A Company Desires to Locate a New Facility Based on Weighted Scores, Where Should the Company Locate Its

question 157

Multiple Choice

A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 worst to 10 best on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important) . The list of ratings and weights follows. Factor Score Evaluation by Location $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Criterion } & \text { W eight } & \text { A } & \text { B } & C & D \\\hline \text { Wages } & 40 & 4 & 5 & 3 & 7 \\\hline \text { State Govt. P olicies } & 30 & 8 & 5 & 7 & 5 \\\text { Unionism } & 20 & 3 & 4 & 3 & 2 \\\text { Weather } & 10 & 7 & 3 & 6 & 4 \\\hline\end{array}$$ Based on weighted scores, where should the company locate its new facilities?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Random Experiment

An experiment or process for which the outcome cannot be predicted with certainty beforehand.

Mutually Exclusive

Two events that cannot occur at the same time, implying that the occurrence of one event precludes the occurrence of the other.

Collectively Exhaustive

Refers to a set of events that covers all possible outcomes, ensuring that no possibilities are left out.

Equally Likely

A term used in probability to describe outcomes that have the same chance of occurring.