• Introduction
• Decision scenario
• Basic concepts
  • Notation
  • Payoff value
  • Outcome probability
  • Expected value
  • Analysis
• Glossary
• More to Explore

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3.0 Basic Concepts

You can use the decision tree method by mastering a few basic concepts. Use this section to become familiar with these ideas and notation. If you are using this primer for the first time you will probably find the easiest path is to review the material in the following order.

• 3.1 Notation (nodes and branches)
• 3.2 Payoff value
• 3.3 Outcome probability
• 3.4 Expected value
• 3.5 Analysis

• Introduction > 
• Basic concepts >