18.3 Calculation Method

This is the first and most important category related to calculation preferences.

A model's Calculation Method controls the primary manner in which the model is calculated. TreeAge Pro Business supports three Calculation Methods.

• Simple: Make decisions based on a single payoff set.

• Benefit-cost: Make decisions based net value (profit) calculated as the benefit payoff set subtracted from a cost payoff set.

• Multi-attribute: Make decisions based on a weighted combination of several payoff sets.

The bottom portion of the dialog will change based on your selection.

18.3.1   Calculation Method - Simple

There are a few options available to control the Simple Calculation Method.

• Optimal path: Select High for decision analysis to choose the strategy with the hightest value. Use this when your decisions are made on the basis of profit, utility, cash flow, quality of life or other attributes that should be maximized. Select Low when payoffs are costs or other attributes that should be minimized.

• Active payoff: Choose the payoff set to use for decisions. The default is always 1.

18.3.2  Calculation Method - Benefit/Cost

There are a few options available to control the Benefit/Cost Calculation Method.

• Cost payoff: Select the payoff to use for cost calculations within the model.

• Benefit payoff: Select the payoff to use for benefit calculations within the model.

18.3.3  Calculation Method - Multi-Attribute

There are a few options available to control the Multi-Attribute Calculation Method.

• Optimal path: Select High when the weighted multi-attribute calculated values should be maximized. Select Low when they should be minimized.

• Payoff/weight grid: Enter a weight for each payoff set. (This example has 3 payoffs).