An individual was interested in determining which of two stocks to invest in, Central Computing Company (CCC) or Software Research, Inc. (SRI). The criteria thought to be most relevant in making the decision are the potential yield of the stock and the risk asso- ciated with the investment. The pairwise comparison matrixes for this problem are
|
Criterion
|
|
Yield
|
|
Risk
|
|
|
Yield
|
Risk
|
|
CCC
|
SRI
|
|
CCC
|
SRI
|
|
Yield
|
1
|
2
|
CCC
|
1
|
3
|
CCC
|
1
|
¹⁄2
|
|
Risk
|
¹⁄2
|
1
|
SRI
|
¹⁄3
|
1
|
SRI
|
2
|
1
|
a. Compute the priorities for each pairwise comparison matrix.
b. Determine the overall priority for the two investments, CCC and SRI. Which invest- ment is preferred based on yield and risk?