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There are two types of residents in a city: 7 0 % low - income residents and 3 0 % high - income residents. The
There are two types of residents in a city: lowincome residents and high
income residents. The government is considering two projects with same costs. If project
A is taken, each lowincome resident can save his transportation cost by $ and each
highincome resident can save his transportation cost by $ If project B is taken, each
lowincome resident can save his transportation cost by $ and each highincome
resident can save his transportation cost by $
If money is more important to lowincome people than to highincome people, which
project is better?
Let the weights assigned to benefits and costs of lowincome and highincome residents be and
respectively. What values of make project A better?
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