Back to Decision Modeling and Analysis

Analytical Hierarchy Process (AHP)

5 minutes 5 Questions

The Analytical Hierarchy Process (AHP) is a structured decision-making methodology used to prioritize and make decisions when multiple criteria are involved. Developed by Thomas L. Saaty, AHP helps decision-makers evaluate and compare options by breaking down complex decisions into a hierarchy of more manageable sub-problems, each of which can be analyzed individually. The AHP process involves: 1. Defining the problem and determining the goal. 2. Structuring the hierarchy from the top (the goal of the decision) through intermediate levels (criteria and sub-criteria) to the lowest level (the alternatives). 3. Conducting pairwise comparisons of the elements at each level of the hierarchy with respect to their impact on an element above them. This involves using a scale of relative importance to quantify the judgments. 4. Calculating the priority weights for each element by normalizing and averaging the comparison matrices. 5. Synthesizing these weights to determine an overall ranking of the options. AHP is particularly useful in business analysis for making complex decisions that involve qualitative and quantitative aspects, such as vendor selection, project prioritization, or resource allocation. It helps in capturing both subjective and objective aspects of a decision, providing a clear rationale for the chosen option. By quantifying the weights of each criterion and sub-criterion, AHP allows for a systematic comparison of alternatives, ensuring that decision-makers consider all relevant factors and their relative importance. It also enables consistency checking to identify any inconsistencies in the judgments made during comparisons.

Test mode:
Start practice test
PMI-PBA - Decision Modeling and Analysis Example Questions

Test your knowledge of Amazon Simple Storage Service (S3)

Question 1

In the Analytical Hierarchy Process (AHP), what is the primary purpose of calculating the Consistency Ratio (CR)?

Correct Answer: To validate that pairwise comparisons are logically consistent

The Consistency Ratio (CR) in AHP serves as a crucial measure to validate the logical coherence of pairwise comparisons made during the decision-making process. When decision-makers perform pairwise comparisons between criteria or alternatives, there's a possibility of introducing logical inconsistencies. For example, if A is preferred to B, and B is preferred to C, then A should logically be preferred to C. The CR helps identify if such logical relationships are maintained throughout the comparisons. The other options are incorrect because: - Establishing relative weights is actually the purpose of the entire AHP process, not specifically the CR calculation - Determining the number of criteria is a preliminary step in AHP and has nothing to do with consistency checking - Measuring mathematical precision of preferences is not the purpose of CR; rather, it measures the logical consistency of the comparisons made.

Question 2

What is the primary purpose of pairwise comparison in Analytical Hierarchy Process (AHP)?

Correct Answer: To determine the relative importance of criteria by comparing them in pairs

The primary purpose of pairwise comparison in AHP is to determine the relative importance of criteria by comparing them in pairs. This method is fundamental to AHP because: 1. It breaks down complex decisions into simpler, manageable comparisons 2. It allows decision-makers to focus on comparing just two elements at a time 3. It helps establish clear preference relationships between criteria 4. It provides a structured way to convert subjective judgments into numerical values The other answers are incorrect because: - Establishing final ranking of alternatives is an outcome of the entire AHP process, not specifically of pairwise comparison - Calculating geometric means is a step in the process but not the primary purpose of pairwise comparison - Validating consistency is a check performed after the pairwise comparisons, not the main purpose of the comparison itself

Question 3

What is the ideal maximum scale typically used in AHP pairwise comparisons?

Correct Answer: A 9-point scale, representing extreme importance

In the Analytic Hierarchy Process (AHP), the 9-point scale is considered the gold standard and ideal maximum for pairwise comparisons. This scale was established by Thomas Saaty, the creator of AHP. The 9-point scale is optimal because: - It provides sufficient granularity to distinguish between different levels of importance - It aligns with human cognitive capacity to make consistent judgments - It has been validated through extensive research and practical applications - It ranges from 1 (equal importance) to 9 (extreme importance) The other scales are problematic because: - A 15-point scale is too detailed and can lead to inconsistent judgments and cognitive overload - A 7-point scale, while close to human cognitive limits, does not provide enough distinction for complex decisions - A 5-point scale is too limited and does not capture sufficient nuance in preference intensities for sophisticated AHP analysis

Go Premium

PMI Professional in Business Analysis Preparation Package (2024)

  • 3015 Superior-grade PMI Professional in Business Analysis practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless PMI-PBA preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!
More Analytical Hierarchy Process (AHP) questions
12 questions (total)
Start 12 question test