Using AHP analysis, select the best vacation home based on the four decision criteria and their associated
Question:
Using AHP analysis, select the best vacation home based on the four decision criteria and their associated priorities/weights listed below.
Vacation property A is a 3-hour drive from home, has average quality swimming, should be relatively low maintenance (about $500 per summer), with a purchase price of $200,000.
Vacation property B is a 5-hour drive from home, has good quality swimming but will require a little more maintenance (about $725 per summer). Its purchase price is $175,000.
Vacation property C is a four-hour drive from home has great water for swimming but is a little heavy on the maintenance ($1250) per summer. Its purchase price is $300,000.
Using travel time (quantitative), maintenance cost (quantitative) and swimming quality (qualitative) and cost (quantitative) as the four decision criteria, complete an AHP analysis to select the best vacation home: A, B or C. Be sure to complete all consistency ratio (CR) calculations and make adjustments if necessary. Consider a CR less than 0.10 to be sufficiently consistent.
Decision Criteria Priorities/weights:
1. Purchase price = .35
2. Travel time = .25 3.
Maintenance cost = .20 4.
Swimming quality = .20
PLEASE clearly show and explain all work.
Expert Answer:
Solution Part A Cottage A Cottage B Cottage C Swimming Quality Average 3 Good 5 VGood 8 Trave... View the full answer
