The decision tree shows the profit outcomes for a coffee shop in a strong and a weak economy for next year. What is the probability that the economy will be weak in the coming year?
A) 0.73
B) 27 percent
C) 50 percent
D) 7.3

Question

The decision tree shows the profit outcomes for a coffee shop in a strong and a weak economy for next year. What is the probability that the economy will be weak in the coming year? 
A) 0.73 
B) 27 percent 
C) 50 percent 
D) 7.3

Quizplus · Accepted Answer

A) There are only two outcomes in this decision tree. Since the sum of all outcomes must equal 100 percent, or 1.0, the probability of a weak economy is 1.0 - 0.27, or 0.73.

The Decision Tree Shows the Profit Outcomes for a Coffee