Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-Refer to Exhibit 14.8. What formula should go in cell G11 and get copied to G12:G13 of the Price worksheet to compute the Consistency Measure?
A) =MMULT(C4:E4,$F$11:$F$13)
B) =SUMPRODUCT(C4:E4,$F$11:$F$13)/F11
C) =MMULT(C4:E4,$F$11:$F$13)/F11
D) =MMULT(C7:E7,$F$11:$F$13)/F11

Question

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.  
-Refer to Exhibit 14.8. What formula should go in cell G11 and get copied to G12:G13 of the Price worksheet to compute the Consistency Measure?
A) =MMULT(C4:E4,$F$11:$F$13) 
B) =SUMPRODUCT(C4:E4,$F$11:$F$13)/F11 
C) =MMULT(C4:E4,$F$11:$F$13)/F11 
D) =MMULT(C7:E7,$F$11:$F$13)/F11

Quizplus · Accepted Answer

The Consistency Measure formula in AHP is the Weighted Average Check (WAC), which is calculated by dividing the matrix product of the weight matrix and the pairwise comparison matrix by the weight vector. The correct formula for cell G11 and get copied to G12:G13 is =MMULT(C4:E4,$F$11:$F$13)/F11. This will calculate the WAC for each criterion and is the best choice.

Exhibit 14.8 The Following Questions Use the Information Below