MGAB03H3 Quiz: Ch1 - In Class Discussion Qs
Document Summary
Avery car rental charges its customers per day plus sh. 20 per kilometre. Its competition rents cars for per day and sh. 08 per kilometre. Francisco owns a camper and loves to visit national parks with his family. However, the family takes only two one-week trips in the camper each year. Francisco"s wife would rather stay in motels than the camper. She presented him with the following itemization of the cost per trip, hoping that he will sell the camper and use motels instead: Usable for 10 seasons, 2 camping trips per season. sh. 15 per kilometre for gasoline, oil, tires, and maintenance. Required: what are the relevant costs for deciding whether the family should go. List as many as you can: consider your own preferences for this problem. How can you control for your biases and consider this problem from francisco"s point of view: francisco asks you to help him decide what to do.
