Dr. T. T. Kachwala
of
the
decision process.
It represents the State of
nature with the associated
probability and strategies
with the associated payoff.
Slide 3
D
C
Slide 4
Slide 5
(i)Decision branch
signifies the branch that commences from the
decision node. It signifies the strategy the decision
maker selects at that point.
D
Slide 6
Ch
c
De
is
a
Br
n
io
eB
c
n
c
ran
Terminal Branch
h
nc
Terminal Branch
Terminal Branch
Slide 8
Slide 9
EMV
maximum
payoff
Prior
Probability
Conditional
Probability
Joint
Probability
Posterior
Probability
(1)
(2)
(3)
A1
P (A1)
P (B/A1)
P (A1B)
P (A1/B)
A2
P (A2)
P (B/A2)
P(A2B)
P(A2/B)
P (B)