If a firm is faced with a need to make a sequence of decisions over time,it could use:
A)break-even analysis.
B)simulation analysis.
C)decision-tree analysis.
D)none of the given answers.

Question

Quizplus · Accepted Answer

Decision-tree analysis is a tool that helps in analyzing and visualizing the possible options and outcomes of sequential decisions. It allows decision-makers to model different scenarios to determine the best possible outcome. This analysis examines the implications of different choices and possible outcomes over time, making it the best choice for a firm that needs to make a sequence of decisions over time. Break-even analysis and simulation analysis do not provide the same level of insight into future decisions and their impact. Therefore, Decision-tree analysis is the best option for this scenario.

If a Firm Is Faced with a Need to Make