What does a probability tree help determine?

A probability tree is a visual representation used to determine the likelihood of various scenarios by illustrating all possible outcomes of a series of events and their associated probabilities. Each branch of the tree represents a possible event or outcome, along with the probability of that event occurring. By structuring the information in this way, one can easily calculate the probabilities of different combined scenarios by following the branches of the tree, ultimately leading to a clearer understanding of uncertainty in decision-making situations.

The value of a probability tree lies in its ability to handle multiple stages of decision-making and events, showing how one event affects the outcomes of subsequent events. This makes it an essential tool for understanding complex situations where multiple factors come into play and helps in making informed and calculated decisions based on quantifiable data.