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Processing a Decision Tree. Connecticut Electronics. The Original Decision Tree. Go as far to the right as possible, and pick a terminal node. Back up one step, landing on either a chance node or a choice node. At a chance node, put the following expectation.

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Processing a decision tree

Processing a Decision Tree

Connecticut Electronics




Back up one step landing on either a chance node or a choice node
Back up one step, landing on either a chance node or a choice node


At a chance node put the following expectation
At a chance node, put thefollowing expectation



Back up one step landing on either a chance node or a choice node1
Back up one step, landing on either a chance node or a choice node


At a chance node put the following expectation1
At a chance node, put thefollowing expectation




At a choice node put the chosen following payoff and record the choice
At a choice node, put the chosen following payoff and record the choice

“sampled and good”: process


Go as far to the right as possible and pick a terminal node3
Go as far to the right as possible, and pick a terminal node the choice

“sampled and good”: process


Back up one step landing on either a chance node or a choice node3
Back up one step, landing on either a chance node or a the choicechoice node

“sampled and good”: process


At a choice node put the chosen following payoff and record the choice1
At a choice node, put the chosen following payoff and record the choice

“sampled and good”: process

“sampled and bad”: replate


Go as far to the right as possible and pick a terminal node4
Go as far to the right as possible, and pick a terminal node the choice

“sampled and good”: process

“sampled and bad”: replate


Back up one step landing on either a chance node or a choice node4
Back up one step, landing on either a the choicechance node or a choice node

“sampled and good”: process

“sampled and bad”: replate


At a chance node put the following expectation2
At a chance node, put the the choicefollowing expectation

“sampled and good”: process

“sampled and bad”: replate

When finished, you’re left with the optimal “choice” strategy, and the expected payoff yielded by following that strategy.