Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The state police set up a device to record the speeds of cars on a stretch of the PA Turnpike. The data collected are shown

The state police set up a device to record the speeds of cars on a stretch of the PA Turnpike. The data collected are shown to the left. The speed limit on the Turnpike is 65 mph. The fine for going 5 mph or less over the speed limit is $20. The fine for going between 5 mph and 10 mph over the speed limit is $50. The fine for going between 10 mph and 20 mph over the speed limit is $75. The fine for going between 20 mph and 30 mph over the speed limit is $100. The fine for going 30 mph or more over limit is $150. 550,000 vehicles use the Turnpike daily.

With electronic tolling, it is possible to determine, to the second, the time that a given car enters and leaves the Turnpike. Since the tolling data show where each car enters and exits the Turnpike, it's easy to calculate the average speed of every single car that uses the Turnpike. And that means that it's possible to automatically issue a ticket to every single car that speeds (or, at least every car that maintains an average speed greater than the speed limit).

The state legistlature is considering a plan under which drivers would not get points for speeding on the Turnpike (assuming they don't violate any other traffic laws) but would simply have to pay a fine for speeding. This would free up State Troopers from having to monitor traffic and would generate more revenue for the state since every speeding driver would be fined.

Assuming that the plan wouldn't change drivers' driving habits, how much revenue (per day) should this plan generate? (Show your work in detail through Excel functions below. Do not hard code numbers - I need to see how you obtained them.)

ronic tolling, it is possible to determine, to the second, the time that a given car enters and leaves the Turnpike. Since the tolling data show where each car enters and exits the Turnpike, it's easy to calculate the average speed of every single car that uses the Turnpike. And that means that it's possible to automatically issue a ticket to every single car that speeds (or, at least every car that maintains an average speed greater than the speed limit).

The state legistlature is considering a plan under which drivers would not get points for speeding on the Turnpike (assuming they don't violate any other traffic laws) but would simply have to pay a fine for speeding. This would free up State Troopers from having to monitor traffic and would generate more revenue for the state since every speeding driver would be fined.

Assuming that the plan wouldn't change drivers' driving habits, how much revenue (per day) should this plan generate? (Show your work in detail through Excel functions below. Do not hard code numbers - I need to see how you obtained them.)

Speed

74

69

67

64

63

49

71

75

66

64

67

54

66

76

70

69

52

66

77

71

70

71

72

67

72

70

70

68

68

74

75

75

76

57

73

71

71

74

70

58

67

73

67

65

55

74

67

67

71

87

72

75

68

68

74

71

________ (First two digits behind the decimal: 09)

image text in transcribed

How do we determine the expected value for each category of the fine?

How are the expected value for each category 50, 200, 150, 100, 150 and 1 determined? How do we calculate them?

calculate the fines for each category:- Fines=500+20020+15050+10075+150100+1150=38,000 multiply the total fines by the number of vehicles to get the daily revenue:- dailyrevenue=38,000550,000=20,900,000,000 The estimated daily revenue should be $20.9 billion

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organization Theory And Public Management

Authors: Jonathan R. Tompkins

1st Edition

053417468X, 978-0534174682

More Books

Students also viewed these General Management questions