From the course: Excel: Using Solver for Decision Analysis
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Calculate the probability of reaching a node - Microsoft Excel Tutorial
From the course: Excel: Using Solver for Decision Analysis
Calculate the probability of reaching a node
- [Instructor] One of the key elements of evaluating a decision tree is to determine the likelihood of reaching each terminal node in the tree. In this movie, I will show you how to calculate those probabilities using a Pivot Table. My sample file is 04-03 Probabilities, and you can find it in the Chapter 4 folder of the exercise files collection. In the previous movie we created an Excel table that listed all of the paths that exist within the decision tree and another down below that lists the payoffs for the end node in each of those paths. I won't go through all of them, but Path number 1 starts at Node 1. So we start here at the origin, at Node 0, and then we would follow this path here to Node number 1. And from there we would move to Node 3. This would be along the top line here. And then we have two options, 6 and 7. Path number 1 ends at option number 6 or at Node number 6, and then Path number 2 ends at Node…
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