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A British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the Midwest, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at Northwestern University. After a preliminary analysis, four cities are chosen for further consideration. They are rated and weighted according to the factors shown below:
Factor
Weight
City
Chicago
Milwaukee
Madison
Detroit
Costs
2.0
8
5
6
7
Need for a facility
1.5
4
9
Staff availability
1.0
Local incentives
0.5
a) Which city should Moodie select?
b) Assume a minimum score of 5 is now required for all factors. Which city should be chosen?
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