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.
-Leaves of a decision tree are also called ____ nodes.
A) end
B) terminal
C) decision
D) payoff

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. 
-Leaves of a decision tree are also called ____ nodes.
A) end 
B) terminal 
C) decision 
D) payoff

Quizplus · Accepted Answer

Terminal nodes are the leaves of a decision tree, representing the final outcome or decision point in the decision-making process.

Exhibit 14.1 The Following Questions Are Based on the Information Below