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Steps making DecisionTree
A decision tree is a graphical representation of decision process indicating decision alternatives, states of nature, related probabilities and conditional pay-offs for each combination of decision alternatives and states of nature. It shows all the possible choices that can be made as branches on the tree. And all the probable outputs for each selection as subsidiary branches on the tree.
Steps followed in making the tree are:
• State the problem or recognize the objectives• Identify the possible causes of action, (i.e., decision alternative)• Recognize the possible states of nature/situations• Calculate approximately the probabilities for each state of nature• Estimate the restricted pay-off for each alternative and states of nature• Draw the decision treeCompute the predictable monetary value at each state of nature node using the roll back method.
IF net income totaled $18,000 for one year, beginning assets were $100.000 and ending assets were $140,000, then Return on Assets for the year as a percentage will be?
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calculate the net operating income , evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p
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Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: • Making the purchase demand.
Examples
Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba
what is the topic about? what are the practical implications? what are the practical criticisms?
importance of ratio analysis
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