Decision Tree Example: Bruce Powell PMP Intel Corp
Decision Tree Example: Bruce Powell PMP Intel Corp
-120
35%
Weak Demand
Build or Upgrade
Strong Demand Upgrade Existing Plant
90 65% 120
-120
35%
Weak Demand
Build or Upgrade
Strong Demand Upgrade Existing Plant
120-50=7
60-50=10
35%
90 65% 120
90-120 =
Build or Upgrade
Strong Demand Upgrade Existing Plant
120-50=7
60-50=10
35%
90 65% 120
90-120 =
Build or Upgrade
Strong Demand Upgrade Existing Plant
120-50=7
60-50=12
35%
90 65% 120
90-120 =
Build or Upgrade
Strong Demand Upgrade Existing Plant .65 x 70 = 45.5 -50
120-50=7
35% 60
60-50=10
35%
90 65% 120
90-120 =
Build or Upgrade
Strong Demand Upgrade Existing Plant .65 x 70 = 45.5 -50 45.5 + 3.5 = 49 .35 x 10 = 3.5 Weak Demand
120-50=7
35% 60
60-50=10
Place the highest Net Value in the Decision node and mark that path as True or Yes. Mark the other path as False or No.
65% Strong Demand 200 -120 200 .65 x 80 = 52 53 + (-10.5) = 41.5 .35 x -30 = -10.5 Weak Demand
No -120
35%
90 65% 120
90-120 =
Build or Upgrade
49 Strong Demand Upgrade Existing Plant Yes -50 .65 x 70 = 45.5 45.5 + 3.5 = 49 .35 x 10 = 3.5 Weak Demand
120-50=7
35% 60
60-50=10