Assumptions and method
Ratings must share a 0–100 scale with higher always better. Veto constraints must be applied first; test sensitivity to weights.
Test a scenario
Use the result in a decision
Agree criteria, constraints and who owns the decision.
Ratings must share a 0–100 scale with higher always better. Veto constraints must be applied first; test sensitivity to weights.
Set a baseline and change one assumption to compare outcomes.
A worked example
Follow the fixed teaching example
- Weights total 100. Option A = (50×80 + 30×60 + 20×70)/100 = 72.
- Option B = (50×60 + 30×90 + 20×80)/100 = 73. A one-point difference depends on the chosen weights and ratings.
These illustrative inputs describe a project scenario, not a published benchmark. All monetary inputs use the same currency and price basis.
- Criterion weights
- 50, 30, 20
- One row: option name, rating for each criterion
- Option A, 80, 60, 70 Option B, 60, 90, 80
| Option | Weighted rating / 100 |
|---|---|
| Option B | 73 |
| Option A | 72 |
Interpret the output only within the assumptions above. Changing the inputs changes the result; it does not validate the inputs.
Source & credit
Standard estimating practice; the cited guide documents use rather than claiming invention.
GAO: Cost Estimating and Assessment Guide
This is independently written code and explanation of the underlying method. The linked publication, its diagrams and its trademarks remain its owner’s material; no permission to reuse them is implied.