Busıness Decısıon Models Deneme Sınavı Sorusu #1400809
In decision making problems, decision branches are used to represent _________ and chance branches are used to show the states of _________.
Which of the following options complete the definition above ?
events / nature |
alternatives / strategies |
alternatives / nature |
nature /events |
strategies / alternatives |
The line connecting the nodes on a decision tree is called a branch. A branch is a single strategy that connects either two nodes or a node and an outcome. When a decision tree is drawn, a general approach is the direction from left to right is shown; therefore the line that comes to the right of a decision node is called the decision branch, while the line to the right of a chance node is called the chance branch. In decision making problems, decision branches are used to represent alternatives (strategies) and chance branches are used to show the states of nature (events). The chance branch is labeled with a probability which represents the decision maker’s estimate of the probability that a particular branch will be followed. The correct answer is C.
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