Using criteria and weights can help you make a better decision. The decision maker must understand how each criterion is important and how to rank alternatives to make the most accurate and objective choice. A decision matrix is a structure that evaluates a list of options against weighted criteria. The decision maker can use the matrix to improve an existing list of options or to evaluate new options.
In the decision matrix, each criterion is assigned a number to represent the relative importance of that criterion. The higher the number, the more important the criterion is. The number is usually displayed along a horizontal or vertical edge of the L-shaped matrix. This makes it easier for the decision maker to compare alternatives.
The decision maker can then use this information to determine the most important criterion. For example, if the decision maker has a list of five alternatives, he or she can find the most important criterion by placing the criteria in a linear order. Another way to determine the most important criterion is to use a multivoting approach. A group of stakeholders will assign a number to each criterion. This method is especially useful when the list of alternatives is long.
Another method to identify the most important criterion is to create a perceptual map. This is a map that depicts how similar and dissimilar the alternatives are. This technique enables the decision maker to quickly determine which alternative is best for the problem.
A related technique uses the same idea, but applies it to a matrix of multiple criteria. The MDS method involves the allocation of alternatives to a perceptual map in two dimensions. The decision maker uses the matrix to gain a comprehensive picture of how similar and dissimilar the alternatives are. The best part is that the MDS method does not require a computer. It can be applied in person without the need for sophisticated software.
The most important criterion is always the high end of the scale. The higher the score, the greater the likelihood that the option will be chosen. However, a low overall score does not necessarily mean the option is not suitable for the problem. If the option has a low overall score, then the decision maker may want to consider modifying the option with other ideas from the other alternatives.
A more complex method involves pairwise comparisons. These comparisons are performed on each level of the hierarchy. The goal of pairwise comparisons is to determine the weights of each criterion. This technique may be more feasible for some decision makers, but it can lead to significantly biased results.
A surprisingly simple method involves asking stakeholders to assign a number to each criterion. The number is usually used to identify the most important criterion. This method is also known as direct rating. It is a simple technique that does not require expensive software or other resources. However, its shortcomings include concern that the decision maker may not accurately quantify the relative importance of preferences.
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