Decision Tree Analysis Is Based on Bellman's Principle,which States That

question 26

Multiple Choice

Decision tree analysis is based on Bellman's principle,which states that for any choice of strategy in a given state,

• A)the optimal strategy is the one that is selected if the entire analysis is assumed to begin in the first period.
• B)the optimal strategy is the one that is selected if the entire analysis is assumed to begin in the last period.
• C)the optimal strategy in the next period is the one that is selected if the entire analysis is assumed to begin in the last period.
• D)the optimal strategy in the next period is the one that is selected if the entire analysis is assumed to begin in the next period.

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