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Decision Trees
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In this video we explore the role of decision trees and explain how they are laid out and calculated.
#aqabusiness #edexcelbusiness #decisiontrees #alevelbusiness
VIDEO CHAPTERS
0:00 Introduction
0:23 What is a Decision Tree?
0:47 How Does a Decision Tree Work?
1:29 The 4 Step Approach to Decision Trees
2:32 Step One: Identify the Options
2:54 Step Two: Add Possible Outcomes (note: circles represent uncertain outcomes)
3:23 Step Three: Add associated costs, outcome probabilities and financial results for each outcome
4:14 Reminder: What is Probability?
4:39 Quick Challenge on Probabilities
7:21 Calculations Involved in the Decision Tree
7:45 Decision Tree: Simple Example
8:53 Putting the Data into Joseph's Decision Tree
9:48 Calculate the Expected Values and Net Gains
11:44 Final Challenge - Quick Calculation
12:57 Final Thoughts on Decision Trees
#aqabusiness #edexcelbusiness #decisiontrees #alevelbusiness
VIDEO CHAPTERS
0:00 Introduction
0:23 What is a Decision Tree?
0:47 How Does a Decision Tree Work?
1:29 The 4 Step Approach to Decision Trees
2:32 Step One: Identify the Options
2:54 Step Two: Add Possible Outcomes (note: circles represent uncertain outcomes)
3:23 Step Three: Add associated costs, outcome probabilities and financial results for each outcome
4:14 Reminder: What is Probability?
4:39 Quick Challenge on Probabilities
7:21 Calculations Involved in the Decision Tree
7:45 Decision Tree: Simple Example
8:53 Putting the Data into Joseph's Decision Tree
9:48 Calculate the Expected Values and Net Gains
11:44 Final Challenge - Quick Calculation
12:57 Final Thoughts on Decision Trees
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