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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

A manager scores two machines on criteria weighted Cost 5, Quality 3 and Service 2, using ratings out of 10. Machine P scores 6, 9, 8 and Machine Q scores 8, 5, 7 respectively on Cost, Quality and Service. What are the weighted totals and the best choice?

Machine P scores 73 (5×6 + 3×9 + 2×8) and Machine Q scores 69 (5×8 + 3×5 + 2×7). Since the weighted total is higher for P, the manager should choose Machine P under the weighted-criteria evaluation.

  1. AP = 73, Q = 69; choose PCorrect
  2. BP = 73, Q = 69; choose Q
  3. CP = 69, Q = 73; choose Q
  4. DP = 23, Q = 20; choose P

Explanation

P = 5×6 + 3×9 + 2×8 = 30 + 27 + 16 = 73. Q = 5×8 + 3×5 + 2×7 = 40 + 15 + 14 = 69. The higher weighted score belongs to P, so P is chosen. Option 4 gives unweighted sums, ignoring the weights.

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