What is a decision tree?

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What is a decision tree?


What is a decision tree?

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People use decision trees to assist them in clarifying and finding answers to complex problems. In the decision tree, each branch represents a possible decision, reaction, or outcome. The farthest branch of the decision tree represents the results of the problem. Decision trees get employed frequently in determining the course of actions of investing in business or finance. Decision trees also clarify expected values of investments for capital opportunities. They also assist in business operations where organizations struggle with huge decisions on operation management, product development, and human resources—they assist in better evaluating available options and alternatives.
The decision tree has two elements, branches, and nodes. Every branch represents alternative decisions or courses of action. At the end of the branches, some nodes represent chance events, and it is present whether or not a particular event will occur. The branches to the right of the nodes are alternative outcomes of chances of events. People often mark decision marks with a square and chance using circles. The results get based on the different sequences of events and decisions on the currently available information. Finally, when making decisions, decision-makers focus on essential and relevant decisions.


It is a chart or a diagram used by people to show statistical probability or determine a particular course of action.

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