Decision Tree diagram using Expected Monetary Value Analysis

Added: 2022-07-04
0
8
948
Created with: iThoughts
Decision trees are used to help make the most valuable from choices involving an element of risk and reward. These trees are composed of “nodes” (bracket, oval and square) connected by “branches” (lines). Using iThoughts, these maps can be easily drawn with auto calculation at each node. St...
Decision trees are used to help make the most valuable from choices involving an element of risk and reward. These trees are composed of “nodes” (bracket, oval and square) connected by “branches” (lines). Using iThoughts, these maps can be easily drawn with auto calculation at each node. Start with the pay-off nodes on the right-hand side, with a range of outcomes, each with a pay-off £ and likelihood of happening. The sum of likelihoods at each probability node (oval) should be 1.0 The probability node will calculate the expected monetary value (EMV) This EMV also has a cost £ which should be entered in the investment node (bracket), which then calculates the Net EMV. The Decision Node (square) then calculates the highest Net EMV from the choices
Created with: iThoughts
Categories: Project Management,
Language: English,
Copyright: To the extent possible under law, the owner of this work has waived all copyright and related or neighboring rights to it.
Arts & Entertainment
Books & Writing
Career
Communication
Creativity & Innovation
Finance & Economics
Geography & Travel
Health & Home
History
Languages
Leadership & Management
Mathematics
Personal Development
Politics & Law
Productivity
Project Management
Sales & Marketing
Science & Technology
Teaching & Learning
Biggerplate logo

Go Further with Mind Mapping: Upgrade to Biggerplate Plus!

Software Courses
250+ Premium Videos
Live Virtual Events
Software Discounts
View Details

Upcoming Webinars:

Time & Task Management with Mind Maps
Time & Task Management with Mind Maps
Learn to map out and better manage your time and your tasks, to take control of your productivity at…
Speaker: Liam Hughes
Date 26 February 2025
Mind Mapping for Coaches and Consultants
Mind Mapping for Coaches and Consultants
Learn how mind mapping techniques and tools can help in your coaching and/or consultancy business! …
Speaker: Liam Hughes
Date 12 March 2025
Copyright 2008 - 2025 Biggerplate.com Ltd. All rights reserved.