Engineering Economic Analysis, Third Edition: Chapter 1

Instructions: For each question, click on the radio button beside your answer. When you have completed the entire quiz, click the “Submit my answers” button at the bottom of the page to receive your results.

Question 1:

a) Choose the best alternative
b) Recognize the problem
c) Determine how a project should be designed
d) Construct a model

Question 2:

a) Favouring one group of stakeholders by focusing on their objective for a project
b) Considering only monetary consequences when there are other significant consequences
c) Design an oil platform for a 100-year instead of a 500-year hurricane
d) Hiding past mistakes

Question 3:

a) Equipment or process selection
b) Cost reduction
c) New product or product expansion
d) Schedule various jobs on different machines

Question 4:

a) Some $0.30 chocolate bars on sale for 12 bars for $2.00. John, who eats a couple of chocolate bars per week, must decide whether to buy a dozen at a lower price.
b) Fatima has $90,000 in a bank chequing account that pays no interest. She can either invest it immediately at a desirable interest rate or wait a week and obtain an interest rate that is 0.125% higher.
c) Miguel backed his car into a tree, damaging the fender. He has car insurance that would pay for the fender repair, but if he files a claim for payment, they may change his “good driver” rating downward and charge him more for car insurance in the future.
d) Sarah has met two university students that interest her. Jack is a music major who is lots of fun to be with. George on the other hand is a fellow engineering student, but he does like to dance. Sarah wonders what to do.