Question

Some of the following problems would be suitable for solutionby engineering economic analysis. Which ones are they?

(a) Would it be better to buy a car with a diesel engine or agasoline engine?
(b) Should an automatic machine be purchased to replace thereeworkers now doing a task by hand?
(c) Would it be wise to enroll for an early morning class to avoid traveling during the morning traffic rush hour?
(d) Would you be better off if you changed your major?
(e) One of the people you might marry has a job that pays verylittle money, while another has a professional job with anexcellent salary. Which one should you marry?

Answer 1

Engineering economic analysis is suited for decisions with significant financial aspects, such as choosing between a diesel or gasoline engine for a car, or deciding on purchasing an automated machine over manual labor. It involves quantifiable outcomes such as costs and benefits, though qualitative factors should also be considered.

Step-by-step explanation:

Out of the presented scenarios, engineering economic analysis is best suited for evaluating the benefits and costs of decisions that have significant monetary investments, impacts, and quantifiable outcomes. Decisions related to purchasing equipment, choosing investments, and operational comparisons are typical problems where engineering economic analysis excels.

For the instance of selecting between a diesel or gasoline engine for a car, the analysis would involve comparing initial costs, fuel efficiency, maintenance, resale value, and environmental impact. The replacement of reworkers with an automated machine would require a calculation of payback period, labor savings, increased productivity, and the cost of the equipment. However, decisions about class schedules or changing a major incorporate personal preferences and individual career paths which are less quantifiable, making them less suitable for engineering economic analysis. Similarly, a decision about whom to marry based on income alone disregards the non-monetary aspects of relationships which are essential and can not be adequately measured in economic terms.

In applying engineering economic analysis, decision-makers should not solely rely on the quantitative outcome; they should also consider qualitative factors that might influence the overall decision. Evaluating each alternative to determine the optimal solution is crucial, just like the decision made to let a mine fire continue to burn because it represented the best course of action considering cost, environmental, and practical impacts.