Decision Tree Analysis

question 51

Multiple Choice

Decision tree analysis:

• A)provides a relatively quick and easy way to get a rough idea of the probability distribution of NPV outcomes in a capital budgeting project.
• B)may prompt management to reject a project with a positive NPV (point estimate).
• C)does not apply to IRR analysis.
• D)a and b are both correct.

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, often used in gambling and behavior training.

Shaping

A method used in behavior therapy and training that involves reinforcing successive approximations of a target behavior until the desired behavior is achieved.

Spontaneous Recovery

A phenomenon in psychology where a previously extinguished response re-emerges after a period of no exposure to the conditioned stimulus.