Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 14, Problem 1P
To determine

Ranking the alternatives.

Expert Solution & Answer
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Explanation of Solution

The important attributes need to consider before purchasing a car are stylish design, fuel economy, price of the car, maintenance cost per 1,000 miles, and useful life.

Table 1 shows the information regarding three alternative cars.

Table 1

 Alternative
Attributes123
Stylish designExcellentGoodPoor
Fuel economy283130
Price50,00048,00047,000
Maintenance cost per 1,000 miles200210215
Useful life554.8

An attribute can be ranked (Higher rating is preferable) by using the following formula:

Rating=Outcomebeing madeworstoutcomeBestoutcomeworstoutcome        (1)

An attribute can be ranked (Lower rating is preferable) by using the following formula:

Rating=Worstoutcomeoutcomebeing madeWorstoutcomeBestoutcome        (2)

Substitute the respective values in Equation (1) to calculate the rank of fuel economy for alternative 1.

Rating=28283128=03=0

The rating is 0.

Table 2 shows the rating of attributes for respective alternatives, which are obtained by using Equations (1) and (2).

Table 2

 Alternative
Attributes123
Stylish design10.50
Fuel economy010.67
Price00.671
Maintenance cost per 1,000 miles10.330
Useful life0.0910

The highlighted value indicate the best alternative for specific attributes.

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