Fuzzification - Decision Making in Terms of Uncertainty

Račić Željko V.
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Račić Željko V.: University of Banja Luka, Faculty of Economics, Republic of Srpska, BiH

Economics, 2018, vol. 6, issue 2, 87-94

Abstract: The theory of fuzzy sets allows to analyze insufficiently precise, accurate, complete phenomena which can not be modeled by the theory of probability or interval mathematics. We define fuzzy sets as sets where the boundary of the set is unclear and depends on subjective estimation or individual preference. In addition to the standard interpretation scale, described above, a set of numbers to each qualitative attribute must be assigned. In addition to the standard interpretation scale a set of numbers to each qualitative attribute must be assigned. First of all, it is necessary to determine the procedure for determining fuzzy numbers describing the attributes. One of the imperfections of the fuzzy sets is subjectivism when defining the boundaries of fuzzy sets and functions of belonging, which can significantly influence the final decision. The decision maker’s subjectivity is also present in the determination of weighted coefficients. However, in case of giving weight, fixed values are necessary. Some decisions require multidisciplinary knowledge, so the decision-making process includes more group decision-makers, who independently give their grades.

Keywords: fuzzification; uncertainty; qualitative attributes; weight coefficients (search for similar items in EconPapers)
JEL-codes: C00 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:6:y:2018:i:2:p:87-94:n:3

DOI: 10.2478/eoik-2018-0022

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