Build a decision tree to decide if your project team should develop an application that will allow users to readily access their accounting spreadsheets, or if this effort should be outsourced to a contractor. The requirements were not completed accurately during the requirements gathering for this project; therefore, there is a risk that the final product will not pass customer acceptance testing. Although doing the project in-house will be expensive, the chances of user acceptance are high, thus preventing costly rework.

1. Use the information in the table below to decide whether you should build the application in-house or outsource it. Pick the decision with the lower investment required.
2. Create a decision tree to show outcomes for each decision node using the SilverDecisions websiteLinks to an external site.. Note: While the SilverDecisions tool is intuitive, you can find a manual hereLinks to an external site..
3. Calculate the expected value of each outcome and show your calculations (Probability x Impact).
4. Export your decision tree as a .png file and save it on your computer.
5. Explain the best option based on the outcome and why

Cost to build application in-house$95,000Cost to outsource the task of developing the application $80,000Probability of passing user acceptance testing if built in-house90%Probability of passing user acceptance testing if work is outsourced30%Cost of rework after user acceptance testing if built in-house$50,000Cost of rework after user acceptance testing if work is outsourced$25,000