VERBAL DECISION ANALYSIS METHODS FOR DETERMINING THE EFFICIENCY OF INVESTMENTS IN CONSTRUCTION

Abstract

Decision making is associated with ranking problems aimed to obtain a set of preference order of solutions. People can make mistakes choosing the best object for investments. Due to high cost of such mistakes, such a choice should be well founded. This paper presents multicriteria method for choosing the best object, called SNOD (Scale of Normalized and Ordered Differences). There are two stages in the method: preliminary formal analysis of given alternatives, performed entirely by a computer, and Decision Maker preferences elicitation. The method is based on a Verbal Decision Analysis approach. The possibility of criteria interdependence is taken into account. Key words: decision-making problems, multicriteria method, best object choice, Scale of Normalized and Ordered Differences