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What is a correct value for an indifference threshold (q)?
 
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Author: Bertrand Mareschal
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Votes: 1

 

The indifference threshold (q) for a given criterion represents the largest deviation that is considered as negligible in the comparison of two actions.

A good way to determine the value of q is to start with a very small value and to progressively increase this value until you feel that it is not negligible anymore.

For instance, if you compare the prices of two laptop computers, a difference of $1 will probably feel negligible. What about a difference of $5 ? $10 ? $25 ?

Last update: 06:27 AM Thursday, December 22, 2011

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