Now, the first step is to develop, a hierarchy by breaking the problem down into itscomponents, and then prioritizing the components, as youll see.Now theres some AHP software out there that lets you do the math, but Im not gonnaget into that level of detail now. The important thing that I want to talk about is not themathematics of it so much as the concept.I, I want you to understand the logic behind Analytic Hierarchy Process and the basicapproach.OK...so uh, lets say, if I was trying to buy a house, a house is actually a pretty goodexample. Its not a good example for a business class, necessarily, but itll certainly dofor today.You, you start with your main goal. An then you break it down into smaller parts. Allright...so uh, taking our example of, of buying a house... I would have to determine thegoal for the house-hunting effort, uh choose the house that would be uh, ...most, well,the best fit for my family. What would be your goal in trying to find a house？ Well, uhlets just say, make the best choice in, in buying a new house. Now, now thats the goal.So now that youve established a goal, you establish your criteria. And urn, undercriteria I would list for me what were the important factors that will influence thedecision. And...they would be things like uh, like the cost. And, uh what else？ Uh,location. Location, I think, would typically be one in most of our models, and maybeone more. How about floor plan？——The layout of the rooms. So, so we have cost,location, floor plan...those might be our key criteria for choosing a house.
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