Business Proposal
Decision Trees Using TreePlan
16
16.1 TREEPLAN OVERVIEW
TreePlan is a decision tree add-in for Microsoft Excel 2000–2010 (Windows) and Microsoft Excel 2004 & 2011 (Macintosh). TreePlan helps you build a decision tree diagram in an Excel worksheet using dialog boxes. Decision trees are useful for analyzing sequential decision problems under uncertainty. Your decision tree model may include various controllable alternatives (e.g., whether to introduce a new product, whether to bid on a new project) and uncontrollable uncertainties (e.g., possible demand for a product, whether you're awarded a contract), arranged in chronological order. TreePlan automatically includes formulas for summing cash flows to obtain outcome values and for calculating rollback values for determining the optimal strategy. To use TreePlan, you (1) open a new worksheet, (2) press Ctrl+Shift+T (or Options+Cmd+T) to build a new decision tree diagram, (3) select a node to change the structure of your decision tree, (4) enter branch names, cash flows, and probabilities, and (5) determine the optimal strategy from TreePlan's results. All of TreePlan’s functionality, including its built-in help, is a part of the TreePlan XLA file. There is no separate setup file or help file. When you use TreePlan on a Windows computer, it does not create any Windows Registry entries (although Excel may use such entries to keep track of its add-ins).
16.2 BUILDING A DECISION TREE IN TREEPLAN
On Windows computers, you can start TreePlan either by choosing Tools | Decision Tree from the menu bar (Excel 2003 and earlier versions), by choosing Add-ins | Decision Tree (Excel 2007 or 2010), or by pressing Ctrl+Shift+T (hold down the Ctrl and Shift keys and press T). On Mac Excel 2011, you can start TreePlan either by choosing Tools | Decision Tree from the menu bar or by pressing Options+Cmd+T (hold down the Options and Command keys and press T). If the worksheet doesn't have a decision tree, TreePlan prompts you
16
16.1 TREEPLAN OVERVIEW
TreePlan is a decision tree add-in for Microsoft Excel 2000–2010 (Windows) and Microsoft Excel 2004 & 2011 (Macintosh). TreePlan helps you build a decision tree diagram in an Excel worksheet using dialog boxes. Decision trees are useful for analyzing sequential decision problems under uncertainty. Your decision tree model may include various controllable alternatives (e.g., whether to introduce a new product, whether to bid on a new project) and uncontrollable uncertainties (e.g., possible demand for a product, whether you're awarded a contract), arranged in chronological order. TreePlan automatically includes formulas for summing cash flows to obtain outcome values and for calculating rollback values for determining the optimal strategy. To use TreePlan, you (1) open a new worksheet, (2) press Ctrl+Shift+T (or Options+Cmd+T) to build a new decision tree diagram, (3) select a node to change the structure of your decision tree, (4) enter branch names, cash flows, and probabilities, and (5) determine the optimal strategy from TreePlan's results. All of TreePlan’s functionality, including its built-in help, is a part of the TreePlan XLA file. There is no separate setup file or help file. When you use TreePlan on a Windows computer, it does not create any Windows Registry entries (although Excel may use such entries to keep track of its add-ins).
16.2 BUILDING A DECISION TREE IN TREEPLAN
On Windows computers, you can start TreePlan either by choosing Tools | Decision Tree from the menu bar (Excel 2003 and earlier versions), by choosing Add-ins | Decision Tree (Excel 2007 or 2010), or by pressing Ctrl+Shift+T (hold down the Ctrl and Shift keys and press T). On Mac Excel 2011, you can start TreePlan either by choosing Tools | Decision Tree from the menu bar or by pressing Options+Cmd+T (hold down the Options and Command keys and press T). If the worksheet doesn't have a decision tree, TreePlan prompts you