To Set Up a Decision Tree,you Should

question 78

Multiple Choice

To set up a decision tree,you should

• A)assign the most optimistic values to a success and the most pessimistic values to a failure.
• B)determine the cash flows that are most apt to occur given a set of circumstances.
• C)assign a constant discount rate to all decisions within the tree.
• D)ignore a project's initial cost.
• E)use equal probabilities for success and failure.

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Definitions:

Decentralization

The distribution of decision-making powers from a central authoritative location or group across various levels or sectors within an organization.

Departmentalization

The process of dividing an organization into different departments, which perform specific tasks or roles.

Span of Control

The number of subordinates a manager or leader can effectively manage or control.

Formalization

The degree to which an organization formally documents its policies, procedures, job roles, and regulations in writing.