Exhibit 14.1
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.
-In a graphical representation of decision trees the event nodes are represented by
A) squares
B) circles
C) solid dots
D) ovals

Question

Exhibit 14.1
The following questions are based on the information below.
An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem. 
-In a graphical representation of decision trees the event nodes are represented by
A) squares 
B) circles 
C) solid dots 
D) ovals

Quizplus · Accepted Answer

Event nodes in decision trees are typically represented by circles, which differentiate them from decision nodes (often represented by squares) and end nodes (commonly represented by triangles or solid dots).

Exhibit 14.1 The Following Questions Are Based on the Information Below