The Analytic Hierarchy Process is being employed in a project selection decision. One major criteria, cost, receives a weighting value of 40%, which is split into short term (50%), intermediate term (30%), and long term (20%). Which of these statements is BEST? 1. There must be at least one other major criteria that has 40% weighting. 2. Short term, intermediate term, and long term must receive overall weightings that total 100%. 3. Long-term cost receives an overall weighting of 80%. 4. Intermediate-term cost receives a weighting of 12%.

Question

Kenya

Business

28 February, 07:57

The Analytic Hierarchy Process is being employed in a project selection decision. One major criteria, cost, receives a weighting value of 40%, which is split into short term (50%), intermediate term (30%), and long term (20%). Which of these statements is BEST? 1. There must be at least one other major criteria that has 40% weighting. 2. Short term, intermediate term, and long term must receive overall weightings that total 100%. 3. Long-term cost receives an overall weighting of 80%. 4. Intermediate-term cost receives a weighting of 12%.

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Answers (1)

Know the Answer?

Reese Marshall · Answer 1

Option "4" is the correct answer to the following situation.

Intermediate-term cost receives a weighting of 12%.

Explanation:

GIVEN:

Total cost receives weighting = 40%

short term cost weighting = 50% of (Total cost receives weighting)

= 50% of 40% = 20%

intermediate term cost weighting

= 30% of (Total cost receives weighting)

= 30% of 40% = 12%

long term cost weighting

= 20% of (Total cost receives weighting)

= 20% of 40% = 8%

Therefore option "4" is the correct answer to the above situation.