Presentation: Exponential AverageDecember 2015
Topics: Decision Support (General), Decision Support Systems, Economics, Mathematics
When making decisions that involve a number of measures of success, it is common to combine the measures into a single overall measure using a weighted average. Unfortunately, this approach can lead to "optimal" decisions in which some capabilities are overdeveloped while others are neglected. This may be called the Imbalance Problem. This presentation describes a more general type of average, called the exponential average, which avoids this problem.