Multi-Criteria Decision-Making Method Based on a Weighted 2-Tuple Fuzzy Linguistic Representation Model

Multi-criteria decision-making (MCDM) methods are used in the selection and evaluation of alternatives. However, too many decision criteria and numerical calculations will increase the computational complexity and make the calculation process difficult to understand. In this paper, a weighted 2-tuple fuzzy linguistic representation model is proposed. The contributions of this study are as follows: (1) Feature selection method was used to remove the redundant or irrelevant feature attributes, thereby simplifying calculations and reducing calculation complexities. (2) The integration of the 2-tuple linguistic representation model simplifies the complexity of numerical calculations. The calculation of qualitative scales can be closer to the human thinking model, and loss of information can be avoided during calculations through the appropriate model. (3) Information fusion technology, i.e., ordered weighted average operator (OWA), was used. The method simplifies the traditional OWA calculation and can be calculated according to the priority order of the indicators. (4) Four major shareholding companies in Taiwan 50 ETF stocks were selected as experimental cases. In total, 992 tuples were obtained and 29 technical indicators were analyzed. The results indicate that case A1 is the most stable among the four stocks considered under different decision-making situations, and it has the first priority ranking.