Bad news: You have just wrecked your car! You need another car immediately because you have decided that walking, riding a bike, and taking a bus are not acceptable. An automobile wholesaler offers you

$2,000

for your wrecked car "as is." The cost of the car after repairing is supposed to be

$4,500.

Also, your insurance company's claims adjuster estimates that there is

$2,000

in damages to your car. Because you have collision insurance with a

$1,000

deductibility provision, the insurance company mails you a check for

$1,000.

The odometer reading on your wrecked car is 58,000 miles.

A short summary for each of the steps is provided in the table below. Identify which step is summarized by the information provided. Also, identify which engineering principle(s) accompany each step.