Powell Motors Is Interested in Purchasing New Air Filters for Its

question 16

Multiple Choice

Powell Motors is interested in purchasing new air filters for its automobiles.To select a supplier,the company is to consider two characteristics: reliability and durability.The purchase decision lies on the performance score and importance weight of each characteristic.The performance score with respect to reliability of supplier 1,supplier 2,supplier 3,supplier 4,and supplier 5 are 10,9,8,6,and 7,respectively.The performance score with respect to durability of supplier 1,supplier 2,supplier 3,supplier 4,and supplier 5 are 5,7,8,8,and 6,respectively.The company,however,scores the importance weight of reliability as 9 against the score of 8 for durability.According to the multiattribute model,Powell Motors should select _____.​

• A)​supplier 3
• B)supplier 2
• C)​supplier 1
• D)​supplier 4
• E)​supplier 5

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Definitions:

Phillips Curve Tradeoff

An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment, indicating that reducing inflation may lead to higher unemployment rates.

Fixed Incomes

Financial investments that provide returns in the form of fixed periodic payments and the eventual return of principal at maturity.

Nominal Interest Rate

The real interest rate plus the inflation rate.

Real Interest Rate

The interest rate adjusted for inflation, providing a more accurate measure of the cost of borrowing and the real yield to investors.