Question: Problem 3 ( 3 0 Points ) A highway project under consideration has three major factors for decision making: 1 ) initial construction cost, 2

Problem 3(30 Points)
A highway project under consideration has three major factors for decision making: 1) initial
construction cost, 2) commuter time savings, and 3) residential displacement. Their range
appears to be:
Initial construction cost: $ 0<= C <= $6,000,000
Commuter time savings: 0 hrs/day <= S <=800 hrs/day
Residential displacement: 0<= D <=50 families
You have determined the single attribute utility for each of the three objectives: Cost (C),
Time savings (S) and Residential displacement (D) as:
U
0
You have also find that kC =0.5
kS =0.6
kD =0.7
Determine which of the following project is preferred using multi-attributes utility formula:
(a)(C, S, D)=(4,000,000,500,20) or
(b)(C, S, D)=(5,000,000,300,15)

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