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|What is a correct value for an indifference threshold (q)?|
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
© Bertrand Mareschal, 2011-2013. All rights reserved.