HW3.docx

Part 1. John Doe, a CISO is a rational person whose ‘hapiness’ or satisfaction (aka value function) for various amounts of money can be expressed as U(x), such that

U(x) = 10
 
, where x is in thousand dollars.

1. How much satisfaction does $0 bring to John?
2. How much satisfaction does $100K bring to John?
3. How does his utility function look like?
4. What does this function show about John’s satisfaction with money? 
5. What does this function show about John’s incremental satisfaction?
6. What is John’s satisfaction in saving $80K?
7. …in saving $10K?
8. John is considering a cybersecurity solution Product X which has the following potential benefits to John’s company: of save $80K with probability 0.6 or saving $10K with probability 0.4.  How much will be his average long-term satisfaction?
Part 2.
1. In your own words, what are the primary objectives of project/program managers? [max 50 words].
2. In your own words, what are the primary risks that may concern project/program managers? [max 50 words].

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