Mom&Pop.com, a small online retailer, is considering purchasing a data encryption app (i.e., Technology X) and an antivirus software (i.e., Technology Y). These two security technologies are known to work well together to increase the cyber security level of an enterprise, and both come in three 'trim' levels - Basic, Advance, and Pro. Cost of the technologies is given in Table 1. Security level contribution of the technologies is given in Table 2. Answer the questions below according to these tables.

 

	Basic	Advance	Pro
Technology X	$1	$2	$3
Technology Y	$3	$5	$7

Table 1: Cost of technologies based on its level

	Basic	Advance	Pro
Technology X	4	6	7
Technology Y	2	3	4

Table 2: Security level contribution of technologies based on its level

A. Fill in the following TOTAL COST TABLE:

TOTAL COST TABLE	Y-Basic	Y-Advance	Y-Pro
X-Basic
X-Advance
X-Pro

B. If acceptable cost is $6, according to rational choice theory which levels of X and Y should be purchased?

C: Fill in the following TOTAL SEC TABLE:

TOTAL SEC TABLE	Y-Basic	Y-Advance	Y-Pro
X-Basic
X-Advance
X-Pro

D. If the desired security contribution level is 9 and without any constraint on the cost, according to rational choice theory which levels of X and Y should be purchased?

Part 2.Mom&Pop.com's owner read from a marketing flyer that Technology X-Basic is supposed to have an"RROI=100%", and Technology X-Pro is supposed to have an"RROI=200%" over a specific period of time. However, the owner is uncertain what those mean, and needs your help...

A. What is ROI?

B. What is RROI?

C. What do "RROI=100%" and "RROI=200%" mean?

D. Which one would you recommend to the owner based solely on RROI: Technology X-Basic or X-Pro? Why?