Multicriteria Decision-Making Under Conditions of Uncertainty

6Dealing with Uncertainty of Information: A Classic Approach

The classic approach encountered when considering uncertainty, which comes with a broad range of practical applications (Kaufman 1961; Belyaev 1977), is associated with the analysis carried out for the given solution alternatives (strategies) and the given representative combinations of initial data, states of nature, or scenarios realized on the basis of constructing the corresponding payoff matrices. This analysis is based on applying so‐called choice criteria. The use of certain choice criteria leads to robust solutions, which are considered in the present chapter. The basic phases to support the application of the classic approach when dealing with the uncertainty factor are presented. The questions of constructing representative combinations of initial data, states of nature, or scenarios are also discussed. The use of the presented results is illustrated by solving a monocriteria problem in the presence of uncertainty.

6.1 Characterization of the Classic Approach to Dealing with Uncertainty of Information

The classic approach (Luce and Raiffa 1957; Raiffa 1968; Webster 2003) to dealing with the uncertainty of information is based on the assumption that the analysis is carried out for the given solution alternatives (strategies) X_k, k = 1, 2, …, K and the given representative combinations of initial data, states of nature, or scenarios Y_s, s = 1, 2, …, S. Making use of alternatives and scenarios, we associate ...