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Can you please solve this case study for me as per required in the below questions

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lily 6 C‘ i mylearn.hct.ac.ae Discussion Board Email Student Guide An nouncements My Grades Mock Exam Sample Homework/Quizzes Tutorials Tutorial 1 Tutorial 2 Tutorial 3 Lecture Presentations
Classi Class 2 Class 3 Class 4 Class 5 Class 6 Class 7 Class 8 Class 9 Class 10 Take Test: AS—Case Study 3 E X C >5 Hlll Mu Question Completion Status: QUESTION 1 CASE STU DY HIGHWAY LIGHTING OPTIONS TO REDUCE TRAFFIC ACCIDENTS
Background This case study compares benefit/cost analysis analysis on the same information about highway lighting and its role
in accident reduction. Poor highway lighting maybe one reason that proportionately more traffic accidents occur at night. Traffic accidents
are categorized into six types by severity and value. For example, an accident with a fatality is valued at approximately
$4 million, while an accident in which there is property damage (to the car and contents) is valued at $6000. One
method by which the impact of lighting is measured compares day and night accident rates for lighted and unlighted
highway sections with similar characteristics. Observed reductions in accidents seemingly caused by too low lighting
can be translated into either monetary estimates of the benefits B of lighting . Information Freeway accident data were collected in a 5-year study. The property damage category is commonly the largest based
on the accident rate. The number of accidents recorded on a section of highway is presented here. Number of Accidents Reeordedl Unlighted Lighted
Accident Type Day Night Day Night
Property damage 379 199 2069 839 The ratios of night-to-day accidents involving property damage for the unlighted and lighted freeway sections are
199/379 = 0.525 and 839/2069 = 0.406, respectively. These results indicate that the lighting was beneficial. To
quantify the benefit, the accident rate ratio from the unlighted section will be applied to the lighted section. This will
yield the number of accidents that were prevented. Thus, there would have been (2069)(o.525) = 1086 accidents
instead of 839 if there had not been lights on the freeway. This is a difference of 247 accidents. At a cost of $6000 per Click Save and Submit to save and submit. Click SaveAll Answers to save all answers. 10 points Save Answer Save All Answers Save and Submit
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Bb Take Test: AS-Case Study 3 B/( X
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mylearn.hct.ac.ae/webapps/assessment/take/launch.jsp?course_assessment_id=_574296_1&course_id=_281582_1&content_id=_15219808_1&step=null
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Class 2
Question Completion Status:
Class 3
Class 4
Property damage
379
199
2069
839
Class 5
The ratios of night-to-day accidents involving property damage for the unlighted and lighted freeway sections are
Class 6
199/379 = 0.525 and 839/2069 = 0.406, respectively. These results indicate that the lighting was beneficial. To
quantify the benefit, the accident rate ratio from the unlighted section will be applied to the lighted section. This will
Class 7
yield the number of accidents that were prevented. Thus, there would have been (2069)(0.525) = 1086 accidents
Class 8
instead of 839 if there had not been lights on the freeway. This is a difference of 247 accidents. At a cost of $6000 per
accident, this results in a net annual benefit of
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Class 10
B = (247)($6000) = $1,482,000
Class 11
To determine the cost of the lighting, it will be assumed that the light poles are center poles 67 meters apart with two
bulbs each. The bulb size is 400 watts, and the installation cost is $3500 per pole. Since these data were collected
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over 87.8 kilometers of lighted freeway, the installed cost of the lighting is (with number of poles rounded off):
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Installation cost=$3500(87.8/0.067)=3500(1310)=$4,585,000
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There are a total of 87.8/0.067 = 1310 poles, and electricity costs $0.10 per kWh. Therefore,
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COURSE SYLLABUS
Annual power cost = 1310 poles(2 bulbs/pole)(0.4 kilowatt/bulb)
UPDATED
x (12 hours/day)(365 days/year)
x ($0.10/kilowatt-hour)
= $459,024 per year
The data were collected over a 5-year period. Therefore, the annualized cost Cat i = 6% per year is
Total annual cost = $4,585,000(A/P,6%,5) + 459,024=$1,547,503
Three lighting options are considered:
W) Install light poles every 67 meters at a cost of $3500 per pole.
X) Install poles at twice the distance apart (134 meters). This is estimated to cause the accident prevention benefit to
decrease by 40%.
Z) Install cheaper equipment for $1,442 per pole with 350-watt lightbulbs and place them 134 meters apart. This
plan is estimated to reduce the accident prevention measure by 50% from 247 to 124.
E
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Save All Answers
Save and Submit
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m Take Test: AS—Case Study 3 E X C M Mr: 6 C‘ i mylearn.hct.ac.ae 1'; G :6. *. | COURSE SVLLABUS
UPDATED >5 Question Completion Status: = $459,024 per year The data were collected over a 5-year period. Therefore, the annualized cost C at i = 6% per year is
Total annual cost = $4,585,000(A/P,6%,5) + 459,024=$1,547,503 Three lighting options are considered: W) Install light poles every 67 meters at a cost of $3500 per pole. X) Install poles at twice the distance apart (134 meters). This is estimated to cause the accident prevention benefit to
decrease by 40%. Z) Install cheaper equipment for $1,442 per pole with 350—watt lightbulbs and place them 134 meters apart. This
plan is estimated to reduce the accident prevention measure by 50% from 247 to 124. Case Study Exercises
Determine if a definitive decision on lighting can be determined by doing the following: 1. Use a benefit/cost analysis to compare the flrree alternatives to determine if any are economically justified.
Use excel sheet to ease your calculations, submit hand solution and excel sheet if used. Enter the value of the
incremental B/C ratio between option W and Z in the answer box below use 3 decimal format (Exp: 0.675) Solution hint: first calculate the Benefit and total cost of each option, perform incremental B/C analysis to select the
best option. Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Subject: Business, Economics

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