AHP decision analysis
Budget: $30 – $250 USD
1. Write the decision context: which is the problem statement with the surrounding circumstances.
2. Model the problem using a decision tree: - enumerate all options and the respective chance nodes in addition to the outcomes and consequences. The team should describe how probabilities have been established. Multi-objective problems could also be considered.
3. Model the problem using influence diagrams (optional).
4. Solve the decision tree using EMV, Risk profile and assess dominance
5. If the problem involves a multi-objective decision-making process, then an AHP approach can be and should be used. Still, the size has to be at least 4*4, i.e., four alternatives with four criteria for selection.
6. Relax what you have assumed in step 4 by Performing a sensitivity analysis
7. Write your Conclusions and recommendations
2. Model the problem using a decision tree: - enumerate all options and the respective chance nodes in addition to the outcomes and consequences. The team should describe how probabilities have been established. Multi-objective problems could also be considered.
3. Model the problem using influence diagrams (optional).
4. Solve the decision tree using EMV, Risk profile and assess dominance
5. If the problem involves a multi-objective decision-making process, then an AHP approach can be and should be used. Still, the size has to be at least 4*4, i.e., four alternatives with four criteria for selection.
6. Relax what you have assumed in step 4 by Performing a sensitivity analysis
7. Write your Conclusions and recommendations