improvement program that it hopes will increase the average revenue per customer by 5 percent per year. If this estimate proves accurate, what will be the annual increase in revenue due to improved quality?

Problem and Exercise 12-33

An e-business operates a high-volume catalog sales center. Through the use of clustered servers and mirrored disk drives, the data center has been able to achieve data availability of 99.5 percent. Although this exceeds industry norms, the organization still receives periodic customer complaints that the Web site is unavailable. A vendor has proposed several software upgrades as well as expanded disk capacity to improve data availability. The cost of these proposed improvements would be about $50,000 per month. The vendor estimates that the improvements should improve availability to 99.99 percent.