Using Decision Trees for Business Investment Calculations

Using Decision Trees for Business Investment Calculations

Assessment

Interactive Video

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Business

University

Hard

The video tutorial explains how businesses can use decision trees to evaluate investment projects by mapping out potential outcomes and calculating expected values. It distinguishes between expected and average values, using probabilities to weigh outcomes. An example illustrates the process, showing how to calculate expected values and net outcomes to make informed decisions. The tutorial concludes with a summary of the decision tree process.

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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