Problem 1

You have just graduated from college and are looking to buy your first car. Money is tight right now, so you are concerned with initial cost as well as ongoing expenses. At the same time, you dont want to drive a slow, outdated car like your parents do. You have narrowed your choices to two vehicles: a Honda Enigma and a Bizzarrini Booster. Based on the following numbers, calculate the value index for each car. Which car provides you with the greatest value?

1. Enter all the data yourself on a blank spreadsheet

2. Perform the value index calculation

3. Write down your choice of car according to the results of the value index

4. Create some space to do another value index calculation, and copy the first one you did into it

5. Change three values as follows:

Reliability	3
Speed and handling	5
Aesthetics	5

1. Calculate the new value index.

2. Does this yield a new choice? Explain why or why not.

DIMENSION IMPORTANCE TO HONDA BIZZARRINI YOU ENIGMA BOOSTER Fuel economy Reliability Speed and 3 2 5 4 2 5 handling Aesthetics 5 After-sales support Purchase price 4 4