Exhibit 14.8 The Following Questions Use the Information Below

question 7

Multiple Choice

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-Refer to Exhibit 14.8. What formula should go in cell G11 and get copied to G12:G13 of the Price worksheet to compute the Consistency Measure?

• A) =MMULT(C4:E4,$F$11:$F$13)
• B) =SUMPRODUCT(C4:E4,$F$11:$F$13)/F11
• C) =MMULT(C4:E4,$F$11:$F$13)/F11
• D) =MMULT(C7:E7,$F$11:$F$13)/F11

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Definitions:

Internal Constraints

Limitations within an organization that restrict options or actions, such as policies, resource availability, or existing structures.

Top Executives

Senior-level managers responsible for overseeing the strategic direction and operation of an organization.

Operating Cost

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.

Technological Efficiency

The optimal use of technology to maximize output or outcomes with minimal waste, effort, or expense.