Decision Trees

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What is a decision tree?
A mathematical model used to help managers make decisions
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How do you calculate Expected Value?
Financial Value X Probability
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How do you calculate Net gain?
Total Expected Value - Associated costs
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What is Probability?
Likelihood of an event occuring
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What is a diasdvantage of Decision trees?
No external influences considered e.g. PESTLE
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Other cards in this set

Card 2

Front

How do you calculate Expected Value?

Back

Financial Value X Probability

Card 3

Front

How do you calculate Net gain?

Back

Preview of the front of card 3

Card 4

Front

What is Probability?

Back

Preview of the front of card 4

Card 5

Front

What is a diasdvantage of Decision trees?

Back

Preview of the front of card 5

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