10/28/2022
Example Camera Purchase
The objective: to select the best overall camera. The alternatives are labeled A, B, C, D
The attributes are Price, Screen Size, Resolution, and Video Quality
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The alternatives (cameras) under consideration have the following ranges for the attributes:
Step 1. We need the utility functions for these attributes…
Attributes:
Screen inches
Megapixels mp
720‐1080 (binary)
ATTRIBUTE: ____Price‐.50_______
____ _46___
SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: ____Price‐.25___________
____ ____ SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
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ATTRIBUTE: ____Price‐.75________
____ _46___
SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: _Screen Size‐.50__________
____ __3__
SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: _Screen Size‐.25__________
____ ____ SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: _Screen Size‐.75__________
____ _3.0_SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
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ATTRIBUTE: ___Megapixels‐.50________
____ _36___
SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: ___Megapixels‐.25________
____ ____ SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: ___Megapixels‐.75__________
____ _36___
SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: __Video Capability‐.50______
____ 1080 SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
10/28/2022
ATTRIBUTE: __Video Capability‐.25______
____ ____ SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
ATTRIBUTE: __Video Capability‐.75_____________
____ 1080 SURE THING
For which value of the sure thing are you indifferent between the sure thing and the gamble?
Indifference point _______
If you knew that all the other attributes were at their worst states?
Indifference point _______
If you knew that all the other attributes were at their best states?
Indifference point _______
Order of importance of attributes.
Which attribute would you change from its worst state to its best state?
Screen in.
Megapix mp
Best state
Worst state
Order of importance
Importance of: ____Price________
For what value of p are you indifferent between the sure thing and the gamble?
SURE THING
screen in.
46 3 36 1080
59 2.4 12 720
100% P= 50%
REFERENCE SYSTEM
BEST SYSTEM
WORST SYSTEM
10/28/2022
Importance of: ____Screen size________
For what value of p are you indifferent between the sure thing and the gamble?
SURE THING
screen in.
100% P= 50%
REFERENCE SYSTEM
BEST SYSTEM
WORST SYSTEM
46 3 36 1080
59 2.4 12 720
Importance of: ____Mp________
For what value of p are you indifferent between the sure thing and the gamble?
SURE THING
100% P= 50%
REFERENCE SYSTEM
screen in.
BEST SYSTEM
WORST SYSTEM
46 3 36 1080
59 2.4 12 720
Importance of: ____Video Cap________
For what value of p are you indifferent between the sure thing and the gamble?
SURE THING
screen in.
46 3 36 1080
59 2.4 12 720
100% P= 50%
REFERENCE SYSTEM
BEST SYSTEM
WORST SYSTEM
Now we have the value data from the decision maker.
The next step is to derive the utility functions in preparation for the calculations.
Next week, I will compute the multiattribute utility for each camera.
10/28/2022 #Page
10/28/2022
Screen in.
Megapix mp
720‐1080 (binary)
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