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Consider the following story of Joe in a decision tree scenario. Joe is now stopped at a traffic light, and in front of him are
Consider the following story of Joe in a decision tree scenario. Joe is now stopped at a traffic light, and in front of him are two different routes that he can take to work. Both routes are equally safe and have roughly similar probabilities of being caught in a long traffic delay due to an accident along the route. One route is little slower but has no toll. The other route is little faster but has a toll of $2. In terms of the real option decision tree, where is Joe at this moment?
At an information node | ||
At a terminal node | ||
At a decision node | ||
At an abandonment node | ||
At a backward node |
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