Name, Surname………….

Group number …………… DECISIONAL PR0CESSES IN BUSSINES

EXAM
Decisional Processes in Business
30th of May, 2019
13:30-15:30,room 3MVI

1. Consider a hierarchy formed by four clusters: Goal, Criteria, Subcriteria and Alternatives. The
structure of the hierarchy is indicated in the table below, where in the third column are the
connections from a certain node to the ones indicated on its line, in the column mentioning
Connections from the node’.

Clusters Nodes Connections from the node

Goal Goal C1,C2,C3 (Goal →C1,C2,C3)

Criteria C1 S1C1,S2C1 (C1 → S1C1,S2C1)
C2
C3 S1C3,S2C3,S3C3 (C3→S1C3,S2C3,S3C3)
Subcriteria S1C1
S2C1 A1,A2,A3 (S2C1→A1,A2,A3)
S1C3
S2C3
S3C3 A1,A2,A3 (S3C3→A1,A2,A3)
Alternatives A1
A2
A3

The correspondent Decision Matrices, with the usual notations are indicated below.
Goal C1 C2 C3 PV C1 S1C1 S2C1 PV
C1 2 6 S1C1 4
C2 3 S2C1
C3

C3 S1C3 S2C3 S3C3 PV S2C1 A1 A2 A3 PV

S1C3 1/8 1 A1 1/2 1
S2C3 8 A2 2
S3C3 A3

S3C3 A1 A2 A3 PV
A1 1/3 1
A2 3
A3

Synthesize the priorities for the Alternatives. Explain briefly your method and fill the intermediate
and the final results in the tables 1.1. and 1.2 below.
Table 1.1.

1-A
Name, Surname………….
Group number …………… DECISIONAL PR0CESSES IN BUSSINES

C1 C2 C3

S1C1
S2C1
S1C3
S2C3
S3C3

S1C1 S2C1 C2 S1C3 S2C3 S3C3

A1
A2
A3
The priority vector for the alternatives is
Table 1.2
Priority vector
A1
A2
A3

2. Assume that the decision-modeller, after consulting with the experts, conclude that the
problem is more accurately described by a network and for this removes the cluster Goal
and consider three separate clusters: Criteria, Subcriteria and Alternatives. In addition to the
previous connections are added the next ones: A1→S1C1,S1C3 , A2→C1,C2,C3,
S1C3→C1,C2, C2→A1,A2 with the correspondent decision matrices below:
A1 S1C1 S1C3 PV A2 C1 C2 C3 PV
S1C1 4 C1 1/6 1
S1C3 C2 6
C3
S1C3 C1 C2 PV C2 A1 A2 PV
C1 7 A1 3
C2 A2

If the experts evaluate the cluster of criteria to be three times more important than the cluster of
subcriteria, from the point of view of the alternatives, the cluster of subcriteria four times more
important than alternatives from the point of view of criteria and the criteria and alternatives to be
of equal importance from the point of view of subcriteria, write down the unweighted supermatrix
associated with this network, the cluster matrix and the weighted matrix. Describe how the limit
matrix is obtained. If the limit matrix is given below, determine the priority vector for the
alternatives in the newer context. Fill your findings in the next tables.

2-A
Name, Surname………….
Group number …………… DECISIONAL PR0CESSES IN BUSSINES

Table 2.1 for the Unweighted Supermatrix

C SC A
C1 C2 C3 S1C1 S2C1 S1C3 S2C3 S3C3 A1 A2 A3
C C1
C2
C3
SC S1C1
S2C1
S1C3
S2C3
S3C3
A A1
A2
A3
Table 2.2 for the Cluster Matrix
C SC A
C
SC
A
Table 2.3 for the Weighted Matrix
C SC A
C1 C2 C3 S1C1 S2C1 S1C3 S2C3 S3C3 A1 A2 A3
C C1
C2
C3
SC S1C1
S2C1
S1C3
S2C3
S3C3
A A1
A2
A3
The Limit Matrix
C SC A
C1 C2 C3 S1C1 S2C1 S1C3 S2C3 S3C3 A1 A2 A3
C C1
C2
C3
SC S1C1
S2C1
S1C3
S2C3
S3C3
A A1
A2
A3

3-A
Name, Surname………….
Group number …………… DECISIONAL PR0CESSES IN BUSSINES

The priority vector for the alternatives is

Table 2.4
PV
A1
A2
A3

3. 3.1 Describe what Saaty Compatibility index is.

3.2 Describe what Garruti Compatibility index is.
3.3 Enumerate some instances in which compatibility index is referential.
3.4 Comment on the relationship between compatibility index and consistency ratio.

4. Explain the concept of ‘project fallacy’ as it was initially introduced by Kahneman(4.1) and
Tversky and give an example of your own (4.2).

Markscheme (total points 9+1 for being present at the exam )

Maximum Points Observations
points achieved

Table 1.1 1.5

Table 1.2 0.5
Table 2.1 1.5
Table 2.2 0.5
Table 2.3 1.5
Table 2.4 0.5
3.1 0.5
3.2 0.5
3.3 0.5
3.4 0.5
4.1 0.5
4.2 0.5

Seminar
Project Activity Total

Final Mark

4-A