Problem 8-11 A manager has received an analysis of several cities being consider
ID: 415250 • Letter: P
Question
Problem 8-11 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 8 3 Factor Business services Community services Real estate cost Construction costs Cost of living Taxes Transportation 6 a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? Thus. (Click to select) 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? /9 /9 Thus. [(Click to select) is best and [Click to select) is least desirableExplanation / Answer
a. Each factor having equal weight, in this case we can do a simple sum and divided by total factors.
Location A = (8+7+3+5+3+5+6)/7 = 37/7 = 5.285714
Location B = 48/7 = 6.857143
Location C = 48/7 = 6.857143
Location B and Location C are the best.
b. Business services and Construction costs are double weightage.
Location A = (8*2+7+3+5*2+3+5+6)/9 = 50/9 = 5.555556
Location B = 63/9 = 7
Location C = 62/9 = 6.888889
Location B is the best and Location A is the least desirable.