A square node on a decision tree infers that:
A) the node splits into various states of nature, of which only one will occur.
B) there are several alternatives available.
C) the manager must choose an alternative.
D) Both B and C
E) A, B, and C

Question

Quizplus · Accepted Answer

A square node on a decision tree indicates that there are several alternatives available and the manager must choose one of them. Only one alternative will occur based on the various states of nature presented in the subsequent nodes. Therefore, both option B and C are correct. Option A is not correct as a square node represents a decision point, not a state of nature.

A Square Node on a Decision Tree Infers That