1. Analyze the difficult decision situation that you identified in Problem 1.9. and structured in Problem 3.21. Be sure to examine alternatives for dominance. Does your analysis sug gest any new alternatives?
2. Stacy Ennis eats lunch at a local restaurant two or three times a week. In selecting a restau rant on a typical workday, Stacy uses three criteria. First is to minimize the amount of travel time, which means that close-by restaurants are preferred on this attribute. The next objec tive is to minimize cost, and Stacy can make a judgment of the average lunch cost at most of the restaurants that would be considered. Finally, variety comes into play. On any given day, Stacy would like to go someplace different from where she has been in the past week.
Today is Monday, her first day back from a two-week vacation, and Stacy is considering the following six restaurants:
|
Sams Pizza
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Distance (WalkingTime)
10
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Average Price($)
3.50
|
|
Sys Sandwiches
|
9
|
2.85
|
|
Bubbas Italian Barbecue
|
7
|
6.50
|
|
Blue China Café
|
2
|
5,00
|
|
The Eating Place
|
2
|
7.50
|
|
The Excel-Soaring Restaurant
|
5
|
9.00
|
a If Stacy considers distance, price, and variety to be equally important (given the range of alternatives available), where should she go today for lunch? (Hints: Don't forget to convert both distance and price to similar scales, such as a scale from 0 to 100. Also, recall that Stacy has just returned from vacation; what does this imply for how the restaurants compare on the variety objective?)
b Given your answer to part a, where should Stacy go on Thursday?