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Logical Decisions - Classweb

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Figure 9-12. Quantitative range vs. weight example.<br />

The difference in cost between A and B is just matched by the<br />

improvement in performance from A to B. Based on this tradeoff,<br />

equal weights are assessed for the Cost and Performance<br />

measures. The resulting MUF results in equal utilities for A and B<br />

as they should have.<br />

Now suppose the range for Cost is increased from $100 to $300<br />

instead of $100 to $200. If there is no change in weights, the<br />

computed utility for B changes, because it is no longer at the least<br />

preferred level for Cost. The utilities for A and B are no longer<br />

equal, even though we still find them equally desirable.<br />

The way to bring things back into sync is to change the relative<br />

weights for Cost and Performance. In particular, since the range<br />

for Cost has doubled it should get twice as much weight as before.<br />

This means that Cost will have twice the weight of Performance.<br />

When we make the weights sum to 1.0, this means that Cost will<br />

have a weight of 0.67 and Performance will have a weight of 0.33.<br />

When we compute the utilities of A and B, we find that with the<br />

new weights they are once again have equal utilities.<br />

Section 9 -- In Depth 9-53

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