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588 CHAPTER 13 DECISION ANALYSIS

Figure 13.15 PDC Decision Tree

Strong (s ) 8
1
Small (d ) P(s 1 ) = 0.8
1
2
Weak (s 2 )
7
P(s 2 ) = 0.2
Strong (s ) 14
1
Medium (d ) P(s ) = 0.8
2
1
1 3
Weak (s 2 )
5
P(s 2 ) = 0.2
Strong (s ) 20
1
Large (d 3 ) P(s ) = 0.8
1
4
Weak (s 2 )
–9
P(s 2 ) = 0.2

Getting Started: An Initial Decision Tree

We begin by assuming that TreePlan has been installed and an Excel workbook
is open. To build a TreePlan version of the PDC decision tree proceed as
follows:
Step 1. Select cell A1
Step 2. Select the Tools menu and choose Decision Tree
Step 3. When the TreePlan New dialog box appears:
Click New Tree

A decision tree with one decision node and two branches appears as follows:

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