Question

A simple scoring model is used to decide among three projects that we'll call A, B, and C. The total score for project A is 30, for project B is 20, and for project C is 10. Which of the following statements is best?
A) If project A is successfully completed, it will yield three times the benefits that project C would have provided.
B) If project C is chosen, the company would benefit only half as much as if they had chosen project B.
C) Project C is better than project B for this company at this point in time.
D) Project A is better than project B for this company at this point in time.

Answer 1

Answer: D) Project A is better than project B for this company at this point in time.

Explanation:

Option D is the best option because we do not know that the basis for the scoring model directly translates to earnings. The scoring of Project A at 30 does not necessarily mean that it's expected to earn those amounts of revenue and therefore triple that of Project C. We do not know because the information is not complete.

What we do know is that A has the highest score out of all projects and this is why it is better to do Project A as opposed to Project B.