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Restaurant considering opening a new facility

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

Factor Weight Gary Mall Belt Line
Affluence of local population .20 30 30
Traffic flow .40 50 20
Parking availability .20 30 40
Growth potential .20 10 30

The score for Gary Mall is _____ and the score for Belt Line is ______.

Solution Preview

To solve this problem, use factor analysis. You need to multiple the weight of each factor times the score for each site. Then add up the for scores.

Gary Mall
(.20)(30) + (.40)(50) + (.20)(30) ...

Solution Summary

I show two ways to solve the problem in detail using factor analysis.

$2.19