# 1. Determine the following before deciding a prescripti

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1. Determine the following before deciding a prescription: (a) maximize effectiveness at theleast cost; (b) maximize effectiveness at a fixed cost of $10,000; (c) achieve a fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000; (d) maximize netbenefits, assuming that each unit of service has a market price of $10; (e) maximize theration of benefits to costs, assuming that each unit of service has a market price of $10.Answer:The application of adequacy method will be beneficial at this point. A predeterminedeffectiveness level supports the specific standard and the extent of the same conforms toadequacy. The criterion that relates to the adequacy is about the anticipations of the strengthamong the options concerning policy and values of the expected outcomes (Dunn, 2012).Mentioned below are the various determinations:a) Maximize effectiveness at the least refers to the Type II problem.b) Maximize effectiveness at a fixed cost of $10,000 refers to the Type I problem.c) Achieve a fixed-effectiveness level of 6000 units of service at a fixed cost of $20,000 refers tothe Type II problem.d) Maximize net benefits, assuming that each unit of service has a market price of $10 refers tothe Type I problem.e) Maximize the ration of benefits to costs assuming that each unit of service has a market priceof $10 refers to the Type III problem.2. Determine which of the two main programs (Program I and Program II) should beselected under each of these criteria. Justify your position.Answer:The complex relationship between the cost and effectiveness can be witnessed whileconsidering these four problems. Therefore, it is advisable that the relationship among these twoelements, namely, costs and effectiveness should be taken into consideration rather than viewingboth the elements separately (Dunn, 2012). Mentioned below are the details:a) Maximize effectiveness at the least should be preferred considering Program I. The reasonbehind the same is that the program displays equal-effectiveness. If the cost and effectiveness areobserved it can be stated that both are not varying freely. Moreover, at the balance point, theratio among the effectiveness and the cost is lowest.b) Maximize effectiveness at a fixed cost of $10,000 should be preferred considering Program II.The reason behind the same is that it can be observed achieving high level of effectiveness andsimultaneously remains under the limitation of the fixed cost.c) Achieve a fixed-effectiveness level of 6000 units of services at a fixed cost of $20,000 shouldbe preferred considering the Program II. The reason behind the same is that the ratio of theeffectiveness to the cost will be observed to be greatest at the interaction point.

d) Maximize net benefits, assuming that each of service has a market price of $10 should bepreferred considering the Program II. The reason behind the same is that it can be witnessed tobe achieving high level of effectiveness while staying under the fixed cost limitation.e) Maximize the ration of benefts to costs assuming that each unit of service has a market priceof $10 should be preferred considering the Program I. The reason behind the same is that theprogram displays equal-effectiveness. The variation among cost and effectiveness is not free.Moreover, the ratio among the two is lowest at the balance point.3. Describe the conditions under which each criterion may be an adequate measure of theachievement of objectives.Answer:Prior to describing the conditions under which each criterion may be an adequatemeasure of the achievement of the objectives, it is advisable that the basic objectives of decisionissues must be considered that is about understanding the reason behind the interest of decisionmaker in certain decision. It can be stated that listing down the complete basic objectives for thedecision is a tedious activity. Therefore, it consumes time, mental energy, and requires someappreciation. The criteria related to policy prescription provides various suggestive measures thatcan be used as help in completing the task properly and providing measures that can be used inappraising the basic objectives’ qualities. To conduct the analysis of the various options as perthe objectives, attribute is required for the measurement of the objectives. Proper attributes aidsin the appreciable analysis.For decision situations, one can witness particular time when it gets considered. Prior to that timeperiod, no awareness exists for the decision. The categorization of the decision situations can bedone based on the way elevation to consciousness was done. Some of them are caused by theexternal incidences and factors, which is stated as triggers which state that the decisions need tobe made. Triggers come from various situations or incidents that are not the part of the decisionmaker. Therefore, such decision situations can be referred as the decision problems. One of theother ways that the decision maker realizes the need of the decision is when he or she thinks thatsome control is necessary on the situation. This can be referred as the internal trigger or factor.The consideration that a decision is needed to be made is the first step towards decision making.Some examples are: Can the agency maximize effectiveness at a fixed cost of $10,000? What isthe right method to improve the agency effectiveness? And so on.4. Determine the assumptions that govern estimates of the value of time lost driving,indicating which assumptions (if any) are more tenable than others. Justify your position.Answer:Walk time, wait time and in-vehicle travel time are the various aspects of the traveltime savings. Travel time refers to the cost incurred by the users and the value related to this isconcerned with the benefits that have been derived from the same by the traveller. If the traveltime reduces then the saved time will be converted into extra time that will be available for theindividual to leisure or work. The service should be reliable which directly relates to the transit

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