Decision Tree Analysis Calculator

A comprehensive tool for performing decision tree analysis, designed for software engineers and data scientists.

Full original guide (expanded)

Evaluate decisions with probabilities and outcomes to estimate expected value for business or project choices.

Calculator

Results

Expected Value: $0.00

Data Source and Methodology

Authoritative Data Source: Based on the principles of decision analysis as outlined in "Decision Analysis for the Professional" by John C. Goodpasture. All calculations rely strictly on the formulas and data provided by this source. Learn more.

The Formula Explained

Expected Value (EV) is calculated as follows: EV = Σ (Probability × Outcome)

Glossary of Variables

  • Probability (%): The likelihood of a particular outcome occurring.
  • Outcome Value: The monetary value of the outcome.
  • Expected Value: The sum of all possible outcomes, each multiplied by their probability of occurrence.

How It Works: A Step-by-Step Example

For a scenario where there's a 50% probability of gaining $100, and a 50% probability of losing $50, the expected value is calculated as: EV = (0.5 × 100) + (0.5 × -50) = $25.

Frequently Asked Questions (FAQ)

What is a decision tree?

A decision tree is a graphical representation of possible solutions to a decision based on different conditions.

How do you use this calculator?

Input the probability and outcome value for each scenario, and the calculator will compute the expected value.

What is expected value in decision analysis?

Expected value is a calculated average of outcomes, weighted by their probabilities, used to predict the most likely outcome of a decision.

Can this calculator handle multiple scenarios?

Yes, input each scenario's probability and outcome value to compute the overall expected value.

Is the calculator suitable for financial analysis?

Yes, it can be used to evaluate financial decisions by predicting potential outcomes and their impacts.

Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
','
Variables and units
  • No variables provided in audit spec.
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn

Evaluate decisions with probabilities and outcomes to estimate expected value for business or project choices.

Calculator

Results

Expected Value: $0.00

Data Source and Methodology

Authoritative Data Source: Based on the principles of decision analysis as outlined in "Decision Analysis for the Professional" by John C. Goodpasture. All calculations rely strictly on the formulas and data provided by this source. Learn more.

The Formula Explained

Expected Value (EV) is calculated as follows: EV = Σ (Probability × Outcome)

Glossary of Variables

  • Probability (%): The likelihood of a particular outcome occurring.
  • Outcome Value: The monetary value of the outcome.
  • Expected Value: The sum of all possible outcomes, each multiplied by their probability of occurrence.

How It Works: A Step-by-Step Example

For a scenario where there's a 50% probability of gaining $100, and a 50% probability of losing $50, the expected value is calculated as: EV = (0.5 × 100) + (0.5 × -50) = $25.

Frequently Asked Questions (FAQ)

What is a decision tree?

A decision tree is a graphical representation of possible solutions to a decision based on different conditions.

How do you use this calculator?

Input the probability and outcome value for each scenario, and the calculator will compute the expected value.

What is expected value in decision analysis?

Expected value is a calculated average of outcomes, weighted by their probabilities, used to predict the most likely outcome of a decision.

Can this calculator handle multiple scenarios?

Yes, input each scenario's probability and outcome value to compute the overall expected value.

Is the calculator suitable for financial analysis?

Yes, it can be used to evaluate financial decisions by predicting potential outcomes and their impacts.

Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
','
Variables and units
  • No variables provided in audit spec.
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn

Evaluate decisions with probabilities and outcomes to estimate expected value for business or project choices.

Calculator

Results

Expected Value: $0.00

Data Source and Methodology

Authoritative Data Source: Based on the principles of decision analysis as outlined in "Decision Analysis for the Professional" by John C. Goodpasture. All calculations rely strictly on the formulas and data provided by this source. Learn more.

The Formula Explained

Expected Value (EV) is calculated as follows: EV = Σ (Probability × Outcome)

Glossary of Variables

  • Probability (%): The likelihood of a particular outcome occurring.
  • Outcome Value: The monetary value of the outcome.
  • Expected Value: The sum of all possible outcomes, each multiplied by their probability of occurrence.

How It Works: A Step-by-Step Example

For a scenario where there's a 50% probability of gaining $100, and a 50% probability of losing $50, the expected value is calculated as: EV = (0.5 × 100) + (0.5 × -50) = $25.

Frequently Asked Questions (FAQ)

What is a decision tree?

A decision tree is a graphical representation of possible solutions to a decision based on different conditions.

How do you use this calculator?

Input the probability and outcome value for each scenario, and the calculator will compute the expected value.

What is expected value in decision analysis?

Expected value is a calculated average of outcomes, weighted by their probabilities, used to predict the most likely outcome of a decision.

Can this calculator handle multiple scenarios?

Yes, input each scenario's probability and outcome value to compute the overall expected value.

Is the calculator suitable for financial analysis?

Yes, it can be used to evaluate financial decisions by predicting potential outcomes and their impacts.

Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
\[','\]
','
Variables and units
  • No variables provided in audit spec.
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
Profile · LinkedIn
Formulas

(Formulas preserved from original page content, if present.)

Version 0.1.0-draft
Citations

Add authoritative sources relevant to this calculator (standards bodies, manuals, official docs).

Changelog
  • 0.1.0-draft — 2026-01-19: Initial draft (review required).