Question

Question 4 You need a personal computer (PC) for work. Since your employer will pay for the purchase of the computer you are not concerned about the cost. But you would like to choose based on the ease of use and speed. After considering the brand on the PC market you have identified 7 chooses and allocated the weights shown in the table below to reflect the ease of use and speed. Note the values in the table range between (=worst to 100=best. PC Dell HP Lenovo ASUS ACER COMPAQ Sony Ease of use 100 90 50 0 20 40 85 Speed 30 70 20 40 100 0 55 Plot the values of “ease of use” versus “speed "on a graph and answer the following. (a) What is the efficient frontier and identify which computer brands form the efficient frontier of the plot (point 2)? (b) Assuming your preference for “ease of use” is higher than “speed”, which computer will you choose (point 1)? (c) Assuming your preference for "speed” is higher than "ease of use”, which computer will you choose (point 1)? (d) Assuming you what to maximize both your preference for both “speed” and “ease of use”, which computer will you choose (point 1)?

Answer 1

A. The efficient frontier diagram is shown below.

Speed 100 + Acer 80+ >> HP 60+ Sony 400 Asus Dell Lenovo 20+ Compaq 0 20 40 60 80 100 120 Ease of use

As we can see- Acer, HP and Dell are no efficient frontier.

B. We will use Dell as it has the highest ease of use..

C. We will use Acer has it has the highest Speed.

D. We will choose HP, as it is on efficient frontier and has the highest overall sum of speed+east of use.