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Exercises 59
Package Ease of use Facilities available
Super Quill 100 30
Easywrite 90 70
Wordright 50 20
Lexico 0 40
Ultraword 20 100
Keywrite 40 0
Fastwrite 85 55
(a) Plot each package’s value for ‘ease of use’ and ‘facilities available’
on a graph and hence determine the packages which lie
on the efficient frontier.
(b) Suppose that you judge that a switch from a package with the
least facilities available to one with the most facilities is only
60% as attractive as a switch from a package which is the least
easy to use to one which is the most easy to use. Assuming
that mutual preference independence exists between the two
attributes, which package should you choose?
(c) After some reflection you realize that the extra facilities available
on a package will be of little value to you if they are going
to be difficult to use. What does this imply about your method
of analysis in (b)?
(3) A chemical company is expanding its operations and a disused
woollen mill is to be converted into a processing plant. Four
companies have submitted designs for the equipment which will
be installed in the mill and a choice has to be made between
them. The manager of the chemical company has identified three
attributes which he considers to be important in the decision: ‘cost’,
‘environmental impact’ and ‘reliability’. He has assessed how well
each design performs on each attribute by allocating values on a
scale from 0 (the worst design) to 100 (the best). These values are
shown below, together with the costs which will be incurred if a
design is chosen.
Design Cost ($)
Benefits
Environmental
impact Reliability
A 90 000 20 100
B 110 000 70 0
C 170 000 100 90
D 60 000 0 50