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ased on the given information, the best location for Northeastern Insurance Company to open the office is with a total weighted score of (Enter your response rounded to two decimal places.)

ased on the given information, the best location for Northeastern Insurance Company to open the office is with a total weighted score of (Enter your response rounded to two decimal places.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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### Selecting the Best Office Location for Northeastern Insurance Company Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York. The factor ratings (higher scores are better) for the two cities are given in the following table. #### Factors for Consideration | Factor | Weight | Philadelphia | New York | |------------------------|--------|--------------|----------| | Customer convenience | 0.25 | 70 | 80 | | Bank accessibility | 0.20 | 35 | 85 | | Computer support | 0.20 | 90 | 75 | | Rental costs | 0.15 | 95 | 55 | | Labor costs | 0.10 | 85 | 45 | | Taxes | 0.10 | 95 | 55 | #### Analysis The table above outlines six factors, each with a given weight, and the corresponding ratings for both Philadelphia and New York. The weights indicate the relative importance of each factor in the decision-making process. 1. **Customer Convenience:** Weighted at 0.25, New York scores higher than Philadelphia. 2. **Bank Accessibility:** Weighted at 0.20, New York scores significantly higher than Philadelphia. 3. **Computer Support:** Also weighted at 0.20, Philadelphia outperforms New York. 4. **Rental Costs:** Weighted at 0.15, Philadelphia scores much higher than New York. 5. **Labor Costs:** Weighted at 0.10, Philadelphia has a better score. 6. **Taxes:** Weighted at 0.10, Philadelphia again scores higher. #### Decision Based on the given information, the best location for Northeastern Insurance Company to open the office is **____________**, with a total weighted score of **____________**. *(Enter your response rounded to two decimal places.)* To determine the best location, calculate the total weighted scores for both Philadelphia and New York by multiplying each city's score by the corresponding weight and summing the results. For Philadelphia: \( \text{Total Weighted Score} = (70 \times 0.25) + (35 \times 0.20) + (90 \times 0.20) + (95 \times 0.15) + (85 \times 0.10) + (
Transcribed Image Text:### Selecting the Best Office Location for Northeastern Insurance Company Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York. The factor ratings (higher scores are better) for the two cities are given in the following table. #### Factors for Consideration | Factor | Weight | Philadelphia | New York | |------------------------|--------|--------------|----------| | Customer convenience | 0.25 | 70 | 80 | | Bank accessibility | 0.20 | 35 | 85 | | Computer support | 0.20 | 90 | 75 | | Rental costs | 0.15 | 95 | 55 | | Labor costs | 0.10 | 85 | 45 | | Taxes | 0.10 | 95 | 55 | #### Analysis The table above outlines six factors, each with a given weight, and the corresponding ratings for both Philadelphia and New York. The weights indicate the relative importance of each factor in the decision-making process. 1. **Customer Convenience:** Weighted at 0.25, New York scores higher than Philadelphia. 2. **Bank Accessibility:** Weighted at 0.20, New York scores significantly higher than Philadelphia. 3. **Computer Support:** Also weighted at 0.20, Philadelphia outperforms New York. 4. **Rental Costs:** Weighted at 0.15, Philadelphia scores much higher than New York. 5. **Labor Costs:** Weighted at 0.10, Philadelphia has a better score. 6. **Taxes:** Weighted at 0.10, Philadelphia again scores higher. #### Decision Based on the given information, the best location for Northeastern Insurance Company to open the office is **____________**, with a total weighted score of **____________**. *(Enter your response rounded to two decimal places.)* To determine the best location, calculate the total weighted scores for both Philadelphia and New York by multiplying each city's score by the corresponding weight and summing the results. For Philadelphia: \( \text{Total Weighted Score} = (70 \times 0.25) + (35 \times 0.20) + (90 \times 0.20) + (95 \times 0.15) + (85 \times 0.10) + (
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