1. Processing a Decision Tree Connecticut Electronics

2. The Original Decision Tree

3. Go as far to the right as possible, and pick a terminal node

4. Back up one step, landing on either a chance node or a choice node

5. At a chance node, put the following expectation

6. Go as far to the right as possible, and pick a terminal node

7. Back up one step, landing on either a chance node or a choice node

8. At a chance node, put the following expectation

9. Go as far to the right as possible, and pick a terminal node

10. Back up one step, landing on either a chance node or a choice node

11. At a choice node, put the chosen following payoff and record the choice “sampled and good”: process

12. Go as far to the right as possible, and pick a terminal node “sampled and good”: process

13. Back up one step, landing on either a chance node or a choice node “sampled and good”: process

14. At a choice node, put the chosen following payoff and record the choice “sampled and good”: process “sampled and bad”: replate

15. Go as far to the right as possible, and pick a terminal node “sampled and good”: process “sampled and bad”: replate

16. Back up one step, landing on either a chance node or a choice node “sampled and good”: process “sampled and bad”: replate

17. At a chance node, put the following expectation “sampled and good”: process “sampled and bad”: replate When finished, you’re left with the optimal “choice” strategy, and the expected payoff yielded by following that strategy.