Other questions in this quiz

2. What is a decision tree?

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

3. How do you calculate Expected Value?

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

4. What is a diasdvantage of Decision trees?

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

5. How do you calculate Net gain?

  • Total expected Value X Probability
  • Financial Value X Probability
  • Total Expected Value - Associated costs
  • Financial Outcome - costs

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