Application Of Probabilistic Linguistic Term Sets and Prospect Theory in Multi-Attribute Decision Making: Aviation Industry Evaluation

Abstract

With the increasing complexity and diversification of current decision objectives, partial data absence in evaluating certain decision criteria is common. Therefore, this paper introduces a fuzzy evaluation method using probabilistic linguistic term sets and integrates it with prospect theory. This integration allows reflecting decision-makers' preferences while addressing the issue of data absence for evaluation. Additionally, the paper employs the entropy-weighted Analytic Hierarchy Process (AHP) to evaluate other criteria, and all criteria are evaluated using the TOPSIS method, forming a comprehensive evaluation methodology. Finally, the proposed methodology is applied to assess the aviation industry level in eastern coastal provinces represented by Zhejiang Province. Finally, the proposed methodology is applied to assess the aviation industry level in eastern coastal provinces represented by Zhejiang.