Question

In: Statistics and Probability

22. Alex Wall is shopping for a new four-wheel-drive utility vehicle and has identified three models...

22. Alex Wall is shopping for a new four-wheel-drive utility vehicle and has identified three models from which she will choose—an Explorer, a Trooper, and a Passport. She will make her selection based on Consumer Digest ratings, price, and each vehicle’s appearance. Following are Alex’s pairwise comparisons for the vehicles for each of her criteria and her criteria preferences:

Consumer Digest Rating

Vehicle

     Explorer

    Trooper

Passport

Explorer

1

4

3

Trooper

1/4

1

1/2

Passport

1/3

2

1

Price

Vehicle

Explorer

      Trooper

Passport

Explorer

1

      1/4

        1/6

Trooper

4

1

2

Passport

6

      1/2

1

Appearance

Vehicle

     Explorer

    Trooper

Passport

Explorer

1

4

3

Trooper

1/4

1

1/2

Passport

1/3

2

1

Criterion

Consumer Digest Rating

Price

Appearance

Consumer Digest Rating

1

2

4

Price

1/2

1

3

Appearance

1/4

1/3

1

Using AHP, determine which vehicle Alex should purchase.

Solutions

Expert Solution

First take this data into Excel then calculate SUM of columns for each table as shown in below image:

devide each table cell value by sum of that coumn in a table. like for "Consumer Digest Rating" table 1/1.583333=0.63157.

To calculate Priority value take sum of row and divide by 3,

like for Explorer=(0.631578+0.571428+0.6666666)/3=0.623225calculate this for each cell value in table. and the

Calculated vaules are in below image:

Then take priority valuse for each criteria and put that into table and in 1 row place priorty values from Criterion table as show in below image.

calculate Overall Priorities by taking sumproduct of criterion priority and Vahical.

for Explorer= (0.5571*0.62322 + 0.3202*0.0954 + 0.1226*0.62322)= 0.4542

Since Explorer have highest overall priority value 0.4542 hence Alex should buy Explorer.

Hope this will help you.

Give thumbs up if you like it.

Cheers!!!


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