Engineering Management2D
Decision Making - Theory & Concepts - Eng Mgmt Decision Tree
The decision-making process, types of decisions, and quantitative tools like decision trees and payoff matrices.
Open the complete lessonDecision Tree: Launch vs. Don't Launch
Market Conditions
(60%)
Prob. of Failure:40%
Payoffs
$
$
$
Expected Value (EV)
Launch:$52,000
No Action:$0
Rec: Launch Product
Decision
Market
EV: $52,000
END
Success
$100,000
END
Failure
$-20,000
END
Status Quo
$0