The circles (or nodes) on a decision tree show what?

The range of possible outcomes for an option

Which is in the right order?

Possible actions, chance events, outcomes, values assigned

A decision tree is used to...

Give a suggested outcome based on reward and probability

Which is NOT true of a decision tree?

Lowest numerical value highlights the best decision

studbud

Decision Trees

18 termsStudBud Administration255 plays

AQA Business - Review Questions

Flashcards18 cardsFPractice quizPHost liveL

Questions 18

Answers

1
When using a decision tree managers should choose the option with the...
Highest expected value
Highest cost
Highest number of outcomes
Highest net gain
2
The circles (or nodes) on a decision tree show what?
The cost of the option
The range of possible outcomes for an option
How probable an outcome is
The range of options to chose from
3
Which is in the right order?
Values assigned, chance events, outcomes, possible actions
Possible actions, chance events, outcomes, values assigned
Possible actions, values assigned, chance events, outcomes
Chance events, outcomes, values assigned, possible actions
4
Can a decision tree be biased
Yes
No
5
A decision tree is used to...
Give a suggested outcome based on reward and probability
Provide a project planning tool
Grow money for financial investments
Provide an answer for a business option
6
What does a branch represent in a decision tree?
Decision makers
Value of an attribute
A category in the classification
Test of an attribute
7
Which is NOT true of a decision tree?
Numerical values calculated for weight
Lowest numerical value highlights the best decision
Problem solving, rationale approach
Assists decision-making in clinical practice
8
On a decision tree a square shows what?
A decision has to be made
The probability of an outcome
The expected value of a decision
The possible outcomes of a choice
9
What type of decision making are decision trees based upon?
Meeting Objectives
Mathematical
Scientific
A hunch
10
Factors other than decision trees can impact the end decision
True
False
11
What is the combination used for in decision trees?
Statistics and probability
Financial and probability
Information and probability
Financial and statistics
12
What factors do decision trees take into account?
Financial
Risk factors
Company missions
Environmental factors
13
What type of data do decision making trees use?
Qualitative
Last years
Quantitive
External
14
Which factor would NOT influence a managers decision?
Wrong calculations
Personal preference
Time spent
Business values
15
Which of the following is a disadvantage of using decision trees
All of the above
Client care is never constant
Time consuming
Impractical for making on-the-spot decisions
16
Dividing in mutually exclusive groups where distance is measured with respect to all variables
Decision making
Classification
Data Mining
Clustering
17
Who uses decision trees?
The government
IB Business students
Managers
Customers
18
What must all the probabilities in a branch always add up to?
-1
1
100
10

Decision Trees Flashcards | StudBud