Mike\'s Treeplan Assignment PDF

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This is a guide to help you during the completion of the Tree plan Assignment...

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BUS 336 Mike’s Treeplan Notes - Creating Decision Trees using TreePlan.xla I’ve created this document to help in your quest to learn Treeplan. First of all, there are a few things for you to know: 

Treeplan.xla is an Add-in program that operates using Macros in Excel. Treeplan is an Addin program that works with versions of MS Excel 2007 and later (PC only – NOT macs).

Installation 

If you have a PC, try to install the Treeplan.xla addin onto your computer. To do so, do the following: i. ii. iii.

iv.

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Download the file called “Treeplan.xla” from the Week 3 folder of Canvas to a folder of your choice (remember its name!). Open Excel Go to File → Options → Addins → GO → Select Browse → and navigate to the folder location where you saved the Treeplan.xla file. Select the Treeplan.xla and select Okay and make sure that you have a check mark next to the Treeplan addin. Now, hit on your keyboard the letter “Ctrl” and the letter “t” simultaneously. This will call the macro and you should see the “New Tree” being prompted. IF this does not work, we will not be trouble shooting everyone’s PC, so please follow the recorded instructions to use the Virtual Lab to create a decision tree in Excel.

If you have a Mac (or you cannot get your PC to install Treeplan correctly), you will need to use the Virtual Lab that is provided by Beedie to run Treeplan. To access the Virtual Lab, click onto the link below and then follow the appropriate instructions (PC Windows or MAC) provided by IT Services: 

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https://sfu-keyserver.sfu.ca/maps/Virtual%20Labs%20BUS 

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Please follow the following instructions on how to remote in from a PC Windows computer:  https://www.sfu.ca/itservices/technology-resources-for-students/computer-labs/remote-access-for-windows.html

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 Please follow the following instructions on how to remote in from a MAC computer: https://www.sfu.ca/itservices/technology-resources-for-students/computer-labs/remote-access-for-mac.html

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If either of the links above cause any issues, please navigate to the correct operating system using: https://www.sfu.ca/itservices/technology-resources-for-students/computer-labs.html   

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Some important Tips about Running Treeplan (Mike’s video will highlight the following important issues with running Treeplan): 

Start Excel first. Once you a new worksheet in Excel, using explorer double click on the “treeplan.xla” file. A screen will pop up asking you to enable or disable macros – Please select ENABLE MACROS. If this screen does not appear, you may have a very high security setting to disable all macros without notification. To check, go to File -> Options ->Trust Setting -> Macro Settings and if it is set to “disable all macros without notification” change the setting to “Disable all macros with notification”. Close the settings windows and try to double click on file “treeplan.xla” again and you see the security screen asking you to Enable Macros.

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Next, press “Ctrl” and the “t” key simultaneously and the following window dialog box as shown in class:

A few things to keep in mind:  In order to start or modify your Decision Tree that you created with TreePlan, you must always start with opening the TreePlan.xla file FIRST and enabling the macro.  In order to change anything in your Decision Tree, you must always invoke treeplan by pressing crtl-t simultaneously (or go to “Addins” – Decision Tree). Normal Excel commands will NOT change the Decision Tree Structure …… you must start by invoking the treeplan macro by pressing crtl-t simultaneously  TreePlan is context dependent - meaning that TreePlan will provide different dialog boxes depending what cell is selected with your cursor in your Decision Tree.  TreePlan Options - we will be using the Expected Value Criterion for Chance Nodes.  Never - never - mess with any of the built in formulas. You supply the: i). the structure of the decision tree (decision nodes, chance nodes and branches) ii). cashflows for the decision alternatives. iii). probabilities of the chance nodes - they must add up to what number? iv). cashflows that would result if that state of nature were to occur And Treeplan calculates the resulting payoffs, the EMV of the chance nodes and the optimal decision alternative for the Decision problem.  An important thing to remember is that cashflows go directly beneath the label. Never enter a cashflow into a cell with a formula in it or your decision tree will be messed up and you will have to start again!  Save work continually!! It is only a macro in Excel and is easily confused by unexpected actions.

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 For the latest version of Excel, Treeplan’s decision and chance nodes come up being filled in with a black colour as shown below. You should first create your entire decision tree using Treeplan and when finished, you must change the formatting of the decision nodes so you can see the optimal decision branch.

Must change the formatting – should not be filled with black

To remove the black filled colour from the decision node, highlight the decision node, click the right mouse button and you will see the following options:

Select format shape and change it to NO FILL. You should now see the following:

Make sure to do this ONLY after you have created your complete decision tree!

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