On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis (computing EMVs and selecting the best alternative)

a. is done by working backward (starting on the right and

moving to the left).

b. is done by working forward (starting on the left and

moving to the right).

c. is done by starting at the top of the tree and moving

down.

d. is done by starting at the bottom of the tree and

moving up

Question

Sergio Avery

Mathematics

7 August, 01:50

On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis (computing EMVs and selecting the best alternative)

a. is done by working backward (starting on the right and

moving to the left).

b. is done by working forward (starting on the left and

moving to the right).

c. is done by starting at the top of the tree and moving

down.

d. is done by starting at the bottom of the tree and

moving up

+5

Answers (1)

Know the Answer?

Rolando Warner · Answer 1

A. is done by working backward (starting on the right and

moving to the left).

Step-by-step explanation:

First expected monetary value is calculated for each state of nature node and then best EMV is selected on each decision node by going backwards from right to left.