What Is the Difference Between Equal Weighting and Unequal Weighting

question 56

Essay

What is the difference between equal weighting and unequal weighting of performance criteria? When might unequal weighting be a better choice for a criterion?

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Definitions:

Marginal

Pertaining to small changes or differences in a firm's output or in the amount of a product consumed, often related to decisions about whether to increase or reduce production or consumption.

Trade-off

A trade-off involves a sacrifice that must be made to obtain a certain product, service, or experience, understanding that choosing one option usually means forgoing another.

Society

A community of people living together in an organized way, making decisions about how to do things and sharing the work that needs to be done.

Rational People

People who systematically and purposefully do the best they can to achieve their objectives.