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Aggregated Utilities based on Zero-Centred differences

Hey Support-Team,

short question: are the aggregated utility scores of HB analysis based on the zero-centred differences normalization (by default)? Because for individual utilities there are  two separated outcomes (raw and ZC-Diffs).
asked Oct 9, 2015 by anonymous

1 Answer

0 votes
HB is creating raw utilities within the actual algorithm, but in the output report we also show you the normalized (zero-centered) utilities.

The default report which summarizes the utilities at the end of the run for you uses the zero-centered diffs normalization.  If you average the individual-level results on ZC-diffs, you should see they match the aggregate report table.

When you move the .HBU file into a market simulator, the .HBU file contains the raw utilities.  Raw utilities should be used within market simulations.

Zero-centered diffs are useful for viewing the average utilities and comparing individuals or groups on the utilities, due to the normalization.
answered Oct 9, 2015 by Bryan Orme Platinum Sawtooth Software, Inc. (136,265 points)