This oil drilling example is a classic decision tree problem, it demonstrates the use of PrecisionTree to analyze a multi-stage decision process. Our first decision is whether to run geological tests on the prospective site. Then, depending on the test results, the next decision is whether to drill for oil. The final chance event is the amount of oil found. The tree progresses from left to right Ð the decision to test is always made before the decision to drill.
You will find five versions of this model:
1. Oil Drilling
2. Oil Drilling with Formulas
3. Oil Drilling Influence Diagram
4. Oil Drilling with Linked Trees
5. Oil Drilling using @RISK