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Total Points: 10
Due date: August 26, 2016
1. (5 points) 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
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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