**“ Product Price of ABC Beverage Limited” **is the sample dataset.

### Example 1 – Creating a Decision Tree for 4 Events

**Step 1: Construct Essential Shapes**

Specific shapes are necessary to draw a decision tree:

- Go to
**Insert**>**Shapes**>**Oval.**

- The oval shape is labelled as Chance Node in the decision tree.

- Choose
**Blue**on the**Font**ribbon to fill the shape .

- Draw a
**Rectangular**box below the**Oval shape**and fill it with**Blue.**Label it**Decision Node**.

This is the output.

- Fill another cell with
**Blue accent 5 lighter 40%**and label it “**Decision to Be Made**”.

- Go to
**Insert**>**Shapes**>**Line command**and draw a line.

This is the output.

- Fill a box with
**Gold Accent 4, 60% Lighter**and label it probability box.

This is the output.

**Step 2: Make a Basic Outline of the Tree**

- Use
**CTRL+C**&**CTRL+V**to recreate the figure.

**Step 3: Label & Input Values in the Decision Tree**

- Input the corresponding value of the dataset in the recreated tree.

- Enter the following formula in
**T22**to return event value**820**.

`=U21`

- Enter the following formula to bring the value of
**U16**into**T17**.

`=U16`

- Insert the following formula in
**L15**. `=IF(ABS(1-SUM(O9,O16))<=0.00001,SUM(O9 * P12,O16 * P19),NA())`

** Formula Breakdown:**

**SUM(O9 * P12,O16 * P19) →****The SUM function**returns the product of**O9*P12**and**O16*P19.****Output → 533**

**ABS(1-SUM(O9,O16))→****The ABS function**returns the absolute value of**1-SUM(O9,O16)****Output → 0**

**IF(ABS(1-SUM(O9,O16))<=0.00001,SUM(O9 * P12,O16 * P19),NA())****→**checks whether a condition is met and returns one value if**TRUE**and another value if**FALSE**. Here in the**IF**function,**ABS(1-SUM(O9,O16))<=0.00001**is theargument that checks if the value of the sum of*logical_test***O5**and**O16**cells is close to If. So, the function will execute the (argument)*value_if_true***SUM(O9 * P12,O16 * P19)**or return**NA**(argument).*value_if_false***Output → 533**