Question: Explore sensitivity to the marginal rates. For example, the marginal rate for economy ( expressed as $ / lb ) seems really high perhaps the
Explore sensitivity to the marginal rates. For example, the marginal rate for "economy" expressed as $lb seems really highperhaps the marginal rate of $ per pound is too large.
Make a plot, with the MRS for $lb on the xaxis and the score for each alternative on the yaxis. Start at MRS $lb and plot the scores at steps of $lb up to the value of $lb
At what value of the marginal rate for $lb currently at $lb does the initially preferred camper no longer rank the highest? You can estimate this from the graph How would your recommendation change at this value?
Another interesting way to visualize the sensitivity of your findings is to take two MRS values at a timethe ones you feel you are the least sure about andor the ones that are most critical to the client. Take the MRS of $cubic foot of interior space and $lb Make an xy plot with each of these MRS values on one axis put $cubic foot on the yaxis, $lb on the xaxis
For $cubic foot, start at $cubic foot and move at $cubic foot increments up to $cubic foot interior space. For $lb start at $lb and move at $lb increments up to $lb overall weight.
On the plot itself see below indicate the most preferred alternative at each xy point on the graph. In the end, the plot will show the regions of MRS values where each alternative is most preferred. You may want to use a color code or shading pattern to show the regions where different campers are the preferred alternative.
Given
Weight: $lb
Convenience: $ for rank improvement.
Safety Rating: $ per rating point.
Interior Space: $ft
Length: $ft
Data in Feet Decimal Format
a b c d e f
Mobility Length: Shorter is Better Economy Weight: Lighter is Betterlb Safety Rating Higher is Better Comfort Interior Dimensions: Larger is Better Convenience Ranking; Best Price Retail Purchase Price: Lower is Better$
Casita
Sport
rPob
Scamp
Maximum
Minimum
Delta MaxMin
Normalization
a b c d e f
Mobility Economy Safety Comfort Convenience Price
Casita
Sport
rPob
Scamp
Normalization With Safety and Comfort AdjustedLower is Better
a b c d e f
Mobility Economy Safety Comfort Convenience Price
Casita
Sport
rPob
Scamp
MRS Calculations
MRSxy MRSxy
EconomyConvenience MRSbe
ComfortMobility MRSda
ComfortConvenience MRSde
PriceSafety MRSfc
EconomyPrice MRSbf
Score Lower is Better and Rank
a b c d e f
Mobility Economy Safety Comfort Convenience Price Total Score Rank
Relative Weight
Normalized Weight
Casita
Sport
rPob
Scamp
Please also explain the steps for creating the plot
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