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Decision Tree | Decision Theory | Part-1 [Lec 7]

Connect with GradeUpgrade GradeUpgrade Instagram link :- https://instagram.com/grade_upgrade?i... In this video you will learn Decision Tree. Decision Tree is the most important topic of Decision Theory. Decision Tree is graphical representation of a decision process involving at multiple stages. Calculation of EMV from Decision Tree is also explained in detail. Question A manager has to make a choice from 3 available courses of action A1, A2 and A3. There are 2 possible states of nature S1 and S2 with probabilities of occurrence as 0.7 and 0.3 respectively. For state S1 the pay-offs for three actions are 25,000, 35,000 and 20,000 respectively. While, for state S2 the pay-offs are 45,000, 50,000 and 35,000 respectively Represent the problem with the help of a Decision Tree and suggest the most preferred decision and corresponding expected value. If you like our videos follow us on Instagram for more Updates. https://instagram.com/grade_upgrade?i... Yours Likes and Comments are the most valuable currency for us, but if you want to support us you can Contribute any small amount by clicking the link below. https://instamojo.com/@GradeUpgrade FULL PLAYLIST of Decision Theory    • What is Decision Theory? [Lec 1]   Playlist of Topics you may also want to learn Time Series    • Time Series - Introduction | Bsc Stat...   Index Number    • What is Index Number? | Introduction ...   Permutation & Combination    • Factorial - Introduction and Problems...