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Introduction to Multi-Criteria Decision-Making and 1000minds
Define Multi-Criteria Decision-Making terminology and get an overview of the decision-making process using the 1000minds software.
When to use
When you are new to Multi-Criteria Decision-Making or 1000minds, or just want to brush up on the terminology and the 1000minds decision-making process.
Multi-Criteria Decision-Making (MCDM)
- A method used to prioritize or choose from a variety of different alternatives, or options, based on multiple criteria.
- Examples: choosing which patient to prioritize for hospital treatment; choosing a new house; selecting which project to invest money in
- Also known as Multi-Criteria Decision Analysis (MCDA)
- The options that you are ranking or choosing between
- Example: In the case of buying a new house, the alternatives would be the different houses you're considering.
- What it is that matters to you when deciding between different alternatives
- Example: In the case of buying a new house, your criteria could be the design, number of rooms, and view
- The different categories in each criterion
- Example: A view might be "poor", "OK", or "great". Here, "poor", "OK", and "great" are your levels for this criterion.
- A series of questions where you have to choose between two hypothetical alternatives, each defined on different levels of two criteria. Each question requires you to make a trade-off.
- Example: "Do you prefer a house with a great view, but ugly design, or a house with a poor view, but excellent design?"
- Trade-offs can be done at any time after specifying your criteria.
- Percentages that represent the relative importances of your criteria (i.e. how much each of your criteria matters to you relative to each other)
- These values are determined by the trade-offs you make
- Your alternatives that are scored and ranked according to how they performed on each criterion
- The scoring and ranking is done using the preference values of your criteria
Costs and other considerations
- Any factors that are negative or neutral that you want to factor into your decision and weigh against your criteria; or any arbitrary information that you want to store
- Examples: cost, neighborhood, sector, risk level, product URL, contact information
- These can be analyzed alongside your alternative score using the value-for-money chart in 1000minds
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