PLEASE ANSWER NAR SOLUTION SECTION

In 2006, a TV reporter was sent into a National Auto Repair (NAR) shop with a perfectly good car The reporter came out with a new muffler and transmission - and a bill for over $8,000 The news story badly hurt NAR's profits How do you solve this problem? Problem Solving Algorithm 1) Who is making the bad decision? 2) Does the decision maker have enough information to make a good decision? 3) Does the decision maker have the incentive to make a good decision? NAR Solution There was an incentive issue NAR tried two solutions 1) 2) Suggested resolution: 1) Ex: This shows the trade-offs you face when creating solutions In 2006, a TV reporter was sent into a National Auto Repair (NAR) shop with a perfectly good car The reporter came out with a new muffler and transmission - and a bill for over $8,000 The news story badly hurt NAR's profits How do you solve this problem? Problem Solving Algorithm 1) Who is making the bad decision? 2) Does the decision maker have enough information to make a good decision? 3) Does the decision maker have the incentive to make a good decision? NAR Solution There was an incentive issue NAR tried two solutions 1) 2) Suggested resolution: 1) Ex: This shows the trade-offs you face when creating solutions