Meaningful weights for evaluating alternatives

Reference no: EM13981545

1. Explain why proportional scores represent a risk attitude that is risk-neutral.

2. An MBA student evaluating weather outcomes for an upcoming party has concluded that a sunny day would be twice as good as a cloudy day, and a cloudy day would be three times as good as a rainy day. Use these assessments to calculate utilities that range from 0 to 1 for sunny, rainy, and cloudy days.

3. Explain in your own words why swing weights produce meaningful weights for evaluating alternatives.

4. A decision maker is assessing weights for two attributes using the swing-weight method. When he imagines swinging the attributes individually from worst to best, he concludes that his improvement in satisfaction from Attribute A is 70% of the improvement from swinging Attribute B. Calculate kA and kB.

Reference no: EM13981545

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