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An engineer is performing an analysis of warranty costs for drive train repairs within the first year of ownership of luxury cars purchased in the United States. He found the average cost (to the nearest dollar) to be $570 per repair from data taken over a 5-year period. Year Average Cost, S/repair 2006 525 2007 430 2008 619 2009 650 2010 625 What range of repair costs should the engineer use to ensure that the analysis is sensitive to changing warranty costs?

An engineer is performing an analysis of warranty costs for drive train repairs within the first year of ownership of luxury cars purchased in the United States. He found the average cost (to the nearest dollar) to be $570 per repair from data taken over a 5-year period. Year Average Cost, S/repair 2006 525 2007 430 2008 619 2009 650 2010 625 What range of repair costs should the engineer use to ensure that the analysis is sensitive to changing warranty costs?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An engineer is performing an analysis of warranty costs for drive train repairs within the first year of ownership of luxury cars purchased in the United States. He found the average cost (to the nearest dollar) to be $570 per repair from data taken over a 5-year period. Year Average Cost, $/repair 2006 525 2007 430 2008 619 2009 650 2010 625 What range of repair costs should the engineer use to ensure that the analysis is sensitive to changing warranty costs?
Transcribed Image Text:An engineer is performing an analysis of warranty costs for drive train repairs within the first year of ownership of luxury cars purchased in the United States. He found the average cost (to the nearest dollar) to be $570 per repair from data taken over a 5-year period. Year Average Cost, $/repair 2006 525 2007 430 2008 619 2009 650 2010 625 What range of repair costs should the engineer use to ensure that the analysis is sensitive to changing warranty costs?
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