Let's revisit the parking project. A second scheme is hatched. Two hundred bus passes will be provided to students or staff who agree not to drive to school. The decrease of 200 cars per day reduces the students' parking search time by an average of 2 minutes and staff are not inconvenienced at all. The bus passes cost $250 each. Estimates are 25 staff and 175 students will take up the offer.
A new parking scheme is estimated to cost 10,000 per year to implement. On average, each of 1,000 people who come to Mills will save two minutes of parking search each day, 10 minutes per week for 30 weeks of classes each year. But 200 staff members, unfortunately, will be inconvenienced by this plan: they will each end up being delayed 4 minutes per day — an 20 minutes a week for fifty weeks. If we value everyone's time at $25 per hour, calculate net benefit.
Does anything bother us about the logic we've been using?
Is it the right approach here? Why or why not?
Have we forgotten anything else?