NPTEL Project Management Week 4 Assignment Answers 2024

1. If Mr. Banerjee’s risk adjusted discount rate is 12% and the market interest rate is 10%, then Mr. Banerjee

is risk averse.
has a certainty-equivalent coefficient that is greater than one.
is risk neutral.
None of these.

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2. For a/ an _______________ decision maker, the marginal utility of money diminishes.

risk seeker.
risk neutral.
risk averter.
uncertain.

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3. If a decision maker is risk averse, then the best strategy to select is the one that yields the

highest expected payoff.
lowest coefficient of variation.
highest expected utility.
lowest standard deviation.

Answer :-

4. Strategy A has an expected value of 10 and a standard deviation of 3. Strategy B has an expected value of 10 and a standard deviation of 5. Strategy C has an expected value of 15 and a standard deviation of 10. Which one of the following statements is true?

A risk averse decision maker will always prefer A to B, but may prefer C to A.
A risk neutral decision maker will always prefer C to A or B.
A risk seeking decision maker will always prefer C to A or B.
All of these are correct.

Answer :-

5. If a person’s utility doubles when their income doubles, then that person is risk

averse.
neutral.
seeking.
There is not enough information given in the question to determine an answer.

Answer :-

6. Which of the accompanying techniques for selecting a strategy is predictable with risk averting behavior?

On the off chance that two methodologies have the same expected benefit, select the one with the smaller standard deviation.
On the off chance that two methodologies have a similar standard deviation, select the one with the smaller expected benefit.
Select the methodology with the larger coefficient of variation.
All of the above are correct.

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7. You are working in a very large project that has a budget of Rs. 10 Cr. and one thousand people are working in it. The project manager constructs a work breakdown structure. The project manager will do the WBS to the detail level of which of the following?

Task
Activity
Work Package
WBS element

Answer :-

8. Please refer the data given below for Question number 8 to 15:
A train carrying bank notes worth Rs. 10 Cr., has 10% chance of getting looted on the way by a notorious bandit Pappu Singh. On the off chance that train gets looted, The Garib Bank of India (GBI) will lose Rs. 10 Cr, abandoning an empty chest; on the off chance that the wagon doesn’t get looted, GBI will have the entire money safe with them. GBI maximizes expected utility, and its VNM utility function is u(w)=5w^0.8+75. Answer questions 8 to 15 based on the data provided.

What can be said about GBI’s behavior?