Concept explainers
Ranking the alternatives.
Explanation of Solution
The important attributes need to consider before purchasing a car are stylish design, fuel economy,
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.
Want to see more full solutions like this?
Chapter 14 Solutions
Engineering Economy (17th Edition)
- The manufacturer of Brand A automobile tires claims that its tire can save 110 gallons of fuel over 55,000 miles of driving, as compared to a popularcompetitor (Brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire save the customer (Brand A versus Brand B)?arrow_forwardYour friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%arrow_forwardGerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing. Typically, he trades in his old car for a new one costing about $15,000. A new car warranty covers all repair costs above standard maintenance (standard maintenance costs are constant over the life of the car) for the first two years. After that, his records show an average repair expense (over standard maintenance) of $2600 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values and interest is 8 percent, how often should Gerry get a new car? Click the icon view the table of compound interest factors for discrete compounding periods when i = 8%. Gerry should get a new car every years, which has the V EAC of s (Round to the nearest whole number as needed)arrow_forward
- An estate agent advertises its houses in two media; Daily Graphic and Ghanaian Times. The agent believes that there is a relationship between the sales S and the amounts spent on the two advertising media. The relationship is given by; where, d is the amount spent in Daily Graphic and g is the amount spent in Ghanaian Times. The estate’s agent fee is 12½% and this includes the cost of adverting. If the agent has planned to spend only 200 thousand Ghana Cedis on advertisement, show how it should be allocated between the two media in order to maximize net profit.arrow_forwardThe company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $4.5 million. If it would cost $3 million to finish development and make the product, youshould not This element is required for firefox to correctly compute the size of the hitarea. If it is removed, the size of hitarea element will change when the dropdown is displayed, causing the line to wrap differently. go ahead and do so. The most you should pay to complete development isarrow_forwardThe state of New Jersey has in circulation (as of 2011) an instant lottery game called $1,000 Downpour. The cost of each ticket for this lottery game is $5.00. A player can instantly win $75,000, $1,000, $100, $50, $20, $10, or $5. Each ticket has 19 spots covered by latex coating, and the top four spots contain numbers that, if matched by the player's numbers, win money. The remaining 15 spots belong to the player. A player wins if any of the numbers in the player's 15 spots matches any of the four winning numbers. Number of tickets that can win Prizes 0 (i.e. not a winner) 2,853,533 621,075 10 327,600 20 58,500 50 31,200 100 5525 1,000 2561 75,000 6. Total= 3,900,000 tickets sold Find and interpret the expected outcome of this game. [Write your answer as a complete sentence]arrow_forward
- Air pollution in the country of Gawanza has grown over the last ten years with an increase in manufacturing industries. The government of Gawanza now has a plan to reduce the CO2 emissions into the air by 10% per year over the next 10 years. What do you expect will happen? Group of answer choices The cost and benefits to Gawanza will be lowest in the last few years of implementing this plan. The cost and benefits to Gawanza will be highest in the last few years of implementing this plan. The cost will be the highest and benefits the lowest in year ten.arrow_forwardQuestion 13 You have an assignment to appraise a dairy heifer feedlot and discovered one recent sale that is highly comparable to your subject property. The unit of comparison for these types of facilities has consistently been based on the total linear feet (LF) of feeding space available. The property is 50 acres and sold for $1,400,000 and contained sixteen pens that each included 120 linear feet of feeding space and measured 120' by 200. Based on this information, what is the sales price per unit of comparison identified by the market?arrow_forwardOnly 2.4arrow_forward
- ONLY D, E, F and G on 2.3arrow_forwardEng. Economic Q1. Would a dollar tomorrow be worth more to you today when interested is 20% or 10%?arrow_forward= 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co kny3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?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