A Chance Node on a Decision Tree Has Four Possible

question 12

Short Answer

A chance node on a decision tree has four possible outcomes worth $10,000, $20,000, $30,000, and -$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:

Consumer Behaviour

Refers to the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.

Buyer Behaviour

Refers to the actions and decision-making processes of consumers when purchasing goods and services.

Medical Insurance

A type of insurance coverage that pays for an insured individual's medical and surgical expenses.

Lifestyle

A way of living that reflects an individual's attitudes, values, and priorities.