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Hello. I am struggling to understand decision trees. I have looked at the lecture but I am still confused. Can I pl have answer for above example in the revision notes and a brief explanation? Thanks
i think for machine B – if high demand .6*4000*10 + the low demand .4*1000*10
and deducting the cost 15000 that’s 13000$
and for A-
when high demand .6*2000*10 + choosing to invest instead to scrap to get 2500 + 5000*.4
so total of 15000 and then deduct 10000
so we choose B – i’m not completely sure, will be good if mr.john approves it or not
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