Optimization And Applications Of Analytichierarchy Process On Finance And Investment

At present,China’s economic development is undergoing profound changes.Investment has been a key issue that has drawn much attention in economic development.However,in the investment process,investment decisions are often influenced by irrational or irrational factors,leading to investment failure or failing to achieve the expected goals.There appear to be scientific blind investment and lack of scientific guidance for investment in deep-seated problems.In order to Screening out better investment decisions and rejecting irrational or irrational factors should be resolved using the scientific method of analytic hierarchy process(AHP).The AHP was proposed by TLSaaty in the 1970 s in the United States,which conducts multi-objective decision-making analysis from the perspective of qualitative and quantitative analysis,and quantitatively evaluates the decision makers’ experience to make scientific and rational.The result of the analysis,especially the problem of complicated structure and lack of necessary data,is more applicable.This method can significantly reduce the irrational decision-making and can withstand the test of investment practice.The research field of this dissertation is the optimization of AHP and its investment decision,which is organized with four parts.The first part is introduction.This part of the research background,the status quo for a detailed description and scientific analysis.The method effectively solves the irrational or irrational factors in practice and lays a solid foundation for the solution of some problems.Therefore,it has a faster and better application in practical problems.The second part is the scientific description of AHP.This section describes the establishment of the hierarchical structure model,the relationship between the structure of the judgment matrix,the consistency of the judgment matrix,the calculation of the weight vector of the judgment matrix,the calculation of the weight of the factors such as content description.The method first divides various important factors into several levels,of which the highest level is the target level,that is,the target to be achieved has only one element,and the middle level is the criterion level,and the elements can be set as many as.To achieve the target level and science need to adopt measures,including policies,guidelines,models and so on.In addition,depending on the size and complexity of the scale of the problem,the guideline layer can be further extended to the guideline and sub-criteria layers,which have more than one layer.The lowest layer of the model is the action layer,which provides various layers Scientific program.The third part is to propose an improved method of AHP and AHP with complex structure.In this paper,the principal component analysis and analytic hierarchy process are combined,and the combinatorial weighting method is used to combine several improved methods of AHP to make full use of the information provided by various methods to achieve the objective of improving the forecasting accuracy as much as possible.In this method,the values of other positions are calculated by determining a part of the value of the judgment matrix in advance,so that the resulting matrix must be a consistent matrix.The advantage of this method is that only by judging a few elements in the judgment matrix through the subjective thinking of the people,the consistency matrix can be obtained,the judgment process of the consistency matrix can be reduced,and the trouble of the consistency test can be omitted.The fourth part builds the profit maximization model according to the current economic development situation,adds the news media module in the sub-criterion level,adds the industrial investment module in the measure layer,and uses the AHP method in the improved frame structure to determine Layer scale and judgment matrix and consistency test,AC judgment matrix,two C-S judgment matrix and six S-P judgment matrix are calculated,and the combination weight of each investment scheme to the target layer is further calculated,so as to quantify the investment scheme Give investors a scientific advice.In summary,this paper presents the use of principal component analysis to extract the main components and the establishment of the AHP structure diagram,the AHP was optimized to reduce the number of layers of various factors to improve efficiency;for the subjective and arbitrary Judging matrix inconsistency problem,the improved analytic hierarchy process,according to the judgment matrix and investment portfolio to the target layer combination weight,and then gives the numerical solution of the investment program.