Using the following factor ratings, determine which alternative (Dallas, Austin,
ID: 428318 • Letter: U
Question
Using the following factor ratings, determine which alternative (Dallas, Austin, or Houston) should be chosen based of maximum composite score.
Factor
Weight
Dallas
Austin
Houston
Business services
0.3
80
75
88
Community services
0.2
75
92
70
Real estate cost
0.15
44
67
55
Construction cost
0.1
64
65
60
Cost of living
0.12
90
88
78
Taxes
0.08
48
52
67
Transportation
0.05
56
65
75
Factor
Weight
Dallas
Austin
Houston
Business services
0.3
80
75
88
Community services
0.2
75
92
70
Real estate cost
0.15
44
67
55
Construction cost
0.1
64
65
60
Cost of living
0.12
90
88
78
Taxes
0.08
48
52
67
Transportation
0.05
56
65
75
Explanation / Answer
Dallas Score = (0.3*80+0.2*75+0.15*44+0.1*64+0.12*90+0.08*48+0.05*56)
= (24+15+6.6+6.4+10.8+3.84+2.8)
= 69.44
Austin Score = (0.3*75+0.2*92+0.15*67+0.1*65+0.12*88+0.08*52+0.05*65)
= (22.5+18.4+10.05+6.5+10.56+4.16+3.25)
= 75.42
Houston Score = (0.3*88+0.2*70+0.15*55+0.1*60+0.12*78+0.08*67+0.05*75)
= (26.4+14+8.25+6+9.36+5.36+3.75)
= 67.12
Based on maximum composite score Austin is the best option