SAB6#132_Decision_Tree

SAB6#132_Decision_Tree

1. Decision trees they are models of real situations and are used to make informed decisions about things like, "Which option should i choose? or how will i solve this problem? by taking into account the associated risks, probabilities and impacts

2. Take the risk and multiply by the impact. For opportunities use a positive cost. For threats use a negative one

3. It calculates the expected monetary value (probability times impact). With a decisión tree, you could evaluate the costs and benefits of several risk responses at once to determine with would be the best option

4. Expected monetary value (EMV)

5. EMV= P*I

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