Econ Decision Analysis

Nyzhfnyynz2
timer Asked: Feb 8th, 2019

Question Description

Solve the following problems from the back of our fourth chapter:

4-1

4-7

4-9

4-25

4-55

4-83

If you want to solve these on paper, you may take a picture of your solutions and upload the pictures as your submission. Regardless of how you solve the problems, show your work in detail. The process of getting to the correct answer is (at this point) almost as important as the correct answer itself.

Unformatted Attachment Preview

1-4 ase studies and questions linked to in Chapter 2 of Cases in Engi- 2nd on the student website may be ore discussion-oriented questions. If you have $1000 and could make sions, how long would it take you to become a millionaire? Explain briefly what you would do. 1-5 E One can find books on "How I Made My Millions" in any bookstore. In some cases the authors seem to plan to make millions by selling that book. Do you think this is ethical? How would you lay out the factors to analyze this question? 1-6 E your past academic year and deci- nade. List a few decisions that you s simple, intermediate, and complex. Earn about your decision making by roached these decisions? Ollowing problems would be suit- by engineering economic analysis. they? better to buy a hybrid car? zautomatic machine be purchased to ee workers now doing a task by The owner of a small machine shop has just lost o of his larger customers. The solution to his pro lem, he says, is to fire three machinists to balance his workforce with his current level of business. The owner says it is a simple problem with a simple solution. (a) The three machinists disagree. Why? (b) What are the ethical factors from the perspective of the owner and the workers? Designing a chair for use in a classroom seems like a simple task. Make an argument for how this can be considered a complex decision and include environmental and ethical factors in your argument. 1-11 wise to enroll for an early morning id traveling during the morning traf- urs and thus improve fuel efficiency? be better off if you changed your 1-7 G G 1-8 1-12 work more and borrow less even if it - graduation? orporate farm build waste mitigation ontinue using a contracted service? he following problems is most suitable engineering economic analysis? ar two favorite sandwich shops offers loyalty card and the other does not. uld you stop today? has $150,000 in a bank checking at pays no interest. She can either mediately at a desirable interest rate Toward the end of the twentieth century, the U.S. government wanted to save money by closing a small portion of its domestic military installations. While many people agreed that saving money was a desir- able goal, people in areas potentially affected by a closing soon reacted negatively. Congress finally selected a panel whose task was to develop a list of installations to close, with the legislation specifying that Congress could not alter the list. Since the goal was to save money, why was this problem so hard to solve? (d) A recently gra return to school in the evenings to obtain a mas- ter's degree. He feels it should be accomplished in a manner that will allow him the maximum amount of time for his regular day job plus time for recreation. In working for the degree, he will to fulfill his dor student offered Jay $300 per me of the school yea in the second sei Jay estimate if he lives in th apartment with the apartment re month. Assume Disregard the sm disbursements or 1-20 Seven criteria are given in the chapter for judging which is the best alternative. After reviewing the list, devise three additional criteria that might be used. (a) What are the (6) Evaluate the (c) What do you 1-25 "1-21 Suppose you are assigned the task of determining the route of a new highway through an older section of town. The highway will require that many older homes be either relocated or torn down. Two pos- sible criteria that might be used in deciding exactly where to locate the highway are: (a) Ensure that there are benefits to those who gain from the decision and that no one is harmed by the decision. (b) Ensure that the benefits to those who gain from the decision are greater than the losses of those who are harmed by the decision. An electric moto foreman told the to be replaced. 1 no alternatives an the replacement. making taking pl decision(s)? 1-26 Which criterion will you select to use in determining the route of the highway? Explain. G A farmer must de water, fertilizer, ar itable and environn (d) A recently gra return to school in the evenings to obtain a mas- ter's degree. He feels it should be accomplished in a manner that will allow him the maximum amount of time for his regular day job plus time for recreation. In working for the degree, he will to fulfill his dor student offered Jay $300 per me of the school yea in the second sei Jay estimate if he lives in th apartment with the apartment re month. Assume Disregard the sm disbursements or 1-20 Seven criteria are given in the chapter for judging which is the best alternative. After reviewing the list, devise three additional criteria that might be used. (a) What are the (6) Evaluate the (c) What do you 1-25 "1-21 Suppose you are assigned the task of determining the route of a new highway through an older section of town. The highway will require that many older homes be either relocated or torn down. Two pos- sible criteria that might be used in deciding exactly where to locate the highway are: (a) Ensure that there are benefits to those who gain from the decision and that no one is harmed by the decision. (b) Ensure that the benefits to those who gain from the decision are greater than the losses of those who are harmed by the decision. An electric moto foreman told the to be replaced. 1 no alternatives an the replacement. making taking pl decision(s)? 1-26 Which criterion will you select to use in determining the route of the highway? Explain. G A farmer must de water, fertilizer, ar itable and environn 1: MAKING ECONOMIC DECISIONS year. The farmer's 1-22 For the project in Problem 1-21, identify the major costs and benefits. Which are market consequences, which are extra-market consequences, and which are intangible consequences? Plan Сс А 1-23 You must fly to another city for a Friday meet- ing. If you stay until Sunday morning your ticket will be $250, rather than $800. Hotel costs are $200 per night. Compare the economics with reason- able assumptions for meal expenses. What intangible consequences may dominate the decision? B Toblem 1-18, state the correct economic for each of the following situations. engineering student club raffled off a ted car; tickets sold for $5 each or three 10. When the students were selling tickets, noted that many people had trouble decid- vhether to buy one or three tickets. This ates the buyers' criterion was udent organization bought a soft-drink ine and then had to decide whether to e 75¢, $1, or $1.25 per drink. The organi- recognized that the number of soft drinks vould depend on the price charged. Even- the decision was made to charge $1. The on was my cities, grocery stores find that their sales auch greater on days when they advertise 1 bargains. However, the advertised special do not appear to increase the total physical e of groceries sold by a store. This leads conclude that many shoppers' criterion C С D 1 ently graduated engineer has decided to to school in the evenings to obtain a mas- egree. He feels it should be accomplished anner that will allow him the maximum t of time for his regular day job plus time creation. In working for the degree, he 1-24 In the fall, Jay Thompson decided to live in a uni- versity dormitory. He signed a dorm contract under which he was obligated to pay the room rent for the full college year. One clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. The dorm cost was $5000 for the two semesters, which Jay had already paid. A month after he moved into the dorm, he decided he would prefer to live in an apartment. That week, after some searching for a replacement to fulfill his dorm contract, Jay had two offers. One student offered to move in immediately and to pa Jay $300 per month for the eight remaining mon of the school year. A second student offered to move in the second semester and pay $2500 to Jay. Jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. His share of the apartment rent and utilities will be $400 per month. Assume each semester is 41/2 months long. Disregard the small differences in the timing of the disbursements or receipts. (a) What are the three alternatives available to Jay? (b) Evaluate the cost for each of the alternatives. (c) What do you recommend that Jay do? The last and hence the cultural colleg farmer adoptc (a) only the di (b) both the di 1-27 Identify the alte cess for the sele make the best c 1-28 Describe a majo next two years. structure the pro 29 Apply the steps this chapter and d your 5-year, 10-y 1-30 One strategy for break it into a grc then find solution result is the solutic an example in whi give another examp eria are given in the chapter for judging he best alternative. After reviewing the three additional criteria that might be work. ou are assigned the task of determining a new highway through an older section he highway will require that many older ither relocated or torn down. Two pos- a that might be used in deciding exactly cate the highway are: hat there are benefits to those who gain e decision and that no one is harmed by Sion. that the benefits to those who gain from sion are greater than the losses of those harmed by the decision. 1-25 An electric motor on a conveyor burned out. The foreman told the plant manager that the motor had to be replaced. The foreman said that there were no alternatives and asked for authorization to order the replacement. In this situation, is any decision making taking place? If so, who is making the decision(s)? Ethics 1-31 When you make po E investments in engi will you use? Contributed by D. P. 1-32 What are ethics? E Contributed by D. P. 1-33 A student accepts a fi E a better job comes ber are the ethical dimensi Would you take the be 1-34 Suppose you are an (E vate engineering firm 1-26 A farmer must decide what combination of seed, water, fertilizer, and pest control will be most prof- itable and environmentally conscious for the coming on will you select to use in determining The highway? Explain. G Problems 27 1-9 The college bookstore has put pads of engineering computation paper on sale at half price. What is the minimum and maximum number of pads you might buy during the sale? Explain. alue of money is minimizing cost, buy a bicycle instead, she replies, "Gee, I never thought of that." (C) Don needed a wrench to replace the spark plugs in his car. He went to the local automobile sup- ply store and bought the cheapest one they had. It broke before he had finished replacing all the spark plugs in his car. 1-13 Identify possible objectives for NASA. For your favorite of these, how should alternative plans to achieve the objective be evaluated? she will be able to -15% higher. mee, damaging the mat will pay for the Claim for payment, r car insurance in 1-14 Suppose you have just 2 hours to determine how E many students would be interested in a highway trash pickup event. Give a step-by-step outline of how you would proceed. ke the right deci- you to become a you would do. Iade My Millions" the authors seem ing that book. Do uld you lay out the 1-15 A college student determines he will have only half of the cost for university housing available for the coming year. List five feasible alternatives. op has just lost on lution to ch su balance 1-16 Think about the issue of implementing renewable E energies in the U.S. Research/find an instance where a decision was made to implement without ade- quately looking at other potential alternative solu- tions. ciness. The len. 1-10 Consider the five situations described. Which one situation seems most suitable for solution by eco- nomic analysis? (a) John has met two college students that interest him. Beth is music major who is lots of fun to be with. Alice is a fellow engineering student, but she does not like to party. John wonders what to do. (b) You drive periodically to the post office to send or pick up packages. The parking meters cost $1 for 15 minutes—about the time required for medium length lines. If parking fines cost $20, do you put money in the meter or not? (c) The cost of car insurance varies widely from company to company. Should you check with several insurance companies when your policy comes up for renewal? (d) There is a special local sales tax ("sin tax") on a variety of things that the town council would like to remove from local distribution. As a result, a store has opened up just outside the town and offers an abundance of these specific items at prices about 30% less than is charged in town. Should you shop there? (e) One of your professors mentioned that you have a poor attendance record in her class. You won- der whether to drop the course now or wait to see how you do on the first midterm exam. Unfortu- nately, the course is required for graduation. 1-11 A car manufacturer is considering locating an assem- G bly plant in your region. (a) List two simple, two intermediate, and two com- plex problems associated with this proposal. (b) What is NIMBY? Does this come into play for this complex decision? 1-12 Consider the following situations. Which ones appear to represent rational decision making? Explain. (a) Joe's best friend has decided to become a civil engineer, so Joe has decided that he will also become a civil engineer. (b) Jill needs to get to the university from her home. She bought a car and now drives to the univer- sity each day. When Jim asks her why she didn't 1-17 If there are only two alternatives available and both are unpleasant and undesirable, what should e. Why? rom the perspective -? you do? classroom seems argument for how aplex decision and cal factors in your 1-18 The three economic criteria for choosing the best A alternative are maximize the difference between out- put and input, minimize input, and maximize output. For each of the following situations, what is the correct economic criterion? h century, the U.S. Ey by closing a small installations. While money was a desir- entially affected by y. Congress finally to develop a list of gislation specifying list. Since the goal problem so hard to (a) A manufacturer can sell up to two full shifts of production at a fixed price. As production is increased, unit costs increase as a result of overtime pay and so forth. The manufacturer's criterion should be (b) An architectural and engineering firm has been awarded the contract to design a wharf with fixed performance specifications for a petroleum com- pany. The engineering firm's criterion for its client should be (c) An off-campus bookstore is choosing its target used/new split for next year. Its criterion should be (d) At an auction of antiques, a bidder for a particu lar norcali
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors