system analysis and design

Process Description Tools

(a)

Airlines have suffered declining passenger numbers due to Covid and fear of travelling. To combat this, Aerireland has introduced a

promotional discount card, called AerPass. The rules are as follows:

If you hold an over 60s AerPass card, you get a 34% discount on whatever ticket you buy.

If you are traveling with a child (under 16), you can get a 50% discount on any ticket if you hold a family AerPass card, otherwise

you get a 10% discount.

You can only hold one type of AerPass card.

Produce a Decision Table, showing all the combinations of ticket price types and resulting discounts.

b)Joan Newton is a property owner, who owns several apartments. Joan is considering refurbishing her apartments and is faced with a

difficult decision. She has narrowed down her choices to three options A, B and C, as described below:

A large-scale investment (A) to improve her flats. This could produce a substantial pay-off in terms of increased revenue net of costs but

will require an investment of 1,400,000. After extensive market research it is considered that there is a 40% chance that a pay-off of

2,500,000 will be obtained, but there is a 60% chance (probability) that it will be only 800,000.

A smaller scale project (B) to re-decorate her premises. At 500,000 this is less costly but will produce a lower pay-off. Research data

suggests a 30% chance (probability) of a gain of 1,000,000 but a 70% chance (probability) of it being only 500,000.

Continuing the present operation without change. It will cost nothing, but neither will it produce any pay-off. Clients will be unhappy,

and it will become harder and harder to rent the flats out when they become free.

i. Help Joan unscramble these written procedures by preparing a Decision Tree

il. Calculate the Expected values and Net Expected values for each of the three options described above, using the following

formulas:

Expected Value

= Outcomes * Probability

Net expected value = expected value - cost