[HW 4.2d] Hybrid Cars 

Generally, hybrid cars cost more upfront than their conventional gasoline counterparts.  For example, the 2015 Honda Civic Hybrid lists for  [x] but the non-hybrid 2015 Honda Civic sells for [y].  Of course, the hybrid gets better gas mileage, so the added cost should pay for itself over time.  However, the success of this extra investment is in no small part a function of how much you drive and the price of gasoline.

Identify a car that has a hybrid counterpart, and build a model that makes a recommendation as to which to buy based on an assumed number of miles driven per year, a flexible number of years of ownership, and an expected cost of gasoline.

Advertisements

2 comments

  1. Can you define what you mean by a “flexible” number of years for ownership? Do you mean that we should be able to change the number of years owned without having to change the whole model?

    Like

  2. You might own it for three years. Maybe five years. Maybe seven.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: