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1. Argosy B6025 Module 3 Assignment 2 Required
Assignment 1 The S'No Risk Program NEW
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In the mid-eighties, the Toro company launched a
promotion in which snow blower purchasers could
refund a portion of their purchase if the next
winter brought modest snowfalls. The amount of
their refund was tied to snowfall amounts and so,
the program was prey to certain risks and
uncertainties. You will explore those risks and
choices from a variety of perspectives.
Review the case study “The Toro Company S'No
Risk Program” by David E. Bell (1994) from this
module's assigned readings. Click here to
download the Toro Excel worksheet which
contains data exhibits from the article; the exhibit
titles match the tabs long the bottom of the

2. worksheet. Use this tool to conduct your data
analysis for this assignment.
Analyze the risks of the program from the
following points of view:
Toro
The insurance company The consumers
Write a 6-8-page analysis paper that addresses the
following:
Why did the insurance company raise the rates so
much? How would you estimate a fair insurance
rate?
From the perspective of the consumer, how were
the paybacks structured and how might they be
restructured to entice you at an equal or lower
cost of insurance? How does the program
influence
your decision to purchase?

3. What are the common decision traps which each
group in point (2) is susceptible to? Develop a
matrix or decision tree in order to compare the
groups. How does the program impact the
consumer's “regret”? (Hint: Map the possible
outcomes for the consumer.)
From either Toro's or the insurance company's
perspective, how would you frame your argument
to achieve your desired objective?
Was the program successful? Why or why not?
If you were Dick Pollick, would you repeat the
program? Assume you manage the S'No Risk
program and argue your case. To what biases are
you susceptible in this case?
Submit your analysis paper in Word format. Apply
APA standards to citation of sources. Use the
following file naming convention:
LastnameFirstInitial_M3_A2.doc.