GMAT Focus EditionData InsightsMedium
A city planning committee is evaluating three proposals for a new public park development: Proposal X, Proposal Y, and Proposal Z. Each proposal is scored on three criteria: Environmental Impact, Community Benefit, and Cost. The committee has assigned weights to each criterion: Environmental Impact (40%), Community Benefit (35%), and Cost (25%). Scores (out of 100): Proposal X: Environmental 85, Community 90, Cost 70 Proposal Y: Environmental 90, Community 80, Cost 75 Proposal Z: Environmental 80, Community 95, Cost 80 Which proposal has the highest weighted average score?
- AProposal Z
- BProposal Y
- CProposal X
- DProposals X and Z have the same highest score
Show answer & explanationAnswer & explanation
Correct answer: A. Proposal Z
Calculate the weighted average score for each proposal. Proposal X: (0.40*85) + (0.35*90) + (0.25*70) = 34 + 31.5 + 17.5 = 83. Proposal Y: (0.40*90) + (0.35*80) + (0.25*75) = 36 + 28 + 18.75 = 82.75. Proposal Z: (0.40*80) + (0.35*95) + (0.25*80) = 32 + 33.25 + 20 = 85.25. Proposal Z has the highest weighted average score.
Why the other options are wrong
- B. Proposal Y has a weighted score of 82.75, which is the lowest.
- C. Proposal X has a weighted score of 83, which is not the highest.
- D. Proposals X and Z do not have the same highest score; Z is higher.
Weighted Average Score
A weighted average score is an average where some values contribute more than others to the final result. Each value is multiplied by a weight, and the products are summed and divided by the sum of the weights.
- Assigns different importance to different criteria.
- Calculated as Σ(weight * score) / Σ(weights).
- Useful for multi-criteria decision making.
Memory trick: Weighted scores help us decide, giving more power to what's truly applied.