Money & Business
Decision trees and dealing with uncertainty
...change the probabilities of high sales to 0.5 and medium to 0.4. The financial impacts are that high sales would be worth €9M, medium would be worth €5M and low, €1M. Using a decision tree analysis, calculate what the company’s investment strategy should be. You can use pen and paper, an Excel spreadsheet, or record your calculations in the text box below. Once...