In: Statistics and Probability
Based on three criteria of Performance, Price, and Brand, we want to decide to by a computer. According to our preferences, the weights of the criteria are 0.581, 0.309, and 0.110, respectively. A study comparing three personal computers of hp. Asus, and Apple resulted in the following pairwise comparison matrix for the performance criterion:
Apple 12 1/2 Performance ap Asus Apple Asus 3 1/3 1/2 According to the Analytical Hierarchy Process (AHP) method, (use three decimals in your calculations, for example: 10.256
a Determine the priorities for the three computers relative to the Performance criterion (calculate the priority vector regarding the Performance criterion).
b. Compute the consistency ratio. Are the judgments regarding Performance consistent? Explain. Consider the Random Index (RI) amounts as follows: 3. 4 6. 7. RI 0.58 0.9 1.12 1.24 1.32 1.41
c. Based on the priority vector you calculated in part a (Performance priority vector), and [0.239) supposing that the Price priority vector and Brand priority vector are given as 0.623 and lo.137] [0.309] 0.110 . respectively, what is your recommended decision" lo.581.
Answer:-
Given That:-
Based on three criteria of Performance, Price, and Brand, we want to decide to by a computer.
Given,
Weights of citeria
Performance price brand
Comparison matrix for performance criteria
Performance hp Asus Apple
Normalising matrix:
Divide each element of column with irs column sum and calculate AM for each row
If the performance matrix is consistent so AM is the priority vector, so we need to check consistency Ratio for consistency of the matrix.
First we need to calculate maximum eigen value
= 3.0117
= 0.0058
Therefore n = 3 is the order of square matrix,
Consistency index CI = 0.0058
Consistence Ratio = Consistency Index/Random Index
= CI/RI
RI(3) = 0.58
So
CR = 0.0058/0.58
= 0.01
= 1.0% < 10%
So the given performance matrix is consistent. therefore the arithmatic mean vector is the priority vector of performance.
a) Determine the priorities for the three computers relative to the Performance criterion
Performance Priority vector
First Priority of performance
Third Priority
Second Priority
b. Compute the consistency ratio. Are the judgments regarding Performance consistent? Explain.
Consistency Ratio LR = 0.01
= 1%
So performance priority vector is consistent.
c. Based on the priority vector you calculated in part a and supposing that the Price priority vector and Brand priority vector. what is your recommended decision?
Decision vector = Priority Matrix * Criteria Vector
Priority matrix performance price brand * criteria
Decision vector
hp Asus Apple
frist priority computer
second priority computer
Third priority computer
Because hp has highest priority so i will recommend (on the basis of this information) hp computer.
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