Decision Trees (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a decision tree primarily used for?
What is a decision tree primarily used for?
Choosing between options with uncertain outcomes
In a decision tree, what does a square symbol represent?
In a decision tree, what does a square symbol represent?
The decision point to be made
What does a circle symbol represent in a decision tree?
What does a circle symbol represent in a decision tree?
A chance node (uncertain outcome)
What three pieces of information must be labelled on every branch?
What three pieces of information must be labelled on every branch?
Cost, outcomes, and probabilities
How is expected value calculated?
How is expected value calculated?
Multiply outcomes by probabilities, add, then subtract cost
If success (£8m, 0.6 prob) & failure (£2m, 0.4 prob) cost £5m, what is the expected value?
If success (£8m, 0.6 prob) & failure (£2m, 0.4 prob) cost £5m, what is the expected value?
£1.6m
What is one key benefit of using decision trees?
What is one key benefit of using decision trees?
They encourage analytical thinking
How can manager bias affect decision trees?
How can manager bias affect decision trees?
They may make their favoured option appear more attractive
What is a limitation of probability estimates in decision trees?
What is a limitation of probability estimates in decision trees?
They're often based on past experience or guesswork
What do decision trees focus on primarily, potentially ignoring other factors?
What do decision trees focus on primarily, potentially ignoring other factors?
Financial outcomes