Determining wieghts and using tradeoff and AHP. Construct affinty diagram.

2. Home buying example: A decision to buy a home must be made by choosing between 3 alternatives given in the table below Alternatives Cost (S) t () Location Age of appliances miles) (years) 500,0001 400,000 600,000 For location, 3 is the most preferred level. The age of appliances is exponential with midvalue of 3 years and a range of 1-10 years. . The other attributes are linear. The range for cost is $200,000-700,000. The decision maker is indifferent between the following alternatives 400,000 Cost Location 500,000 500,000 600,000 Cost Age of appliances 3 For AHP: Location is 3 times more important than cost, cost is 2 times more important than age of appliance, Location is 4 times more important than age of appliance. a) b) Construct an affinity diagram. For the age of appliances, one of the following single dimensional value functions is correct, which one is it? Why? 1. U(x)=exp(-) 2. UG) -1-exp( c) Determine weights using the tradeoff and AHP (geometric means) methods. d) Deduce the best decision for each one of the weights elicitation methods used in part c