a$-$ Which evaluation method is used here

b$-$ What is the main weakness about the result?Paco Menendes

Paco Menendes ran a computer store in the Mexican city of Guadalajara.

In his spare time he did some system development, and in $2005$ he

designed a simple system for monitoring the movement of drivers and

ensuring that they complied with legal requirements for working hours

and rest periods. He had limited resources to market this system, and his

main options were to market the system locally, sell nationally through a

website, enter a partnership with an established software company, or sell

the rights. His returns depended on demand, which he described as high,

medium or low. Using this simple model he designed the pay$-$off matrix of

potential annual gains $($in thousands of dollars$)$ shown in Table $2\mathrm{.}4.$

Table $2\mathrm{.}4$ Pay$-$off matrix of potential annual gains for Paco Menendes

He looked for a balance between the best and worst outcomes for

each alternative, but put slightly more weight on the worst outcome by

calculating:

$0\mathrm{.}4$ best outcome $+0\mathrm{.}6$ worst outcome

The results suggested that his best option was to sell through a website.

However, when he explored the options more carefully, other consider$-$

ations appeared and he decided to go into partnership with a national

software supplier.