Original Research : Deciding on Alternatives to Meet the Need for a Bigger House

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Original Research : Deciding on Alternatives to Meet the Need for a Bigger House Analytic Hierarchy Process, AHP, Financial Decision-Making, Multi Criteria Decision Making, Personal Finance.

This study demonstrates the application of the Analytic Hierarchy Process (AHP) to a complex personal financial decision-making problem. This study used AHP to assist a family facing the difficult and complex problem of meeting the need for a bigger house to accommodate their growing children. The family identified three alternatives: extending the current house, buying
a new house or building a new house. AHP helped the family to identify the relevant criteria to judge the alternatives. It helped the family to structure the problem. Structuring improved understanding of the problem and helped them to make explicit trade-off. Based on careful and deliberate judgement, the family chose to buy a new house.

http://mfpc.org.my/wp-content/uploads/images/JWMFP/2017/15-30_Original%20Research_Paper%202_Personal%20FInance%20Decision.pdf