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22 June, 10:24

A company is deciding between 2 foreign firms to provide its call center services. A factor-rating method is used. Factors are rated on a scale of 1-10, with 10 being the best score. Suppose a consultant recommended that Factor 2 be twice as important as Factor 1, while Factor 3 should be four times as important as Factor 1. Which firm is best now using a weighted method? (Round your weights to the nearest four decimal places.)

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  1. 22 June, 10:36
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    A) All the weights are equal.

    For Firm A, Weighted score = (10 + 7 + 4) / 3 = 21/3 = 7

    For Firm B, Weighted score = (5+8+6) / 3 = 19/3 = 6.3333

    Firm A is better preferred

    B) Factor 2 being twice important and Factor 3 having four times importance as Factor 1.

    For Firm A, Weighted score = (10 + 7*2 + 4*4) / 7 = 40/7 = 5.7143

    For Firm B, Weighted score = (5+8*2+6*4) / 7 = 45/7 = 6.4286

    Firm B is better preferred
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