Logical Decisions - Classweb

Logical Decisions - Classweb Logical Decisions - Classweb

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The completed goals hierarchy is shown in Figure 10-1. After the goals hierarchy had been completed, the next step was to complete the definitions of the measures. In particular, it was necessary to define the scale points in the constructed (nonnumeric) scales. It is not sufficient to use 1 - 10 or similar scales, since it is not clear what the different scale points mean. This makes it difficult to consistently rank the alternatives or to assess tradeoffs concerning the measure. Figure 10-2 shows some constructed scales for the computer selection example. Video Monitor Quality Best 1. A brand name multi-sync monitor comes with the system. 2. An unknown brand multi-sync monitor comes with the system. 3. A brand-name VGA monitor comes with the system. Worst 4. An unknown brand VGA monitor comes with the system. Video Card Quality Best 1. A brand-name 16 bit SVGA card comes with the system. 2. An unknown brand 16 bit SVGA card comes with the system. 3. An 8 bit SVGA card comes with the system. Worst 4. A VGA only card comes with the system. Company Quality Best 1. A first rate, well established company. 2. A "second tier" but still well known company. Worst 3. A "no-name" clone maker. Reviews Best 1. Rated a "Best Buy" by a national computer magazine. 2. Given a good review in a national or local publication. 3. No reviews found. Worst 4. Given a poor review in a national or local publication. Figure 10-2. Constructed measure scales for computer selection decision. After the decision maker had defined the measures, he could enter the levels on the measures for each alternative. This step was straightforward, since most of the data was available through information in the ads and reviews of the various computers. The decision maker assigned one probabilistic level on the Local Service measure for a company that had just opened a local dealership. He assigned a probability of 20% that the dealership would close and that no local service would be available. 10-4 Section 10 -- Examples

The next step was to assess preferences. Since the measures had few uncertainties, the mid-level splitting technique was used to assess the single measure utility functions. The tradeoffs were mostly assessed using price as a basis. Figure 10-3 is the bubble diagram for the tradeoffs for the computer selection decision. Figure 10-3. Tradeoff assessment "bubble diagram" for buying a computer example. After the preference assessment had been completed, the alternatives could be ranked. Section 10 -- Examples 10-5

The next step was to assess preferences. Since the measures had<br />

few uncertainties, the mid-level splitting technique was used to<br />

assess the single measure utility functions. The tradeoffs were<br />

mostly assessed using price as a basis. Figure 10-3 is the bubble<br />

diagram for the tradeoffs for the computer selection decision.<br />

Figure 10-3. Tradeoff assessment "bubble diagram" for buying a<br />

computer example.<br />

After the preference assessment had been completed, the<br />

alternatives could be ranked.<br />

Section 10 -- Examples 10-5

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