DM

(
AtaAtay-aatay@ub.edu
Oriol
Tejada

}
CA huiams 1) topic 1 and lotteries from T2 401 -78.4 .

8.6
.
-1 :

smgle
.

↳ Topic 43,4 UH .

→ 27.5 .

Assignments linear programming

}
.

decision wells lamm

of the quelle
.

game theory
•

total Tour
average of no

both best V0
sour
of

VALUE FUNCTIONS

15=30 000 w/300001=0

xt =
80 000 NGO 0007=1

40 ooo → E) N (2--380000)
we have to
find the I

If 2- =
65000 → N (Ur 000 ) = 01T

"
next
question is 2-1 and t
(soooo →
zijn Iz '
→ llrooo ) (41-000 → -2
"
) ~
(z "

if -21 =
35000
→ 80000
)
and t
"
=
60000

then N (31-000) =
0125
; w (600001--01)-5
EVEN SWAPS
Profit Ms
①
F 10m . 267 .

NF 25m .
21%

1%9 =
5m to

↳ 25-11=10
um
m
lporovnasehyr)
taktcttratw ATM 31 mwiuistn shakes
re
dwuyhompensovae .

( 14 .
.
3 = Tm -

3 )
I
F
10M 26%
objective profit
"
→
,,
becomes
NF 10M 24% (21+3) irrelevant

F 2670 →
dominates NF
→ we choose F
NF Mio =

0BYEenvES

② ,
Ticket cost I travel time 1
Baggage
1. KLM almost dominates TAP (
psst 2€
)
\
Delta
'
426 1
12h INC 2. If a
bag cons 50€ add i t ticker price →
objective
"
threewant
ubaoggage
we can to
becomes

¥¥
,
,
, 1
I 3ft 17Th M¢ 3.
Lufthansa
KYM dominates Kum

Lufthansa
' , \ NOTHING 4-
Suppose
42252 16h me earn
spend 40€ for the cost
, of 1 spare hour .

TAT
'

, µ 1
Y l #
Delta 426EUR 12h

~÷Ig
,

lufthansa 412EUR 12h ( 4h = 4^40=160 EUR+3

 "
5. Travel time =
irrelevant
"

L dominated
WE CHOOSE LUFTHANSA

③ $ # Artists

Down
length
no 5d 7

Primavera out nd 16

Flow 165 3d 10

1A 2€
-
-

→
- - -

+ =
- +9 -2€
-

→ pdt = -
30€ 220 g- 7
23£ T 16

↳ 27T 27T 16
5 16 5

+1 -30€
¢22T 1- yo 237 5 16
p p
+ 2^30=6 + 6-
2€
①
FLOW WINS
=

Price
④ warranty speed Memory
Hh IA Xy En 16Mt
18 plum
HP 38 Ty 16Mt
Brother 90
3g Up /mvh 32Mt

HP dominates Rrwh
:

price
"
w > > sp
> ~
,
memory
.
.

,
,

Afp / mm → 22ps / nun

a 10€ → T Zpglnnn A)
b) 16Mt +10€ Zp
-_

30€ → T
20€ Up
__
+

↳ 58EUR
try 22ps 76Mt

b) HP +30EUR -388EUR → we
choose tfp ( 88 EUR2 90EUR )
2.3 .

AEA

alternatives a- 1ohm ,
. - am )
value functions for each attribute this
:

rm
,
. . -

weight for each attribute Weiwei - - -

Win

I
thmetims for an
value
alternative :
Nca / =
War
, (g) + Wz relay +
- -
- -
t Wmrm 1AM )
whom 0 2- Nr / ar ) 11
n

Wr >
o and Ewr -1
,

tfininyvahuofatsvumn
"

weights /mom ) adding tot

^
↳
've

for 1 Er 2- m

a= ( Ananias)
Nla ) Warn
log) twrtvlarltwsvs / " ) as
=

tloadeaching
,

university working slavery too €

" 0h

60h

Example
Consultancy
:

→ an :

salary
Alt .

Salary W.h. Az :

working hours
80000€ 604
Consul .

50000
Uni . 404
30000
Sailing inst . 20h

gonna trhd
→
we are rathe functions for each attribute

→
weights
:

Wn= 0,6
,
Wu -0,4 for each value tmlltrm
 Salary WH
Wn =
Qb Wz -0,4
rn w
,

Nla)= wnvnla ) twerk / an ) ,

✗
"" 3
Y
=
-

Fo ✗ + lit

)
a- -

Lamar )
sure
VF /direct method
tote
A[2017] B[ 60,0]
100

-1W Ah
^
→ Nzlaz )
a
+1,5
-

s
_-

b me 60

"" "
'

m=?o÷o= to -

in our
example ( govern )
if a -40 Nacqo)= -1*-40+1 r=QT
,

salary Nnlan ) WH Nzlaz ) ☐

a ans so ,
no
•. •,
g. ÷.×+n
b Uni Mlle 0,6 40 01T
c
Sailing 3oz go w no
D= -

two ✗ + 60th

0=-32 th

4=115
generally m

N( a) = Ewrrrr Car ) - -

War, fault . .
.

rtmrm (arm )
→ rn

what we have
2 attributes Ah are (a) la )
:

War,
: ✓ =

, +
wzvucau )
µ
,

-016-1+0,4-0=0,6
'

: COOH
µ

V(b) =

016-0161-0,4-0,5=0,361-0,2--0,1-6 q

r (c) =
016.0+014.1=014
*
① ☒
we are choose Kc)
gonna May > v( b) >

• •
=

based on the value functions

coarguzppney

8M
RlGuirementskrusMganaddineemodelm A OLIVER
•

1. SIMPLE PREFERENTIAL INDEPENDENCE

the
-

car ltamplei
Audi beach
} itu
say ttnohibeaele) > ( Audi , where

)gpo
the

Volvo white (Volvo ,

white
) > / Value ,
blade ) color
is not independent
would have to fix the color
you
I Audi "
" prefer and Volvo nhbeaele

Example
Model / Brand $
Mpx Zoom
weight Model / Brand " " $ →
we Mpx →
vs Zoom → v

Nikon 249 nz nsx

,
weight → ~,

znygms
Nikon 1 249 0123 12 0,33 186 1 214
Canon 249 hL 10x not gms 0,63

Casio 255 16 thx 25T → Canon 1 249 0123 hL

0,33
10X 96 not n

Casio 0 255 0 16 1 thx 017 25T 0,25

Panasonic 229 12 h6✗ 208

275 Panasonic 0,5 229 12 Nox 019 208 0,67

Olympus 255 no YX 1 0133
275
Olympus 0,7 255 0 no o YX 0 O

W Wz Wz Wu Wg
→ Canon ,
Meyer Maes
-
: Nikon N >
Olympus > Panasonic > Casio

F- 5747332

① → brand . . .
direct method live know what she wants )

m / Nihon )=1
Nn ( canon )=1
Nn ( Olympus) -0,7 ( given
)
-

N
, / Panasonic)= 015

→
brand > Y=
-

% ✗ th

/
and MP , are
fully loneaul straight line)

Nz= Egg ✗
y=mxtn
0=-1%-2+1-+4 =)
" '

①
→ Price in full emear %
t

, ]ym=?÷;=;÷g
-

" "" ☐
→
^
4m¥
ultra (21-5)=0
÷ 26
-4

best
in
B[ "TO
]=[
.
-

n=Y÷
worst
, xhyig
; decreasing function
1 the T the
, price the I the interest

in
if we want the of
rn other
the prices ,
dosadome do unearned Morrice

N2Gh9)= -126.249 1-
IT
=

¥ I 0,23 ( two aewmaes

'

?
^
③ "" ""
%
↳ " "
MY=m×+n
"" "
=
" " °" "
"
"

m=fo ?
µ%
Ns 116 ) -4
=

vs / no)=o
-

0 =
to -
10th

?
n= -

%
10$ I

Nslx )= Fox % -

⑨ piece -
wise linear

-
Zoom and
weight
-
bisection method

t
?⃝
 g- ;j! !
ZOOM :
fx =
0,5
- -
-
-

Ny
%o×+
^
-0
man >

Nulls) -1 ,

↳ since fx is the midpoint for my valuation the bisection method

, apply
→ for 4+08 [
4,0 ] [ 8 ; at ] m
=

°Y÷ ¥= f-

E. ÷:-.
=
,

0=1 4th - → n= -0 , g-
→
y
=
Fx -9T
,

th [ 8101T ] Ers , n ]
.

y=Mx ,

m=Ig÷=¥=1w to

1 Fo -18 th h= -0in
dosadit 'm AWWW
devilry
= .

to
who
have µ roomie)
y =
Fox -10,1 we
( 2.

-
I
Ny / ✗ I =
{ 1×-0 't 4 Exes Nato ) =
'
10+011--0151-0,7=0,6
Fox -10,1 8 a- ✗ ±
,g
Nu 112) =
Lao -
1h +0,1--0,61-011=017

Ny 116 ) =
to -161-0,1--0,8+0,1=0,9

⑤ WEIGHT -7 N5( ) ×
2388=015 . .
-

piece wise -

linear

Nr (11-5)=1 , v
, (27-5)=0
%✗
{
Nr 12317=015 -
1-
1,9687T
A for 158 -23T Attic] [ Zsrioir ]
y=mxtn
(6)

t÷÷:÷÷÷
:
n
N
.
.
.
,
=

y -

f-
,
3,437T
-

' 1-
✗

1-1-0×+81437 Foo
m=
= -
,
ar r
'

Foo 1,96875 ma
( 244 )
1- 117th

Ing
h=
-

1-
.

Nr =
- - MY 1,96 8tr=

it should look
•
y=
-

%✗ +1,96 . -
,

like HWS ttim-m.ae Nr ( UT ) =

" 2. for 235-275 y=m×th [23170,1-71275,0] "

&¥
apart m=¥¥r= -

% . . .
'

Nt ( Wf ) =
v.
steeper n=¥o
•
y=
-

↳ ✗
+
"
Io

4. 3 .

Model / Brand -7M $ →

we Mpx →
vs Zoom →
on
weight → ur N " "

" "↳ ^ "" °" " "

" "°"

}
^"
" ^""
" "" ^ " " "
& "
"" "^
$ " " tht
b Canon 1 249 0123 hL 10X 9 ' Nt Mhk
0,33 1
0161-609 '

Yao
0 14 017 0125 ut has the highest
e Casio 0 255 16 1 255 014821 " "
MP°Ñ'd the DM chooses A
d Panasonic 0,5 hbx 0,9 0,67
.

229 1 12 208 o , tyg , ,

0133
2K
e
Olympus 0,7 255 0 no 0 YX 0 0 0
, rug
0,10T W Wu 01393 Wg 0,196
Wn 0,14g Wz } 0,11-8

N (a) =

W
, un ( an ) two uz law 1-
Ws Ns (as ) t
.
- -
1-
Wmvm
( arm
)
- -

- -

WEIGHTS
to
•

determine the
weights we compare attributes in pairs :

1. Brand and Price

ummm
-
take two ( anti filial ) alternatives and compare them
A- =/ Canon (Casio
best
,
255
worst
,
*
,
*
,
*
) ,
D=
worst
, 229 ,
best
*
,
* ,
* )

↳ which one do
you prefer → suppose the DM
prefers A

A' ( Olympus Cassio , )

=

, 255, *
± * ) indifferent to B 229, *
,
*
,
*
,

with / Olympus) twzuz / 2ft

)=v,w, / Casio/ twin 1229)
Wi 0,7 O
-

+
W, 0
=
W, .
1-
WH

→ we need to build these relations with Wn -

Wt
-

③ Price and MPX

A- =
( *
,
229 ,
10 ,
*
,
*
) B=( *
, 255,16 , * * )
,
best worst
worst best

Suppose that DM When is DM

prefers B. in diff . ?

A ( ☒ 1229 B'=L
) 255114
=
10 *
)
* *
, * *
, , , ,
,

↳
Assume she
says
he is indifferent

Wirz 1229 ) two Nz ( lo ) =

Wirz ( Ztt ) t.ws vs
Hh
)
Nv~N~ 1229 ) 1-
Wsu , 110)=Wzv~ 125T
) + w
> (14)
v3 Us (e)
=
1611 % -

↳ ' ^ + w
] -0 =
w, -

o +
w
,
.
µ
,
- N, 114 ) =L -14 % - =
} 0,66
0166

lwuT
③ Mpx and Zoom → ws=Q4wy-
/ f- ( bro didn't remember the indifference point
)
④ £00m and

{
weight ¥ -

Qr " 4<-8
A- ( *
18,27T) > B =/* 1*1*14 Nylx)
=
*
)
*
MT
=

Foxton text "

, ,

g)
, ,

" =
(* '
*
'
* 8,2+1-1 ~ ☐ =( ,
* *
, * y, , µ ,
i ,

Wu Vu (8) twrv , (Ht) =

(4) 1- Wrung City)
HH ) ( mn%W 2- 0bar interning f- •

f- 0,r= 0,5
wnv ,
-

1
Wy 015 t O Wy 0
+
W = w-
,
,

1Qrwu=wr=
in
µ 017W , =
Wz

w÷÷ ?w }
"
wntwitwstwutwr "
> Wr
=
fawn =£ -0,393--0,qp
Ws
-

Qywu
Wu Es w Esw %wu=§oWg
,
topsqp
=¥o
=
,
-

,
↳
do
,,
%
µ
, Wu -0,393=0, nor
-

"
¥+=¥w,=¥< Town E. Wu

Htbttlkg
-
-

↳
=quwu=%, -0,39 , gars
%
-

you, qyw.tw
-

w + + w
, ,
,
, , ,w , =
,, ,g
, ,
Wu ( Int §o 1-
0,41-1+011-1=1
Ur TWh I 01393=0,196
= =
1 •

211-4 w
,
=p
Wu =

¥, =

0,393
nu
=/ an
w (a) it a
, Az , Ag , Au , ar )
r

Cal
% Weenie lace )=
N
Cait +
Wrvrlar)
=

warn . -
- .
.

V (a) =
Wnv, ( Nikon) t.wr.ch/2491tWsvgl1L)tWuVyl18)tWrlf(2ey )
N (A) =

0114g +01105 0,231-158-0133+01393.1 01196

, 1-
0,63=0,74077
.
. '

→
rujoledlkmtabuecey ⑧
① Brightness '
V1

Nr 11400) =D MINOO ) -1

→ [14001-0] 9600 ]
y=mxtn , n

r r t f- ÷÷
m=n÷ouoo= Foo
0 =

Foo -

Moo rn →
y=%x .tn

unlikeliest
② A- of connections or

Nath )= 0 / 61--1 [ [6,1 ]

we
Y mxtn 4,0 ]
-

→
-

|¥g
"
m=^÷=I

8 ,
0--0114+4+4 →
nlx)=É✗-2m
③ Price -
vs
Nrg (31-0)=1 us (7-00)--0
→ a) between [31-011] &
[600-10,5]
bisection method
:

Ns ( 6001=015
y mxtn

⑨ limo) (4) =wnv, 1m00 )twzv , (6)

f-¥¥' →* m=%÷ro=-÷÷= ÷ -

•
win +
wzvz .
1 OF -
-
f -

• " "
Foo
-

" 1-
600th
=

↳
-
-

man -
- × -

Nr ( wool Foo -1100-7=7,1--7--015

}
=

↳
no , -

01st woo =
wiotw , ,
y
%Wn= Wz
' to 600+00
Nfn
= -

Food ¥0 +
-3 Ito ± ✗
c- Goo

{ Iwo
/too) Foot
-

••Wz v2 (6) twgv ,

( too ) =
Wench ) 1- War, NIH __
1-117 stolen 60 b) between [Goo :O.rs ① [ zoo , o ]
Wil +
Ws O Ot "° " ✗ " "° yu=mxtn
Wu
Qty tbh Foot
=
w
-

tht
- -

] ✗
'

YL=
-

grow yooo
Foo
,
m - -

mmm
-

in =3 ,r
=) WL 017 Ns ↳ Foo ✗ 1-
=
Ws
117 for
-
=
6001×4700
•
Wnt wit w =1
]
-1+117=017
=

-
Wn=2Wz
wn =
2-
¥ .
W
,
=
Ipw ,
To Wg 1-
% Wgtwz =p
w
]
'

¥ =1 Wz =

37
nun

EX 2 .
NEDÉLAL
Linear Programming → movie v PDF

EX.tl :

function benefits from

objective
:

man mie
product
• -

Aj decision variables :
an .
.
.
number
of chairs produced .

✗z .
.
. number
of desks produced
✗s - - .
-11 -

tables -1 -

by total profit Ishida se 15in +

24×2 +
18×3
2-
jednotliuyth profit .
mnoEsnwmpmwme
;)
My objective function that
I want to macimiz

C) identity model constraints

→ RESTRICTION OF FABRICATION
:# ✗n t
6×2+2×3<-1850
hhodiny
tided
✗n

→ RESTRICTION OF ASSEMBLY 3 ×, ttxzt 7×3<-2400

→ RESTRICTION OF SHIPPING 3×1 +
2×2 t 4.x , I 11-00

}
At /Ohhhh MMM
→ DEMAND Poitwtenr RESIN Chow : ✗n 1360 . . .
for chairs Opt Sol does
.
.
not
change
✗2 2- 300 .
- .
for desks Allowable decrease
kg
§
I 100 for
, tables complements it
, ""we
Positivity constraint
excel add soever
If I
→ •
:
xn.kz → •
increase
coefficient of the variable xi by
× Genoa on -1 tede → mat
, , zo pain
→ Objective a
,

it is within the allowable increase

Tnetuslm Opt Sol does not
(4--0,112--2794--100)
.
.

change
For Mls trillion the fabrication allowable increase
on is NO .

optimal value
changes by ? × =
i. 0--0
,

It I Allowable 8400+0=8400
by 100 the optimal value
new
increase it in
, since it is range
1100
of taro )
,
then SHADOW PRICE applies) .

If I decrease
coefficient of the variable
☒
×
, by 1
,
100 ✗ shadow pnoee =
100 .

4--400 it is within the allowable increase

for raw on .
F Optimal value
changes by :
1×2=1 .

27T

Mov rae
: 84001-400=8800
opt
.

→ if resolve
u
go out
of the
range ,
u need to the problem
Decision making with multi-attributes under certainty: Value functions.

EXERCISE 1. Ireen wants to buy a projector as she recently moved in to her new place. She cares about
three attributes, namely, brightness (lumen), number of connections, and price (€). She prefers a projector
with higher brightness. It is better when the projector has more connections and the cheaper the better.
The alternatives and the data on the attributes are provided in the following consequence table:

Alternatives Brightness # of connections Price

1600 700
1400 400
Sony 1500 500
1400 350

Making value functions, determine which alternative would be chosen. (Before applying the
use of

method, do not forget to check if there exists a dominated alternative.)

Suppose that the corresponding value function for "brightness" and "number of connections" are (full)
linear whereas the value function of "price" is determined by the bisection method with V3(600) = 0.5.

a) For each attribute, define its associated value function and graphically represent it.
b) In order to determine the weights, consider the following indifferences:

Between brightness and # number of connections: (1500,4)~(1400,6)

Between # of connections and price: (6,700)~(4,500)

Write the obtained additive function and determine which alternative Ireen should choose according to
this method.

EXTRA EXERCISE. Use even swaps method to help Ireen. Assume that she is willing to pay 100 € extra for

a 100 lumen increment in brightness and 50 € for each additional connection.

EXERCISE 2. Sven plans to go for a trip during the Easter holiday. He cares about three attributes when he
plans his trip: flight "fare", "nightlife", '# of museums" The cheaper the fare the better, livelier the
nightlife the better, and the more abundant museums he is interested in the better. The alternatives and
the data on the attributes are provided in the following consequence table:

Alternatives Fare (€) Nightlife # of museums

Prague 200 'Ok"

Budapest 160 "Brilliant"

Salzburg 125 "Not interesting"

Making use of value functions, determine which alternative would be chosen. (Before applying the
method, do not forget to check if there exists a dominated alternative.)

Suppose that the corresponding value function for "fare" and "number of museums" are determined by
the bisection method with V1 (130) = 0.5 for the attribute fare and 13(5) = 0.5 for the attribute "number
of museums"
The preferences
and the value over nightlife is given
function of "nightlife"
is (full) linear.such that "Brilliant" = 4, "Ok" - "Not interesting"
al For each
In order toattribute, define its
associated value function and
determine the weights,
consider the following graphically represent it.
Betweenfare and
nightlife: indifferences:
Write the
Between # of
(125,3)~(200.4)
connectionsand # of
obtained additive museums: (4.1) ~(2,6)
according to this functionand
method. determine which
alternative Sven
should choose