A statistical approach to Saaty's scaling method for priorities (Q1058251)

This paper investigates the logarithmic least squares (LLSM) approach to \textit{T. L. Saaty}'s [ibid. 15, 234-281 (1977; Zbl 0372.62084)] scaling method for priorities in hierarchical structures. It is argued that statistical criteria are important in deciding the scaling method controversy. It is shown that LLSM is statistically optimal under a number of realistic and practical models. Variances and covariances of parameter estimates are derived. The covariance matrix associated with overall priority differences is also developed. These results allow for a significance analysis of apparent priority differences.