Final answer:
The correct answer is 'c. probabilities of the outcomes.' When using a decision tree to calculate expected profit, each outcome's probability is used as a weight to determine the weighted average of all possible outcomes.
Step-by-step explanation:
The weights used in calculating the expected profit from a decision tree represent the probabilities of the outcomes. This means that the correct answer to the student's question is 'c. probabilities of the outcomes.' When constructing a decision tree for analyzing the profitability of different choices, all possible outcomes are identified, each with an associated probability of occurring based on the scenario presented.
To calculate the expected profit, you would multiply each possible profit outcome by its probability of occurrence and then sum these products to get a weighted average. The expected profit is a crucial metric for decision-making in business, as it enables a company to evaluate and compare various strategies or investments based on their potential returns and the likelihood of those returns.