The use of Daytime Running Lights (DRLS) has increased in popularity with car designers throughout the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The use of Daytime Running Lights (DRLS) has increased in popularity with car designers throughout the world. In some countries, motorists are required to drive with their headlights on at all times. U.S. car manufacturers now offer models equipped with daytime running lights. Most people would agree that driving with the headlights on at night is cost effective with respect to extra fuel consumption and safety considerations (not to mention required by law!). Cost effective means benefits outweigh (exceed) the costs. However, some consumers have question whether it is cost effective to drive with your headlights on during the day. In an attempt to provide an answer to this question, let us consider the following suggested data: 75% of driving takes place during the daytime. 2% of fuel consumption is due to accessories (radio, headlights, etc.). Cost of fuel = $4.00 per gallon. Average distance travelled per year = 15,000 miles. Average cost of an accident = $2,800. Purchase price of headlights = $25.00 per set (2 headlights). Average time car is in operation per year = 350 hours. Average life of a headlight = 200 operating hours. Average fuel consumption = 1 gallon per 30 miles. Let's analyze the cost effectiveness of driving with headlights on during the day by considering the following set of questions: What are the extra costs associated with driving with headlights on during the day? What are the benefits associated with driving with headlights on during the day? What additional assumptions (if any) are needed to complete the analysis? Is it cost effective to drive with headlights on during the day? The use of Daytime Running Lights (DRLS) has increased in popularity with car designers throughout the world. In some countries, motorists are required to drive with their headlights on at all times. U.S. car manufacturers now offer models equipped with daytime running lights. Most people would agree that driving with the headlights on at night is cost effective with respect to extra fuel consumption and safety considerations (not to mention required by law!). Cost effective means benefits outweigh (exceed) the costs. However, some consumers have question whether it is cost effective to drive with your headlights on during the day. In an attempt to provide an answer to this question, let us consider the following suggested data: 75% of driving takes place during the daytime. 2% of fuel consumption is due to accessories (radio, headlights, etc.). Cost of fuel = $4.00 per gallon. Average distance travelled per year = 15,000 miles. Average cost of an accident = $2,800. Purchase price of headlights = $25.00 per set (2 headlights). Average time car is in operation per year = 350 hours. Average life of a headlight = 200 operating hours. Average fuel consumption = 1 gallon per 30 miles. Let's analyze the cost effectiveness of driving with headlights on during the day by considering the following set of questions: What are the extra costs associated with driving with headlights on during the day? What are the benefits associated with driving with headlights on during the day? What additional assumptions (if any) are needed to complete the analysis? Is it cost effective to drive with headlights on during the day?
Expert Answer:
Answer rating: 100% (QA)
Daytime running lightlight otherwise called DRL can be depicted as a moderately new component on vehicles DRLs are being introduced two by two on the front space of a vehicle and they transmit yellow ... View the full answer
Related Book For
Social Statistics for a Diverse Society
ISBN: 978-1483333540
7th edition
Authors: Chava Frankfort-Nachmias, Anna Leon-Guerrero
Posted Date:
Students also viewed these marketing questions
-
Empirical work shows a relatively large and statistically significant effect of a workers height on his or her earnings. One explanation for this result is omitted variable bias: Height is correlated...
-
Has globalization increased or reduced world poverty? What is the World Bank agenda for reducing world poverty?
-
PART B Betsy has come back to you with some changes to be made to the draft budget. These changes will have come via email or feedback on your hard copy draft. Betsy also thinks that you have over...
-
In Problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 30 - q and the supply function before taxation is p = 6 + 2q, what tax per item will...
-
Which type or types of nuclear reactors have these characteristics? (a) Can use natural uranium as a fuel (b) Does not use a moderator (c) Can be refueled without shutting down
-
Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax...
-
MARRIOTT: Marketing Research Leads to Expanded Offerings Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Marriott: Marketing Research Leads to...
-
Table gives hypothetical export price indexes and import price indexes (1990 100) for Japan, Canada, and Ireland. Compute the commodity terms of trade for each country for the period 19902006. Which...
-
es AA 4-3 Extended Analysis LO A1 The following selected information is available from Samsung's financial statements. In millions Current assets Current liabilities Required: Current Year Prior Year...
-
On January 1, 2010, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTechs fair value was allocated among its...
-
Explain what the Per Process Table of Open Files of a process is in the classical Unix system. With the help of a C program fragment, show how the standard error of a process may be redirected away...
-
How might you apply Psychological Disorders learning to your daily life?
-
A professor was interested in comparing how well her students performed on their midterm and final exams in her calculus course. She randomly sampled 7 students from her class and recorded their...
-
How do poets manipulate imagery to evoke emotional responses and convey complex themes within their verses ?
-
Why referencing is important in assignment or research paper? 2. Explain why they should take the time to ensure their work is properly referenced.
-
The news coverage of Ukraine's war with Russia began to garner more viewership in the United States when personal interviews with the victims were telecast. Which important characteristic of...
-
Outline how legislation can promote positive health and safety outcomes, 'goal-setting' and 'prescriptive' legislation and possible compensatory mechanisms for loss event where there is a failure of...
-
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
-
How many hours per week do you spend on e-mail? In 2010, the GSS included a question on number of hours spent on e-mail. Data are presented here for a sample of 99 men and women. E-mail hours per...
-
Recall that the GSS sample includes men and women from 18 to 89 years of age. Does it matter that we may have responses from men and women of diverse ages? Would our results change if we selected a...
-
Your task is to construct a report regarding criminal offenses investigated by U.S. attorneys by offense and year using the following data from the U.S. Department of Justice. Your report should...
-
Distinguish between debt capital and equity capital and suggest which is likely to be favoured by a company raising finance in a high-taxation environment.
-
The distinction between a prudent approach to the quantification of provisions on the one hand and the creation of secret reserves on the other will always be a matter for human attitude and whim....
-
If you owned some listed shares that had just doubled in value, would you say that you had gained and were better off than before?
Study smarter with the SolutionInn App