A Manager Has Received an Analysis of Several Cities Being

question 95

Essay

A manager has received an analysis of several cities being considered for a new order fulfillment centre (warehouse) for Shop at Home Network. The scores (scale is 10 points = best) are contained in the table below.
a. If the manager weights the factors equally, how would the locations be ranked?
b. If transportation costs and operating costs are given weights that are double the weights of the others, should the locations be ranked differently? $$\begin{array} { | l | c | c | c | c | } \hline & { \text { Location } } \\\hline \text { Factor } & \underline { \mathrm { W } } & \underline { \mathrm { X } } & \underline { \mathrm { Y } } & \underline { \mathrm { Z } } \\\hline \text { Business services } & 7 & 9 & 5 & 4 \\\hline \text { Community services } & 5 & 7 & 6 & 7 \\\hline \text { Real estate cost } & 7 & 3 & 8 & 6 \\\hline \text { Construction costs } & 8 & 6 & 6 & 5 \\\hline \text { Operating costs } & 5 & 4 & 7 & 6 \\\hline \text { Business taxes } & 6 & 9 & 6 & 4 \\\hline \text { Transportation costs } & 8 & 6 & 7 & 8 \\\hline\end{array}$$

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Definitions:

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Response Variable

The variable that measures the outcome of interest in a study, often influenced by explanatory variables.

Independent Variables

Variables that are manipulated or changed in an experiment to see if they affect an outcome.

Multiple Regression

A mathematical method that utilizes multiple predictor variables to forecast the result of a dependent variable.