Exercise in Program Justification


©2000 Edward G. Rozycki

RETURN
edited 4/20/14

Consider whether the following information is pertinent to the exercises below:

Program A

Program B

1. Graduates of the program average to start $60M/yr in business and $40M/yr in public service.

1. Graduates of the program average to start $30M/yr in business or in public service.

2. 50% of applicants to program are rejected.

2. 80% of applicants to program are rejected.

3. 50% of those accepted finish it in 2 years.

3. 20% of those accepted finish it in 2 years.

4. Tuition is 15M/yr.

4. Tuition is 5M/yr.

5. After 5 years 25% of program graduates in business have changed to careers in public service.

5. After 15 years 10% of program graduates in business have changed to careers in public service.

6. 30% of those accepted never finish.

6. 20% of those accepted never finish.

7. To finish in two years a student must attend full time, including two summer sessions.

7. To finish in two years a student must attend half time year around, or full time in Fall and Spring semesters.

8. Students who are parents are 80% of those who never finish.

8. Students who are parents are 20% of those who never finish.

9. Government service jobs in this area require some knowledge of a language other than English.

9. Government service and business jobs in this area require some knowledge of a language other than English.

10. An undergraduate degree is required to enter this program.

10. An undergraduate degree is not required to enter this program.

Exercise A: Justify the selection of Program A using information from the chart.

Exercise B: Justify the selection of Program B using information from the chart.

Exercise C: Justify the rejection of Program A in spite of information from the chart.

Exercise D: Justify the rejection of Program B in spite of information from the chart.

Suggestions and Questions:

  1. Use the concept of expected value to support or reject a program.
  2. What important factors have not been mentioned in the chart that might affect your support or rejection of either program.
  3. What additional assumptions does rational support or rejection rest on?
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