Question: An important application of sensitivity analysis occurs in problems involving multiple attributes. Many decision makers experience difficulty in assessing trade-off weights. A sensitivity analysis of
An important application of sensitivity analysis occurs in problems involving multiple attributes. Many decision makers experience difficulty in assessing trade-off weights. A sensitivity analysis of the trade-off weight, though, can reveal whether a decision maker must make a more precise judgment. Reconsider the summer-job example described and analyzed in Chapter 4. In the analysis, we used trade-off weights of ks = 0.60 for salary and kf = 0.40 for fun.
Suppose Sam Chu is uncomfortable with the precise assessment that ks = 0.60. Sam does believe, though, that k s could range from 0.50 up to 0.75. (Recall that ks and kf add up to 1, so by implication, kf can range from 0.50 to 0.25, depending on the value of ks.) Perform a sensitivity analysis on the expected overall score for the two jobs by varying ks over this range. Is the forest job preferred for all values of ks between 0.50 and 0.75?
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Weights table Fun Level Salary Weights 05 05 If you vary the weight on salary over the possible range 05 to 075 you can see that you still always pref... View full answer
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