A Chance Node on a Decision Tree Has Four Possible

question 12

Essay

A chance node on a decision tree has four possible outcomes worth $10,000, $20,000, $30,000 and minus $100,000 respectively.The probabilities of these outcomes occurring are assessed
as 10%, 25%, 50% and 15% correspondingly.What is the expected value of this chance node?

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Definitions:

Absence of Illness

A state in which an individual does not exhibit symptoms or signs of disease, contributing to their overall health and well-being.

Developmental Testing

Evaluating a product or system during its development to ensure it meets specified requirements and works as intended.

Level of Prevention

The stratification of healthcare into primary, secondary, and tertiary prevention to mitigate or avoid disease.

Kindergarten

An educational environment for young children that focuses on playful learning and foundational educational skills before primary school.