Flora is deciding whether to go on a spring break cruise or drive to Florida and spend a week at Daytona Beach. Her best friend is going on the cruise, but Flora has never been on a cruise before and is concerned that she cannot leave if she does not like it. If she drives to Florida, she can either drive back to campus or go home if the beach trip is not what she expects. She also needs to consider the costs associated with both trips because her finances are somewhat limited. If she spends too much on the trip, she will not have enough money to finish the semester and will have to increase the hours that she works, which will likely lower her grades for the semester. Following is information about both alternatives.
The cost for the cruise is $600 if she shares a room with her friend. It is a four-day cruise. This cost includes all meals and incidentals while she is on the boat. In addition, there will be three off shore excursions and no costs are covered once passengers leave the boat. After discussing these costs with her friend, Flora estimates these costs for the trip. She believes she will spend about $150 for excursions. She will have to drive to Daytona Beach because that is the cruise ship's home port. She estimates that cost to be $250 and to take more than one day with an overnight stay each way. The cruise ship charges for parking at $10 per day.
Alternatively, Flora can drive to Daytona Beach at a cost of $250, stay in a hotel and enjoy the beach. If she does this, it will cost $180 and another friend will share this cost. They will stay at the hotel for four days. Flora has estimated the cost of food, beverages, and entertainment to be about $75 per day. However other students have told her that this amount is too little. The hotel charges $5 a day for parking. While she is gone, Flora needs to pay a house sitter to feed her kitten and water her plants. This costs $12 per day.
a)What are the relevant costs for deciding whether to take the cruise or stay in Daytona Beach?
b)What factors other than costs might influence Flora's decision? List at least two.
c)Consider your own preferences for this problem. Do you expect Flora's preferences to be the same as yours? How can you control for your biases and consider this problem from Flora's point of view?

Question

Quizplus · Accepted Answer

The Answer of Flora is deciding whether to go on a spring break cruise or drive to Florida and spend a week at Daytona Beach. Her best friend is going on the cruise, but Flora has never been on a cruise before and is concerned that she cannot leave if she does not like it. If she drives to Florida, she can either drive back to campus or go home if the beach trip is not what she expects. She also needs to consider the costs associated with both trips because her finances are somewhat limited. If she spends too much on the trip, she will not have enough money to finish the semester and will have to increase the hours that she works, which will likely lower her grades for the semester. Following is information about both alternatives.
The cost for the cruise is $600 if she shares a room with her friend. It is a four-day cruise. This cost includes all meals and incidentals while she is on the boat. In addition, there will be three off shore excursions and no costs are covered once passengers leave the boat. After discussing these costs with her friend, Flora estimates these costs for the trip. She believes she will spend about $150 for excursions. She will have to drive to Daytona Beach because that is the cruise ship's home port. She estimates that cost to be $250 and to take more than one day with an overnight stay each way. The cruise ship charges for parking at $10 per day.
Alternatively, Flora can drive to Daytona Beach at a cost of $250, stay in a hotel and enjoy the beach. If she does this, it will cost $180 and another friend will share this cost. They will stay at the hotel for four days. Flora has estimated the cost of food, beverages, and entertainment to be about $75 per day. However other students have told her that this amount is too little. The hotel charges $5 a day for parking. While she is gone, Flora needs to pay a house sitter to feed her kitten and water her plants. This costs $12 per day.
a)What are the relevant costs for deciding whether to take the cruise or stay in Daytona Beach?
b)What factors other than costs might influence Flora's decision? List at least two.
c)Consider your own preferences for this problem. Do you expect Flora's preferences to be the same as yours? How can you control for your biases and consider this problem from Flora's point of view?

Flora Is Deciding Whether to Go on a Spring Break