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Subway, with more than 20,000 outlets in the U.S., is planning for a new restaur

ID: 372284 • Letter: S

Question

Subway, with more than 20,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site.

  

Factor

Weight

Maitland

Baptist Church

Northside Mall

Space

0.35

55

75

75

Costs

0.25

45

80

25

Traffic density

0.20

55

80

65

Neighborhood income

0.15

50

70

35

Zoning laws

.05

80

25

90

find the average weighted score, multiply the score by the weights for each factor, total the score, and divide by the sum of the weights.

a) The weighted average score for

Maitland

=

(round your response to two decimal places).

The weighted average score for

Baptist Church

=

69.2569.25

(round your response to two decimal places).

The weighted average score for

Northside Mall

=

(round your response to two decimal places).

Choose the location with the highest score.

Based on the given information, the best location in Buffalo for Subway to open the new restaurant is

Baptist Church

.

b) If the weights for Space and Traffic density are reversed, how would this affect the decision?

To find the average weighted score, multiply the score by the weights for each factor, total the score, and divide by the sum of the weights.

The weighted average score for

Maitland

=

(round your response to two decimal places).

The weighted average score for

Baptist Church

=

(round your response to two decimal places).

The weighted average score for

Northside Mall

=

(round your response to two decimal places).

Choose the location with the highest score.

Based on the given information, the best location in Buffalo for Subway to open the new restaurant is

Baptist Church

Maitland

Northside Mall

.

Factor

Weight

Maitland

Baptist Church

Northside Mall

Space

0.35

55

75

75

Costs

0.25

45

80

25

Traffic density

0.20

55

80

65

Neighborhood income

0.15

50

70

35

Zoning laws

.05

80

25

90

Explanation / Answer

1)

a) Score for Maitland = 0.35*55 + 0.25*45 + 0.2*55 + 0.15*50 + 0.05*80 = 53.00

b) Similarly for Baptist church = 0.35*75 + 0.25*80 + 0.2*80 + 0.15*70 + 0.05*25 = 74

c) Northside Mall = 0.35*75 + 0.25*25 + 0.2*65 + 0.15*35 + 0.05*90 = 55.25

d) Best is Baptist church

2)

a) Score for Maitland = 0.2*55 + 0.25*45 + 0.35*55 + 0.15*50 + 0.05*80 = 53.00

b) Similarly for Baptist church = 0.2*75 + 0.25*80 + 0.35*80 + 0.15*70 + 0.05*25 = 74.75

c) Northside Mall = 0.2*75 + 0.25*25 + 0.35*65 + 0.15*35 + 0.05*90 = 53.75

d) Best is Baptist church

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