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Skoda is considering two sites for a new manufacturing plant. The following two attributes will influence the determination of where to build the plant: X1:
Skoda is considering two sites for a new manufacturing plant. The following two attributes will influence the determination of where to build the plant: X1: Cost of the plant (in millions $) X2: Acres of land damaged by building the plant Assume that Skoda's multi-attribute utility function is given by: u1(x1,x2) = 0.7u1(x1) + 0.2u2(x2) + 0.1u1(x1)u2(x2) Where u1(x1) = 0.1 + exp (-0.1x1) uz(x2) = 2.5 2.5exp (0.0006X2 - 0.48) Two locations for the manufacturing plant are under consideration. Location 1 is equivalent to: Location 2 is equivalent to: a) Which location should be chosen? Show your work in submitting an Excel file, annotate it well so that I can easily interpret your results. Skoda is considering two sites for a new manufacturing plant. The following two attributes will influence the determination of where to build the plant: X1: Cost of the plant (in millions $) X2: Acres of land damaged by building the plant Assume that Skoda's multi-attribute utility function is given by: u1(x1,x2) = 0.7u1(x1) + 0.2u2(x2) + 0.1u1(x1)u2(x2) Where u1(x1) = 0.1 + exp (-0.1x1) uz(x2) = 2.5 2.5exp (0.0006X2 - 0.48) Two locations for the manufacturing plant are under consideration. Location 1 is equivalent to: Location 2 is equivalent to: a) Which location should be chosen? Show your work in submitting an Excel file, annotate it well so that I can easily interpret your results
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