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CASE 2: SERVER FARM INC. (7 POINTS) Server Farm Inc. (SFI) needs to upgrade its server computers. Company management has identified the following two options: (1) shift to a Windows-based platform from its current Unix-based platform, or (2) stick with a Unix-based platform. It is standard practice at SFI to use a triangular distribution to model uncertain costs. Image from: htp:/www.kauaicomputerrepair.comimage-sitemap-1.xml Along these lines, the company estimates that if it migrates to Windows, the new server hardware could cost as little as S100,000 or as much as $200,000. The technical group's best estimate is that the hardware costs will be $125,000 if the Window's option is pursued. Likewise, the company's best guess regarding the cost to upgrade and convert its software to Windows is S300,000 with a range of $275,000 to $500,000. Finally, if the company converts to Windows, employee training costs are estimated to range between $9,000 and $15,000, with the best guess being $10,000. If the company sticks with Unix, the new server hardware will most likely cost $100,000, but could cost as little as $80,000 or as much as $210,000. Software conversion and upgrade costs are expected to be $300,000 but could be as low as $250,000 and as high as $525,000. Employee training costs shoukd fall between $8,000 and S17,500, with a best guess of s10,000. Develop a model to simulate this situation and answer the following questions This case is obtained from Project Management in Practice, 6 edition. @Risk is recommended for this case study, but you can use any programming tool you feel comfortable to simulate this model Project Management Center for Excellence www.pm.umd.edu Page 3 of 4 ENCE 662 Homework 2 If you decide to use @Risk, please log in UMD virtual computer lab via the following link: httpsleitumd.cduycl and use @Risk to perform this project at least 1000 times, and then answer the following the questions based on your simulation results. Please also be reminded to attach your simulation results in your assignment. 1. What is the expected cost of cach projoct? 2. What is the probability that each project's cost will exceed $575,000? And which project would you consider to be the most risky? 3. Which project would you recommend SFI undertake? Why? CASE 2: SERVER FARM INC. (7 POINTS) Server Farm Inc. (SFI) needs to upgrade its server computers. Company management has identified the following two options: (1) shift to a Windows-based platform from its current Unix-based platform, or (2) stick with a Unix-based platform. It is standard practice at SFI to use a triangular distribution to model uncertain costs. Image from: htp:/www.kauaicomputerrepair.comimage-sitemap-1.xml Along these lines, the company estimates that if it migrates to Windows, the new server hardware could cost as little as S100,000 or as much as $200,000. The technical group's best estimate is that the hardware costs will be $125,000 if the Window's option is pursued. Likewise, the company's best guess regarding the cost to upgrade and convert its software to Windows is S300,000 with a range of $275,000 to $500,000. Finally, if the company converts to Windows, employee training costs are estimated to range between $9,000 and $15,000, with the best guess being $10,000. If the company sticks with Unix, the new server hardware will most likely cost $100,000, but could cost as little as $80,000 or as much as $210,000. Software conversion and upgrade costs are expected to be $300,000 but could be as low as $250,000 and as high as $525,000. Employee training costs shoukd fall between $8,000 and S17,500, with a best guess of s10,000. Develop a model to simulate this situation and answer the following questions This case is obtained from Project Management in Practice, 6 edition. @Risk is recommended for this case study, but you can use any programming tool you feel comfortable to simulate this model Project Management Center for Excellence www.pm.umd.edu Page 3 of 4 ENCE 662 Homework 2 If you decide to use @Risk, please log in UMD virtual computer lab via the following link: httpsleitumd.cduycl and use @Risk to perform this project at least 1000 times, and then answer the following the questions based on your simulation results. Please also be reminded to attach your simulation results in your assignment. 1. What is the expected cost of cach projoct? 2. What is the probability that each project's cost will exceed $575,000? And which project would you consider to be the most risky? 3. Which project would you recommend SFI undertake? Why

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