Introduction to Decision Trees: Basic Structure and Characteristics
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Business
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University
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Practice Problem
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Hard
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7 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why do businesses use decision trees?
To predict future stock prices
To design marketing strategies
To analyze potential outcomes of decisions
To calculate employee salaries
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What do the roots of a decision tree represent?
The monetary impacts
The opportunity cost
The decision problem
The final outcomes
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What symbol is used to represent a decision node in a decision tree?
A star
A triangle
A square
A circle
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does a chance node in a decision tree signify?
A financial cost
A certain outcome
A decision problem
An uncertain outcome
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How are probabilities used in decision trees?
To assign likelihoods to chance events
To determine the cost of decisions
To predict market trends
To calculate employee bonuses
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the opportunity cost represent in decision trees?
The initial investment
The next best alternative sacrificed
The final outcome
The total revenue
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is the opportunity cost depicted in a decision tree?
By using a different color for each branch
By highlighting the chosen branch
By marking the root of the tree
By drawing a red line through unchosen branches
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