Explore BrainMass
Share

Decision Analysis : Benefits of a Decision Tree Plan that Displays Decision Alternatives

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

In your own words, what are the benefits of a decision tree plan that displays decision alternatives?

As it is, there are expected values of decision alternatives As I understand it, it is beneficial for decision analysis problems. There are decision alternatives including probabilities and payoffs with chance outcomes that can help one to achieve an optimal decision through analysis. With computations in a decision tree plan, there is a probability of strong demand and a probability of small demand to interpret the result.

© BrainMass Inc. brainmass.com October 24, 2018, 9:39 pm ad1c9bdddf
https://brainmass.com/business/business-math/decision-analysis-benefits-of-a-decision-tree-plan-that-displays-decision-alternatives-133203

Solution Preview

Yes, you are right about such things as expected values, probabilities, payoffs (or outcomes in general), etc. When a businessperson needs to make a decision based on several factors, a decision tree can help identify which factors to consider and how each factor has been associated with different outcomes of the decision. For example, if we want to determine a credit risk for a particular person, we could have data for each applicant's debt, income, marital status, etc. and have payoffs for each of those ...

Solution Summary

The Benefits of a Decision Tree Plan that Displays Decision Alternatives is discussed.

$2.19
See Also This Related BrainMass Solution

Qualitative Analysis for Management

Solving real world complex problems using either traditional optimization techniques or modern heuristic techniques would make interesting work.

What do the terms heuristic and optimization (or optimal) mean?
What is a quantitative application for each? Some independent research is needed.
What was your source(s) for addressing this question? Provide a URL address(s) if applicable.
Don't hesitate to use outside sources in addressing questions in this course, and apply your understanding as it relates to your prior knowledge and experience where appropriate.

View Full Posting Details