A square node on a decision tree infers that
A) the node splits into various states of nature, of which only one will occur
B) there are several alternatives available
C) the manager must choose an alternative
D) both B and C
E) A, B, and C

Question

Quizplus · Accepted Answer

A square node on a decision tree represents a decision point where the manager must choose between several alternatives. The node splits into branches, each representing a different alternative available. Therefore, the answer is option D, as it includes both B and C. Option A is incorrect because square nodes represent decision points, not the states of nature. Option E is incorrect because it includes option A, which is not true.

A Square Node on a Decision Tree Infers That