Logical Decisions - Classweb

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Figure 7-6. Assessment matrix for Analytic Hierarchy Process. In this matrix, the rows and columns both represent alternatives. The cells in the matrix represent the performance ratio of the row alternative to the column alternative. Since the ratio of an alternative to itself must be one, LDW does not need to show the ratios on the diagonal of the matrix. Instead, LDW uses the diagonal cells to show the current utility for each alternative based on the assessment so far. Initially, LDW assumes that all of the alternatives have equal performance, so that all the ratios off the diagonal equal one. To complete the assessment for the Analytic Hierarchy Process method, you need to enter the ratio for each possible pair of alternatives. This means you need to enter a ratio in each nondiagonal cell in the matrix. Since each pair appears twice in the matrix (once above the diagonal and once below it), you only need to enter ratios for the cells above the diagonal. LDW automatically enters the proper ratio in the corresponding cell below the diagonal. You enter the ratios between alternatives by highlighting the cell you want to enter and typing in the appropriate ratio. You can get help with this by double clicking the cell. When you do this, you will see a dialog box like the one in Figure 7-7. 7-16 Section 7 -- Using LDW 2: Assessing
Figure 7-7. Dialog box for defining the relative performance of two alternatives. This dialog box helps you define the relative performance (or importance) of the two alternatives using terms created by the developers of the AHP approach. To set a ratio in the dialog box, first click on the radio button at the top of the dialog box that best describes the order of the alternatives. Next click on the performance ratio ("importance strength") that best describes the ratio of performance of the better performing alternative to the other alternative. You may find the descriptions associated with the odd numbered ratios helpful in doing this. Once you have selected an ordering and a performance ratio, click OK and LDW will enter the proper ratio in the active cell. After you have entered a ratio, LDW uses the AHP computation process to compute a new set of utilities for the alternatives. LDW shows the computed utilities in the diagonal cells. LDW marks cells where you have entered performance ratios in blue. Your assessment will be complete when all the nondiagonal cells in the matrix are marked in blue. Section 7 -- Using LDW 2: Assessing 7-17
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Logical Decisions Decision Support
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Table of Contents Table of Contents
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Assessing Weights with Weight Ratio
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Assessing Interactions Between Meas
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Introduction Real decisions aren't
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S E C T I O N Requirements and Inst
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"Logical Decisions". This program g
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Quick Start Introduction This secti
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Defining goals and measures. In LDW
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Figure 3-1. The SUF for "Years of E
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weights of the measures. All of the
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S E C T I O N Basic Tutorial 4
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Figure 4-1. Tutorial overview. 4-2
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Now lets make sure the alternatives
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Assume you have decided that you wi
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Next we will enter the measures for
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Defining Preferences The alternativ
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1. Select the Assess::Common Units
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almost equally unacceptable, while
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1. Select the Assess::Common Units
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When you do this, the tradeoff grap
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1. Select "Performance" and "Price"
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8. Click on the "Equal" button to t
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Figure 4-11. Display generated by R
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Figure 4-13. Overall ranking for tr
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Figure 4-15. Graph showing sensitiv
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You can see the completed introduct
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Advanced Tutorial This tutorial sec
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Probabilities There is a problem wi
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This information indicates that the
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A uniform distribution is defined b
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On the left is a list of the possib
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Figure 5-2. Example of Results::Unc
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screen a large database for the alt
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9. LDW will ask if you want to appe
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commit to buying their truck before
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see that the rankings for all the a
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S E C T I O N Using LDW 1: Structur
Page 84 and 85: The Edit::Insert option. The Insert
Page 86 and 87: ! Summary -- view a dialog box that
Page 88 and 89: structure like an organization char
Page 90 and 91: If you check the Show Assessment St
Page 92 and 93: saves it for later pasting. When yo
Page 94 and 95: You can create a new Matrix view by
Page 96 and 97: The quick entry view shows the alte
Page 98 and 99: Structuring Goals The goals in an L
Page 100 and 101: these two fields to describe each m
Page 102 and 103: the hierarchy. In the Matrix view,
Page 104 and 105: ! Point Estimate -- use a single nu
Page 106 and 107: Figure 6-12. Example of a measure l
Page 108 and 109: Figure 6-14. Example of a measure l
Page 110 and 111: pass, LDW replaces each probabilist
Page 112 and 113: Figure 6-17. Dialog box for definin
Page 114 and 115: Figure 6-18. Measure Category Dialo
Page 117: S E C T I O N Using LDW 2: Assessin
Page 120 and 121: measure utility functions for the g
Page 122 and 123: information as possible when you ch
Page 124 and 125: measures with categories require mu
Page 126 and 127: The "Reset" button deletes any asse
Page 128 and 129: You can change the shape of the cur
Page 130 and 131: Figure 7-4. Utility Assessment Scre
Page 132 and 133: very different from the average of
Page 136 and 137: You can, however, leave the assessm
Page 138 and 139: properties dialog box can be select
Page 140 and 141: the same level. LDW provides a grap
Page 142 and 143: options in the Hierarchy menu to ad
Page 144 and 145: The check box labeled "Allow Repres
Page 146 and 147: Next you will see a tradeoff assess
Page 148 and 149: The Tradeoff::Use Alternatives to S
Page 150 and 151: Figure 7-13. Example of Direct Entr
Page 152 and 153: You can think of the importance num
Page 154 and 155: Figure 7-15. Assessment Screen for
Page 156 and 157: When you have selected two members
Page 158 and 159: ("importance strength") that best d
Page 160 and 161: clicking on the "Initialize" button
Page 162 and 163: Set a Small k. The Enter Small k op
Page 164 and 165: select the tradeoff you would like
Page 166 and 167: Figure 7-18. Effects of consistency
Page 169 and 170: Using LDW 3: Reviewing Results Intr
Page 171 and 172: The curve shows how the utility fun
Page 173 and 174: The tradeoff graph has one measure
Page 175 and 176: When you select the option, you are
Page 177 and 178: the relative weights of the "Price"
Page 179 and 180: epresents a computer alternative wi
Page 181 and 182: Figure 8-11. Example of Review::Ass
Page 183 and 184: e true even if the measure has a ve
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an analysis are included in exactly
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Graph Weights The Graph Weights dis
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Figure 8-16. Results::Rank Alternat
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Figure 8-18. Dialog box for Results
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You can use the measure equivalents
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simulation for each alternative usi
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Sensitivity Graphs Sensitivity grap
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You can view a sensitivity table by
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Figure 8-28. Example of Results::Sc
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Figure 8-30. Example of Results::Sc
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In the dialog box, you are asked to
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Figure 8-34. Dialog box for Results
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Graph an Alternative The graph an a
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Figure 8-38. Example of Results::Gr
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Finally, the two radio buttons on t
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Figure 8-43. Example of Results::Co
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Printing and Saving Windows You can
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The dialog box will show you the fi
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Figure 8-45. Dialog box for Edit::C
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Changing the range for utility. You
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Figure 8-50. Dialog box for Prefere
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the current color for that type of
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copies the selected objects to the
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analysis with the skeleton analysis
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Figure 8-55. Dialog box for File::I
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the other measures. The measure nam
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The idea of the Import Structure op
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Next, LDW asks you if it should app
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Other Options utility function for
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In addition, the Window menu contai
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In Depth Introduction This section
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A third example is a portfolio deci
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Each alternative has a raw score (c
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into more specific goals continues
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Measures in LDW You define measures
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computed measure levels to common u
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Converting the Measures to Common U
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Figure 9-2. Example of linear (stra
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For an example of the mid-level spl
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Since U(L0) = U(80) = 0 and U(L1) =
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Figure 9-5. Summary of SUF assessme
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describe two alternatives: A, which
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with equal chances of 40 and 70 per
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In the original formulation of the
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1 Equal Importance Two activities c
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You begin the process by selecting
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Figure 9-7. Effects of goals with a
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0.5. Then the weight assigned to "P
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! You can use the "Smarter Method"
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allocates this weight before comput
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nth root of the product of the rati
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Figure 9-8. Summary of estimating t
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on the decision maker's response, L
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Figure 9-10. MUF assessment figure
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Now think of adjusting P so that th
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Another approach is to use the rang
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Figure 9-12. Quantitative range vs.
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If a measure’s range changes, LDW
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Figure 9-14 is an example of the ov
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Similarly, a single member can have
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chance having 160 hp (the most pref
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A probability of less than 0.5 for
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Interpreting the Ranking Results LD
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S E C T I O N Examples 10
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the idea that other manufactures an
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The completed goals hierarchy is sh
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Buying a House The ranking results
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Figure 10-5. Goals hierarchy for bu
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Overall goal Quality goal Costs goa
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The preference assessments were don
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Figure 10-9. Goals hierarchy for re
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! Noise, ! Agricultural Impacts, an
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S E C T I O N Commands Summary 11
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Assess Menu Edit Menu The Assess me
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File Menu Edit::Insert Lets you add
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utility function” if the active g
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Matrix Menu ! Hierarchy -- options
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Results::Dynamic Sensitivity See th
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Review::Compute Utilities Compute t
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Tradeoff Menu View Menu LDW display
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S E C T I O N Glossary 12
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Common Units Certainty Equivalent C
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LDW File Level Lottery Measure assi
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MUF MUF Formula See also: Alternati
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Preference Set Probabilistic Level
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Tradeoff Trial program decides whic
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Bibliography B
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The classic reference on multiple m
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Appendix This appendix describes th
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= .125 Thus the weight for cost is
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Index adjusted AHP ................
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computing ................8 - 3 int
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