Business Chapter 11

Question 1

Back data

Answer 1

Data obtained from a previous time period

Question 2

Chance node

Answer 2

A point on a decision tree diagram (represented by a circle) where a number of outcomes one possible

Question 3

Decision tree

Answer 3

A technique which shows all possible outcomes of a decision

Question 4

Expected value

Answer 4

The numerical value of an outcome multiplied by the probability of that outcome happening

Question 5

Probability

Answer 5

The chances of an event happening

Question 6

Rollback technique

Answer 6

The process of working back through a decision tree (from right to left ) calculating the expected values of each node