Learning Exercise

Using TreePlan in Decision Analysis

This assignment will enable students to learn how to apply an Excel add-in TreePlan in developing and solving decision trees.
Course: Management Science, Data Analysis, Decision Analysis, Operations Management
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The site provides access to Excel add-ins for decision tree analysis (TreePlan), sensistivity analysis (SensIt) and... see more

Exercise

1. It is a good idea to do this exercise in a computer lab, where students have access to the Internet.
2. Explain the idea and benefits of using decision trees versus decision tables.
3. Show how to develop a simple decision tree.
4. Discuss the elements of decision trees: decision node, chance node, terminal node, arcs.
4. The students need to download TreePlan from the web site.
5. Explain to the students how to apply this add-in in developing decision trees and solving them.
6. The students work on creating and solving a decision tree utilizing TreePlan.
7. The instructor shows how to do a one-way and two-way sensitivity analysis utilizing TreePlan. The students do a similar sensitivity analysis with TreePlan.

Disciplines

Audience

Topics

1. Decision tree analysis: objectives, elements, and advantages
2. How to develop a decision tree
3. Download and install TreePlan
4. Use Treeplan in developing and solving decision tree models

Learning Objectives

1. Developing skills in creating decision trees.
2. Applying Excel and add-ins to construct and solve decision trees.