Question: Using AHP analysis, select the best vacation home based on the four decision criteria and their associated priorities/weights listed below. Vacation property A is a

Using AHP analysis, select the best vacation home based on the four decision criteria and their associated priorities/weights listed below.

Vacation property A is a 3-hour drive from home, has average quality swimming, should be relatively low maintenance (about $500 per summer), with a purchase price of $200,000.

Vacation property B is a 5-hour drive from home, has good quality swimming but will require a little more maintenance (about $725 per summer). Its purchase price is $175,000.

Vacation property C is a four-hour drive from home has great water for swimming but is a little heavy on the maintenance ($1250) per summer. Its purchase price is $300,000.

Using travel time (quantitative), maintenance cost (quantitative) and swimming quality (qualitative) and cost (quantitative) as the four decision criteria, complete an AHP analysis to select the best vacation home: A, B or C. Be sure to complete all consistency ratio (CR) calculations and make adjustments if necessary. Consider a CR less than 0.10 to be sufficiently consistent.

Decision Criteria Priorities/weights:

1. Purchase price = .35

2. Travel time = .25 3.

Maintenance cost = .20 4.

Swimming quality = .20

PLEASE clearly show and explain all work.

Step by Step Solution

3.45 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution Part A Cottage A Cottage B Cottage C Swimming Quality Average 3 Good 5 VGood 8 Trave... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!