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The Management Team at Knight Construction Is Considering Switching from a Traditional

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The management team at Knight Construction is considering switching from a traditional procurement model to e-procurement,hoping to achieve lower purchasing costs and quicker order processing.Explain why Knight Construction should not opt for e-procurement.


Definitions:

Risk Level

The degree of uncertainty or potential financial loss inherent in an investment decision.

Standard Deviation

An indicator of the degree of spread or diversity within a collection of numbers.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Good Economy

A state of economic health characterized by strong growth, low unemployment, and stable prices.

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