Each month ZV Corp (Zebra Vehicles where all paint jobs are striped) makes 230 A vehicles which….
Each month ZV Corp (Zebra Vehicles where all paint jobs are striped) makes 230 A vehicles which get 10mpg, 500 B vehicles which get 20mpg, and 70 C vehicles which get 40mpg. Unfortunately, the government sets a standard where companies must “average” 30mpg (this is called a CAFE law). Any company that falls short of the 30mpg standard must pay a penalty. The penalty is calculated as $55 times number of vehicles sold each month times the deficit in their average mpg from the 30mpg standard.
• Compute ZV Corp’s monthly penalty if the government incorrectly uses (weighted) arithmetic mean to compute average mpg.
• Compute ZV Corp’s monthly penalty if the correct Harmonic Mean is used.
• ZV Corp is beginning to make a D vehicle which gets 75mpg. They estimate initially adding 2 D vehicles to their production each month. Compute their new monthly penalty.
• Write a summary of this situation (probably multiple paragraphs).
Each month ZV Corp (Zebra Vehicles where all paint jobs are striped) makes 230 A vehicles which…
