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    SUMMER SCHOOL19-21 September 2007Gaeta (LT)

    The Analytic Hierarchy Process (AHP)for Decision Making

    PROF. THOMAS L. SAATY(University Of Pittsburgh Pennsylvania USA)

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    The Analytic HierarchyProcess (AHP)

    for

    Decision Making

    Decision Making involves

    setting priorities and the AHP

    is the methodology for doing

    that.

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    Decision Making1) Precedes Creative Thinking to

    determine which area to brainstorm first

    2) It also follows Creative Thinking todetermine which avenues to specialize

    in first for implementation needs

    Problem SolvingCreative Thinking and Decision

    Making are the corner stones ofProblem Solving

    Creative ThinkingPrecedes Decision Making to

    brainstorm, connect and organizethe criteria needed tomake a decision

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    Creative ThinkingWhat to brainstorm?

    How to structure?

    Opportunity FindingHelp to add value

    Problem SolvingRemove obstacles

    Decision MakingPresent and likely future?

    Problem to solve?

    Opportunity to seize?

    Best action?

    Resource allocation?

    Solution Strategy

    Implementation

    Design, Planning and Action Physical (engineering) and Behavioral

    (management)

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    A Simple Example of Ranking

    You have five people ranked on three

    criteria: age (in years), wealth (in dollars)and health (in relative priorities), how do

    you determine their overall ranks. Assume,in addition for this exercise, that the

    younger a person is the more favorable it is

    for his/her rank with respect to age.

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    Part 1: Decision Making Challenges

    Current State of Corporate Decision Making

    Inefficient Meetings

    Consequences

    Benefits From a Structured Process for Decision Making Benefits of SuperDecisions (free!) software

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    Current State of Corporate Decision Making

    At least 50% of all decisions end in failure.

    33% of all decisions made are never implemented.

    50% of decisions implemented are discontinued after 2

    years.

    66% of decisions are based on failure prone methods. Decisions using high participation succeed 80% of the

    time but occurs only 20% of the time.

    Practically every decision failure is preventable

    Source: Why Decisions Fail - Author Paul Nut - Publisher; Berret & Koehler 200220 year study of over 400 business decisions from Public, Private and Not-For Profit organizations in the United States, Canada & Europe.

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    Only 37% of decision makers said they have a

    clear understanding of what their organization

    is trying to achieve.

    Only 1 in 5 was enthusiastic about their teams

    and organizations goals. Only 1 in 5 said they have a clear line of site

    between their tasks and their organizations

    goals.

    SOURCE: Harris Poll of 23,000 respondents

    Current State of Corporate Decision Making

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    Inefficient Meetings

    11 Million meetings in the U.S. per day

    Most professionals attend a total of 61.8 meetings permonth

    Research indicates that over 50 percent of thismeeting time is wasted

    Professionals lose 31 hours per month inunproductive meetings, or approximately four workdays

    A network MCI Conferencing White Paper.Meetings in America: A study of trends, costs and attitudes toward businesstravel, teleconferencing, and their impact on productivity (Greenwich, CT: INFOCOMM, 1998), 3.

    Robert B. Nelson and Peter Economy, Better Business Meetings (Burr Ridge, IL: Irwin Inc, 1995), 5.

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    Benefits from Structured Decision Making Increase the success of decisions made by at least 50%

    Increase benefits by blending diverse perspectives

    Achieve and sustain more excellent operational performance

    Maximize return on investments in business change

    Increase business leadership and stakeholder confidence and

    commitment Achieve more consistent business performance

    Sustain increasing business prosperity

    Source: Why Decisions Fail - Author Paul Nut - Publisher; Berret & Koehler 200220 year study of over 400 business decisions from Public, Private and Not-For Profitorganizations in the United States, Canada & Europe.

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    Benefits of Systematic Decision Making

    Rapidly build consensus on goals, objectives and

    priorities Align work activities to what is important for

    organizational success

    Objectives based budgeting versus resource basedbudgeting (save the salami and peanut butter for

    lunch)

    Get past corporate stovepipes (tear down the walls)

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    Benefits of Systematic Decision Making (contd)

    Improve speed and effectiveness of decisionmaking

    Synthesize existing corporate data with

    management priorities Achieve buy-in on major corporate decisions

    Improve accountability and outcomes over time

    Achieve cost savings through efficient allocation

    of resources

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    Real Life Problems Exhibit:

    Strong Pressures

    and Weakened Resources

    Complex Issues - Sometimes

    There are No Right Answers

    Vested Interests

    Conflicting Values

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    Most Decision Problems are Multicriteria

    Maximize profits

    Satisfy customer demands

    Maximize employee satisfaction

    Satisfy shareholders

    Minimize costs of production Satisfy government regulations

    Minimize taxes

    Maximize bonuses

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    Knowledge is Not in the Numbers

    Isabel Garuti is an environmental researcher whose father-in-law is a master chef

    in Santiago, Chile. He owns a well known Italian restaurant called Valerio. He

    is recognized as the best cook in Santiago. Isabel had eaten a favorite dish

    risotto ai funghi, rice with mushrooms, many times and loved it so much that shewanted to learn to cook it herself for her husband, Valerios son, Claudio. So

    she armed herself with a pencil and paper, went to the restaurant and begged

    Valerio to spell out the details of the recipe in an easy way for her. He said it

    was very easy. When he revealed how much was needed for each ingredient, he

    said you use a little of this and a handful of that. When it is O.K. it is O.K. and itsmells good. No matter how hard she tried to translate his comments to

    numbers, neither she nor he could do it. She could not replicate his dish.

    Valerio knew what he knew well. It was registered in his mind, this could not

    be written down and communicated to someone else. An unintelligentobserver would claim that he did not know how to cook, because if he did, he

    should be able to communicate it to others. But he could and is one of the best.

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    Knowing Less, Understanding More

    You dont need to know everything to get tothe answer.

    Expert after expert missed the revolutionarysignificance of what Darwin had collected.Darwin, who knew less, somehow understood

    more.

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    An elderly couple looking for a town to which theymight retire found Summerland, in Santa Barbara

    County, California, where a sign post read:

    SummerlandPopulation 3001Feet Above Sea Level 208

    Year Established 1870

    Total 5079

    Lets settle here where there is a sense of humor, saidthe wife; and they did.

    Arent Numbers Numbers?

    We have the habit to crunch numberswhatever they are

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    Do Numbers Have an Objective Meaning?

    Butter: 1, 2,, 10 lbs.; 1,2,, 100 tons

    Sheep: 2 sheep (1 big, 1 little)

    Temperature: 30 degrees Fahrenheit to New Yorker, Kenyan, Eskimo

    Since we deal with Non-Unique Scales such as [lbs., kgs], [yds,

    meters], [Fahr., Celsius] and such scales cannot be combined, we needthe idea ofPRIORITY.

    PRIORITY becomes an abstract unit valid across all scales.

    A priority scale based on preference is the AHP way to standardize

    non-unique scales in order to combine multiple criteria.

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    Stability, Objectivity, and Measurement

    We deal with many things whose stimuli are qualitative and changeaccording to our state of mind and our judgment about them is variable

    and unstable and subjective. For some things we have created scales of

    measurement that enable us to get the same readings at any time no

    matter who we are. But the readings have to be interpreted as to their

    significance, importance or priority. We call such things tangibles.

    How can we deal with intangibles as we experience them directly likethe color red from sense data, beauty as we see a work of art and

    respond to it using experience, or goodness and love that are abstract

    modes of behavior? We can compare one shade of red with another,

    one object of beauty with another, and one act of goodness or love withanother according to our preference or sense of importance or likelihood

    of occurrence. The comparisons yield relative magnitudes of dominance

    that are stable at the time we do them and we can also compare them

    with what other people get in their evaluation.

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    Nonmonotonic Relative Nature of Absolute Scales

    Good for

    preserving food

    Bad for

    preserving food

    Good for

    preserving food

    Bad for

    comfort

    Good for

    comfort

    Bad for

    comfort

    100

    0

    Temperature

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    OBJECTIVITY!?

    Bias in upbring: objectivity is agreed upon subjectivity.

    We interpret and shape the world in our own image. Wepass it along as fact. In the end it is all obsoleted by the

    next generation.

    Logic breaks down: Russell-Whitehead Principia; Gdels

    Undecidability Proof.

    Intuition breaks down: circle around earth; milk and coffee.

    How do we manage?

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    Organizing the Ways to Access,Connect, and Prioritize Information

    We cannot use randomly gathered information very well without

    thinking in organized ways. The best way to use the plethora ofsporadic, randomly acquired information in our memories is to createwell-organized complex structures and represent the basic conceptswith criteria and alternatives with which such information deals andthen do prioritization to determine what is important and what is not.

    We quickly learn that we know much to use in predicting whathappens in the real world than we can do without such systematic waysto represent understanding. We have no better ways to do it. Themodern computer is a gift that we can use to deal with complexity toenhance the power of our minds. Without them it is extremely difficultto mange complexity in the integrated ways that now we can. It is a

    new revolution for better decision making.

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    Making a Decision

    Widget B is cheaper than Widget A

    Widget A is better than Widget B

    Which Widget would you choose?

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    Basic Decision Problem

    Criteria: Low Cost > Operating Cost > Style

    Car: A B B

    V V V

    Alternatives: B A A

    Suppose the criteria are preferred in the order shown and the

    cars are preferred as shown for each criterion. Which carshould be chosen? It is desirable to know the strengths of

    preferences for tradeoffs.

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    To understand the world we assume that:

    We can describe it

    We can define relations between

    its parts and

    We can apply judgment to relate the

    parts according to

    a goal or purpose that we

    have in mind.

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    GOAL

    CRITERIA

    ALTERNATIVES

    Hierarchic

    Thinking

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    Relative MeasurementThe Process of Prioritization

    In relative measurement a preference, judgmentis expressed on each pair of elements with respect

    to a common property they share.

    In practice this means that a pair of elements

    in a level of the hierarchy are compared with

    respect to parent elements to which they relatein the level above.

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    If, for example, we are comparing two apples

    according to size we ask:

    Which apple is bigger?

    How much bigger is the larger than the smaller apple?

    Use the smaller as the unit and estimate how

    many more times bigger is the larger one.

    The apples must be relatively close (homogeneous)

    if we hope to make an accurate estimate.

    Relative Measurement (cont.)

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    The Smaller apple then has the reciprocal value when

    compared with the larger one. There is no way to escape this sort

    of reciprocal comparison when developing judgments

    If the elements being compared are not all homogeneous, they are

    placed into homogeneous groups of gradually increasing relativesizes (homogeneous clusters of homogeneous elements).

    Judgments are made on the elements in one group of small

    elements, and a pivot element is borrowed and placed in the next

    larger group and its elements are compared. This use of pivotelements enables one to successively merge the measurements of

    all the elements. Thus homogeneity serves to enhance the accuracy

    of measurement.

    Relative Measurement (cont.)

    P i i C i

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    Pairwise ComparisonsSize

    Apple A Apple B Apple C

    SizeComparison

    Apple A Apple B Apple C

    Apple A S1/S1 S1/S2 S1/S3

    Apple B S2/S1 S2/S2 S2/S3

    Apple C S3/S1 S3/S2 S3/S3

    We Assess The Relative Sizes of theApples By Forming Ratios

    P i i C i

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    Pairwise ComparisonsSize

    Apple A Apple B Apple C

    SizeComparison

    Apple A Apple B Apple C

    Apple A 1 2 6 6/10 A

    Apple B 1/2 1 3 3/10 B

    Apple C 1/6 1/3 1 1/10 C

    When the judgments are consistent, as they are here, any

    normalized column gives the priorities.

    ResultingPriorityEigenvector

    Relative Sizeof Apple

    C i

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    Consistency itself is a necessary condition for a betterunderstanding of relations in the world but it is not

    sufficient. For example we could judge all three of

    the apples to be the same size and we would be perfectly

    consistent, but very wrong.

    We also need to improve our validity by using redundant

    information.

    It is fortunate that the mind is not programmed to be always

    consistent. Otherwise, it could not integrate new information

    by changing old relations.

    Consistency (cont.)

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    Consistency

    In this example Apple B is 3 times larger than Apple C.

    We can obtain this value directly from the comparisons

    of Apple A with Apples B & C as 6/2 = 3. But if wewere to use judgment we may have guessed it as 4. In

    that case we would have been inconsistent.

    Now guessing it as 4 is not as bad as guessing it as 5 or

    more. The farther we are from the true value the more

    inconsistent we are. The AHP provides a theory forchecking the inconsistency throughout the matrix and

    allowing a certain level of overall inconsistency but not

    more.

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    Consistency (cont.)

    Because the world of experience is vast and we deal with it in pieces according to

    whatever goals concern us at the time, our judgments can never be perfectly

    precise.

    It may be impossible to make a consistent set of judgments on some pieces that

    make them fit exactly with another consistent set of judgments on other related

    pieces. So we may neither be able to be perfectly consistent nor want to be.

    We must allow for a modicum of inconsistency.

    C i t

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    How Much Inconsistency to Tolerate? Inconsistency arises from the need for redundancy.

    Redundancy improves the validity of the information about the real world.

    Inconsistency is important for modifying our consistent understanding, but it must not be too large

    to make information seem chaotic. Yet inconsistency cannot be negligible; otherwise, we would be like robots unable to change our

    minds.

    Mathematically the measurement of consistency should allow for inconsistency of no more than

    one order of magnitude smaller than consistency. Thus, an inconsistency of no more than 10%

    can be tolerated.

    This would allow variations in the measurement of the elements being compared without

    destroying their identity.

    As a result the number of elements compared must be small, i.e. seven plus or minus two. Being

    homogeneous they would then each receive about ten to 15 percent of the total relative value in the

    vector of priorities.

    A small inconsistency would change that value by a small amount and their true relative value

    would still be sufficiently large to preserve that value.

    Note that if the number of elements in a comparison is large, for example 100, each would receive

    a 1% relative value and the small inconsistency of 1% in its measurement would change its value

    to 2% which is far from its true value of 1%.

    Consistency (cont.)

    Pairwise Comparisons using Inconsistent Judgments

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    Pairwise Comparisons using Inconsistent Judgments

    Nicer ambiencecomparisons

    Paris London New York

    Normalized Ideal

    0.5815

    0.3090

    0.1095

    1

    0.5328

    0.1888

    Paris

    London

    New York

    1

    1

    1

    2 5

    31/2

    1/5 1/3

    Pairwise Comparisons using Judgments and the Derived Priorities

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    Pairwise Comparisons using Judgments and the Derived Priorities

    1

    0.4297

    0.1780

    0.6220

    0.2673

    0.1107

    1 3 7

    1/3 1 5

    1/7 1/5 1

    TotalNormalized

    B. Clinton M. Tatcher G. Bush

    Politician

    comparisons

    B. Clinton

    M. Tatcher

    G. Bush

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    When the judgments are consistent, we

    have two ways to get the answer:1. By adding any column and dividing each entry by the

    total, that is by normalizing the column, any column

    gives the same result. A quick test of consistency if allthe columns give the same answer.

    2. By adding the rows and normalizing the result.

    When the judgments are inconsistent we

    have two ways to get the answer:

    1. An approximate way: By normalizing each column,forming the row sums and then normalizing the result.

    2. The exact way: By raising the matrix to powers and

    normalizing its row sums

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    Comparison of Intangibles

    The same procedure as we use for size can be used to

    compare things with intangible properties. For example,we could also compare the apples for:

    TASTE

    AROMA

    RIPENESS

    Th A l ti Hi h P (AHP)

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    The Analytic Hierarchy Process (AHP)

    is the Method of Prioritization AHP captures priorities from paired comparison judgments of the

    elements of the decision with respect to each of their parent criteria.

    Paired comparison judgments can be arranged in a matrix.

    Priorities are derived from the matrix as its principal eigenvector,

    which defines an absolute scale. Thus, the eigenvector is an intrinsic

    concept of a correct prioritization process. It also allows for the

    measurement of inconsistency in judgment.

    Priorities derived this way satisfy the property of an absolute scale.

    D i i M ki

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    Decision Making

    We need to prioritize both tangible and intangible criteria:

    In most decisions, intangibles such as

    political factors and social factorstake precedence over tangibles such as

    economic factors and

    technical factors It is not the precision of measurement on a particular factor

    that determines the validity of a decision, but the importance

    we attach to the factors involved.

    How do we assign importance to all the factors and synthesize

    this diverse information to make the best decision?

    There are Primitive People Living in

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    There are Primitive People Living in

    our Time Who cant Count

    I have to tell you something. I did a small research in Papua with the local tribe. Thesepeople still live literally in a stone age environment. They do not wear clothes, and

    many live in the trees and practice cannibalism. They don't speak the Indonesianlanguage. It was so funny that people from the central bank who accompanied me tothis region noticed and took a picture where I am holding my laptop interviewing thesepeople using the AHP approach....a combination of stone age respondents with moderntechnology!!!!. I will send you the photos when I return to Indonesia next month. Forthis research the AHP questions had to be designed is such that they are very simple yet

    straight to the most critical points that we want to know about the livelihood of thissociety. It was a fascinating experience. Those who accompanied me were so impressedwith the power of the AHP in conducting research on such a unique society. Accordingto the central bank people who paid attention to my interviews: "....the outcome is clearand quantified, and yet the respondents do not need to have any knowledge about anynumbers and their corresponding meaning. What it needs are just their honest

    perceptions and expressions. They hardly know how to count. In fact they prefer to have 100rupiah than 1000 rupiah simply because the color of the money (red) is what they are used to hold.The extra zero on the bill does not mean much to them.

    Love,

    Iwan (Iwan Y. Azis is Indonesias greatest economist and is Professor at Cornell University)

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    Verbal Expressions for MakingPairwise Comparison Judgments

    Equal importance

    Moderate importance of one over another

    Strong or essential importance

    Very strong or demonstrated importance

    Extreme importance

    Fundamental Scale of Absolute Numbers

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    1 Equal importance

    3 Moderate importance of one over another

    5 Strong or essential importance

    7 Very strong or demonstrated importance

    9 Extreme importance

    2,4,6,8 Intermediate values

    Use Reciprocals for Inverse Comparisons

    Fundamental Scale of Absolute Numbers

    Corresponding to Verbal Comparisons

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    0.470.05

    0.10

    0.15 0.24

    Which Drink is Consumed More in the U.S.?

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    An Example of Estimation Using Judgments

    Coffee Wine Tea Beer Sodas Milk Water

    DrinkConsumptionin the U.S.

    Coffee

    WineTea

    Beer

    Sodas

    Milk

    Water

    1

    1/91/5

    1/2

    1

    1

    2

    9

    12

    9

    9

    9

    9

    5

    1/31

    3

    4

    3

    9

    2

    1/91/3

    1

    2

    1

    3

    1

    1/91/4

    1/2

    1

    1/2

    2

    1

    1/91/3

    1

    2

    1

    3

    1/2

    1/91/9

    1/3

    1/2

    1/3

    1

    The derived scale based on the judgments in the matrix is:Coffee Wine Tea Beer Sodas Milk Water

    .177 .019 .042 .116 .190 .129 .327

    with a consistency ratio of .022.

    The actual consumption (from statistical sources) is:

    .180 .010 .040 .120 .180 .140 .330

    Estimating which Food has more Protein

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    A B C D E F GFood Consumptionin the U.S.

    A: Steak

    B: PotatoesC: Apples

    D: Soybean

    E: Whole Wheat Bread

    F: Tasty Cake

    G: Fish

    1 9

    1

    9

    11

    6

    1/21/3

    1

    4

    1/41/3

    1/2

    1

    5

    1/31/5

    1

    3

    1

    1

    1/41/9

    1/6

    1/3

    1/5

    1

    The resulting derived scale and the actual values are shown below:

    Steak Potatoes Apples Soybean W. Bread T. Cake Fish

    Derived .345 .031 .030 .065 .124 .078 .328

    Actual .370 .040 .000 .070 .110 .090 .320

    (Derived scale has a consistency ratio of .028.)

    (Reciprocals)

    WEIGHT COMPARISONS

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    Weight Radio Typewriter Large

    Attache

    Case

    Projector Small

    Attache

    Eigenvector Actual

    Relative

    Weights

    Radio 1 1/5 1/3 1/4 4 0.09 0.10Typewriter 5 1 2 2 8 0.40 0.39

    LargeAttache

    Case

    3 1/2 1 1/2 4 0.18 0.20

    Projector 4 1/2 2 1 7 0.29 0.27

    Small

    Attache

    Case

    1/4 1/8 1/4 1/7 1 0.04 0.04

    WEIGHT COMPARISONS

    DISTANCE COMPARISONS

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    Comparison

    of Distances

    from

    Philadelphia

    Cairo Tokyo Chicago San

    Francisco

    London Montreal Eigen-

    vector

    Distance to

    Philadelph

    ia in miles

    Relative

    Distance

    Cairo 1 1/2 8 3 3 7 0.263 5,729 0.278

    Tokyo 3 1 9 3 3 9 0.397 7,449 0.361Chicago 1/8 1/9 1 1/6 1/5 2 0.033 660 0.032

    San

    Francisco

    1/3 1/3 6 1 1/3 6 0.116 2,732 0.132

    London 1/3 1/3 5 3 1 6 0.164 3,658 0.177

    Montreal 1/7 1/9 1/2 1/6 1/6 1 0.027 400 0.019

    DISTANCE COMPARISONS

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    Relative Electricity Consumption (Kilowatt Hours) of Household Appliances

    .003.01611/51/91/91/81/91/9Hair-dryer

    .028.028511/51/91/61/71/9Radio

    .047.0619511/41/51/51/7Iron

    .120.11099411/21/51/8Dish-

    washer

    .167.131865211/41/5TV

    .242.2619755411/2Refrig-

    erator

    .392.3939978521Electric

    Range

    Actual

    Relative

    Weights

    Eigen-vectorHair

    DryerRadioIron

    Dish

    WashTVRefrig

    Elec.

    Range

    Annual

    Electric

    Consumption

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    Relative coin sizes.

    0.259346.180.2635Cent

    0.338452.160.3821.6Quarter

    0.190254.340.1711.62.1Dime

    0.212283.380.1821.521.1Cent

    Actual

    relative

    size

    Size in mm2Priorities5CentsQuarterDime

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    0.0270.0301.0000.3400.2450.1110.111My Web

    0.0660.0482.9431.0000.2350.1240.118AOL

    0.1070.1014.0764.2641.0000.1520.142MSN

    0.2250.3679.0008.0736.5661.0000.552Yahoo

    0.4850.4639.0008.4917.0571.8111.000Google

    Actual

    Percentage

    PrioritiesMy WebAOLMSNYahooGooglePercentage of

    Individuals that use

    different search

    engines

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    .056247.04911/41/61/7Washington

    D.C.

    .139610.125411/31/5St. Louis

    .2491049.2676311/3New Orleans

    .5562446.5587531L.A.

    Relative

    Values

    Actual

    Distance

    In Miles

    PrioritiesWashington

    D.C.

    St. LouisNew

    Orleans

    L.A.Distance

    From Pittsburgh

    Relative Distances from Pittsburgh

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    0.198113208420000.1934751Audi - A6

    0.188679245400000.18740211Lexus - ES

    0.141509434300000.15164721.31Acura - TL

    0.226415094480000.2303491.21.251.51BMW - 5

    0.245283019520000.2371281.251.31.611Mercedez - E

    Relative ValuesActual CostPrioritiesAudi - A6Lexus - ESAcura - TLBMW - 5Mercedez - EModel

    Nonlinearity of the Priorities

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    RELATIVE VISUAL BRIGHTNESS-I

    C1 C2 C3 C4

    C1 1 5 6 7

    C2 1/5 1 4 6

    C3 1/6 1/4 1 4

    C4 1/7 1/6 1/4 1

    Nonlinearity of the Priorities

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    RELATIVE VISUAL BRIGHTNESS -II

    C1 C2 C3 C4

    C1 1 4 6 7

    C2 1/4 1 3 4

    C3 1/6 1/3 1 2

    C4 1/7 1/4 1/2 1

    RELATIVE BRIGHTNESS EIGENVECTOR

    Th I S L f O ti

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    The Inverse Square Law of Optics

    I IIC1 .62 .63

    C2 .23 .22C3 .10 .09

    C4 .05 .06

    Square of Reciprocal

    Normalized normalized of previous Normalized

    Distance distance distance column reciprocal

    9 0.123 0.015 67 0.61

    15 0.205 0.042 24 0.22

    21 0.288 0.083 12 0.11

    28 0.384 0.148 7 0.06

    There are two Kinds of

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    Fundamentally Different NumbersThe behavior and arithmetic of such numbers are different

    CountingAbsolute Scales

    Numbers Derived fromMeasurements; MetricTopology-closeness(Scale Numbers)

    MeasuringRatio Scale

    Interval Scale

    Numbers Derived fromComparisons; Order Topology(Dominance Numbers)

    Numbers that have the samevalue no matter how many other

    things there are

    The numerical values of such numbersdepend on what other things a giventhing is compared with. They are oftenreferred to as relative numbers. Theratio of two absolute numbers or ratioscale numbers is absolute. So is theratio of interval scale differences.

    The lesser of two elements is used asa unit in each comparison. No uniqueunit for the derived scale whichdefines an absolute scale in relativeform like probabilities.

    Need a unit except for

    absolute scales defined

    in terms of equivalence

    classes

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    Meaning and Usefulness

    Scale Numbers are:

    Concrete (independentfrom what and how manyobjects are involved andtherefore unchangeable)

    Object oriented Objective

    Dominance Numbers are:

    Abstract (dependent and

    changeable) Perception oriented

    Subjective

    Measurement in physics is concrete because its objects aretangible and independent, Dominance numbers are essential tomake decisions relative to human values that are abstract andintangible. It is necessary to compare criteria to obtain theirpriorities.One can create dominance numbers from scale numbers but onecannot create scale numbers from dominance numbers becausethey are changeable and depend on the objects being compared.Creating dominance numbers from ratios of measurement is not

    always meaningful.

    Extending the 1-9 Scale to 1-

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    Extending the 1 9 Scale to 1

    The 1-9 AHP scale does not limit us if we know how

    to use clustering of similar objects in each group and

    use the largest element in a group as the smallest one inthe next one. It serves as a pivot to connect the two.

    We then compare the elements in each group on the 1-9 scale get the priorities, then divide by the weight of

    the pivot in that group and multiply by its weight from

    the previous group. We can then combine all thegroups measurements as in the following example

    comparing a very small cherry tomato with a very large

    watermelon.

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    .07 .28 .65

    Unripe Cherry Tomato Small Green Tomato Lime

    .08 .22 .70

    Lime

    1=.08

    .08

    .65 .651x =

    Grapefruit

    2.75=.08

    .22

    .65 1.792.75 =

    Honeydew

    8.75=.08

    .70

    .65 5.698.75x =

    .10 .30 .60

    Honeydew

    1=.10

    .10

    5.69 5.691 =

    Sugar Baby Watermelon

    3=.10

    .30

    5.69 17.073 =

    Oblong Watermelon

    6=.10

    .60

    5.69 34.146 =

    This means that 34.14/.07 = 487.7 unripe cherry tomatoes are equal to the oblong watermelon

    Clustering & ComparisonColor

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    64

    How intensely more green is X than Y relative to its size?

    Honeydew Unripe Grapefruit Unripe Cherry Tomato

    Unripe Cherry Tomato Oblong Watermelon Small Green Tomato

    Small Green Tomato Sugar Baby Watermelon Large Lime

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    Comparing a Dog-Catcher w/ President

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    GoalSatisfaction with School

    Learning Friends School Vocational College MusicLife Training Prep. Classes

    School

    A

    School

    C

    School

    B

    School Selection

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    L F SL VT CP MC

    Learning 1 4 3 1 3 4 .32

    Friends 1/4 1 7 3 1/5 1 .14

    School Life 1/3 1/7 1 1/5 1/5 1/6 .03

    Vocational Trng. 1 1/3 5 1 1 1/3 .13

    College Prep. 1/3 5 5 1 1 3 .24

    Music Classes 1/4 1 6 3 1/3 1 .14

    Weights

    Comparison of Schools with Respectto the Six Characteristics

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    LearningA B C

    Priorities

    A 1 1/3 1/2 .16

    B 3 1 3 .59

    C 2 1/3 1 .25

    FriendsA B C

    Priorities

    A 1 1 1 .33

    B 1 1 1 .33

    C 1 1 1 .33

    School LifeA B C

    Priorities

    A 1 5 1 .45

    B 1/5 1 1/5 .09

    C 1 5 1 .46

    Vocational Trng.

    A B CPriorities

    A 1 9 7 .77

    B 1/9 1 1/5 .05

    C 1/7 5 1 .17

    College Prep.A B CPriorities

    A 1 1/2 1 .25

    B 2 1 2 .50

    C 1 1/2 1 .25

    Music Classes

    A B CPriorities

    A 1 6 4 .69

    B 1/6 1 1/3 .09

    C 1/4 3 1 .22

    Composition and SynthesisImpacts of School on Criteria

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    Impacts of School on Criteria

    CompositeImpact ofSchools

    A

    B

    C

    .32 .14 .03 .13 .24 .14L F SL VT CP MC

    .16 .33 .45 .77 .25 .69 .37

    .59 .33 .09 .05 .50 .09 .38

    .25 .33 .46 .17 .25 .22 .25

    The School Example Revisited Composition & Synthesis:Impacts of Schools on Criteria

    Ideal Mode

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    Distributive Mode(Normalization: Dividing eachentry by the total in its column)

    A

    B

    C

    .32 .14 .03 .13 .24 .14L F SL VT CP MC

    .16 .33 .45 .77 .25 .69 .37

    .59 .33 .09 .05 .50 .09 .38

    .25 .33 .46 .17 .25 .22 .25

    CompositeImpact ofSchools

    A

    B

    C

    .32 .14 .03 .13 .24 .14L F SL VT CP MC

    .27 1 .98 1 .50 1 .65 .34

    1 1 .20 .07 .50 .13 .73 .39

    .42 1 1 .22 .50 .32 .50 .27

    Composite Normal-Impact of izedSchools

    Ideal Mode(Dividing each entry by the

    maximum value in its column)

    The Distributive mode is useful when the

    uniqueness of an alternative affects its rank.The number of copies of each alternativealso affects the share each receives inallocating a resource. In planning, thescenarios considered must be comprehensiveand hence their priorities depend on how manythere are. This mode is essential for rankingcriteria and sub-criteria, and when there isdependence.

    The Ideal mode is useful in choosing a best

    alternative regardless of how many othersimilar alternatives there are.

    A Complete Hierarchy to Level of Objectives

    At what level should the Dam be kept: Full or Half-FullFocus:

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    Financial Political Envt Protection Social Protection

    Congress Dept. of Interior Courts State Lobbies

    Clout Legal PositionPotentialFinancial

    Loss

    Irreversibilityof the Envt

    Archeo-logical

    Problems

    CurrentFinancial

    Resources

    Farmers Recreationists Power Users Environmentalists

    Irrigation Flood Control Flat Dam White Dam Cheap Power ProtectEnvironment

    Half-Full Dam Full Dam

    Focus:

    DecisionCriteria:

    DecisionMakers:

    Factors:

    GroupsAffected:

    Objectives:

    Alternatives:

    Evaluating Employees for Raises

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    GOAL

    Dependability(0.075)

    Education(0.200)

    Experience(0.048)

    Quality(0.360)

    Attitude(0.082)

    Leadership(0.235)

    Outstanding(0.48) .48/.48 = 1

    Very Good

    (0.28) .28/.48 = .58

    Good(0.16) .16/.48 = .33

    Below Avg.

    (0.05) .05/.48 = .10

    Unsatisfactory(0.03) .03/.48 = .06

    Outstanding(0.54)

    Above Avg.

    (0.23)

    Average(0.14)

    Below Avg.

    (0.06)

    Unsatisfactory(0.03)

    Doctorate(0.59) .59/.59 =1

    Masters

    (0.25).25/.59 =.43Bachelor(0.11) etc.

    High School(0.05)

    >15 years(0.61)

    6-15 years

    (0.25)

    3-5 years(0.10)

    1-2 years

    (0.04)

    Excellent(0.64)

    Very Good

    (0.21)

    Good(0.11)

    Poor

    (0.04)

    Enthused(0.63)

    Above Avg.

    (0.23)

    Average(0.10)

    Negative

    (0.04)

    Final Step in Absolute Measurement

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    Rate each employee for dependability, education, experience, quality ofwork, attitude toward job, and leadership abilities.

    Esselman, T.Peters, T.Hayat, F.Becker, L.Adams, V.Kelly, S.Joseph, M.

    Tobias, K.Washington, S.OShea, K.Williams, E.Golden, B.

    Outstand Doctorate >15 years Excellent Enthused Outstand 1.000 0.153Outstand Masters >15 years Excellent Enthused Abv. Avg. 0.752 0.115Outstand Masters >15 years V. Good Enthused Outstand 0.641 0.098Outstand Bachelor 6-15 years Excellent Abv. Avg. Average 0.580 0.089Good Bachelor 1-2 years Excellent Enthused Average 0.564 0.086Good Bachelor 3-5 years Excellent Average Average 0.517 0.079Blw Avg. Hi School 3-5 years Excellent Average Average 0.467 0.071

    Outstand Masters 3-5 years V. Good Enthused Abv. Avg. 0.466 0.071V. Good Masters 3-5 years V. Good Enthused Abv. Avg. 0.435 0.066Outstand Hi School >15 years V. Good Enthused Average 0.397 0.061Outstand Masters 1-2 years V. Good Abv. Avg. Average 0.368 0.056V. Good Bachelor .15 years V. Good Average Abv. Avg. 0.354 0.054

    Dependability Education Experience Quality Attitude Leadership Total Normalized0.0746 0.2004 0.0482 0.3604 0.0816 0.2348

    The total score is the sum of the weighted scores of the ratings. Themoney for raises is allocated according to the normalized total score. Inpractice different jobs need different hierarchies.

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    Protect rights and maintain high Incentive to Rule of Law Bring China to Help trade deficit with China

    BENEFITS

    Should U.S. Sanction China? (Feb. 26, 1995)

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    make and sell products in China (0.696) responsible free-trading 0.206) (0.098)

    Yes 0.729 No 0.271

    $ Billion Tariffs make Chinese productsmore expensive (0.094)

    Retaliation(0.280)

    Being locked out of big infrastructurebuying: power stations, airports (0.626)

    COSTS

    Yes 0.787 No 0.213

    Long Term negative competition(0.683)

    Effect on human rights andother issues (0.200)

    Harder to justify China joining WTO(0.117)

    RISKS

    Yes 0.597 No 0.403

    Result:Benefits

    Costs x Risks; YES

    .729

    .787 x .597= 1.55 NO

    .271

    .213 x .403= 3.16

    YesNo

    .80

    .20YesNo

    .60

    .40YesNo

    .50

    .50

    YesNo

    .70

    .30YesNo

    .90

    .10YesNo

    .75

    .25

    Yes

    No

    .70

    .30

    Yes

    No

    .30

    .70

    Yes

    No

    .50

    .50

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    8

    7

    6

    5

    4

    3

    2

    1

    Benefits/Costs*Risks

    Experiments

    0 6 18 30 42 54 66 78 90 102 114 126 138 150 162 174 186 198 210

    No

    Yes

    ..

    .

    .....

    ..

    ....

    .....

    .

    .....

    ......

    ..

    .. .

    .

    Whom to Marry - A Compatible Spouse

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    Flexibility Independence Growth Challenge Commitment Humor Intelligence

    Psychological Physical Socio-Cultural Philosophical Aesthetic

    Communication& Problem Solving

    Family & Children

    Temper

    Security

    Affection

    Loyalty

    Food

    Shelter

    Sex

    Sociability

    Finance

    Understanding

    World View

    Theology

    Housekeeping

    Sense of Beauty& Intelligence

    Campbell Graham McGuire Faucet

    Marry Not MarryCASE 1:

    CASE 2:

    Value of Yen/Dollar Exchange : Rate in 90 Days

    Relative Interest

    Rate

    Forward Exchange

    Rate Biases

    Official Exchange

    Market Inter ention

    Relative Degree of Confi-

    dence in U S Econom

    Size/Direction of U.S.

    C rrent Acco nt

    Past Behavior of

    E change Rate

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    Rate.423

    Rate Biases.023

    Market Intervention.164

    dence in U.S. Economy.103

    Current AccountBalance .252

    Exchange Rate.035

    FederalReserveMonetary

    Policy.294

    Size ofFederalDeficit

    .032

    Bank ofJapan

    MonetaryPolicy.097

    ForwardRate

    Premium/Discount

    .007

    Size ofForward

    RateDifferential

    .016

    Consistent

    .137

    Erratic

    .027

    RelativeInflationRates

    .019

    RelativeReal

    Growth

    .008

    RelativePoliticalStability

    .032

    Size ofDeficit

    orSurplus

    .032

    AnticipatedChanges

    .221

    Relevant

    .004

    Irrelevant

    .031

    Tighter.191

    Steady.082

    Easier.021

    Contract.002

    No Chng..009

    Expand.021

    Tighter.007

    Steady.027

    Easier.063

    High.002

    Medium.002

    Low.002

    Premium.008

    Discount.008

    Strong.026

    Mod..100

    Weak.011

    Strong.009

    Mod..009

    Weak.009

    Higher.013

    Equal.006

    Lower.001

    More.048

    Equal.003

    Lower.003

    More.048

    Equal.022

    Less.006

    Large.016

    Small.016

    Decr..090

    No Chng..106

    Incr..025

    High.001

    Med..001

    Low.001

    High.010

    Med..010

    Low.010

    Probable Impact of Each Fourth Level Factor

    119.99 119.99- 134.11- 148.23- 162.35and below 134.11 148.23 162.35 and above

    SharpDecline0.1330

    ModerateDecline0.2940

    NoChange0.2640

    ModerateIncrease0.2280

    SharpIncrease0.0820

    Expected Value is 139.90 yen/$

    BenefitsFocus

    Best Word Processing Equipment

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    Time Saving Filing Quality of Document Accuracy

    Training

    Required Screen Capability

    Service

    Quality

    Space

    Required

    Printer

    Speed

    Lanier(.42)

    Syntrex(.37)

    Qyx(.21)

    Criteria

    Features

    Alternatives

    Capital Supplies Service Training

    Lanier.54

    Syntrex.28

    Oyx.18

    CostsFocus

    Criteria

    Alternatives

    Best Word Processing Equipment Cont.

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    Benefit/Cost Preference Ratios

    Lanier Syntrex Qyx.42.54

    .37

    .28

    .21

    .18= 0.78 = 1.32 = 1.17

    Best Alternative

    Group Decision Makingand the

    G t i M

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    Geometric MeanSuppose two people compare two apples and provide the judgments for the larger

    over the smaller, 4 and 3 respectively. So the judgments about the smaller relative

    to the larger are 1/4 and 1/3.Arithmetic mean

    4 + 3 = 7

    1/7 1/4 + 1/3 = 7/12

    Geometric mean

    4 x 3 = 3.46

    1/

    4 x 3 =

    1/4 x 1/3 = 1/

    4 x 3 = 1/3.46

    That the Geometric Mean is the unique way to combine group judgments is a

    theorem in mathematics.

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    0.05

    0 47

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    0.47

    0.10

    0.15 0.24

    Why Is the Eigenvector Necessary1

    1) Consistent matrix: ;

    k k

    Aw nw A n A

    = =

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    max

    1

    1) Consistent matrix: ; .2) Perturbed matrix: .

    13) Transitivity lim / , (1,...,1). By Cesaro sumability

    this converges to the same limit as / .

    4) Necessi

    mk T k T

    kk

    k T k

    Aw nw A n AAw w

    A e e A e w em

    A e e A e

    =

    =

    =

    ty : Priority must be invariant with respect to whatever process of

    synthesis one chooses. We start with an initial priority vector (1,...,1) and then

    derive a first estimate of priorities from it. We then use this vector it to weightthe alternatives or weight squares of differences and derive a new priority vector,

    and so on. For uniqueness we must have , where indicates the

    composition pri

    A x cx=o o

    nciple used and indicates proportionality of the new vector

    and the old vector . For additive composition we have . More generally,

    x and because initially , , the principak k k k

    c cx

    x Ax cx

    A x c x e A e c e w

    =

    = = = l right eigenvector

    of . Thus it is necessary to use the eigenvector to derive a priority vector.A

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    ...

    ...

    ...

    ...

    1 n

    1 1 1 1 n 1 1

    n n 1 n n n n

    A A

    w w w w w wA

    w n n

    w w w w w wA

    = = =

    M M M M M

    Let A1, A

    2,, A

    n, be a set of stimuli. The

    quantified judgments on pairs of stimuliAi,A

    j, are

    represented by an n by n matrix A = (aij) ij = 1

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    12 1

    12 2

    1 2

    1 ...

    1/ 1 ...

    1/ 1/ ... 1

    n

    n

    n n

    a a

    a a

    A

    a a

    =

    M M M M

    ija

    jiai

    represented by an n-by

    -n matrix A = (aij), ij = 1,

    2, . . ., n. The entries aij

    are defined by the

    following entry rules. If aij

    = a, then aji

    = 1 /a,

    a 0. If Ai is judged to be of equal relative

    intensity to Aj

    then aij

    = 1, aji

    = 1, in particular, aii

    = 1 for all i.

    Aw=nw

    Aw=cw

    How to go from

    to

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    Clearly in the first formula n is a simple eigenvalue and all other

    eigenvalues are equal to zero.

    A forcing perurbation of eigenvalues theorem:

    If is a simple eigenvalue of A, then for small > 0, there is aneigenvalue () of A() with power series expansion in :

    ()= + (1)+ 2 (2)+

    and corresponding right and left eigenvectors w () and v () suchthat w()= w+ w(1)+ 2 w(2)+

    v()= v+ v(1)+ 2 v(2)+

    Aw=cw

    Aw=maxw

    to

    and then to

    n

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    w=wa ijij

    n

    1=j

    max

    1=win

    1=i

    0

    0,

    10

    01,

    43

    21

    =

    =

    = IIA

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    0256)4)(1(

    43

    21)(

    2===

    =

    IA

    IA

    2

    3352

    335

    2

    1

    =

    +=

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    max

    1 1

    max

    1 1

    max max

    1 1

    max for max

    min for min

    Thus for a row stochastic matrix we have 1=min max 1,thus =1.

    n nj

    ij ij i

    j j i

    n nj

    ij ij i

    j j i

    n n

    ij ij

    j j

    wa a w

    w

    wa a w

    w

    a a

    = =

    = =

    = =

    =

    =

    =

    w)wv)-/(wAv(=w jjTjj11

    Tj

    n

    2j=

    1

    Sensitivity of the Eigenvector

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    The eigenvector w1

    is insensitive to perturbation inA, if 1) the number of terms is small

    (i.e. n is small), 2) if the principal eigenvalue 1

    is separated from the other eigenvalues ,

    here assumed to be distinct (otherwise a slightly more complicated argument can also be

    made and is given below) and, 3) if none of the products vjT wj of left and righteigenvectors is small and if one of them is small, they are all small. Howerver, v

    1T w

    1,

    the product of the normalized left and right principal eigenvectors of a consistent matrix

    is equal to n which as an integer is never very small. If n is relatively small and the

    elements being compared are homogeneous, none of the components ofw1

    is arbitrarily

    small and correspondingly, none of the components of v1T

    is arbitrarily small. Theirproduct cannot be arbitrarily small, and thus w is insensitive to small perturbations of the

    consistent matrix A. The conclusion is that n must be small, and one must compare

    homogeneous elements.

    When the eigenvalues have greater multiplicity than one, the corresponding left and right

    eigenvectors will not be unique. In that case the cosine of the angle between them whichis given by corresponds to a particular choice of and . Even when and correspond to a

    simple they are arbitrary to within a multiplicative complex constant of unit modulus,

    but in that case | viT w

    i| is fully determined. Because both vectors are normalized, we

    always have | viT w

    i|

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    p y ynetwork;

    Why make comparisons to derive priorities;

    Why reciprocals and why homogeneous groups of

    elements;

    Why the fundamental scale 1-9, what does it mean toassign a number for a judgment;

    Why allow inconsistency;

    What is the minimum number of judgments needed

    and why use redundant judgments;

    Wh the rinci al ri ht ei envector;

    Why absolute numbers and absolute scales;

    Why weight and add for synthesis;

    Why the distributive and ideal modes;

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    Why the distributive and ideal modes;

    Why the supermatrix and what does raising it

    to powers do;

    Why stochastic supermatrix;

    Why weight the components;

    Why BOCR why add benefits and

    opportunities and subtract costs and risks ;

    Why the ideal mode;

    How to allocate resources the need for ratio

    scales;

    Some Answers

    (Only to be a little helpful) One structures a hierarchy from a goal download to criteria, subcriteria and goals, involving actors

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    O e st uctu es a e a c y o a goa dow oad to c te a, subc te a a d goa s, vo v g acto s

    and stakeholders and terminating in alternatives at the bottom. The ideas to go gradually from the

    general to the particular. In a network, elements are put in clusters or components with their

    connections indicating influence.

    Comparisons are more scientific in deriving scales because they use a unit and estimate multiples of

    that unit rather than simply assigning numbers by guessing.Reciprocals are needed because if one element is five times more important than another then the

    other is a forteori one fifth as important as the first. One deals with homogeneous clusters to make

    the comparisons possible, closer and more accurate.

    The scale 1-9 helps us quantify our feelings and judgments in comparing elements.

    Human judgment expressed in the form of paired comparisons is naturally inconsistent. A modicum

    of inconsistency enables us to improve our understanding by focusing on the most inconsistentjudgments.

    The minimum number of judgments needed to connect n elements is n-1. Redundant judgments

    improve the validity of the derived priority vector.

    Ratios and ratio scales give us information on both the rank order of the elements and on their

    relative values. It also makes possible proportionate resource allocation.

    Weighting and adding follows from simple operations we do all the time and is no different forpriorities. Suppose the goal has two components of values 0.6 and 0.4, and assume that one has a 0.2

    share in the first component and a 0.7 share in the second. The total share with respect to the goal is

    0.6 x 0.2 + 0.4 x 0.7 = 0.4.

    The supermatrix is the framework for organizing the priorities derived from paired comparisons.

    Raising it to powers gives the overall influence of each element on all the other elements.

    ASSIGNING NUMBERS vs.

    PAIRED COMPARISONS

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    PAIRED COMPARISONS

    A number assigned directly to anobject is at best an ordinal andcannot be justified.

    When we compare two objects orideas we use the smaller as a unit

    and estimate the larger as a multipleof that unit.

    If the objects are homogeneous and if

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    If the objects are homogeneous and ifwe have knowledge and experience,

    paired comparisons actually derivemeasurements that are likely to be closeand that indicate magnitude on anabsolute scale.

    WHY IS AHP EASY TO USE?I d k f d h

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    WHY IS AHP EASY TO USE? It does not take for granted themeasurements on scales, but asks thatscale values be interpreted accordingto the objectives of the problem.

    It relies on elaborate hierarchicstructures to represent decision prob-

    lems and is able to handle problems ofrisk, conflict, and prediction.

    It can be used to make directresource allocation benefit/cost

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    t ca be used to a e d ectresource allocation, benefit/costanalysis, resolve conflicts, design

    and optimize systems.

    It is an approach that describeshow good decisions are made ratherthan prescribes how they should be

    made.

    WHY THE AHP IS POWERFUL

    IN CORPORATE PLANNING

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    IN CORPORATE PLANNING1. Breaks down criteria into manage-

    able components.

    2. Leads a group into making a specific

    decision for consensus or tradeoff.

    3. Provides opportunity to examine

    disagreements and stimulatediscussion and opinion.

    4. Offers opportunity to change

    criteria, modify judgments.

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    , y j g

    5. Forces one to face the entire

    problem at once.

    6. Offers an actual measurement

    system. It enables one toestimate relative magnitudes and

    derive ratio scale prioritiesaccurately.

    7. It organizes, prioritizes andsynthesizes complexity within a

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    y p yrational framework.

    8. Interprets experience in a relevantway without reliance on a black

    box technique like a utility function.

    9. Makes it possible to deal with

    conflicts in perception and injudgment.

    Table 1 Comparison of Group Decision Making Methods

    AnalysisStructureProblem AbstractionGroup MaintenanceMethod

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    Medium

    High

    Very High

    Very High

    High

    Very High

    Low

    Low

    High

    Low

    High

    High

    Low

    High

    Very High

    Medium

    Medium

    Medium

    High

    High

    Very High

    Medium

    Medium

    High

    Structuring and Measuring

    Baysian Analysis

    MAUT/MAVTAHP

    NA

    NANA

    NA

    NA

    Low

    Low

    Low

    Medium

    Medium

    Medium

    Medium

    High

    NA

    NANA

    NA

    NA

    Low

    Low

    Low

    Medium

    Medium

    Very High

    Very High

    Medium

    NA

    NANA

    NA

    High

    Low

    Low

    Low

    Low

    Low

    Low

    Low

    Low

    NA

    NANA

    NA

    High

    Low

    Low

    Low

    High

    High

    High

    Low

    High

    Low

    LowMedium

    Very High

    Very High

    NA

    High

    High

    Medium

    Low

    Low

    Low

    High

    Medium

    HighLow

    High

    High

    NA

    Medium

    Medium

    Medium

    Medium

    Medium

    Medium

    Medium

    Medium

    MediumLow

    Medium

    Medium

    Low

    Medium

    Medium

    High

    Medium

    Low

    Low

    High

    Low

    MediumLow

    Low

    Medium

    Low

    Medium

    Medium

    Medium

    Medium

    Low

    Low

    Medium

    Structuring

    Analogy, AssociationBoundary Examination

    Brainstorming/Brainwriting

    Morphological Connection

    Why-What's Stopping

    Ordering and Ranking

    Voting

    Nominal Group Technique

    Delphi

    Disjointed Incrementalism

    Matrix Evaluation

    Goal Programming

    Conjoint Analysis

    Outranking

    Breadth and

    Depth of

    Analysis

    (What if)

    Faithfulness

    of

    Judgments

    DepthBreadthDevelopment

    of

    Alternatives

    ScopeLearningLeadership

    Effectiveness

    NA = Not Applicable

    Table1 (cont'd)

    Validity of

    th O t

    Applicability

    t

    Psycho-

    h i l

    Applicability

    t I t ibl

    Scientific

    d

    Consideration

    f Oth

    Prioritizing

    G

    Cardinal

    S ti

    Applicability, Validity, and TruthfulnessFairnessMethod

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    Medium

    Medium

    High

    NA

    Medium

    High

    Low

    Medium

    Very High

    Medium

    Medium

    Very High

    High

    High

    High

    Low

    Medium

    High

    NA

    High

    Very High

    High

    High

    High

    Structuring and Measuring

    Baysian Analysis

    MAUT/MAVT

    AHP

    NA

    NA

    NA

    NA

    NA

    Low

    Low

    Low

    Medium

    Medium

    Low

    LowMedium

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NANA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    Low

    Low

    NA

    NAMedium

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    Low

    Low

    Medium

    MediumMedium

    NA

    NA

    NA

    NA

    NA

    Medium

    Medium

    Medium

    Low

    Low

    Medium

    MediumMedium

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    NA

    Medium

    Medium

    Low

    NALow

    NA

    NA

    NA

    NA

    NA

    Low

    NA

    NA

    NA

    NA

    NA

    NAHigh

    NA

    NA

    NA

    NA

    NA

    Low

    NA

    NA

    NA

    NA

    High

    HighHigh

    Structuring

    Analogy/Association

    Boundary Examination

    Brainstorming/Brainwriting

    Morphological Connection

    Why-What's Stopping

    Ordering and Ranking

    Voting

    Nominal Group Technique

    Delphi

    Disjointed Incrementalism

    Matrix EvaluationGoal Programming

    Conjoint Analysis

    Outranking

    the Outcome

    (Prediction)

    to

    Conflict

    Resolution

    physical

    Applicability

    to Intangiblesand

    Mathematical

    Generality

    of Other

    Actors &

    Stakeholders

    Group

    Members

    Separation

    of

    Alternatives

    NA = Not Applicable

    03/27/2006 09:58 PM

    Dear Prof. Saaty:

    Recently, I am thinking my future research fields all along. It is a really difficult decision. I want to devote

    myself to MCDM. I also know that Herbert A. Simon got the Nobel prize in 1978 for his contribution to

    organizational decision making, and Nash for his contribution to game theory and its applications. I wonder

    if there is any possibility for the research on MCDM to make the same great contribution.

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    regards, Sun Yonghong

    Sun Yonghong

    -----Original Message-----From: [email protected] [mailto:[email protected]]

    Sent: Tuesday, March 07, 2006 8:24 PM

    To: Sun Yonghong

    Subject: Re:

    Dear Mr. Sun,

    I assume you are just learning the subject because I think these are old papers that are not written

    electronically. Would it be ok to send you other papers on the subject or should I try to find them and scan

    them? I have generalized the AHP to the Analytic Network Process with dependence and feedback (ANP)

    you may want something on it too. I teach a graduate course on the ANP starting tomorrow.

    Kind regards,

    Tom Saaty