Allen Abbott Has A Wide Curving Uphill Driveway Leading To H

Allen Abbott Has A Wide Curving Uphill Driveway Leading To His Garage

Allen Abbott has a wide-curving, uphill driveway leading to his garage. When there is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in the winter, to shovel his driveway. The snow shoveler charges $30 to shovel the driveway. Following is a probability distribution of the number of heavy snows each winter: Heavy Snow Probability 1 . . . . . . ..00 Allen is considering purchasing a new self-propelled snow blower for $625 that would allow him, his wife, or his children to clear the driveway after a snow. Discuss what you think Allen’s decision should be and why.

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In evaluating whether Allen Abbott should purchase the self-propelled snow blower, it is essential to analyze the cost implications, probability of heavy snowfalls, and long-term benefits. The decision hinges on a comparison between the fixed cost of the snow blower and the expected costs of hiring a snow shoveler, considering the likelihood of heavy snowfall each winter.

The snow shoveler charges a flat fee of $30 each time Allen needs to clear snow from his driveway, which is particularly important during heavy snow seasons. The probability distribution of heavy snowfalls for the winter indicates the likelihood of encountering multiple heavy snow events, although the exact probabilities are not specified here. For the purpose of analysis, we assume that the probability of heavy snow events varies from year to year, with some years experiencing numerous heavy snowfalls requiring multiple shoveling sessions, while other years may have few or none.

Given that the snow blower costs $625 upfront, Allen needs to evaluate whether this investment is economically justifiable over time. If the expected number of heavy snowfalls per winter is high, purchasing the snow blower could result in significant savings. For instance, if Allen anticipates an average of 20 heavy snowfalls per winter, the total cost of hiring a shovel repeatedly would amount to 20 x $30 = $600, which is close to the cost of the snow blower. In this scenario, after approximately one winter, the investment warrants consideration, especially since the snow blower would then be available for multiple seasons, further reducing ongoing labor costs.

Conversely, if the probability distribution indicates a low likelihood of heavy snow events—say, only 2-3 instances per winter—then the total annual costs of hiring a shovel would be around $60-$90, making the $625 purchase less justifiable over a short period. In such cases, it may be more economical for Allen to continue hiring the carpenter when necessary, especially if he values flexibility and avoids a large one-time expense.

Furthermore, the decision should incorporate non-financial factors such as convenience, safety, and time savings. The snow blower offers the benefit of ease and speed for Allen and his family, reducing physical labor and risk associated with shoveling uphill driveways. If Allen expects frequent snowfalls or values convenience highly, the investment may be worthwhile even if the expected cost savings are marginal.

Additionally, other considerations include the durability and maintenance costs of the snow blower, the average lifespan of such equipment, and the potential for increased property value or curb appeal. These factors could further tilt the balance in favor of purchasing if they provide additional indirect benefits.

In conclusion, Allen’s decision should be based on a careful analysis of the probability distribution of heavy snowfalls, the cumulative costs of hiring a snow shoveler versus the purchase price of the snow blower, and personal preferences regarding convenience and safety. If the expected number of snowfalls justifies the investment over multiple seasons, purchasing the snow blower becomes a cost-effective choice. Otherwise, continuing to hire a professional may be more economical and flexible, especially if heavy snow events are infrequent.

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