The expected profit determined from a decision tree is the weighted average of all the possible outcomes.The weights represent the:
A)probability of the outcome.
B)total cost of production.
C)number of times the game is repeated.
D)total number of outcomes.
E)total number of decision makers involved in the process.

Question

Quizplus · Accepted Answer

The expected profit is determined by taking the sum of the products of each possible outcome and its probability. Therefore, the weights represent the probability of the outcome.

The Expected Profit Determined from a Decision Tree Is the Weighted