Business Performance and Financial Institutions in Europe by Unknown
Author:Unknown
Language: eng
Format: epub
ISBN: 9783030575175
Publisher: Springer International Publishing
(2)
Step 5. Determination of the amount of information Cj emitted by the jth criteria:
(3)
The higher value of Cj points to a greater amount of information contained in the given criterion and, consequently, to its greater relative significance.
Step 6. Determination of the criteria weight coefficients by applying the relation:
(4)
4.2 TOPSIS Method
The name TOPSIS represents the acronym of the Technique for Order of Preference by Similarity to Ideal Solution. It is a method of multi-criteria analysis developed by Hwang and Yoon in 1981 (Yoon and Hwang 1981).
The essence of this method is that the optimal solution should be closest to the positive-ideal solution, and furthest from the negative-ideal solution in the geometric sense (TodoroviÄ and StankoviÄ 2011). In doing so, the ideal solution is the point where the utility for the decision-maker is greatest, that is, the point where the value of the revenue criteria is highest, while at the same time the value of the cost criteria is the lowest. The ideal solution is usually not feasible, but all methods of multi-criteria analysis tend to make the optimal solution as close as possible to the ideal one. Therefore, the optimal solution is the solution that meets most of the criteria.
The TOPSIS procedure can be represented by the following algorithm (Yoon and Hwang 1995):
Step 1. Determination of a normalized decision matrix with coefficients rij, where the coefficients are determined using the following relation:
Download
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.
Corporate Finance | Crowdfunding |
Financial Engineering | Financial Risk Management |
Wealth Management |
The Black Swan by Nassim Nicholas Taleb(6162)
Bad Blood by John Carreyrou(5743)
Pioneering Portfolio Management by David F. Swensen(5587)
Millionaire: The Philanderer, Gambler, and Duelist Who Invented Modern Finance by Janet Gleeson(3555)
Skin in the Game by Nassim Nicholas Taleb(3437)
The Money Culture by Michael Lewis(3263)
Skin in the Game: Hidden Asymmetries in Daily Life by Nassim Nicholas Taleb(3248)
Bullshit Jobs by David Graeber(3149)
The Wisdom of Finance by Mihir Desai(3062)
Blockchain Basics by Daniel Drescher(2868)
Liar's Poker by Michael Lewis(2793)
The Intelligent Investor by Benjamin Graham Jason Zweig(2586)
Mastering Bitcoin: Programming the Open Blockchain by Andreas M. Antonopoulos(2498)
Investing For Dummies by Eric Tyson(2457)
Hands-On Machine Learning for Algorithmic Trading by Stefan Jansen(2443)
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb(2398)
The Power of Broke by Daymond John(2366)
Zero Hour by Harry S. Dent Jr. & Andrew Pancholi(2233)
Market Wizards by Jack D. Schwager(2147)