The additive weighting model is a decision tool that aggregates information from different independent criteria to arrive at an overall score for each course of action being evaluated. The alternative with the highest score is preferred.
The general form of the model is
where
Vj = the score of the jth alternative;
ωi = the weight assigned to the ith decision attribute (1 ≤ i ≤ n);
xij = the rating assigned to the ith attribute, which reflects the performance of alternative j relative to maximum attainment of the attribute.
Consider Table P14-14 (p. 597) in view of these definitions and determine the value of each “?” shown. (14.7)
Want to see the full answer?
Check out a sample textbook solutionChapter 14 Solutions
Engineering Economy (17th Edition)
- Eaton Medical Services is evaluating 10 independent indivisible projects, all with positive NPV. The company's capital budgeting for the year is limited to a maximum of $5,000,000. (A) Use solver to find the optimum combination of projects the company should accept, under the assumption that A and B are mutually exclusive and one of them has to be selected. (B) Ignore the constraint from previous part, assume that project “I” has to be accepted. Use solver to find optimum combination of projects the company should accept now. Please show all steps to compute in excel using solver to get to the right answers. Thank you in advance, will upvote! Project Cost NPV A 1,061,191 122,737 B 561,758 58,102 C 1,647,849 280,660 D 1,026,020 89,365 E 191,870 17,568 F 1,333,625 76,960 G 3,102,642 123,240 H 275,568 79,367 I 2,044,070 60,506 J 1,017,567 56,690arrow_forwardJill rank-ordered 10 attributes in increasing importance and identified them as A, B, …, J, with a value of 1 assigned to A, 2 to B, etc. (a) What is the sum of the scores? (b) What is the weight for attribute D? (c) Answer the two questions above if Jill decides that attribute D has the same importance as J, but all other scores stay the same.arrow_forwardData in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine which alternative is dominant using With and Without Probability Use every methodarrow_forward
- All of the following are steps in the procedure for conducting a sensitivity analysis, except: (a) Determine which parameters might vary from the most likely estimated value (b) Change the parameters in the range of −100% to +100% (c) Select a measure of worth (d) Compute the results for each parameter using the measure of worth as a basisarrow_forward$10 is not a possible price point per the given answer solution options: Multiple Choice 8; is 8; is not 12; is 12; is notarrow_forwardThe decision matrix below indicates the profit expected from four alternatives under four states of nature. Select the preferred alternative by applying each of the following criteria:arrow_forward
- Four proposals (A, B, C, and D) are available for investment. Proposals A and C cannot both be accepted; Proposal B is contingent upon the acceptance of either Proposal C or D; and Proposal A is contingent on D. a. List all possible combinations of proposals and clearly show which are feasible. b. Of the ten principles, which one(s) is(are) well illustrated by this problem? c. Of the systematic economic analysis technique’s 7 steps, which one(s) is(are) well illustrated by this problem?arrow_forwardWhich of the following statements about a project feasibility study is true? a. The feasibility study is based on available information and opinions of those involved in the preparation of such study. b. The feasibility study shows the actual results of operations of a business proposal. c. The feasibility study is not affected by any significant change in actual business conditions as compared to the assumptions used when the forecasts were d. A feasibility study is a plan for the conduct of business for a planning period and includes the budgeted income statement and all its supporting budgets.arrow_forwardGlobal passenger traffic demand was down by 58.4 per cent over pre-pandemic 2019 levels with the Omicron variant of Covid-19 hindering recovery, according to full-year results for 2021 released by the International Air Transport Association (IATA). IATA said 2021 results were however an improvement compared to 2020 when full-year RPKs (revenue passenger kilometres or RPKs) were down 65.8 per cent against 2019. IATA expects the January-February period to be weaker due to Omicron travel restrictions, which slowed the recovery in international demand by about two weeks in December. More specifically, – international passenger demand in 2021 was 75.5 per cent below 2019 levels – capacity fell by 65.3 per cent – load factor dropped by 24.0 percentage points to 58.0 per cent – domestic demand was down 28.2 per cent compared to 2019 – domestic capacity shrunk by 19.2 per cent – domestic load factor dropped 9.3 percentage points to 74.3 per cent. Looking at December 2021, total…arrow_forward
- Is it possible or even desirable for strategic planning for project management to include ways to improve cooperation and working relationships, or is this beyond the scope of strategic planning for project management?arrow_forwardPLEASE PROVIDE CLEAR SOLUTION WITH CLEAR STEPS AND EXPLAINATION - DO NOT ANSWER IF YOU ARE NOT CONFIDENT.arrow_forwardThe Discounted Cash Flow method is the one of best ways to assess the impact of a major investment in an alternative production lay out, as it includes a trade-off of risk and use of capital.arrow_forward
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education