The solution procedure that was introduced in the book for decision trees is called the:
A) folding diagram
B) single-stage method
C) risk profile method
D) precision tree method
E) folding back procedure

Question

Quizplus · Accepted Answer

The solution procedure introduced in the book for decision trees is called the folding back or backward induction procedure. This involves starting at the end of the decision tree and working backwards to determine the optimal decision strategy at each stage. The other options (folding diagram, single-stage method, risk profile method, precision tree method) are not the commonly used solution procedures for decision trees.

The Solution Procedure That Was Introduced in the Book for Decision