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Logical Decisions - Classweb

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Now think of adjusting P so that the decision maker prefers the<br />

two alternatives equally. Then you can compute the scaling<br />

constant for the member being assessed as follows.<br />

The utility for the "one member for sure" alternative is 1.0 for the<br />

member being assessed and 0.0 for the other active members from<br />

the way we defined the alternative. Thus, its utility as computed<br />

by the MUF is the weight for the member being assessed times<br />

one plus the weights for the other active members times zero.<br />

Thus, the "one member for sure" alternative's utility for the active<br />

goal is equal to the weight for the member being assessed. Let's<br />

call this w.<br />

We can also compute the utility for the "all or nothing" alternative.<br />

We know that the utility in a MUF is 1.0 if all active members are<br />

at their most preferred level. We also know that, if all active<br />

members are at their least preferred levels, the utility is 0.0.<br />

Decision theory also tells us that the utility of an alternative with<br />

uncertainties is the expected utility for the alternative. The<br />

expected utility for the "all or nothing" alternative is P times 1.0<br />

and (1 - P) times 0.0. This is equal to P itself.<br />

Since the decision maker said she prefers the two simplified<br />

alternatives equally they must have equal utilities. Thus w must<br />

equal P.<br />

Thus, you can assess weights for direct entry by assessing the w<br />

for each active member by defining a "one member for sure"<br />

alternative where only it has its most preferred level and<br />

assessing the P for which the decision maker prefers it equally to<br />

the "all or nothing" alternative. W for each member is equal to the<br />

P that makes the two alternatives equal.<br />

Note that if you use this method, the ws won't generally sum to<br />

one. As described on page 9-55, ws that don't sum to one define a<br />

multiplicative MUF that includes interactions between the active<br />

members. This probabilistic method for assessing weights can<br />

also be used to simultaneously assess interactions.<br />

It is not clear how to compute weights using representatives when<br />

there are also interactions. Thus, LDW does not let you use<br />

representatives for sub-goals in the direct entry method.<br />

Section 9 -- In Depth 9-49

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