Question: 1) Select the least accurate statement regarding the following decision tree created using Precision Tree FALSE Riskless 0.0% 125.0000 125 Ventures Which venture? 400.0000 Bad

1)

1) Select the least accurate statement regarding

Select the least accurate statement regarding the following decision tree created using Precision Tree FALSE Riskless 0.0% 125.0000 125 Ventures Which venture? 400.0000 Bad 25.0% -500 0.0% -500.0000 FALSE Less risky Outcome 175.0000 0 50 ON Fair 100 Good 25.0% 1000 35.ON -1000 0.0% 100.0000 0.0% 1000.0000 35.0% -1000.0000 Bad TRUE More risky Outcome 400.0000 0 Fair 60.0% 1000 60.0% 1000.0000 5.ON 3000.0000 Good 5.0% 3000 The expected payoff under the optimal decision is 400. There is a single decision in this decision tree, i.e., a one-stage decision problem. The value of 175 associated with the "less risky" alternative is computed from the weighted average of the following 3 values: -500, 100, 1000. The best decision is to pursue the "less risky" alternative. Under the "more risky" alternative, the probability of the "bad" outcome is 35%

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