An Approach To Decision-making Based On Prospect Theory And Grey Relational Analysis

The decision is that people are in order to achieve a certain goal or purpose, propose a variety of possible solutions according to the known information, experience and possibilities,choose the best solution by the analysis, calculation and comparison. When decision making problems exist two or more than two kinds of possible states of nature and the probability of natural state can be predicted, according to the subjective probability and the decision maker's preference choose the best scheme is called stochastic decision-making.The study of stochastic decision-making problem usually bases on expected utility theory. This theory assumes that the decision makers are fully rational. So Kahneman proposed the prospect theory. The theory solves the situation that the decision makers need to be fully rational in the decision-making process. In the process of decision making, by grey relational analysis, we can determine the weights of parameter. And the main work is as follows:First, this thesis proposes an approach to fuzzy soft sets in decision-making based on prospect theory and grey relational analysis. By the approach, we work out the best project of major aviation equipment;Second, this thesis proposes an approach to intuitionistic fuzzy soft sets in decisionmaking based on prospect theory and grey relational analysis. An application for the selected problem of enterprise is presented in the process of risk investment;Third, this thesis proposes an approach to interval-valued intuitionistic fuzzy soft sets in decision-making based on prospect theory and grey relational analysis. By the approach, we choose out the most suitable fertilizer brand.