The expected profit determined from a decision tree is the weighted average of all possible outcomes. The weights represent the:
A) probabilities of the outcomes.
B) utilities of the outcomes.
C) number of times the decision is likely to be repeated.
D) one divided by the total number of outcomes.
E) the total number of outcomes.

Question

Quizplus · Accepted Answer

The weights in a decision tree represent the probabilities of the outcomes, so the expected profit is determined by taking a weighted average of all possible outcomes based on their probability of occurrence.

The Expected Profit Determined from a Decision Tree Is the Weighted