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Objectives and Strategy ­ Decision Trees Emma Rudd BMA
A decision tree is a mathematical model which can be used by managers to help them make
the right decision.

A square shows a decision has to be made; the lines coming from it show the possible
choices and the circles…

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It is important to remember that the expected value shows how much the firm would earn
on average if the decision was repeated time and time again. In reality it may well be a one
off decision and therefore only one of the outcomes will actually occur. This may have…


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