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Thinking and Deciding

Thinking and Deciding

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MAUT AS A TYPE OF DECISION ANALYSIS 351<br />

Suppose you find that the memory scale is equal to the disk-size scale, so that<br />

you are indifferent between a 640K memory with 100-megabyte hard disk <strong>and</strong> 64K<br />

memory with a 300-megabyte disk. Then the memory scale would also get half as<br />

much weight as the price scale. To compute the total utility of each model, you<br />

would multiply the memory <strong>and</strong> disk-size utilities by .5 before adding them. This<br />

would yield utilities of 100, 125, 50, <strong>and</strong> 75 for the four models, respectively. Your<br />

analysis would tell you to choose model B after all.<br />

Notice that when you determine the weight of the scales, you need to know<br />

what the ends of the scales are. Unless you know the ends, you cannot ask yourself<br />

whether the range in memory size is more important than the range in price, or<br />

vice versa, <strong>and</strong> this is the question that you must answer. If the price range is only<br />

from $1,500 to $1,600, for example, price would not be very important.<br />

Questions about the relative weights of attributes are not like the usual questions<br />

often seen in opinion surveys, which take the form “Which is more important, reducing<br />

crime or reducing air pollution?” Such questions do not tell us how much crime<br />

<strong>and</strong> how much pollution are involved. If policy makers knew that a reduction from<br />

2,000 to 1,900 robberies per year was just as good as a reduction of pollution from<br />

100% to 90% of the maximum allowable level, they could decide how to allocate<br />

funds so as to do the most good. If they could reduce air pollution from 100% to 90%<br />

for the same cost as reducing robberies from 2,000 to 1,950, they should choose the<br />

former. But we do not know what citizens mean when they say that “crime is more<br />

important.” We need to know the ranges, when we compare attributes, so that we<br />

can translate the units. If the “robbery attribute” ranged from 2,000 to 1,000, <strong>and</strong> if<br />

someone said that a reduction in pollution from 100% to 90% was 10% of this range,<br />

then we would know how to use that judgment in making decisions. In essence, we<br />

convert these measures to a common scale. If we want to measure with money, we<br />

convert all the different currencies to a common currency using their rates of exchange.<br />

If we want to measure with utility, we must convert to a common scale of<br />

utility, <strong>and</strong> we must determine these rates of exchange.<br />

The attributes or dimensions in a multiattribute analysis work best if each of them<br />

corresponds to a fundamental goal or objective ( Keeney, 1992). In many analyses,<br />

as discussed earlier, each attribute is decomposed into subattributes. For example,<br />

in an analysis concerning pollution control, “effects on health” can be decomposed<br />

into “causing new cases of chronic lung disease” <strong>and</strong> “causing temporary coughs<br />

<strong>and</strong> breathing difficulties.” Each of these subattributes can be further specified or<br />

decomposed; for example, chronic disease can be decomposed into lung cancer, emphysema,<br />

asthma, <strong>and</strong> other diseases. Note that each subattribute corresponds to a<br />

part of the goal of minimizing harm to health.<br />

for another attribute. For example, suppose that price range matters more to you than the range of disk<br />

size. You could ask yourself, “How much more than $500 would I pay in order to replace a 100-megabyte<br />

disk with a 300-megabyte disk?” Suppose the answer is “$1,000 more,” so that the total cost is $1,500.<br />

You have now found that the scale for disk size should be weighed half as much as the money scale, for<br />

the difference between the two ends of it equals only the difference between $500 <strong>and</strong> $1,500, a utility<br />

difference of 50 on the price scale.

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