Towards a Canonical Particle Swarm Optimized Direct Least Squares Prioritization Method for Ratio Pairwise Comparison: An Application of Mutual Fund Selection

Kevin Kam Fung Yuen*

*Corresponding author for this work

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

Abstract

Pairwise comparison is a popular method for decision making. Analytic Hierarchy Process (AHP) is based on pairwise comparison (PC), which the rating results of PC forms pairwise reciprocal matrices (PRM) further to be derived as the priority values by the Eigen method. Prioritization method using Eigen method is still open to discuss, although many applications using this method in AHP have been made. This study proposes the Canonical Particle Swarm Optimized Direct Least Squares Prioritization (CPSO-DLSP) method for deriving the priority values from a PRM. The direct least squares function leads to the least total square variance between ground PRM and the derived priority values. The Canonical Particle Swarm Optimization (CPSO) algorithm is one of the promising methods to effectively solve the direct least squares optimization problem. An application of mutual fund selection using the conventional AHP method is revised and demonstrated by the proposed method.

Original languageEnglish
Title of host publicationProceedings - 2016 9th International Conference on Developments in eSystems Engineering, DeSE 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages228-232
Number of pages5
ISBN (Electronic)9781509054879
DOIs
Publication statusPublished - 17 May 2017
Event9th International Conference on Developments in eSystems Engineering, DeSE 2016 - Liverpool, United Kingdom
Duration: 31 Aug 20162 Sept 2016

Publication series

NameProceedings - 2016 9th International Conference on Developments in eSystems Engineering, DeSE 2016

Conference

Conference9th International Conference on Developments in eSystems Engineering, DeSE 2016
Country/TerritoryUnited Kingdom
CityLiverpool
Period31/08/162/09/16

Keywords

  • Analytic Hierarchy Process
  • Mutual Fund Selection
  • Pairwise comparisons
  • Particle Swarm Optimization
  • Prioritization

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