Question

Companies are divided into small, medium and large as well as these income groups: under $100,000, $100,000 to under $500,000, $500,000 to under $1 million, $1 million or more. If the

sample space were set up as a tree, how many branches would it have?

Question 9 options:

	7
	9
	10
	12

Answer 1

Companies are divided into small, medium and large; as well as the income groups: under $100,000, $100,000 to under $500,000, $500,000 to under $1 million, and $1 million or more.

Now, first of all, companies would have 3 branches, small, medium and large.

Now, each of these 3 branches would have 4 branches, corresponding to the income groups.

So, if the sample space was set up as a tree, the total number of branches would be 3*4, ie. 12.

So, the correct answer is option (D) 12.