What are the common decision traps

Assignment Help Operation Management
Reference no: EM13791320

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 case study "The Toro Company S'No Risk Program" by David E. Bell (1994). 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:

Toro
The insurance company
The consumers
Write a 4-6 -page analysis paper that addresses the following:

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

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?

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.)

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

Was the program successful? Why or why not?

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?

Reference no: EM13791320

Draw the aon project network using microsoft project

Draw the AON project network using Microsoft Project, Microsoft Visio, or some other tool capable of creating such a network. Perform a critical path analysis for the networ

How has your fidelity investments changed its strategy

How has your Fidelity Investments changed its strategy in response to outside forces? discuss one or two current rulings and comment on how the agency head is impacted by one

Competitor to protect and grow your banks market share

BB&T has acquired Susquehanna Bank and national Penn Bank in the Pennsylvania market. With BB&T entering the market, what would you do to prepare for their entrance as a compe

Estimate the percentage of process output

Specifications for the computer upgrades in Problem 4 are 78 minutes and 81 minutes. Based on the data given in the problem, are the specifications being met? Estimate the p

Construct a decision tree and solve the tree

New Age is a large company that has been working on a new product. This product has tremendous potential, but New Age must move quickly. They have decided that they will int

Compare the components of wal-marts inventory

Wal-Mart has one of the largest total inventory values of any American company. Compare the components of Wal-marts inventory to that of the Harley-Davidson. How do they dif

The job for the appropriate learned behavior

Will trainees be awarded on the job for the appropriate learned behavior? Is training being used to overcome organizational problems or conflicts that actually require other t

Understanding of the purpose of bargaining

Bargaining has resulted in many rights and benefits for all employees within the workplace. Describe your understanding of the purpose of bargaining. Conduct some additional r

Reviews

Write a Review

 
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