How to Estimate Weights in MCDM Methods? Mean weights, Variance and Standard Deviation Methods.
In most multi-criteria decision making (MCDM) models, assigning weights to criteria is an important step that needs to be reexamined. Though, determining the weights of criteria is one of the key problems that arise in multi-criteria decision making . There are various weighting methods that have been proposed in literature and applied for solving different MCDM problems such as goal programming, Analytic Hierarchy Process (AHP), weighted score
method, VIKOR, TOPSIS, WASPAS, CODAS, ERAS, PSI, GRA, etc. These weighting
methods are classified in different ways: Direct criteria weighting methods (scaling, ranking-weight, point allocation procedures and an indirect approach (weight derived from theories and mathematical model). In practice, it is difficult even for a single decision maker to supply numerical relative weights of different decision criteria. Naturally, obtaining criteria
weights from several decision makers is more difficult.
After the presentation of Entropy Shannon method, Criteria Importance Through Inter-criteria Correlation (CRITIC) as objective weighting method. In this video I m going to show you how to use mean weight method, statistical variance and standard deviation to calculate decision criteria weights.
To use mean weights method, the assumption is that all decision criteria have equal importance. To get criteria weights, you divide one by the number of criteria (1/m) m denotes number of criteria. This method is used when you don't have any information on the criteria importance of the decision maker.
For variance method, you first normalize your desion matrix. After that, you need to calculate variance of your criteria. To get criteria weights, each variance is divided by the sum of all variances.
For standard deviation method, you first normalize your desion matrix. After that, you need to calculate standard deviation of your decison criteria. To get criteria weights, each standard deviation is divided by the sum of all standard deviations.
While comparing Entropy method, CRITIC method, mean weights method, variance method and standard deviation methods, it was found that entropy Shonnon method do not calculate well the importance of two criteria. Those criteria were neglegated. Other methods gives almost similar results. the use of objective can reduce corruption and increase good governance in organizations.
This videso answers the folloeing questions:
How to calculate criteria weights?
How to estimate decision criteria weights?
How to use mean weight to weight decision criteria?
How to use standard deviation to calculate criteria weights?
How to use standard deviation to calculate criteria weights?
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link for the article
https://mega.nz/file/ciw1QChT#bozG9ht...
