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Hi, I read this article in the acca website of decision trees
https://www.accaglobal.com/lk/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/technical-articles/decision-trees.html
and i found the method od calculating perfect information easy to usebut i tried the same method for the june 2013 question on decision trees, unfortunately i didnt get the answer
can you tell me how to use that same method for that question?
I am a bit puzzled, because the examiners answer does it the same way.
If the perfect information tells us that the number will be 6,000, then the choice will be option 1 giving 10.08M (3.36M x 3) or option 2 giving 9.9M ((3 x3.42M) – 0.36) – so we would choose option 1 and get 10.08M.
If the perfect information tells us that the number will be 6,500 then the choice will be option 1 giving 10.08M (3.36M x 3) or option 2 giving 10.755M ((3 x 3.705) – 0.36) – se would choose option 2 and get 10.755M.
We know the probabilities that the information will be 6,000 (0.4) and that it will be 6,500 (0.6) so we can calculated the expected value if we have perfect information.
The free lecture on decision trees may help you.
Sir what are the chances of getting a decision trees question in the upcoming exam?
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