CONSTRUCTING DECISION TREES - cont

Step 4: Repeat Cycle until Completion
Step 4a - If a branch terminates in a decision node, return to Step 2 to construct branches emanating from this node to represent the options being considered at this decision point.
Step 4b: If a branch terminates in a chance node, construct one branch emanating from the chance node to represent each possible outcome of the event. Each branch emanating from a chance node should be labeled with the probability of that outcome occurring. After constructing and labeling these branches, return to Step 3.
Step 4c: If a branch terminates with a payoff node, no further branches are constructed. Every combination of branches and nodes that begin with the originating decision node and end with a payoff node is called a path.