XAT Decision Making

Analyse the following caselet and answer the questions that follow:

Mrs Biswas was to retire in one year after serving in the construction department of the Gujarat government for more than thirty years. After retirement, she wanted to spend her retired life along with Mr Biswas, a retired school teacher in a small town in Kerala. They had two children, both studying in Bengaluru. The Biswas’ wished to construct a house in Kerala with their life savings.

The couple gathered information about owning a house in Kerala. They had four options:

  1. Buy a fully furnished house from a big developer.
  2. Buy a semi-furnished house from big developer and furnish it.
  3. Get a local unregistered contractor to construct a house and furnish it.
  4. Mr Biswas with inputs from the family could supervise the construction of a house back in Kerala by employing the best material, engineers, masons and labourers.

1. Which option would ENSURE the best control of quality of construction for the Biswas’?

  1. The first option would ensure the best quality.
  2. The second option would ensure the best quality.
  3. The third option would ensure the best quality.
  4. The fourth option would ensure the best quality.
  5. Any of the options will equally ensure the best quality.

2. Which of the following additional information, IF TRUE, would improve the chances of the third option being preferred?

  1. Based on the current information, with no additional information, the third is the best option.
  2. Among local property holders, the contractor in the third option enjoys a good reputation.
  3. Big developers are less open to changes in design.
  4. Mr Biswas cannot stay back alone to supervise the construction.
  5. The Biswas’ want to select the furniture on their own.

3. The Kerala Government recently announced a policy: In case of major quality infringement, the builder will pay a penalty of 50% of the price of the house in addition to the price of the house, to the client within a year of notice. Rank in ASCENDING order the options that would ensure "control of quality".

  1. 1,2,3,4
  2. 2,3,4,1
  3. 3,1,2,4
  4. 4,3,1,2
  5. 4,1,2,3


  1. D
  2. B
  3. C

Since, Mrs Biswas has served in the construction department, Mr Biswas with inputs from the family could supervise the construction of a house.