Solution:

Calculate Test-to-Development Ratios for Each Historical Project:

P1: 40,000 / 800,000 = 0.05
P2: 130,000 / 1,200,000 ≈ 0.1083
P3: 70,000 / 600,000 ≈ 0.1167
P4: 120,000 / 1,000,000 = 0.12

Compute the Average Ratio:

Average Ratio=0.05+0.1083+0.1167+0.124≈0.3954≈0.09875 (or 9.875%)Average Ratio=40.05+0.1083+0.1167+0.12≈40.395≈0.09875 (or 9.875%)

Apply the Ratio to the New Project’s Development Effort:

Test Effort=800,000×0.09875=∗∗79,000∗∗Test Effort=800,000×0.09875=∗∗79,000∗∗

(Note: The closest option is 80,000∗∗,butexactcalculationyields∗∗80,000∗∗,butexactcalculationyields∗∗81,250 if using unrounded intermediate values.)

Alternative Calculation (Summing Totals First):

Total Dev Effort (Historical): 800,000 + 1,200,000 + 600,000 + 1,000,000 = 3,600,000
Total Test Effort (Historical): 40,000 + 130,000 + 70,000 + 120,000 = 360,000
Overall Ratio: 360,000 / 3,600,000 = 0.10 (10%)
Test Effort for New Project: 800,000 × 0.10 = $80,000

Correct Answer:

b) $80,000 (Most practical choice, aligning with the overall historical ratio.)

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