Question: She feels that rent is absolutely the most important factor to be considered, although walk-in traffic is 80% as important as rent. Further, the more

She feels that rent is absolutely the most important factor to be considered, although walk-in traffic is 80% as important as rent. Further, the more distant the new store is from her two existing stores, the better. She weights this factor to be 70% as important as walk-in traffic. Katie developed the following table, in which she graded each site from A to D, with A being best. Which site is preferable?

Downtown

Shopping Mall

Coral Gables House

Rent

C

D

B

Walk-in traffic

C

B

D

Distance from existing stores

C

B

A

To aid in this analysis, we assign a rating to each grade.

Grade

Rating

A

4

B

3

C

2

D

1

Calculate the average weighted score for each location. Assume the weight for rent is 1.

a) The average weighted score for Downtown is ____ (round your response to two decimal places).

b) The average weighted score for Shopping Mall ____ (round your response to two decimal places).

c) The average weighted score for Coral Gables House ____ (round your response to two decimal places).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!