Abstract— Most systems that require the operator control can be considered as man-machine cooperative systems in whose functioning, humans, machines and other unintelligent parts play specific roles. Each role has a value. The recently developed machine intelligence quotient (MIQ) measures the contribution provided by the machines to a system. However, for a more practical decision making process, one needs to also consider the cost of improvements. We propose a simple measure cost-benefit criterion which enhances the aforementioned concept by adjusting it for cost, cost adjusted MIQ (CAMIQ). The method can be especially useful when trying to determine the best solution among several contenders which are similarly valued, but costwise different. Index Terms—Machine Intelligence Quotient, MIQ, Man- machine cooperative system, Human-machine cooperative systems, intelligent systems, cost of intelligence. I. INTRODUCTION OST –benefit Analysis is an economics related concept typically used by decision makers to evaluate the desirability of a given intervention. This technique is ultimately used as a way of analyzing the cost effectiveness of different alternatives to see whether the benefits outweigh the costs. The purpose is to measure the efficiency of the added value with respect to the status quo. By evaluating cost-benefit ratio of different alternative approaches, one can determine which alternative solution provides the most benefit for the least cost [1]-[3]. Cost-benefit ratio of better solutions typically yield smaller ratio than competing alternatives. In economics related projects, costs and benefits of proposed additions are measured and evaluated in terms of monetary values. However, measurement of benefits in monetary terms is a difficult task which requires estimation of many of the involved parameters. Therefore, in real life it is not surprising to see the actual values deviate from the estimated ones by wide margins [4], [5]. Similar assessment difficulties may occur while adding value added features to man-machine cooperative systems. Man–machine cooperative systems typically comprised of a human controller, a computer controlled system and some additional non-intelligent parts. A typical man-machine cooperative system is shown in Fig.1. The system functions as a whole with all parts Manuscript received January 16, 2011. T. Ozkul is with the Department of Computer Science and Engineering, American University of Sharjah, Sharjah UAE. (phone: +971 6 515 2455; fax: +971 6 515 2979; e-mail: tozkul@aus.edu ). I. H. Genc is with the Department of Economics, American University of Sharjah, Sharjah UAE. (e-mail: igenc@aus.edu). working together. Human controller makes strategic choices; intelligent system executes the orders and generates subset of orders for non intelligent parts of the plant. Addition of a unit to the man-machine cooperative system involves cost of the added unit and the installation costs. Benefits of the added system appear as increase in performance, or reduction in complexity of the whole man- machine cooperative system which may be translated into some monetary terms. By determining the ratio of cost to benefit, one may assess the value of the addition. Fig.1 Typical man-machine cooperative system. While adding value-added-features to a man-machine cooperative system, assessment of benefit can be a troublesome metric to measure. Measurement of this, in some cases, requires extensive estimation of parameters [4]. In such cases the recently defined term, namely machine intelligence quotient, MIQ, can be used as an alternative metric for measuring “benefit” part of the addition. Measurement of benefit in terms of Machine Intelligence Quotient (MIQ) yields an alternative way of measuring benefit. Thus MIQ can serve as a practical way of determining intelligence level of a man-machine cooperative systems setup. However, with the lack of attention paid on the cost side of this operation neglects a crucial economic measurement component in terms of cost-benefit analysis. MIQ, being an objective measurement parameter, can also be utilized to obtain an alternative path to determining the cost-benefit ratio of the set-up. In this paper, we intend to enhance the MIQ calculations with the cost adjustment to obtain a both technically and economically efficient system adjustment decision rule. The rest of the paper is organized as follows: in the next section we describe the man-machine system, which is followed by a section devoted to the process of calculating the machine intelligence quotient. Then in Section IV we provide the definition of an adjusted MIQ to incorporate cost consideration, as well. In Section V, as a case study, we Development of Cost Adjusted MIQ Concept for Measuring Intelligence Value of Systems Tarik Ozkul and Ismail H. Genc C Intelligent controller Non-intelligent machinery (plant) feedback output input Proceedings of the International MultiConference of Engineers and Computer Scientists 2011 Vol I, IMECS 2011, March 16 - 18, 2011, Hong Kong ISBN: 978-988-18210-3-4 ISSN: 2078-0958 (Print); ISSN: 2078-0966 (Online) IMECS 2011