Answer to Question #157341 in Statistics and Probability for izzah XV

Question

A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester.

Factor

Factor Description

Weight

Barclay

Chester

1

Average community income

0.40

30

20

2

Community growth potential

0.25

40

30

3

Availability of public transportation

0.15

20

20

4

Labor cost

0.20

10

30

Identify which location suitable for his new retail outlet.

Answer 1

Barclay

$$0.40(30)+0.25(40)+0.15(20)+0.20(10)=27$$

Chester

$$0.40(20)+0.25(30)+0.15(20)+0.20(30)=24.50$$

Chester's location is suitable for his new retail outlet.