Question Description
Some of the following problems would be suitable for solution by engineering economic analysis. Which ones are they?
a. Would it be better to buy a car with a diesel engine or gasoline engine?
b. Should an automatic machine be purchased to replace three workers now doing a task by hand?
c. Would it be wise to enroll for an early morning class to avoid travelling during the morning traffic rush hours?
d. Would you be better off if you changed your major?
e. One of the people you might marry has a job that pays very little money, while another has a professional job with an excellent salary. Which one should you marry?
2. (2.5 points) Car A initially costs $3000 more than Car B, but it consumes 0.04 gallons/mile versus 0.06 gallons/mile for B. Both last 10 years and B’s salvage value is $500 smaller than A’s. Fuel costs $3.30 per gallon. Other things being equal, beyond how many miles of use per year (X) does A become preferable to B?
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