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Multi-criteria decision
making.
Case
A motorist is using the AHP to choose a new car from three possible
models: an Arrow, a bestmobile and a commuter. The choice will be
based on just two attributes: cost and style. The motorist considers
that cost is weakly more important than style.
When asked to compare the costs of the cars, the motorist makes
the followig statements: on cost, the bestmobile is weakly preferred
to the arrow, but the arrow is weakly preferred to the commuter. Also
the bestmobile is extremely preferred to the commuter.
On style, the arrow is very strongly preferred to the bestmobile, but
the commuter is weakly preferred to the arrow. Also the commuter is
extremely preferred to the bestmobile.
a. Construct a hierarchy to represent the decision problem
b. Calculate the weight for each table in hierarchy and hence
determine which car should be purchased
c. Calculate the inconsistency ratios for the motorist comparisons of
the cars on (i) cost and (ii) style and interpret your results
1: Structure a hierarchy.
Overall Goal
Criteria
Decision
Alternatives
Style
COMMUTER
COMMUTER
ARROW
ARROW
BESTMOBILE
BESTMOBILE
COMMUTER
ARROW
BESTMOBILE
Numerical
ratings
1
2
4
6
Verbal judgments
Equally important
(preferred)
Weakly prefered
Strongly prefered
Extremely prefered
COST
Example: Synthesizing
Procedure - 1
Step 1: Sum the values in each column.
Cost
BM
BM
1
AR
2
CM
6
AR
CM
1/2
1/6
10/6
1
1/3
10/3
2
1
9
Column totals
Example: Synthesizing
Procedure - 2
Step 2: Divide each element of the matrix by
its column total.
All columns in the normalized pairwise
comparison matrix now have a sum of 1.
Cost
BM
AR
CM
BM
6/10
6/10
2/3
AR
3/10
3/10
2/9
CM
1/10
1/10
1/9
Example: Synthesizing
Procedure - 3
Step 3: Average the elements in each row.
Cost
BM
AR
CM
BM
0.6
0.6
0.667
AR
0.3
0.4
0.222
CM
0.1
0.1
0.111
Total
Row Avg.
0.622333
0.622333
0.307333
0.307333 0.103667
0.103667
1,033333
1
2
6 0.623 0.615 0.622 1.86
0.622333 1 2 0.307333 1 0.103667 2 0.312 0.307 0.207 0.826
1 6
1 3
1 0.104 0.102 0.104 0.31
2.887
3
STYLE
Example: Synthesizing
Procedure - 1
Step 1: Sum the values in each column.
Style
BM
AR
CM
BM
1/4
1/6
AR
1/2
CM
6
11
2
13/4
1
10/6
Column totals
Example: Synthesizing
Procedure - 2
Step 2: Divide each element of the matrix by
its column total.
All columns in the normalized pairwise
comparison matrix now have a sum of 1.
Style
BM
AR
CM
BM
1/11
1/13
1/10
AR
4/11
4/13
3/10
CM
6/11
8/13
6/10
Example: Synthesizing
Procedure - 3
Step 3: Average the elements in each row.
Style
BM
AR
CM
Row Avg.
BM
0.0909 0.0769
0.1
0.089
AR
0.3636 0.3076
0.3
CM
0.5454 0.6153
0.6
Total
0.324 0.587
0.587
1.000
0.089
0.324
3.011
3