Imagine two refrigerator in the appliance section of a department store. One sells for $700 and used $85 worth of electricity a year. The other is $100 more expensive but costs only $25 a year to run. Given that either refrigerator should last at 10 years without repair, consumers would overwhelmingly buy the second hand model, right? Well, not exactly. Many studies by economist have shown that in a wide range of decisions do they know. In some cases as in the refrigerator example this means that people are generally unwilling to pay a little more money up front to save a lot of money in the long run.
We can apply the concept of the solution of a Linear system to this situation. Over a 10 yrs period, one refrigerator will cost $700+10(85)=$1550, While the other will cost $800+10(25)=$1050,a difference of $500.
1.In how many years will the cost for the two refrigerator be equal?
y=800+25x,y=700+85x for x,
2.Suppose you win a lottery and you can take either $1400 in a year or $1000 now, suppose also that you can invest the $1000 now at 6% interest. Decide which is s better deal and by how much.
One of the hardest things about making one accessible to one's customers and employees is that it gives people an opportunity to change their mind, If, for example, a customer knows that he will always be treated with respect and courtesy, he will not hesitate to bring a piece of unwanted merchandise back to the store. And if, in that case of an executive search agency, the company's stock-in-trade is human beings, it become neccessary to worry not only about whether the customer is satisfied with the purchase but whether the piece of human inventory will feel comfotable inside his new corporate package or change his mind and walk away from the deal.
In the real world, people make decision based on emotion and back them with logic, not the other way around. People will decide to buy the second hand and then sit that conspicuous consumption? it is the same thing in leaving a company and going to another company or saying no to a partner and starting your own firm. It's emotional to begin with and then backed up by logic. So you have to get in step with them emotionally and understand what they are concern about.
THE BCP POST highligthed in this "connection" above it is interesting educating trivia to the reader also,
George Polya propose an excellent General outline for solving applied problem in his classic book how to solve it
1.understand the problem
2.carry out the plan
3.device the plan
4.look back
Polya native of Budpest hungary wrote more than 250 paper in many languages as well as number of books. he was brilliant lecturer and teacher numerous mathematical properties and theorem bear his name. he once asked why so many good mathematicians came out at Hungary at the turn of the century. He theorized that it was because mathematics was the cheapest science, requiring NO expensive equipment, only Pencil and Paper.
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