Project: Decision Trees Goal: you have to choose real-world problem in business/personal finance and

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Project: Decision Trees

Goal: you have to choose real-world problem in business/personal finance and analyze the situation with decision trees. Do it in groups of 3 participants.

Date: 11th of June, 2019.

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Outline:

  1. Choose situation. What decisions firm should make? What are the sources of risk? Think.
  1. Construct tree (with at least 2 sources of uncertainty).
  1. What actions are optimal according to 3 classic strategies covered in the class?

4. If you will do simulations in Excel, you get some extra points. In case if you do simulations, show me, please, excel.

 

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