You are faced with the decision to recommend the best contractor from a group of 4 bids. The contracts are for a system to automate medical records. Two key attributes have been identified by the proposal evaluation team as influencing the decision: (1) the cost to develop an operational system ($M); and (2) the number of full-time-equivalent personnel (FTEs) to operate and maintain the system (seconds). The five bidding contractors have submitted the information in Table 1.

Table 1. Proposal Data for Container Scanning Systems Proposal Cost ($M)

Proposal	Cost($M)	FTE's
A	14	15
B	6	25
C	18	10
D	4	30

After discussion with the management team, the cost was voted to comprise 60% of the contract value while the number of FTEs was assigned the remaining 40% of the value. As a result, the tradeoff scaling constants for these attributes were set at k1=0.6 and k2=0.4. The team also agrees they are risk neutral with respect to the attributes. Q1: Derive the (linear) utility functions for these attributes. Q2: Using the additive multiattribute decision model, compute the expected utility of each contract. Which is the best choice? Q3: After some consideration and debate with an advisory group, the team must change the tradeoff scaling constants to k1=0.5 and k2=0.8 (FTEs more important). This will require that the expected utilities be recalculated using the multiplicative multiattribute decision model. To do this you must compute the master scaling constant, K. Find the master scaling constant value to three decimal places. Q4: Using the information from Q3, recompute the expected utilities of the proposals. Which is the best choice? Q5: Explain why are they different in less than 50 words? (Dont say because the numbers are different.)