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Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York.

FACTOR

WEIGHT

PHILADELPHIA

NEW YORK

Customer convenience

.25

70

80

Bank accessibility

.20

40

90

Computer support

.20

85

75

Rental costs

.15

90

55

Labor costs

.10

80

50

Taxes

.10

90

50

The factor ratings (higher scores are better) for the two cities are given in the following table. In which city should Northeastern locate?

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