Matthew:

This is the response that I received from the professor on the problem you solved for me. It appears that the calculations are correct, but I have no way of really knowing if you understood because there are no explanations. Can you please provide explanations for this problem. I need this information by 6:00 pm on Saturday to get a grade for it.

Thanks

criteria	In house	privatization	county	Total
cost	400	500	300	1200
quality	low	medium	high
turnaround	45	60	30	135
total	445	560	330	1335

1. Expected value Table

	low	medium	high
alternative	In-house	privatization	county
cost	400	503.37	296.63
turnaround	45	56.63	33.37

Expected value for cost in in-house = 1200*445/1335

For privatization *560/1335 .37

For county *330/1335 .63

Same computation formula applies for quality

2. Weighted score table

In-house Privatization county

Criteria/ score	Total score	score	W.S	score	W.S	score	W.S
cost	20	10	200	5	100	10	200
Quality	10	5	50	5	50	5	50
turnaround	10	5	50	10	100	5	50
Total	40		400		250		300

W.S is the weighted score

W.S for cost in in-house *10

Privatization *5

County *10

This formula applies to both quality and turnaround

Therefore weighted score table will be;

Criteria/ alternative	In-house	privatization	county
cost	200	100	200
quality	50	50	50
turnaround	50	100	50
total	400	250	300

3. Break even analysis

Criteria	In-house	privatization	county	total
cost	300	300	400	1000
Turn around	30	40	30	100
quality	low	medium	high

At break even the alternatives will have equal chances of occurrence which is 1/3

Therefore,

Breakeven in-house

330*(1/3)

Privatization

340*(1/3) .33

County

430*(1/3) .33