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What to start with ...
You have to solve a multicriteria decision problem - it may be task related to Resource Allocation,
Vendor Selection, Strategic Planning, Human Resources Management etc.
In our example let it be the "Car Choice Decision". So, you have to compare three cars and rank them by their
meeting you preferences.
With ESTIMATION AND CHOICE we will solve this problem in five easy steps!
1. Create a new project.
You just logged in ESTIMATION AND CHOICE and you can see list of existing
projects. Click "Create new project" link, insert 'Cars' into the text field and click 'OK'. Than click 'Cars'
in the projects list to open this project.
2. Create list of parameters.
Now you have to define parameters of the alternatives you want to compare.
Click pad 'Parameters' , and then create five new parameters of the different types:
| Type |
Parameter |
| Numeric |
Top speed |
| Numeric |
Fuel efficiency |
| Logical (Yes/No) |
Safety Bag |
| Logical (Yes/No) |
Air conditioning |
| Qualitative |
Fuel Type |
For the qualitative parameters there should be classifiers, attached to every parameter of this type.
So, attach a new classifier "Types of the Fuel" to the Parameter "Fuel type".
3. Input data.
Click pad 'Alternatives and Analysis' , create three new alternatives "Car1",
"Car2" and "Car3", then click evry alternative on the list and input data:
| Parameter |
Car1 |
Car2 |
Car3 |
| Top speed |
180 km/hr |
210 km/hr |
240 km/hr |
| Fuel efficiency |
3.4 L/100 km |
4.7 L/100 km |
6.3 L/100 km |
| Safety Bag |
No |
Yes |
Yes |
| Air Conditioning |
Yes |
No |
Yes |
| Fuel Type |
Natural Gas |
Diesel |
Gasoline |
4. Create Plan of Analysis.
After you described the alternatives you have to create the Plan of Analysis
which reflects you preferences and requriments in this decision process.
Click pad "Plans of Analysis" and create a new plan 'Cars Analysis', than just click this new plan in the list to open
it.
Let's create three General Parameters we want to analyze: 'Driving', 'Safety' and 'Economy' - just click link
'Create General Parameter' to do it.
After that you have to pick up Parameters influencing your General Parameters. Let it be like this:
| Parameters influencing General Parameter "Driving" |
| Top speed |
| Air Conditioning |
| Fuel Type |
| Parameters influencing General Parameter "Safety" |
| Top speed |
| Safety Bag |
| Parameters influencing General Parameter "Economy" |
| Fuel Efficiency |
| Fuel Type |
To include parameters into General Parameter just click name of the General Parameter in the list, than click link
"Add Parameter in General Parameter", check Parameters you want to includxe and click button "Include into General
Parameter".
Now you have to define priority (Weight coefficient) and Utility function for every Parameter.
Weight coefficient shows how importtant is this Parameter. Utility Function reflects your understunding of which values
of this Parameter are good, and which are bad.
Let's do it first for General Parameter "Driving". To define Priorities of the Parameters influencing General
Parameter "Driving", click button 'Compare' above list of Parameters, and then just answer several questions like
"Which of these two parameters is more important..." After that the weight coefficients will be calculated automatically.
Click "Define Utility" for parameter "Air Conditioning", then select "Value YES is better than NO (Desirable quality)".
Click "Define Utility" for parameter "Top Speed". For the numeric parameters you can define Utility Function using up to
five points. Input "180" into field 'Value' for Point1, and than select "Minimally Acceptable" in Select Utility dropdown
list for this Point. Than input value '240' for Point2 and select utility "Excellent". Click button 'Submit' and you will
see a chart.
Click "Define Utility" for parameter "Fuel Type", then click button 'Compare' and answer the questions like "Which of these
Items is more preferable?". The callculated weights describe Utility Function for qualitative parameters.
Similarly you can define Priorities and Utility Functions in others General Parameters.
And finally you should define thje Priorities of the General Parameters. To do it click button 'Compare' above the list
of General Parameters and answer the questions.
Now your Plan of Analysis is ready !
5. Run analysis.
Click pad 'Alternatives and Analysis', check all alternatives, select Plan "Cars
Analysis" and click button "Analyze Alternatives ..."
You will see a chart showing ratings for every alternative and a table containing final rangs and ratings, and also
rangs and ratings for every General Parameter.
You can analyze every alternative separately - just click name of the alternative on the table or in chart!
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