GMAT Focus EditionData InsightsHard
A city planner is evaluating proposals for new public transportation routes. The proposals are scored based on three criteria: Ridership Potential, Environmental Impact, and Cost-Effectiveness. The planner has assigned weights to each criterion: Ridership Potential: 40% Environmental Impact: 35% Cost-Effectiveness: 25% The scores (out of 100) for two proposals, Proposal 1 and Proposal 2, are: Proposal 1: Ridership = 85, Environmental = 70, Cost-Effectiveness = 90 Proposal 2: Ridership = 90, Environmental = 80, Cost-Effectiveness = 65 Which proposal has a higher weighted average score?
- AProposal 1
- BProposal 2
- CBoth proposals have the same weighted average score.
- DCannot be determined without knowing the budget.
Show answer & explanationAnswer & explanation
Correct answer: A. Proposal 1
To calculate the weighted average score, multiply each criterion's score by its corresponding weight and sum the products. Proposal 1: (85 * 0.40) + (70 * 0.35) + (90 * 0.25) = 34 + 24.5 + 22.5 = 81. Proposal 2: (90 * 0.40) + (80 * 0.35) + (65 * 0.25) = 36 + 28 + 16.25 = 80.25. Proposal 1 has a higher weighted average score.
Why the other options are wrong
- B. Proposal 2 has a weighted average score of 80.25.
- C. The weighted average scores are different.
- D. The budget is implicitly covered by the 'Cost-Effectiveness' score and is not needed as a separate piece of information for this calculation.
Weighted Average Scoring
Weighted average scoring assigns different levels of importance (weights) to various criteria when evaluating options, producing a single composite score.
- Each score is multiplied by its weight.
- The sum of weighted scores gives the final composite score.
- Used in decision-making processes to reflect priorities.
Memory trick: Score by Weight, then Sum the Might!