ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2010
  • © Brno University of Technology, 2002-2010
  • © University of Latvia, 2002-2010
Robustness in the Multimoora Model: The Example of Tanzania
Willem Karel M. Brauers, Edmundas Kazimieras Zavadskas

ABSTRACT. The definition of robustness in econometrics, the error term in a linear equation, was not only broadened, but in addition moved to the meaning of common language: from a cardinal to a qualitative one. At that moment the most robust Multi-Objective Optimization Method has to fulfil seven essential conditions. This interpretation is tested by an application in Economic Development, namely of Tanzania. Considering all stakeholders involved, the choice of the objectives is non-subjective with the assistance of the Ameliorated Nominal Group Technique and the Delphi method. Normalization has to be non-subjective too, possible by the use of a Multiplicative Form or of MOORA (Multi-Objective Optimization by Ratio Analysis). This last one is composed of ratio analysis “senso stricto” and of the Reference Point Method with the previously obtained ratios as a starting point. Combining the three methods in MULTIMOORA a full guaranty for robustness is offered.

KEYWORDS: robustness, multi-objective optimization, stakeholders, Ameliorated Nominal Group Technique, Delphi method, multiplicative form, MOORA, MULTIMOORA, Tanzania.

JEL classification: C44, E37, O14, O41, O55.

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Scholarly papers Transformations in Business & Economics
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