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4 - Assignment Example

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It is therefore impossible to achieve the goal since chances are high that the value per year will not reach the required 11.8.
According to Bullis (2007), experts argue that the…

Extract of sample "4"

Assignment 4 a) Average = 6569/ 5 = 1312 Model number = 1312/ 1000 312 Year 5 = 17.376 b) 32.6786
c)
d)
e)
It is possible to reach the goal in 17 years.
f)
Target = 260
Currently = 60
260 – 60 = 200
In 17 years = 200/17 = 11.8 addition every year
From column B, it seems impossible since the addition per year ranged between two and five. It is therefore impossible to achieve the goal since chances are high that the value per year will not reach the required 11.8.
2.
According to Bullis (2007), experts argue that the industry might fail to produce the quantities of ethanol required for commercial use if there are no loans and other incentives. Other experts argue that by the year 2015, the production will be as much as 150 billion gallons. Most experts further argue that it will be very difficult to reach the required 35 billion gallons by 2017. So far, the quantities have lagged behind the quantities expected. Meeting the cellulosic mandate faces considerable challenges (O.E.C.D et al, 2012).
3. a) Average gasoline consumption for 1992 is 7274.3846
Average gasoline consumption for 2007 is 9357.0196
9357.0196 - 7274.3846 = 2082.635
2082.635/ 7274.3846 *100 = 28.63% increase in fuel consumption
The fuel consumption increased by 28.63% in 15 years. This was because the population in 15 years increased. In addition, the number of people owning vehicles increased thus increasing the amount of fuel consumed. Even though the prices of fuel increased, people cannot stop fuelling their cars. The increased percentage is insignificant.
b)
Summer 2005 average price = \$5.85
Summer 2006 average price = \$5.85
Summer 2007 average price = \$5.85
Weekly consumption of summer 2005 = 9460.6923
Weekly consumption of summer 2006 = 9513.4
Weekly consumption of summer 2007 = 9618.8461​
Summer 2008 average price = \$5.85
Weekly consumption of summer 2008 = 9369.25​
The consumption of gasoline does not decrease with an increase in price. Other factors affect the reduction in consumption. This is because from 2005-2007, the consumption increased with a higher price but in 2008, the consumption decreased while the price was the same like the one in 2005-2007. Thus, other factors must have affected the decrease in consumption.
c)
The American consumer is not paying too much over time since the price of gas is increasing at the same time the median income is also increasing.
References
Top of Form
O. E. C. D., Publishing, & Organization, F. A. (2012). OECD-FAO Agricultural Outlook 2012. Paris: Organisation for Economic Co-operation and Development.
Bullis, K. (2007). Will Cellulosic Ethanol Take Off? Fuel from grass and wood chips could be big in the next 10 years–if the government helps. Retrieved from http://www.technologyreview.com/news/407365/will-cellulosic-ethanol-take-off/Bottom of Form Read More
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