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:

Random Sampling

A method in statistical analysis where individuals or items are selected from a larger population entirely by chance, ensuring that every member has an equal opportunity of being chosen.

Convenience Sampling

A non-probability sampling method where participants are selected based on their availability and proximity to the researcher.

Judgment Sampling

A sampling method where the samples are selected based on the opinion of an expert, rather than random selection.

Central Limit Theorem

A statistical theory stating that, given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.