14) A company is choosing an outside firm to provide its payroll services. It ha
ID: 466201 • Letter: 1
Question
14)
A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen?
Provider A
Provider B
Provider C
Client reviews
2
6
10
Financial condition
8
4
2
IT capabilities
5
8
2
Government stability
3
1
2
Provider A
Provider B
Provider C
Client reviews
2
6
10
Financial condition
8
4
2
IT capabilities
5
8
2
Government stability
3
1
2
Explanation / Answer
Answer:
weights - 30%= 0.3, 10%= 0.1, 20%= 0.2, and 40%= 0.4,
Provider A: 2(.3) + 8(.1) + 5(.2) + 3(.4) = 3.6
Provider B: 6(.3) + 4(.1) + 8(.2) + 1(.4) = 4.2
Provider C: 10(.3) + 2(.1) + 2(.2) + 2(.4) = 4.4
Since a high score implies best performance in this problem, Provider C should be chosen.
I hope your question is addressed is satisfactorily.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.