Decision Trees

?

1. What is a diasdvantage of Decision trees?

  • Only shows an optimistic view
  • No external influences considered e.g. PESTLE
  • Hard to understand and compare
  • Not supported by numerical outcomes
1 of 6

Other questions in this quiz

2. What is Probability?

  • Likelihood of an event occuring
  • Net gain + expected value
  • Event likelihood added up to 1.5

3. Which is an advantage of decision trees?

  • Shows social impact
  • Shows risks and costs
  • Probabilities are deffinate values
  • Not prone to bias

4. What is a decision tree?

  • Model which shows historical revenues and profit
  • A way of showing cash flow over monthly periods
  • A mathematical model used to help managers make decisions
  • A way of mindmapping revision

5. How do you calculate Expected Value?

  • Financial Outcome - costs
  • Total expected Value X Probability
  • Financial Value X Probability
  • Total expected value - Associated Costs

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »