Draw EER diagram EZ-Car Rental is a car rental company that rents vehicles to cu

Question

Draw EER diagram

EZ-Car Rental is a car rental company that rents vehicles to customers in several countries. They have rental agency branch locations in US, Canada, Mexico, UK, Japan & Australia. The rental agencies are in cities throughout each country and there can be more than one rental agency in a city, for example New York City has 2 rental agencies or branches in Manhattan one in Brooklyn and two in Queens near each airport. Because there are multiple rental agencies, a customer can pick up a vehicle in one location and drop it off A rental agency or branch is identified by a rental agency ID, address which is composed of street address, city, state, country & zip code. In addition, phone number EZ-Car Rental offer their services to two types of customers, corporate customers& consumers. The application should store the following information about all types of customers: a customer ID which is their driver license number, driver license expiration date, customer name which is composed of first name, last name, address which is composed of street number & name, city, state, zip code. In addition, date of birth, mobile number, email, and credit card which is composed of credit card number, name & expiration date. A customer can have many credit cards they can use to pay for rental transaction. In addition, the credit card used by a customer can be co-owned by many individuals such a family member or corporate entity the customer works for, For corporate customers we must store the company name, company ID (we store an ID for each company), Company contact composed of contact name & phone number and finally corporate rate. For our private consumer customers, any discount code and discount description. In addition, for our private customers, we offer a frequent rental program called EZPlus where they earn points every time they rent a car and can leverage these points to pay for their next rental. Therefore, we need to capture their EZPlus number In our business, we only have consumer or corporate customers. No other type of customer exists. Ifa private consumer wishes to rent and also works for a company that also rents from us, each of these transactions must be separate customer accounts. you can only be a consumer or corporate customer not both. A vehicle must first be reserved before it can be rented, therefore there is a distinction between a reservation and a rental. A reservation guarantees a vehicle will be ready for you to pick-up and rent. A rental means a customer complied with the reservation and picked up the vehicle. A reservation is not made for a specific vehicle, but for a vehicle rental category at a rental agency location. We have the following vehicle rental categories: Car (economy, intermediate, full size, luxury), SUV, or Van. Each of these categories have a different price range. Therefore, a vehicle rental category has a rental category ID that identifies the category of the vehicle being reserved, rental category name (ex. for car (economy, intermediate, full size, luxury), SUV, or Van) and finally rental category rate. Note that a vehicle rental category can have one, none or many vehicles available to rent, nevertheless, a vehicle can only belong to one vehicle rental category

Explanation / Answer

Consider the following decision tree and the respective payoffs of the plaintiff and the defendant under the different scenario. Here 'S' stands for the settlement amount.

A.

It is clear from the above illustration that defendant will choose 'S' equal to the expected net loss for no offer/ offer rejected case:

So, S = 50%*15 + 50%*35 = 25

So, the Defendant should be ready to pay a settlement of $25,000

B.

For low damage, the plaintiff has a payoff of 5 for the no offer/ offer rejected case. When the settlement offered is 25, she will accept.

For a high damage, the plaintiff has a payoff of 25 for the no offer/ offer rejected case. The settlement offered is 25. So, this is a point of indifference for the plaintiff.

C.

For high demand, for the defendant, the best option is to go for settlement i.e. loss of 25

For low demand, for the defendant, the best option is to go for trial i.e. loss of 15

So, expected value with perfect information = - (25+15)*50% = - 20

Expected value of perfect information = - 20 - (EMV) = - 20 - (-25) = 5

Sinc $4000 < $5000, it is worth to spend $4000.

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