Which ONE of the following statements about decision tree is incorrect? Please explain why this statement is incorrect?

1. Decision trees can only predict discrete outcomes (e.g., whether a customer would buy or not buy a product, two possible outcomes).
2. Decision trees can predict those outcomes that have occurred in the dataset as well as those outcomes that have never occurred in the dataset, which was used to build the decision tree.
3. The accuracy of prediction on each leaf note can be higher or lower than the overall accuracy of the decision tree.
4. In decision trees, continuous variables (e.g., personal income ranging anywhere from $0 to $10M++) are discretized to make predictions.