Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A medical clinic is considering 3 sites for the location of its new clinic. It has collected the following information. The scores for the non-financial

A medical clinic is considering 3 sites for the location of its new clinic. It has collected the following information. The scores for the non-financial data are on a 0-3 scale with three being best. It is possible to score a 3.0 for any of these factors.

Factor Factor Weight Site A Site B Site C
Building Cost 0.35 $3.5 million $4.0 million $5 million
Road Access 0.25 1.5 3.0 2.4
Bus Access 0.15 3.0 1.8 1.2
Safety 0.20 1.2 2.4 3.0
Site Size 0.05 2.4 1.2 2.4

A) Using the factor scoring (factor rating) which site do you recommend? Why?

B) Suppose that the clinic wants to add another factor, Profit, to its analysis. This factor would be assigned a weight of 0.20 by reducing the road access factor weight to 0.05. The values of the profit for each site are as follows:

Site A: $6.0 million Site B: $4.0 million Site C: 3.0 million

Using the factor scoring method with this additional information, which site is now recommended? Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Broadcasting Finance In Transition

Authors: Jay G. Blumler, T. J. Nossiter

1st Edition

0195050894, 978-0195050899

More Books

Students also viewed these Finance questions

Question

Evaluate the importance of the employee handbook.

Answered: 1 week ago

Question

Discuss the steps in the progressive discipline approach.

Answered: 1 week ago