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Weighted Sum Model
In decision theory, the weighted sum model (WSM), also called weighted linear combination (WLC) or simple additive weighting (SAW), is the best known and simplest multi-criteria decision analysis (MCDA) / multi-criteria decision making method for evaluating a number of alternatives in terms of a number of decision criteria. Description In general, suppose that a given MCDA problem is defined on ''m'' alternatives and ''n'' decision criteria. Furthermore, let us assume that all the criteria are benefit criteria, that is, the higher the values are, the better it is. Next suppose that ''wj'' denotes the relative weight of importance of the criterion ''Cj'' and ''aij'' is the performance value of alternative ''Ai'' when it is evaluated in terms of criterion ''Cj''. Then, the total (i.e., when all the criteria are considered simultaneously) importance of alternative ''Ai'', denoted as ''A''''i''WSM-score, is defined as follows: ::A^\text_i = \sum_^n w_j a_,\texti = 1, 2, 3, \dots , m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Theory
Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, rationally under uncertainty. It differs from the Cognitive science, cognitive and Behavioural sciences, behavioral sciences in that it is mainly Prescriptive economics, prescriptive and concerned with identifying optimal decision, optimal decisions for a rational agent, rather than Descriptive economics, describing how people actually make decisions. Despite this, the field is important to the study of real human behavior by Social science, social scientists, as it lays the foundations to Mathematical model, mathematically model and analyze individuals in fields such as sociology, economics, criminology, cognitive science, moral philosophy and political science. History The roots of decision theory lie in probability theory, developed by Blai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multi-criteria Decision Analysis
Multiple-criteria decision-making (MCDM) or multiple-criteria decision analysis (MCDA) is a sub-discipline of operations research that explicitly evaluates multiple conflicting criteria in decision making (both in daily life and in settings such as business, government and medicine). It is also known as known as multi-attribute decision making (MADM), multiple attribute utility theory, multiple attribute value theory, multiple attribute preference theory, and multi-objective decision analysis. Conflicting criteria are typical in evaluating options: cost or price is usually one of the main criteria, and some measure of quality is typically another criterion, easily in conflict with the cost. In purchasing a car, cost, comfort, safety, and fuel economy may be some of the main criteria we consider – it is unusual that the cheapest car is the most comfortable and the safest one. In portfolio management, managers are interested in getting high returns while simultaneously reduc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision-making Software
Decision-making software (DM software) is software for computer applications that help individuals and organisations make choices and take decisions, typically by ranking, prioritizing or choosing from a number of options. An early example of DM software was described in 1973.Dyer, JS (1973), "A time-sharing computer program for the solution of the multiple criteria problem", ''Management Science'', 19: 1379-83.Wallenius, J, Dyer, JS, Fishburn, PC, Steuer, RE, Zionts, S and Deb, K (1992), "Multiple criteria decision making, multiattribute utility theory: The next ten years", ''Management Science'', 38: 645-54. Before the advent of the World Wide Web, most DM software was spreadsheet-based, with the first web-based DM software appearing in the mid-1990s.Koksalan, M, Wallenius, J, and Zionts, S, ''Multiple Criteria Decision Making: From Early History to the 21st Century'', World Scientific Publishing: Singapore, 2011. Nowadays, many DM software products (mostly web-based) are availabl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Weighted Product Model
The weighted product model (WPM) is a multi-criteria decision analysis (MCDA) method used in operations research and decision theory for evaluating and ranking alternatives based on multiple conflicting criteria. The method calculates a score for each alternative by multiplying together all the criteria values, where each value is raised to a power that reflects the importance (weight) of that criterion. This multiplicative approach distinguishes it from additive methods like the weighted sum model (WSM), providing the crucial advantage of dimensional consistency—effectively resolving the problem of "adding apples and oranges" that occurs when combining measurements expressed in different units. Unlike the weighted sum model, which requires extensive data normalization procedures that can significantly influence final rankings, the WPM's multiplicative structure eliminates the need for normalization entirely. This characteristic makes it particularly robust for applications invo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Control Theory
Control theory is a field of control engineering and applied mathematics that deals with the control system, control of dynamical systems in engineered processes and machines. The objective is to develop a model or algorithm governing the application of system inputs to drive the system to a desired state, while minimizing any ''delay'', ''overshoot'', or ''steady-state error'' and ensuring a level of control Stability theory, stability; often with the aim to achieve a degree of Optimal control, optimality. To do this, a controller with the requisite corrective behavior is required. This controller monitors the controlled process variable (PV), and compares it with the reference or Setpoint (control system), set point (SP). The difference between actual and desired value of the process variable, called the ''error'' signal, or SP-PV error, is applied as feedback to generate a control action to bring the controlled process variable to the same value as the set point. Other aspects ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Theory
Decision theory or the theory of rational choice is a branch of probability theory, probability, economics, and analytic philosophy that uses expected utility and probabilities, probability to model how individuals would behave Rationality, rationally under uncertainty. It differs from the Cognitive science, cognitive and Behavioural sciences, behavioral sciences in that it is mainly Prescriptive economics, prescriptive and concerned with identifying optimal decision, optimal decisions for a rational agent, rather than Descriptive economics, describing how people actually make decisions. Despite this, the field is important to the study of real human behavior by Social science, social scientists, as it lays the foundations to Mathematical model, mathematically model and analyze individuals in fields such as sociology, economics, criminology, cognitive science, moral philosophy and political science. History The roots of decision theory lie in probability theory, developed by Blai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical And Quantitative Methods (economics)
Mathematics is a field of study that discovers and organizes methods, theories and theorems that are developed and proved for the needs of empirical sciences and mathematics itself. There are many areas of mathematics, which include number theory (the study of numbers), algebra (the study of formulas and related structures), geometry (the study of shapes and spaces that contain them), analysis (the study of continuous changes), and set theory (presently used as a foundation for all mathematics). Mathematics involves the description and manipulation of abstract objects that consist of either abstractions from nature orin modern mathematicspurely abstract entities that are stipulated to have certain properties, called axioms. Mathematics uses pure reason to prove properties of objects, a ''proof'' consisting of a succession of applications of deductive rules to already established results. These results include previously proved theorems, axioms, andin case of abstracti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multiple-criteria Decision Analysis
Multiple-criteria decision-making (MCDM) or multiple-criteria decision analysis (MCDA) is a sub-discipline of operations research that explicitly evaluates multiple conflicting wikt:criterion, criteria in decision making (both in daily life and in settings such as business, government and medicine). It is also known as known as multi-attribute decision making (MADM), multiple attribute utility theory, multiple attribute value theory, multiple attribute preference theory, and multi-objective decision analysis. Conflicting criteria are typical in evaluating options: cost or price is usually one of the main criteria, and some measure of quality is typically another criterion, easily in conflict with the cost. In purchasing a car, cost, comfort, safety, and fuel economy may be some of the main criteria we consider – it is unusual that the cheapest car is the most comfortable and the safest one. In Investment management, portfolio management, managers are interested in getting hi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environment), often focusing on negative, undesirable consequences. Many different definitions have been proposed. One ISO standard, international standard definition of risk is the "effect of uncertainty on objectives". The understanding of risk, the methods of assessment and management, the descriptions of risk and even the definitions of risk differ in different practice areas (business, economics, Environmental science, environment, finance, information technology, health, insurance, safety, security, security, privacy, etc). This article provides links to more detailed articles on these areas. The international standard for risk management, ISO 31000, provides principles and general guidelines on managing risks faced by organizations. Defi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
