When Using Decision Tree Analysis

question 29

Multiple Choice

When using decision tree analysis:

• A) the sum of the expected payoffs must always equal zero.
• B) round nodes represent decision points.
• C) there must be more square nodes than round nodes.
• D) probabilities for all branches leaving a chance node must sum to 1.0.

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Definitions:

East Division

The East Division can refer to a geographical segment or division within a larger corporation or organization, focused on operations in eastern regions.

Logistics Department

manages the movement, storage, and flow of goods, services, and information within the company, ensuring efficient and effective delivery.

Peak-Period Demand

The time when the demand for a product or service is at its highest, often leading to supply challenges.

Actual Costs

The real costs incurred for materials, labor, and overhead in the production of goods or provision of services.