When Using Decision Tree Analysis

question 29

Multiple Choice

When using decision tree analysis:

• A) the sum of the expected payoffs must always equal zero.
• B) round nodes represent decision points.
• C) there must be more square nodes than round nodes.
• D) probabilities for all branches leaving a chance node must sum to 1.0.

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Definitions:

Cash Register

An electronic or mechanical device used in retail environments to calculate and record sales transactions, and to store cash.

Stock Management

The process of ordering, storing, tracking, and controlling inventory to ensure that a company has the right amount of goods on hand to meet customer demand.

Drugstore Assistant

An individual working in a pharmacy who helps in the dispensing of medication and provides customer service under the supervision of a pharmacist.

Social Information-processing Model

A theory that suggests individuals understand and respond to social situations based on their interpretation of social information.