In Decision Trees, Probabilities Are Listed on Probability Branches

question 44

Multiple Choice

In decision trees, probabilities are listed on probability branches. These probabilities are ____ events that have already been observed.

• A) marginal due to
• B) conditional on
• C) averaged with
• D) increased by
• E) the same as

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period.

Investment

The allocation of resources, such as time, money, or effort, in the expectation of future returns, typically involving some degree of risk.

Technologically Obsolete

A state in which a product, service, or method has become outdated due to advances in technology, making it less efficient or desirable compared to newer options.

Numerically Controlled

Pertaining to machines or processes that are operated by precise instructions coded in the form of numbers.