Chance nodes represents points of uncertainty where various possible outcomes or state of nature exist.1 pointTrueFalse

The statement is True.

Explanation:

In decision analysis and probabilistic modeling, chance nodes represent points where uncertainty occurs, and multiple potential outcomes can arise. These nodes are typically illustrated in decision trees, where each branch leading from a chance node indicates a different possible outcome, each with an associated probability. The chance node allows analysts to visualize and analyze the risks and rewards associated with different paths or decisions in the face of uncertainty. This concept is essential in various fields, including economics, finance, and operations research, as it helps decision-makers understand potential results and make informed choices based on the likelihood of various scenarios.