• Understand that information is a commodity and as such can have a monetary value, the level of which depends on its accuracy, its potential use and its particular intended use.
   
• Describe the overheads involved in ensuring that information is up-to-date.

Type

Size

Type

Size

Type

Size

State three factors that affect the value and importance of information. Give an example that shows clearly how each factor affects the information’s value.
(6 marks)

(a) why the data from 1997 might not be suitable for use to predict the requirements for 2001,

(b) what the effect on the company might be if it used the 1997 data.
(4 marks)

Low quality information can be misleading, distorted or incomprehensible. This type of information is of little value to the decision maker. The output of good quality information is costly and dependant upon many factors.

(a) Identify three factors which affect the quality of information (3)

(b) State two factors which affect the cost of providing good quality information. (2)
(5 marks)

2. What is meant by the phrase ' information as a commodity"?

3. State three items of data/information that would have value.

4. State three factors that affect the value of information.

5. Give an example of information that dates/ages very quickly.

6. Give an example of a source of reliable news information.

7. The on-line telephone directory 192.com charge for their services. Why do people pay them when phone numbers are freely available in telephone directories?

8. How do information sellers ensure that their product retains it's value?

9. How has the Internet helped to develop the information economy?

10. What percentage of the workforce is employed in information sector?