decision trees

Question 1

what is a decision tree

Answer 1

method of evaluating alternative outcomes of any decision

Question 2

how do you calculate the monetary values of a decision tree?

Answer 2

you calculate both scenarios like so:

(success x profit or loss) + (failure x profit/loss)

once calculated, the scenario with the higher profit is the right option

Question 3

3 advantages of decision trees

Answer 3

• Allow managers to set out problems in a clear and logical manner
• All potential options can be seen at the same time
• uses numerical values so more likely to be accurate

Question 4

3 disadvantages of decision trees

Answer 4

• other factors to consider which cannot be shown through numerical value
• by the time the decision is made, the information would be out of date
• process can be time consuming

Question 5

Critical path analysis

Answer 5

a process that helps determine a project schedule

Question 6

how do you calculate the earliest start time?

Answer 6

the first node is 0
then, you add on the longest task to the node, and keep this going until you reach the end

Question 7

how do you calculate the latest finishing time?

Answer 7

LFT - time taken to complete previous task

Question 8

identifying the critical path

Answer 8

the tasks which have a float of 0 and can’t be delayed

Question 9

total float

Answer 9

the amount of time a task can be delayed without affecting the whole project

Question 10

float calculation

Answer 10

LFT - EST - duration of task

Question 11

free float

Answer 11

The time by which a task can be delayed without affecting the following task

Question 12

3 limitations of critical path analysis

Answer 12

• info to estimate times may be incorrect
• unforeseen events can occur
• with large projects, the analysis can become complex