Logical Decisions - Classweb

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Figure 8-19. Example of Results::Stacked Bar Ranking option. In the figure, each alternative has a bar with length proportional to its utility on the selected goal. This bar is made up of other bars that show the influence of the various measures and goals on the utility result. If an alternative has a long bar for a member, it means that the member is important and that the alternative does well on it. If the bar for a member is short, it means that the member is relatively unimportant or that the alternative does relatively poorly on the member. Not all alternatives will have bars for all members, since some alternatives may have a utility of 0.0 (no contribution) for a member. Measure Equivalents Ranking The Results::Measure Equivalents Ranking option lets you display an overall ranking of the alternatives along with the levels on a particular measure that would result in the same overall utilities if all other measures had their most preferred levels. 8-24 Section 8 -- Using LDW 3: Reviewing Results
You can use the measure equivalents ranking to compare alternatives using an indicator other than overall utility. Figure 8-20 shows an example of a measure equivalents ranking based on price. Each equivalent in the figure represents the price of an "equivalent" truck that you should prefer equally to the alternative if the "equivalent" truck had the most preferred level on all of the measures besides price. Thus you should equally prefer the "Mountain Lion" (with a price of $17,500) and a truck with the most preferred level on each measure except a price of $24,511.70, given the preferences set called Decision Maker. Figure 8-20. Example of Results::Measure Equivalents Ranking option. Uncertainty Summary The Results::Uncertainty Summary option lets you view a table summarizing the uncertainties for the alternatives with respect to a single measure or goal. When you select it, LDW will display the dialog box shown in Figure 8-21. Section 8 -- Using LDW 3: Reviewing Results 8-25
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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
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The Edit::Insert option. The Insert
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! Summary -- view a dialog box that
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structure like an organization char
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If you check the Show Assessment St
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saves it for later pasting. When yo
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You can create a new Matrix view by
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The quick entry view shows the alte
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Structuring Goals The goals in an L
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these two fields to describe each m
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the hierarchy. In the Matrix view,
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! Point Estimate -- use a single nu
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Figure 6-12. Example of a measure l
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Figure 6-14. Example of a measure l
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pass, LDW replaces each probabilist
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Figure 6-17. Dialog box for definin
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Figure 6-18. Measure Category Dialo
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S E C T I O N Using LDW 2: Assessin
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measure utility functions for the g
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information as possible when you ch
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measures with categories require mu
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The "Reset" button deletes any asse
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You can change the shape of the cur
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Figure 7-4. Utility Assessment Scre
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very different from the average of
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Figure 7-6. Assessment matrix for A
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You can, however, leave the assessm
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properties dialog box can be select
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the same level. LDW provides a grap
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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
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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
Page 185 and 186: an analysis are included in exactly
Page 187 and 188: Graph Weights The Graph Weights dis
Page 189 and 190: Figure 8-16. Results::Rank Alternat
Page 191: Figure 8-18. Dialog box for Results
Page 195 and 196: simulation for each alternative usi
Page 197 and 198: Sensitivity Graphs Sensitivity grap
Page 199 and 200: You can view a sensitivity table by
Page 201 and 202: Figure 8-28. Example of Results::Sc
Page 203 and 204: Figure 8-30. Example of Results::Sc
Page 205 and 206: In the dialog box, you are asked to
Page 207 and 208: Figure 8-34. Dialog box for Results
Page 209 and 210: Graph an Alternative The graph an a
Page 211 and 212: Figure 8-38. Example of Results::Gr
Page 213 and 214: Finally, the two radio buttons on t
Page 215 and 216: Figure 8-43. Example of Results::Co
Page 217 and 218: Printing and Saving Windows You can
Page 219 and 220: The dialog box will show you the fi
Page 221 and 222: Figure 8-45. Dialog box for Edit::C
Page 223 and 224: Changing the range for utility. You
Page 225 and 226: Figure 8-50. Dialog box for Prefere
Page 227 and 228: the current color for that type of
Page 229 and 230: copies the selected objects to the
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Page 233 and 234: Figure 8-55. Dialog box for File::I
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Page 237 and 238: The idea of the Import Structure op
Page 239 and 240: Next, LDW asks you if it should app
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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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