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.
OPEN ENDED QUESTION
3 mins • 1 pt
What is the primary purpose of using decision trees in business?
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
Describe the structure of a decision tree and its components.
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3.
OPEN ENDED QUESTION
3 mins • 1 pt
What are the two main types of nodes in a decision tree, and what do they represent?
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4.
OPEN ENDED QUESTION
3 mins • 1 pt
In what scenarios might a business choose to do nothing instead of making an investment?
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5.
OPEN ENDED QUESTION
3 mins • 1 pt
How do chance nodes differ from decision nodes in a decision tree?
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6.
OPEN ENDED QUESTION
3 mins • 1 pt
What does it mean for probabilities across chance branches to sum up to one?
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7.
OPEN ENDED QUESTION
3 mins • 1 pt
Explain the significance of opportunity cost in decision-making.
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