In calculating probabilities using a decision tree, which of the following is most correct?
A) The probabilities emerging from any node must sum to 1.
B) The ultimate probabilities assigned to each of the branches (looking at the right hand side of the tree) must sum to 1.
C) The probability assigned to any given branch (looking at the right hand side of the tree) can be no greater than 0.5.
D) Both a. and b. are correct.
E) All of the above are correct.

Question

Quizplus · Accepted Answer

Option A is correct, as the probabilities of all possible outcomes emerging from any node in the tree must sum up to 1, as it represents all possible outcomes of that event.
Option B is also correct as the probabilities assigned to each branch on the right-hand side of the tree (the final outcomes) sum up to 1 because one of the outcomes must occur.
Option C is incorrect as there is no reason for any probability to be restricted to be less than 0.5.
Therefore, options A and B are correct, and option D is the best choice.

In Calculating Probabilities Using a Decision Tree, Which of the Following