Engineering Economy GE 272 Chapter 1 1-10 While there might be a lot of disagreement on the “correct” answer, only automobile insurance represents a substantial amount of money and a situation where money might be the primary basis for choosing between alternatives. 1-12 These questions will create disagreement. None of the situations represents rational decision making. Choosing the same career as a friend might be OK, but it doesn’t seem too rational. Jill didn’t consider all the alternatives. Don thought he was minimizing cost, but it didn’t work. Maybe rational decision making says one should buy better tools that will last. TC = 1,000 + 10S 1-14 This is a challenging question. One approach might be: (a) Find out what percentage of the population is left-handed. (b) What is the population of the selected hometown? (c) Next, market research might be required. With some specific scissors (quality and price) in mind, ask a random sample of people if they would purchase the scissors. Study the responses
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