Fold back analysis starts from which node in the decision tree?

• A. From the root node
• B. From a terminal node
• C. From the final outcome
• D. From a middle node

Answer: (A)

Fold-back analysis is anchored at the root node because that point represents the initial decision or starting state of the problem. By beginning there, you lay out the available actions and the possible downstream outcomes from the very start, establishing a structure you can evaluate step by step. As you move through the tree, you fold back the implications of each downstream path to inform and compare the initial decision, yielding the overall value or best choice at the root. Starting points other than the root miss the opportunity to frame the problem from its beginning and don’t support a coherent assessment of which initial action leads to the best overall outcome.