Concept explainers
Ranking the alternatives.
Explanation of Solution
The important attributes need to consider before purchasing a car are stylish design, fuel economy, price of the car, maintenance cost per 1,000 miles, and useful life.
Table 1 shows the information regarding three alternative cars.
Table 1
Alternative | |||
Attributes | 1 | 2 | 3 |
Stylish design | Excellent | Good | Poor |
Fuel economy | 28 | 31 | 30 |
Price | 50,000 | 48,000 | 47,000 |
Maintenance cost per 1,000 miles | 200 | 210 | 215 |
Useful life | 5 | 5 | 4.8 |
An attribute can be ranked (Higher rating is preferable) by using the following formula:
An attribute can be ranked (Lower rating is preferable) by using the following formula:
Substitute the respective values in Equation (1) to calculate the rank of fuel economy for alternative 1.
The rating is 0.
Table 2 shows the rating of attributes for respective alternatives, which are obtained by using Equations (1) and (2).
Table 2
Alternative | |||
Attributes | 1 | 2 | 3 |
Stylish design | 1 | 0.5 | 0 |
Fuel economy | 0 | 1 | 0.67 |
Price | 0 | 0.67 | 1 |
Maintenance cost per 1,000 miles | 1 | 0.33 | 0 |
Useful life | 0.09 | 1 | 0 |
The highlighted value indicate the best alternative for specific attributes.
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Chapter 14 Solutions
Engineering Economy (17th Edition)
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