Quantitative Reasoning Process Step 1: Identify the problem

Juan wants to marry Sara and needs to buy a ring. He ha

$1150 saved and is willing to borrow money to buy the
perfect ring. Before looking at any more numbers, what
you think Juan should do?

Juan should spend within the amount he has saved and

avoid going into debt.
dentify the problem

ds to buy a ring. He has

ow money to buy the
more numbers, what do

ount he has saved and

Background
• Juan and Sara are in love.
• They are planning to become engaged soon.
• They have spent hours window shopping at
jewelry stores looking at engagement rings
together.
• Sara has even tried on a few rings.
• Juan and Sara are both still in school so they want
to be financially careful about their decision.
• But Sara has pointed out that she will have this
ring forever.
• Juan would like to surprise her with the ring.
• Sara agrees because it is Juan’s gift to her.
Quantitative Reasoning Process Step 2: Identify Key Variables

• Juan wants to marry Sara and needs to buy a ring. Cost of the ring
• He has $1150 saved and is willing to borrow a Amount to borr
little to get the perfect ring.
• Juan and Sara are in love. Style of the ring
• They are planning to become engaged soon. Time before pro
• They have spent hours window shopping at
jewelry stores looking at engagement rings
together.
• Sara has even tried on a few rings.
• Juan and Sara are both still in school so they want
to be financially careful about their decision.
• But Sara has pointed out that she will have this Susan really wa
ring forever. They want to be
• Juan would like to surprise her with the ring. Sarah wants to
• Sara agrees because it is Juan’s gift to her. Juan wants to g
entify Key Variables/Make Key Assumptions

What are the key variables for solving this problem?

Cost of the ring.
Amount to borrow.
Style of the ring.
Time before proposal.

What are the key assumptions for solving this problem?

Susan really wants to marry Juan.
They want to be engaged soon.
Sarah wants to be surprised.
Juan wants to gift Sarah a very nice ring.
Quantitative Reasoning Process Step 3: Apply Quantitati

1. White Gold, Plai

2. Total cost is $1,5

Based on the information presented what borrow+finance ch
do you think Juan should decide?
3. He would need t

1 Please list your choice of s

2 Then find the total cost an
3 Lastly list how much he ne
pply Quantitative Tools

1. White Gold, Plain setting, 1/2 carat Diamond stone.

2. Total cost is $1,500. Amount needed to

orrow+finance charge is $635.

3. He would need to pay $485 beyond his savings.

ease list your choice of setting, metal type, and stone.

en find the total cost and amount needed to borrow + finance charge.
stly list how much he needs to pay beyond his savings for your choice.
Quantitative Reasoning Process Step 4: Make Inform

Posters At the Store

tep 4: Make Informed Decisions

The sales person encourages Juan to “just

look” at a few of the more expensive options
and imagine how thrilled Sara will be when
she shows her stunning engagement ring to
friends and family.

Conclusion: Juan buys a much more

expensive ring than he originally
decided to buy!

Notice that Juan didn't follow-through with the

Store informed decision he made previously. Which
type of logical fallacy does this example
represent? Explain.
The Logical fallacy represented here in 'Appeal
to emotion'.

Juan was made to feel bad if he didn't buy the

best for Sarah. He was made to believe he had
to prove the quality of his love for Sarah by the
quality of ring he got for her.
 Juan to “just
pensive options
a will be when
gement ring to

much more
originally

rough with the

iously. Which
xample

here in 'Appeal

didn't buy the

believe he had
or Sarah by the
 Quantitative Reasoning Process Step 5: Evaluate You

Why do you think that marketing is so effective at preventing people

Quantitative and Logical Reasoning?
They take advantage of the fact that we are emotional creatures and thereby
emotions.

What steps do you think you could take to help you avoid logical falli
effective reasoning?
Getting an 'accountability partner' who report our finances to.
Planning and sticking to budget.
Thinking twice before making a purchase.
tep 5: Evaluate Your Reasoning

at preventing people from using

al creatures and thereby turn ur attention to

you avoid logical fallicies that prevent

ances to.
Save this file and upload it to the W03 Group
Assignment Submission.

Then complete the W03 Group Assignment Quiz

together as a group.

Also, discuss any homework problems that you

are struggling with. Only bring up homework
problems that everyone in your group has already
attempted.