CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 104 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 104
Topic #: 9

The following extract from a decision tree has been prepared for a decision that is to be made to choose between options P, Q and R.

What is the maximum expected value of profit at decision point Z?

A$4 million

B$6 million

C$36 million

D$2.4 million

Show Suggested Answer

Suggested Answer: C

References:

by Chau at Dec 06, 2024, 08:48 AM

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Nickolas

29 days ago

Wait, are we sure the decision tree isn't upside down? That would really throw a wrench in things. I'm going to go with option B just to be safe.

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Kami

2 days ago

User 1: I think the decision tree is correct, let's not worry about it being upside down.

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Daren

1 months ago

Ah, the old 'maximum expected value' question. I bet the exam writers have a sense of humor, hiding the answer in plain sight like that.

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Theola

1 months ago

This is a tricky one. I think I need to go back and review my decision tree concepts. The answer might be more complicated than it seems at first glance.

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Augustine

13 days ago

A) $4 million

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Regenia

1 months ago

I'm not sure how they came up with $36 million. The values at the endpoints are $4 million, $6 million, and $2.4 million, so shouldn't the answer be one of those?

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