Details Jane is planning to buy a new car for her work as a trader. After narrowing her choices down to three models (X, Y, and Z) within her budget, she is having difficulty in deciding which one to purchase. She has compared each model against one another on the basis of four criteria: price, safety, economy, and comfort. Her comparisons are summarised below: Price Safety Y Y 2 1/4 1/2 1/3 1 4 1 1/4 1/2 Y 1 3 Y 4 1/3 1 2 3 1 Economy Comfort Y Y 1/5 1/5 1/1.5 1 1 1/6 1/5 Y 5 1 Y 6 1 2 5 1.5 1 5 1/2 1 Jane wants to incorporate all of the four criteria into her final decision. However, the criteria are not equally important. The following matrix summarises her comparisons of the importance of the criteria: Criteria Safety 1/5 Price Economy Comfort 1/4 1/1.6 1/2 Price 1 1.7 Safety 5 4 Economy 1/1.7 1/4 1 Comfort 4 1.6 Use analytic hierarchy process to compute the overall score for each car. What do the results suggest?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Jane is planning to buy a new car for her work as a trader. After narrowing her choices down to three models (X, Y, and Z) within her budget, she is having difficulty in deciding which one to purchase. She has compared each model against one another on the basis of four criteria: price, safety, economy, and comfort. Her comparisons are summarised below:

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Jane is planning to buy a new car for her work as a trader. After narrowing her choices down to three
models (X, Y, and Z) within her budget, she is having difficulty in deciding which one to purchase. She
has compared each model against one another on the basis of four criteria: price, safety, economy, and
comfort. Her comparisons are summarised below:
Price
Safety
Y
Y
1/4
1/2
1/3
1
4
1
1/4
1/2
Y
1
3
Y
4
1
1/3
1
2
3
1
Economy
Comfort
Y
Y
1/5
1/1.5
1
1/5
1
1/6
1/5
Y
5
1
Y
1
2
5
1.5
1
1/2
1
Jane wants to incorporate all of the four criteria into her final decision. However, the criteria are not
equally important. The following matrix summarises her comparisons of the importance of the criteria:
Criteria
Price
Safety
Economy
Comfort
Price
1/5
1/4
1/1.6
1.7
Safety
5
1
4
Economy
1/1.7
1/4
1
1/2
Comfort
4
1.6
2
1
Use analytic hierarchy process to compute the overall score for each car. What do the results suggest?
A LO
Transcribed Image Text:Details Jane is planning to buy a new car for her work as a trader. After narrowing her choices down to three models (X, Y, and Z) within her budget, she is having difficulty in deciding which one to purchase. She has compared each model against one another on the basis of four criteria: price, safety, economy, and comfort. Her comparisons are summarised below: Price Safety Y Y 1/4 1/2 1/3 1 4 1 1/4 1/2 Y 1 3 Y 4 1 1/3 1 2 3 1 Economy Comfort Y Y 1/5 1/1.5 1 1/5 1 1/6 1/5 Y 5 1 Y 1 2 5 1.5 1 1/2 1 Jane wants to incorporate all of the four criteria into her final decision. However, the criteria are not equally important. The following matrix summarises her comparisons of the importance of the criteria: Criteria Price Safety Economy Comfort Price 1/5 1/4 1/1.6 1.7 Safety 5 1 4 Economy 1/1.7 1/4 1 1/2 Comfort 4 1.6 2 1 Use analytic hierarchy process to compute the overall score for each car. What do the results suggest? A LO
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