Question: A decision maker is facing a decision involving two attributes and will be using the following formula to obtain multi-attribute utilities: u(x1, x2) = kiu(x1)
A decision maker is facing a decision involving two attributes and will be using the following formula to obtain multi-attribute utilities: u(x1, x2) = kiu(x1) + k2u(x2) + k3u(X1)u(x2) where x1 = the level of attribute 1 and x2 = the level of attribute 2. The value of ki can be obtained by identifying when the decision maker will be indifferent between a lottery which will either result in both attributes being at their best values, or both at their worst values and an option where it is certain that: (a) Attribute 1 will be at its worst value and attribute 2 at its best value (b) Both attributes will be at their worst values (C) Attribute 1 will be at its best value and attribute 2 at its worst value (d Both attributes will be at their best values
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