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Value function for attributes

5. Suppose a customer has a two-attribute value function for cars: cost and quality. Cost can range from $5,000 to $10,000 and quality can range from 0 to 10 (a higher score is better). Over these ranges, these two objectives are equally important to the customer. The value functions are both linear. Which car would this customer prefer: car A for $7,000 and quality level 5, or car B for $8,000 and quality level 6? Draw the value functions for the two attributes.

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If both the attributes are equally important, that means that the scale of 0-10 equates to the difference in cost ...

Solution Summary

The solution determines the value function of the two attributes.