On February 23, 2011, Mathew Wald blogged at The New York Times about a study in Consumer Reports saying that: "A car buyer who lays out an extra $6,200 extra (sic) to buy the hybrid version of the Lexus RX will get the money back in gas savings within five years, according to Consumer Reports magazine, but only if gasoline averages $8.77 a gallon. Otherwise, the nonhybrid RX 350 is a better buy that the Hybrid 450h.* (R56] Wald notes that the study assumes. the car will be driven 12,000 miles a year, gas will cost $2.80 a gallon, the hybrid get. 26 miles per gallon, the nonhybrid, 21. (a) Show that the computation is wrong - that at $8.77 per gallon of gas you can't save $6.200 in 60.000 miles of driving. (b) Show that you can save that much driving if gas costs $8.77 per gallon more than $2.80 per gallon. (c) The Times blogger was reporting on a study from Consumer Reports magazine. DO you think the error was the blogger's or the magazine's? What would you have to do to find out which? (d) Write a response that could (but won't) be posted as a comment to the blog
On February 23, 2011, Mathew Wald blogged at The New York Times about a study in Consumer Reports saying that: "A car buyer who lays out an extra $6,200 extra (sic) to buy the hybrid version of the Lexus RX will get the money back in gas savings within five years, according to Consumer Reports magazine, but only if gasoline averages $8.77 a gallon. Otherwise, the nonhybrid RX 350 is a better buy that the Hybrid 450h.* (R56] Wald notes that the study assumes. the car will be driven 12,000 miles a year, gas will cost $2.80 a gallon, the hybrid get. 26 miles per gallon, the nonhybrid, 21. (a) Show that the computation is wrong - that at $8.77 per gallon of gas you can't save $6.200 in 60.000 miles of driving. (b) Show that you can save that much driving if gas costs $8.77 per gallon more than $2.80 per gallon. (c) The Times blogger was reporting on a study from Consumer Reports magazine. DO you think the error was the blogger's or the magazine's? What would you have to do to find out which? (d) Write a response that could (but won't) be posted as a comment to the blog
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
5)
On February 23, 2011, Mathew Wald blogged at The New York Times about a study in Consumer Reports saying that:
"A car buyer who lays out an extra $6,200 extra (sic) to buy the hybrid version of the Lexus RX will get the money back in gas savings within five years, according to
Consumer Reports magazine, but only if gasoline averages $8.77 a gallon. Otherwise, the nonhybrid RX 350 is a better buy that the Hybrid 450h.* (R56]
Wald notes that the study assumes.
the car will be driven 12,000 miles a year,
gas will cost $2.80 a gallon,
the hybrid get. 26 miles per gallon, the nonhybrid, 21.
(a) Show that the computation is wrong - that at $8.77 per gallon of gas you can't save $6.200 in 60.000 miles of driving.
(b) Show that you can save that much driving if gas costs $8.77 per gallon more than $2.80 per gallon.
(c) The Times blogger was reporting on a study from Consumer Reports magazine. DO you think the error was the blogger's or the magazine's? What would you
have to do to find out which?
(d) Write a response that could (but won't) be posted as a comment to the blog
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