06 Decision making under risk - Decision matrix

Question 1

What are scenarios?

Answer 1

Scenarios: are “strategies of the environment” (whereever there is a chance event)

Question 2

What is a strategy?

Answer 2

A strategy is the assignment of a decison to each decision node (whenever there is a decison node, each path)

Question 3

What does each scenario with each strategy yield to?

Answer 3

Combining each scenario with each strategy must yield a complete path that starte at the root of the tree and ends at one of the end nodes