You are planning to purchase a new car so you are studying some information.  This new car has two models: standard and XLE.   Bothe two models have the same engine and drivetrain. The standard model is equipped with a 4-speed automatic transmission (AT) and the XLE model with a 6-speed AT.  The XLE model is a little heaver and cost more (than standard model), however the XLE model has better fuel economy.  Please explain why the XLE model has a better fuel economy

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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You are planning to purchase a new car so you are studying some information.  This new car has two models: standard and XLE.   Bothe two models have the same engine and drivetrain. The standard model is equipped with a 4-speed automatic transmission (AT) and the XLE model with a 6-speed AT.  The XLE model is a little heaver and cost more (than standard model), however the XLE model has better fuel economy.  Please explain why the XLE model has a better fuel economy.

 
 
 
 
 
 
 
 
 
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Explanation-

Since XLE is a 6 speed model, the gear ratio in the car will be different than the 4 speed version. Gear ratio essentially means the ratio of no of rotations of the drive gear(one attached to the engine) to that of the driven gear(one that is attached to the wheel). This is the most simple explanation, ie for a 2 gear train system. For a 6 speed model, the number of driven gears will be higher, and this essentially means the rate of transfer of torque to the wheel will be in much more efficient way, and the load on the engine will be less, on the higher gears. All these contribute to the higher efficiency of the 6 speed vehicle.

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