Decision Tree under MapReduce Week 14 Part II. Decision Tree.
Decision tree
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Decision tree for an imaginary company which must choose between two different manufacturing processes, one being dependent on a special compound with a volatile price.
Transcript of Decision tree
Decision
Process A
High Sales
Low Sales
Process B
High compound
cost
High Sales
Low Sales
Low compound
cost
High Sales
Low Sales
Decision
Process B
Low compound cost
$75M
$40M
$30M
$90M
$10M
$60M
60%
30%
70%
40%
60%
40%
60%
40%
60%
40%
42%
12%
18%
28%
$
%
Decision
Alternatives
Uncertainties
Expected Net Present Value
Probabilities in %
Decision Tree – Yoni Dayan