<< Back

PMI Honolulu Member Kenneth Smith's article gets published in PM World Journal October 2021 Issue

Articles by External Sources

Decision Trees, EMV and THEE

By Dr. Kenneth Smith, PMP

In my previous two PMWJ Advisory articles, Benefit/Cost analysis was presented as a systematic technique to determine whether a particular approach was worth the monetary cost in terms of a Benefit/Cost Ratio; whereas Cost:Effectiveness analysis was for comparing the relative benefit of two or more options in terms of subjective effectiveness, where either or both the benefit and the cost were in non-monetary terms.  Decision Tree analysis is another useful quantitative Planning Phase technique in the Benefit-Cost-Effectiveness trilogy in project situations where several alternatives – i.e. not just Plan A, but also Plans B, C, D, E or whatever – are under consideration (and in contention) to achieve a particular objective, and:

  1. Both benefits and costs are monetary, and the
  2. Benefit/Cost Ratio is in terms of Expected Monetary Value (EMV).

For the full article click here in PM World Journal, Volume X, Issue 10 October 2021

For more information contact Dr. Kenneth Smith

Ken-Smith.jpg

Search

View the archives

Volunteer

Recruitment open now!

Click Here!