Specifying Importance Weights Consistent with a Covariance Structure
Document Type
Article
Publication Date
1991
Digital Object Identifier (DOI)
https://doi.org/10.1016/0749-5978(91)90028-R
Abstract
Many situations exist in which multiple dimensions must be combined to create a composite which reflects overall utility or value to a decision maker. A linear combination is often used in which the decision maker's importance weights are multiplied by values of each dimension and then added. When the decision maker's weights are applied, however, the dimension values must have equal variance and essentially zero correlations, or else the ordering on the composite will be incorrect. In this paper, we provide a method which compensates for dimension correlation and inequality of dimension variance. The method is illustrated with ratings of modifications proposed for nuclear power plants.
Was this content written or created while at USF?
Yes
Citation / Publisher Attribution
Organizational Behavior and Human Decision Processes, v. 50, issue 2, p. 395-410
Scholar Commons Citation
Brannick, Michael T. and Darling, R. W. R., "Specifying Importance Weights Consistent with a Covariance Structure" (1991). Psychology Faculty Publications. 2352.
https://digitalcommons.usf.edu/psy_facpub/2352
