Question

A manager has received an analysis of several cities being considered for a new office complex. The data (10 points maximum) are as follows:

	Location Score
Factor	A	B	C
Business services	8	7	7
Community services	6	6	7
Real estate cost	3	8	7
Construction costs	5	6	5
Cost of living	4	7	8
Taxes	5	5	4
Transportation	6	7	8

a.	If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores?

A	/ 7
B	/ 7
C	/ 7

Thus, (Click to select)ABCB and CA and B is the best.

b.	If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack up?

A	/ 9
B	/ 9
C	/ 9

Thus, (Click to select)ABCA and BB and C is best and (Click to select)ABCA and BB and C is least desirable.

Answer 1

a. If weights are calculated equally, we consider each weight = 1

Score for A = (1*8 + 1*6 + 1*3 + 1*5 + 1*4 + 1*5 + 1*6) / (1 + 1 + 1 + 1 + 1 + 1 + 1) = 37 / 7 = 5.29

Score for B = (1*7 + 1*6 + 1*8 + 1*6 + 1*7 + 1*5 + 1*7) / (1 + 1 + 1 + 1 + 1 + 1 + 1) = 46 / 7 = 6.57

Score for C = (1*7 + 1*7 + 1*7 + 1*5 + 1*8 + 1*4 + 1*8) / (1 + 1 + 1 + 1 + 1 + 1 + 1) = 46 / 7 = 6.57

As seen from above, B and C is the best.

b. If business service and construction cost weights are doubled, we will consider as 2

We get,

Score for A = (2*8 + 1*6 + 1*3 + 2*5 + 1*4 + 1*5 + 1*6) / (2 + 1 + 1 + 2 + 1 + 1 + 1) = 50 / 9 = 5.55

Score for B = (2*7 + 1*6 + 1*8 + 2*6 + 1*7 + 1*5 + 1*7) / (2 + 1 + 1 + 2 + 1 + 1 + 1) = 59 / 9 = 6.55

Score for C = (2*7 + 1*7 + 1*7 + 2*5 + 1*8 + 1*4 + 1*8) / (2 + 1 + 1 + 2 + 1 + 1 + 1) = 58 / 9 = 6.44

Thus, B is best and A is least desirable.

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