February 2016
Intermediate to advanced
480 pages
219h 58m
English
Regardless of the complexity of a decision or the sophistication of the technique used to analyze it, all decision makers are faced with alternatives and “states of nature.” The following notation will be used in this module:
Terms:
Alternative—A course of action or strategy that may be chosen by a decision maker (e.g., not carrying an umbrella tomorrow).
State of nature—An occurrence or a situation over which the decision maker has little or no control (e.g., tomorrow’s weather).
Symbols used in a decision tree:
—Decision node from which one of several alternatives may be selected.
—A state-of-nature node ...