22) [20 points] Suppose that several potential projects can be described by their Cost, Profit potential, Risk, and Time to Market. Suppose further that each of these criteria can be can be scored 1, 2, or 3 corresponding to the constructs of poor, medium, and excellent, respectively. For example a project that is assigned a risk rating of 1 has poor (high) risk and a project with a risk rating of 3 has excellent (low) risk- a bigger number is always better, regardless of criteria. Finally, suppose a decision maker assigns weights of 1, 4, 7, and 9 respectively to the criteria, Le. cost is least important and time to market is most important. Finally, suppose four projects are scored as follows: Project Cost Profit Potential Risk Time to Market A 1 13 C 3. 1 1 1 123 2 323

22)_[20 points) Suppose that several potential projects can be described by their Cost, Profit potential Risk, and Time to Market. Suppose further that each of these criteria can be can be scored 1. 2 or 3 corresponding to the constructs of poor, medium, and excellent respectively. For example a project that is assigned a risk rating of 1 has poor (high) risk and a project with a risk rating of 3 has excellent (low) risk-a bigger number is always better, regardless of criteria. Finally, suppose a decision maker assigns weights of 1,4,7, and 9 respectively to the criteria, i.e. cost is least important and time to market is most important. Finally, suppose four projects are scored as follows: Project A B D Cost 3 2 3 1 Profit Potential 1 2 3 1 Risk 1 2 3 2 Time to Market 2 3 1 3 a) Scale the weights so that they sum to one. Record you answer and explain how it was derived below: Ans b) Based on (scaled) weighted scores, which Project is the best alternative? Explain Show how you arrived at your answer. Ans: Optional: Paste any spreadsheet results here: c) Without considering weights, are any of the projects either dominant or dominated? Explain Show how you arrived at your answer. Ans Without considering weights, are any of the projects either dominant or dominated? Explain/Show how you arrived at your answer. Ans. d) Without considering weights, which project is best from a maximin approach? Explain/Show how you arrived at your answer. Ans: e) When weights are applied, which project is best from a maximin approach? Explain/Show how you arrived at your answer Ans