Decision Trees

question 72

Multiple Choice

Decision trees:

• A) are an alternative to NPV analysis.
• B) recognize that managers may need to react to unexpected future events.
• C) are a way to adjust the discount rate to allow for uncertainty.
• D) lay out the different steps in preparing the capital budget.

Learn the method of historical analogy and its relevance in forecasting.

Understand the principles and applications of explanatory or causal models in forecasting.

Understand and calculate days' sales in work in process inventory.

Understand and calculate work in process inventory based on given days' sales.

---

Definitions:

Circle

A simple geometric shape consisting of all points in a plane that are at a given distance from a given point, the center.

Pure Thinking

Refers to the process of thought that is abstract and untainted by personal biases, emotions, or external influences.

Averroes

A medieval Andalusian polymath renowned for his work in philosophy, theology, and law, particularly his commentaries on Aristotle.

Symbol

An object, character, figure, or color used to represent abstract ideas or concepts.