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Decision Trees And Sub Sequential Decisions
A decision tree is a graphic diagram of different decision alternatives and the sequence of events like if they were branches of a tree.
- The symbol Circle and Rectangle shows the decision point and the situation of uncertainty or event respectively. The node depicted by a square is a decision node when outcome nodes are depicted by a circle.
- Decision nodes: points whereas choices exist between managerial and alternatives decisions are made based on estimates and calculations of the returns expected.
- Outcome nodes are points whereas the events depend on probabilities
Demonstration of a tree diagram
For illustration 111 represents the payoff of the act event combination A1 - E1 - B1
When probabilities of different events are known they are written along the corresponding branches. Joint probabilities are acquired by multiplying the probabilities along the branches
If PA and PB are tangents to a circle from an outside point P, such that PA=10cm and ∠APB=60 o . Find the length of chord AB.
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