he following steps into correct sequence of decision tree analysis methodology Identify representations of uncertainty for each factor; that is, determine what distribution to use to model the uncertainty. Identify the duration of each period and the number of periods T over which the decision is to be evaluated. Starting at period T, work back to Period 0 identifying the optimal decision and the expected cash flows at each step. Expected cash flows at each state in a given period should be discounted back when included in the previous period. Identify factors such as demand, price, and exchange rate whose fluctuation will be considered over the next T periods Represent the decision tree with defined states in each period as well as the transition probabilities between states in successive periods