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Sometimes three point approximations are used to incorporate outcomes, which have a continuous probability distribution, into decision trees. It is inadvisable to use such approximations

Sometimes three point approximations are used to incorporate outcomes, which have a continuous probability distribution, into decision trees. It is inadvisable to use such approximations when:

  1. The continuous probability distribution is slightly asymmetric
  2. Some of the outcomes represented by the distribution are negative
  3. The continuous probability distribution has more than one peak
  4. Probability distributions applying to different parts of the tree are not independent

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