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1.

The first step of the engineering economic analysis procedure (problem definition) is particularly important,

since it provides the basis for the rest of the analysis.

a. Developing Investment Alternatives b. Searching for Superior Alternatives

c. Problem Definition d. Classical Brainstorming

2. This approach is best used early in the estimating process when alternatives are still being developed and refined.

a. Top- down b. Up- down

c. Bottom-up d. Upside-down

3. This approach usually works best when the detail concerning the desired output (a product or a service) has been
defined and clarified.

a. Top- down b. Up- down

c. Bottom-up d. Upside-down

4. The______ involves a structured group meeting designed to incorporate individual ideas and judgments into a group
consensus.

a. Developing Investment Alternatives b. Nominal Group Technique

c. Problem Definition d. Classical Brainstorming

5. It is the most well-known and often-used technique for idea generation.

a. Developing Investment Alternatives b. Nominal Group Technique

c. Problem Definition d. Classical Brainstorming

6. It’s creativity and resourcefulness were emphasized as being absolutely essential to the development of potential
alternatives.

a. Developing Investment Alternatives b. Searching for Superior Alternatives

c. Problem Definition d. Classical Brainstorming

7. What principle of engineering economy states that, A good decision-making process can result in a

decision that has an undesirable outcome.

a. Make Risk and Uncertainty Explicit b. Use a Consistent Viewpoint

c. Revisit Your Decisions d. Consider All relevant Criteria

8. It is the profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and
practice is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the
benefit of mankind.

a. Accounting b. Engineer

c. Accountant d. Engineering

9. Give at least 4 out of 7 principles of engineering economy.

Develop the Alternatives, Focus on the Differences, Use a Consistent Viewpoint, Use a Common Unit of Measure,
Consider All relevant Criteria, Make Risk and Uncertainty Explicit, Revisit Your Decisions.
10. It can also be a source of cost-estimating data, though you should assure yourself that the information is from a
reputable source.

 Engineering economy involves the systematic evaluation of the economic merits of proposed solutions
to engineering problems. To be economically acceptable (i.e., affordable), solutions to engineering
problems must demonstrate a positive balance of long term benefits over long-term costs, and they
must also
 promote the well-being and survival of an organization
 embody creative and innovative technology and ideas
 permit identification and scrutiny of their estimated outcomes