# Assumptions that govern estimates of value of time lost driving

(Note: Refer to Review Question 8 located at the end of Chapter 5 for criteria 1-3.)

Determine the following before deciding a prescription: (a) maximize effectiveness at the least cost; (b) maximize effectiveness at a fixed cost of $10,000; (c) achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000; (d) maximize net benefits, assuming that each unit of service has a market price of $10; (e) maximize the ration of benefits to costs, assuming that each unit of service has a market price of $10.

Determine which of the two main programs (Program I and Program II) should be selected under each of these criteria. Justify your position.

Describe the conditions under which each criterion may be an adequate measure of the achievement of objectives.

(Note: Refer to the Demonstration Exercise at the end of Chapter 5 for criteria 4-9.)

Determine the assumptions that govern estimates of the value of time lost driving, indicating which assumptions (if any) are more tenable than others. Justify your position.

Determine the best way to estimate the value of time. Justify your position.

Determine the best way to estimate the cost of a gallon of gasoline. Justify your position.

Determine the more reliable method to estimate driving speeds and miles per gallon by using (a) official statistics on highway traffic from the Environmental Protection Agency or by using (b) engineering studies of the efficiency of gasoline engines by the Department of Energy. Discuss any consequences of using one source rather than another. Justify your position.

Estimate the value of a life saved. Justify your position.

Determine which policy is preferable, (a) the 55-mph speed limit or (b) the 65-mph limit. Justify your position.

Include at least two (2) peer-reviewed references (no more than five [5] years old) from material outside the textbook to support your views. Note: Appropriate peer-reviewed references include scholarly articles and governmental Websites. Do not use open source Websites such as Wikipedia, Sparknotes.com, Ask.com, and similar Websites are not acceptable resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length

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#### Solution Preview

The response addresses the query posted in 1184 words with APA references

// The decision with respect to policy implementation requires the consideration of various factors such as effectiveness, efficiency, and adequacy. In this context, in the following discussion, the aspect relating to policy formulation and implementation have been explored.//

Answer-1:

The concept of adequacy is of immense importance in setting the criteria for policy prescriptions. According to this concept, the relationship between effectiveness and efficiency is determined, which is crucial for estimating the extent to which any given level of effectiveness satisfies a particular standard (Dunn, 2015). In the light of concept of adequacy, the answer to the given problems is as under:

a) Maximize the effectiveness at the least cost: This is a type-II problem

b) Maximize the effectiveness at a fixed cost of $10,000: This is type-II problem

c) Achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000: This is a type-II problem.

d) Maximize the net benefits, assuming that each unit of service has a market price of $10: This is a type-I problem

e) Maximize the ratio of benefits to costs, assuming that each unit of service has a market price of $10: This is a type-III problem

Answer-2:

In the light of the concept of adequacy, the answer to the given problem is as under:

a) Maximize the effectiveness at the least cost: This is a type-II problem, which calls for achieving equal effectiveness. The program-I is more likely to achieve equal effectiveness with the ratio of cost to effectiveness at the lowest point.

b) Maximize the effectiveness at a fixed cost of $10,000: Program-II seeks to achieve a higher level of effectiveness by using the fixed monetary resources; therefore, in this ...

#### Solution Summary

The expert examines the assumptions that govern estimates of values of time lost driving. The response addresses the query posted in 1184 words with APA references