The approach to determining the optimal decision strategy involves
A) a forward (left to right) pass through the decision tree.
B) a backward (right to left) pass through the decision tree.
C) choosing the outcome of a chance event with the greatest probability.
D) choosing the outcome of a chance event with the greatest payoff.

Question

​The approach to determining the optimal decision strategy involves
A) ​a forward (left to right) pass through the decision tree.
B) ​a backward (right to left) pass through the decision tree.
C) ​choosing the outcome of a chance event with the greatest probability.
D) ​choosing the outcome of a chance event with the greatest payoff.

Quizplus · Accepted Answer

The optimal decision strategy is determined by a backward pass through the decision tree, which involves evaluating the outcomes from right to left to make the best decision at each decision node.

​The Approach to Determining the Optimal Decision Strategy Involves

The Approach to Determining the Optimal Decision Strategy Involves