Module 1 Analytic Hierarchy Process

1) In multifactor decision making,
individuals quantitatively and objectively consider the various factors in
making their decisions.

2) Decision situations where we have
difficulty in accurately determining various weighting factors are excellent
candidates for the Analytic Hierarchy Process analysis.
3) An equivalent name for the Multifactor
Evaluation Process (MFEP) is the Analytic Hierarchy Process (AHP).
4) When using the multifactor evaluation
process, it is helpful if the importance weights for factors sum to 1.0.
5) In the multifactor evaluation process,
we always select the alternative that has the highest total weighted
evaluation.
6) In MFEP, the factor weights are summed
and then multiplied by the total factor evaluation.
7) The consistency ratio (CR) is an
indicator of the equality of factors.
8) ? is the average of the consistency
ratios.
9) CI = (? – n ) / ( n – 1 )
10) If you can determine with confidence
and accuracy the factor weights and factor evaluations, AHP is preferred.

11) AHP gives the factor weights and
factor evaluations from which the final decision can be made.

12) A decision-making technique in which
individuals subjectively and intuitively consider the various factors in making
their selection is known as
A) multifactor decision making.
B) the multifactor evaluation process.
C) the analytic hierarchy process.
D) pairwise comparison analysis.
E) consistency ratio analysis.

13) Mary states that the two factors
critical to her having a successful vacation are golf course availability and
good weather. If Mary insists that golf course availability is three times as
important as the weather, what importance weights should be placed on golf
course availability and good weather to be used for a multifactor evaluation
process?
A)
Golf Weight Weather Weight
0.80 0.20
B)
Golf Weight Weather Weight
0.20 0.80
C)
Golf Weight Weather Weight
0.75 0.25
D)
Golf Weight Weather Weight
0.25 0.75
E) None of the above

14) Given three alternatives and their
total weighted evaluation, which action should be selected?

Alternative

Weighted
Average

A

0.6

B

0.8

C

0.6

A) Alternative A
B) Alternative B
C) Alternative C
D) Alternative A or Alternative C
E) None of the above

15) Given the following key factors and
their importance weights, determine a total weighted evaluation for A3.

Key
Factor

Importance
Weights

A1

A2

A3

K1

0.2

0.2

0.9

0.7

K2

0.7

0.8

0.5

0.4

K3

0.1

0.9

0.6

0.8

A) 0.69
B) 0.74
C) 0.59
D) 0.50
E) None of the above