Develop a matrix or decision tree in order to compare groups

Assignment Help Corporate Finance
Reference no: EM131447981

Assignment

In the mid-eighties, the Toro company launched a promotion in which snow blower purchasers could refund a portion of their purchase if the next winter brought modest snowfalls. The amount of their refund was tied to snowfall amounts and so, the program was prey to certain risks and uncertainties. You will explore those risks and choices from a variety of perspectives.

Review the Toro Company's S'No Risk Program" from this module's assigned readings. Click here to download the Toro Excel worksheet which contains data exhibits from the article; the exhibit titles match the tabs long the bottom of the worksheet. Use this tool to conduct your data analysis for this assignment.

Analyze the risks of the program from the following points of view:

1. Toro
2. The insurance company
3. The consumers

Write a 6-8-page analysis paper that addresses the following:

1. Why did the insurance company raise the rates so much? How would you estimate a fair insurance rate?

2. From the perspective of the consumer, how were the paybacks structured and how might they be restructured to entice you at an equal or lower cost of insurance? How does the program influence your decision to purchase?

3. What are the common decision traps which each group in point (2) is susceptible to? Develop a matrix or decision tree in order to compare the groups. How does the program impact the consumer's "regret"? (Hint: Map the possible outcomes for the consumer.)

4. From either Toro's or the insurance company's perspective, how would you frame your argument to achieve your desired objective?

5. Was the program successful? Why or why not?

6. If you were Dick Pollick, would you repeat the program? Assume you manage the S'No Risk program and argue your case. To what biases are you susceptible in this case?

Submit your analysis paper in Word format. Apply APA standards to citation of sources.

Attachment:- nec_xl.xls

Reference no: EM131447981

Previous Q& A

  Define the meaning of and purpose for interdisciplinary

Based on your Reading & Study this week, define the meaning of and purpose for interdisciplinary studies. Then, distinguish interdisciplinary studies from multidisciplinary, transdisciplinary, and integrative studies. What would you say is the mos..

  Issues in strategic planning

Describe why social responsibility and policy are key issues in strategic planning and how you will integrate them in your proposed business?

  Explain where you fit in this retention picture

Due a web search and collect the current data on the different generations and their expectations in regards to job satisfactions and retention - Save the data you collected to create a paper based on the data discussed and the expectations within..

  How a company take advantage of consumers mental accounting

What is mental accounting and how does it impact consumer decision making? How might a company take advantage of consumers' mental accounting? Give examples.

  Healthcare administrator or chief of medical staff

Utilizing the Library, locate and read three scholarly peer-reviewed articles on standards and regulation for healthcare administrators, such as medical privacy, autonomy, and electronic health records.

  Explain how their global business competitiveness

Explain how their global business competitiveness. Write a three-to-four-page paper in Word format. Utilize at least two scholarly sources in your research. Apply APA standards to citation of sources.

  Discuss a performance management system

Discuss a performance management system (PMS) that you would implement as the human resources (HR) manager of an organization (fictional or real).

  What are the benefits of becoming a data-driven organization

Organizations are better able to make decisions when data are available to facilitate the process. Research and discuss the various types of data-driven Web analytics that are available and the purpose of each.

  What methods can james use

How might James structure his 45-minute lesson to include elements of visual, auditory, and kinesthetic learning - What methods can James use to check for comprehension once the lesson is complete?

  How the concepts in adams equity theory can be incorporated

Explain how the concepts from Locke's goal setting theory can be incorporated into Vroom's expectancy theory. Explain how the concepts in Adams' equity theory can be incorporated into expectancy theory.

Reviews

Write a Review

 

Similar Q& A

  What is the primary role of the bolts in a bolted joint

What is the primary role of the bolts in a bolted joint?- Why do many designers of safety related joints, and most codes, favor joints that could support four or more times the anticipated service loads?

  Ratios and financial planning at east coast yachtsafter

ratios and financial planning at east coast yachtsafter dans analysis of east coast yachts cash flow at the end of our

  What is your t-value for the slope

What is your t-value for the slope? Do you conclude that there is no significant relationship between the two variables or do you conclude that there is a significant relationship between the variables?

  How many people would have to attend gala for organization

If Meals charged $275 per ticket, how many people would have to attend the gala for organization to break even on the event? If Meals charged $300 per ticket, the contribution margin from each ticket sold would be: _____.

  What are sustainable growth rates for your subject company

What are the sustainable growth rates for your subject company over the period that you studied? What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?

  What will be impact on the operating leverage of a firm

What will be impact on the operating leverage of a firm, if it proceeds for additional borrowings - Incremental cash flows in relation to capital budgeting decisions

  What is leveraged recapitalization

Define the three conditions that make up a perfect capital market, and then compare and contrast the effects of perfect capital markets and imperfect capital markets on value. Can they create or destroy value? Explain.

  Mcgilla golf has decided to sell a new line of golf clubs

mcgilla golf has decided to sell a new line of golf clubs. the clubs will sell for 733 per set and have a variable cost

  What holding period return will be earned on both

If an investor purchases the stock and the warrant when the stock price is $20, what holding period return will be earned on both, assuming that the stock and the warrant are sold when the stock price reaches $25?

  Which is the lower rate

You could put it on your credit card, at 15%APR, compounded monthly, or borrow the money from your parents, who want an 8% interest payment every six months. Which is the lower rate?

  Computation of portfolio return beta and risk involvedrisk

computation of portfolio return beta and risk involved.risk amp returna stock has beta of 1.5 and an expected return of

  You are provided the following information on a company the

you are provided the following information on a company. the total market value is 40 million. the companys capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd