Exhibit 14.5
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C, D. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following decision tree has been developed for the problem. The investor has estimated the probability of a declining economy at 40% and an expanding economy at 60%.
-Based on the radar chart of the weighted scores provided below, which of the following interpretations is incorrect?
A) Site A wins on the Sales criteria but is last on the Location criteria.
B) Site C wins on the Security criteria and scores high on the remaining three criteria.
C) Site B scores lowest on each of the four criteria.
D) No site dominates on each of the four criteria.

Question

Exhibit 14.5
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C, D. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following decision tree has been developed for the problem. The investor has estimated the probability of a declining economy at 40% and an expanding economy at 60%. 
-Based on the radar chart of the weighted scores provided below, which of the following interpretations is incorrect? ​  ​
A) Site A wins on the Sales criteria but is last on the Location criteria. 
B) Site C wins on the Security criteria and scores high on the remaining three criteria. 
C) Site B scores lowest on each of the four criteria. 
D) No site dominates on each of the four criteria.

Quizplus · Accepted Answer

The Answer of Exhibit 14.5
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C, D. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following decision tree has been developed for the problem. The investor has estimated the probability of a declining economy at 40% and an expanding economy at 60%. 
-Based on the radar chart of the weighted scores provided below, which of the following interpretations is incorrect? ​  ​
A) Site A wins on the Sales criteria but is last on the Location criteria. 
B) Site C wins on the Security criteria and scores high on the remaining three criteria. 
C) Site B scores lowest on each of the four criteria. 
D) No site dominates on each of the four criteria.

Exhibit 14.5 The Following Questions Are Based on the Information Below