Introduction to Value Tree Analysis

Introduction to Value Tree Analysis

eLearning resources / MCDA team Director prof. Raimo P. Hämäläinen Helsinki University of Technology Systems Analysis Laboratory http://www.eLearning.sal.hut.fi

Systems Analysis Laboratory Helsinki University of Technology eLearning / MCDA

Contents

About the introduction Basic concepts A job selection problem Problem structuring Preference elicitation Results and sensitivity analysis

Systems Analysis Laboratory Helsinki University of Technology eLearning / MCDA

About the introduction

This is a brief introduction to multiple criteria decision analysis and specifically to value tree analysis After reading the material you should know

basic concepts of value tree analysis how to construct a value tree how to use the Web-HIPRE software in simple decision making problems to support your decision

Systems Analysis Laboratory Helsinki University of Technology eLearning / MCDA

Basic concepts

Objective

is a statement of something that one desires to achieve for example; “more wealth”

Attribute

indicates the level to which an objective is achieved in a given decision alternative for example by selecting a certain job offer you may get 3000 €/month

Systems Analysis Laboratory Helsinki University of Technology eLearning / MCDA

Basic concepts

Value function

Value function v(x) assigns a number i.e. value to each attribute level x. Value describes subjective desirability of the corresponding attribute level. For example:

value

1

value

1

Size of the ice cream cone

Systems Analysis Laboratory Helsinki University of Technology eLearning / MCDA

Working hours / day

Basic concepts

Value tree

In a value tree objectives are organised hierarchically

overall objective sub-objectives attributes

Top speed Driving Acceleration

alternatives

Citroen VW Passat

Price

Ideal car

Economy Expenses

Audi A4

• Each objective is defined by sub-objectives or attributes • There can be...