To use QM for Windows for the Thompson Lumber example, select Module – Decision Theory. Then enter New-Payoff Tables, and a window appears allowing you to set up the problem. Enter a title, the number of options (alternatives), and the number of scenarios (states of nature), and specify if it is to be maximized or minimized. In this example, there are three alternatives or options and two states of nature or scenarios. When these are entered, click OK and a window appears (Program 3.1A ) allowing you to enter the probabilities and payoffs. You can also change the names of the alternatives and states of nature by simply typing over the default names. When you click Solve, the output in Program 3.1B appears. Additional output such as EVPI and opportunity loss results are available by clicking Window on the screen where the output is displayed.

To use Excel QM for the Thompson Lumber example, from the Excel QM ribbon in Excel 2016, click the Alphabetical menu and select Decision Analysis – Decision Tables. When the window opens to enter the parameters of the problem, you should enter a title, the number of alternatives, and the number of states of nature and specify if it is to be maximized or minimized. Click OK and an empty payoff table is created. You simply enter the probabilities, payoffs, and names for the rows and columns. The calculations are performed automatically, and the results are shown in Program 3.2A. While the formulas are automatically developed in Excel QM, Program 3.2B shows the important formulas in this example. To see the formulas in Excel, simply hold down the control key and press the grave accent (`) key (usually found above the Tab key). To return the Excel 2016 spreadsheet display to the numbers instead of the formulas, simply press the keys again.