The Rank Ordered Centroid equation computes some number, n, which is a value that estimates the distance between adjacent ranks on a normalized scale e.g. running from 0 to 1. Moreover, this is used in modeling human decision logic.
INSTRUCTIONS: Enter the following:
Rank Ordered Centroid (ROC): The centroid weight is returned as a real number.
This equation is often used to generate a modeled relative ranking between a set of criteria. It is used when there is no data, time, or resources to do an exhaustive comparison of the criteria. This method has been found to generate a distribution of criteria weightings that is statistically comparable to that generated by teams or panels of subject matter experts performing various algorithmic approaches to defining relative weights.
To use the equation you simply order the criteria from 1 through n with no regard for how much each criteria might differ in weight pairwise from any other criteria. If you have seven criteria for example you just have to order them 1 through 7 in order of highest criteria importance.
Then you generate the Rank Order Centroid sequence of weights for the input number 7. The resulting sequence of weights are then assigned to the ordered criteria.
Rank-Ordered Centroid (ROC) is a simple method from multi-criteria decision making (MCDM) used to convert a ranked list of criteria into a set of numerical weights, when you know the order of importance but not exact weights.
What problem does ROC solve?
Often, decision-makers can rank criteria (most important → least important) but cannot confidently assign precise weights. ROC provides a reasonable, theoretically grounded approximation of weights based only on the ranking.
How it works
Assume you have n criteria, ranked from:
The formula for Rank Ordered Centroid weight is:
`wk = 1/n * sum_(i=k)^n (1/i)`
where:
Suppose you have 4 criteria ranked in importance:
Compute weights:
NOTE: Weights sum to 1.
ROC represents the center (centroid) of all possible weight vectors that preserve the given ranking and sum to 1. It is the expected value of weights assuming no other information.
When to use ROC
Rank-Ordered Centroid converts ordinal rankings into rational numerical weights without forcing subjective precision—making it a popular and robust choice in decision analysis.