FACULTY OF INFORMATION TECHNOLOGY

UNIVERSITI TEKNOLOGI MARA KAMPUS PUNCAK

PERDANA SHAH ALAM

IMS 555 –
DECISION THEORY

TOPIC: DECISION MATRIX EXERCISE

PREPARED BY :
AIMISHAHRUL NIZAM BIN AIMI 2015720419

HAFIZZULAINI BIN YUNUS 2015117633

PREPARED FOR :
NORIZAN BINTI ANWAR

SUBMISSION DATE :
10th JUNE 2018

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ACKNOWLEDGEMENT

Alhamdulillah, praised to Allah S.W.T The Almighty as I was finally able to finish my
individual assignment. The completion of this assignment carried out with loads of efforts by
myself and other people who helped me get through this either directly or indirectly despite the
challenges that I encountered while trying to finish it. Thank you to Madam Norizan Binti Anwar,
as lecturer on this subject for her guidance in providing all the information by stimulating
suggestions and encouragement.

Lastly, thank you so much to my family especially my parents who always support me
throughout my learning and completing this assignment and also my friends who always be
there in giving opinion and motivation.

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 EXERCISE

DM-7. Aqil is a fresh graduate student and earned RM3,000 per month. He is considering either
he should continue using train (i.e. LRT or MRT), buying a new motorcycle or car pool with his
roommate to go to the office. Even though he does not have much financial commitment except
for PTPTN, however, he does not want to waste money for unnecessary things. To that, he
needs to take into account of five (5) selections key characteristics/decision criteria/states of
nature.

STEP 1: Identify Alternative

 Public transport
 Buy new motorcycle
 Car pool with roommate

STEP 2: States of nature (factors)

 Comfortable – facilitate movement, timeliness, easy access

 Financial – toll & parking, petrol, fare ticket
 Time Management – Quick come to office, Take time come to office
 Safety – risk, not risk
 Flexibility – easy using, schedule train, waiting member

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STEP 3: Assign weights to factors (states of nature)

Table 1: Assign the weight based on our perceived importance of the criteria

FACTOR WEIGHT

Financial 3

Time Management 3

Safety 2

Flexibility 2

Comfortable 1

3 – most important 2- acceptable 1 – least important

 We can also set the weight based on proportion (100%). Total of the weight is 100%.

Table 2: Total of the weight in percent(%)

FACTOR WEIGHT

Financial 30%

Time Management 30%

Safety 20%

Flexibility 15%

Comfortable 5%

TOTAL 100%

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STEP 4: Design scoring system

 1(low) – 2(medium) – 3(high)

STEP 5: Rate the alternatives

Table 3: Alternative and criteria (states of nature)

FACTOR WEIGHT PUBLIC BUYING CAR POOL WITH

TRANSPORT MOTORCYCLE FRIEND

Financial 3 Fare ticket Petrol Parking & Toll

Time 3 quick come to quick come to take time come

Management office office to office

Safety 2 Not risk Risk Risk

Flexibility 2 Schedule train Easy using Waiting member

Comfortable 1 Easy access Timeliness Facilitate

movement

 Before rating, tabulate alternative and criteria (states of nature). To help in decision
analysis, textual outcome is needed.

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  The textual outcome can now be converted into utilities. The value of Table 4 based on
the scoring system

Table 4: Scoring System

FACTOR WEIGHT PUBLIC BUYING CAR POOL WITH

TRANSPORT MOTORCYCLE FRIEND

Financial 3 2 3 1

Time 3 2 3 1
Management

Safety 2 3 1 2

Flexibility 2 2 3 1

Comfortable 1 3 2 1

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Step 6: Total the scores

 ∑ (weight x score)

Table 5: Total the scores

FACTOR WEIGHT PUBLIC BUYING CAR POOL WITH

TRANSPORT MOTORCYCLE FRIEND

Financial 3 2x3=6 3x3=9 1x3=3

Time 3 2x3=6 3x3=9 1x3=3

Management

Safety 2 3x2=6 1x2=2 2x2=4

Flexibility 2 2x2=4 3x2=6 1x2=2

Comfortable 1 3x1=3 2x1=2 1x1=1

TOTAL 25 28 13

The alternative that we normally choose is the one with the highest score. In this case is
buying motorcycle.

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  Proportionate weight

Table 6: Total of the weight in percent(%)

FACTOR WEIGHT

Financial 30%

Time Management 30%

Safety 20%

Flexibility 15%

Comfortable 5%

TOTAL 100%

Table 7: Total score in proportionate weight

FACTOR WEIGHT PUBLIC BUYING CAR POOL WITH

TRANSPORT MOTORCYCLE FRIEND

Financial 3 2 (x0.3) = 0.6 3 (x0.3) = 0.9 1 (x0.3) = 0.3

Time 3 2 (x0.3) = 0.6 3 (x0.3) = 0.9 1 (x0.3) = 0.3

Management

Safety 2 3 (x0.2) = 0.6 1 (x0.2) = 0.2 2 (x0.2) = 0.4

Flexibility 2 2 (x0.15) = 0.3 3 (x0.15) = 0.45 1 (x0.15) = 0.15

Comfortable 1 3 (x0.05) = 0.15 2 (x0.05) = 0.1 1 (x0.05) = 0.05

TOTAL 2.25 2.55 1.2

The alternative that we normally choose is the one with the highest score. In this case is
buying motorcycle.