Precise Software

1. In assessing the value of Precise SQL for the user firm one has to consider increase in DBA productivity.

Assuming 52 weeks in a year, how many hours does a DBA save in a year because of Precise?
3 Points
DBA Hours Saved per year 52 * 9.4 488.8

DBA Hourly Wage (assuming 40 hours to a week)
3 Points
Unburdened DBA salary $60,000
Hours worked Per Year 52 * 40 2080
Burdened DBA salary 1.33*$60,000 $79,800 DBA Hourly Wage (unburdened) $60,000/2080 $28.84
DBA Hourly Wage (burdened) $79,800/2080 $38.36

Annual Saving for the customer firm

Hours saved per DBA per week 9.4
Hours saved per DBA per year 52 * 9.4 489
Savings per DBA per year (unburdened) 489*$28.84 $14,102
Savings per DBA per year (burdened) 489*$38.36 $18,758
Average number of DBA's 10 Annual savings for firm per year (unburdened) 10*$14,102 $141,020
Annual savings for firm per year (burdened) 10*$18,758 $187,580

2. Precise SQL also helps with respect to deferral of hardware replacement decision. Answer the following questions on hardware deferral

What is the probability of postponing hardware purchase for a year? Hint (a year has 12 months or four 3-month periods).
3 Points
Probability of postponed purchase (A) for 3 months P(A) = .6
Probability of making purchase (B) P(A) = 1-P(A) .4
Probability of not making a hardware purchase for 1 year P(A)4 .1296

Hardware Cost Saving if postponed by a year 30%
1 Point

What is the average annual hardware budget affected by Precise? $1,430,000
1 Point

Based on the above three pieces of information, what is the dollar savings due to deferral of hardware purchase?

Average annual hardware budget affected by Precise $1,430,000
Hardware Cost Saving if postponed by a year 30%
Probability of postponing by 3 months 60%
Savings for three months ($1,430,000*.3*.6)/4 $64,350
Dollar savings due to deferral of hardware purchase for one year ($1,430,000*.3) $429,000

5 Points

3.