If the Expected Utility of any node displays as 1, it isn't actually 1, but the difference between the utility and 1 is too small to be represented in double precision arithmetic. For greater and greater positive branch values, this function gets closer and closer to 1. You won't have a problem displaying Expected Values, but you may have a problem with Certainty Equivalents. Suppose you are using the built-in Exponential utility function, To see what's going on with each tree, you may find it helpful to open Model Settings, select the Utility Function tab, and change display to Expected Utility.ĭepending on your utility function, here are some hints on what to look for. The attached workbook shows two simple trees with this problem. This depends on the tree, your utility function, and your R value, but basically one or more of your branch values leads to a forbidden mathematical operation. but when I switch to using a utility function, some of the branches' values change to #VALUE. My tree seems okay when I'm just doing regular calculations.
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