Related questions with answers
The Ruizes offer each of their children two different options for increasing the child’s weekly allowance. Option 1: Increase the allowance by one half of the current allowance. Option 2: Increase the allowance by $3 per week. Describe under what conditions each option is preferable. Justify your answers.
Solution
VerifiedIt is given that the children can either choose:
Option 1: increase their allowance by half of their current allowance
Option 2: increase it by
The option that gives the largest increase is the more preferable option. This means the first option is only preferable if half of their current allowance is more than and the second option is only preferable if half of their current allowance is less than .
Let be their current allowance. Then we need to find when to find when Option 1 is preferable.
Since , then when .
Therefore, $\textbf{Option 1 is preferable if their current allowance is more than and Option 2 is preferable if their current allowance is less than }$.
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