Heading: Analyzing Risky Decisions

question 52

Multiple Choice

Heading: Analyzing Risky Decisions
**Reference: Use the decision tree along with the given probabilities to answer the next six questions
Probability Event A = 30% Probability Event B = 70%
Probability Event 1 = 58% Probability Event 2 = 42%
Probability of Event A given that Event 1 occurs = 16%
Probability of Event B given that Event 1 occurs = 84%
Probability of Event A given that Event 2 occurs = 50%
Probability of Event B given that Event 2 occurs = 50%

-*What is the expected value at node B?

• A)18.60
• B)16.04
• C)13.76
• D)12.50

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Definitions:

Pays Supplier

The process of remitting payment to suppliers for goods or services received, which is crucial for sustaining business operations and relationships.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, used in cash flow analysis.

Cash Inflows

Money received by a business, typically from operations, investments, or financing.

Completing Transactions

The process of finalizing a deal or sale, ensuring all necessary steps and documents are completed and approved.