A School District Is Considering Four Locations for a New

question 56

Essay

A school district is considering four locations for a new high school. There are four factors the district is considering (Cost of land, distance to students, land size, and traffic flow). The district would like to compare results using two weighting systems. The first system would give each factor equal weight and the second would give the factors weights of .4, .2, .1, and .3 respectively. Fill in the missing information in the table and then use the factor rating method to determine which location is best for each weighting system.
$$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Factor } & \text { W(1) } & \text { W(2) } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { Cost of Land } & \mathbf { 1 } & \mathbf { 4 } & 10 & 20 & 25 & 5 \\\hline \text { Distance to Students } & \mathbf { 1 } & \mathbf { 2 } & 30 & 25 & 15 & 20 \\\hline \text { Land Size } & \mathbf { 1 } & \mathbf { 1 } & 5 & 10 & 20 & 40 \\\hline \text { Traffic Flow } & \mathbf { 1 } & \mathbf { 3 } & 20 & 5 & 15 & 30 \\\hline\end{array}$$

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Definitions:

Workers

Individuals engaged in physical or mental effort aimed at producing goods or providing services in exchange for wages.

Perfect Competitor

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, and no single firm can influence the market price.

Imperfect Competitor

An entity in a market that does not hold enough power to dictate the conditions of the market but can influence the price and output of its goods to some extent.

MRP

Marginal Revenue Product, the additional revenue generated from employing one more unit of a factor of production.