Decision Tree

A decision tree is a tree-shaped diagram that people use to determine a course of action or show a statistical probability. An organization may deploy decision trees as a kind of decision support system. In a decision tree, each branch represents a possible decision, occurrence or reaction. The structured model allows the reader of the chart to see how and why one choice may lead to the next, with the use of the branches indicating mutually exclusive options.

A decision tree is a graphical depiction of a decision and every potential outcome of making that decision. Individuals deploy decision trees in a variety of situations, from something simple to more complex undertakings. Decision trees give people an effective and easy way to understand the potential options of a decision and its range of possible outcomes. The decision tree also helps people identify every potential option and weigh each course of action against the risks and rewards each option can yield.

Ultimately, in decision support systems, individuals use decision trees to clarify and find an answer to a complex problem. The structure allows users to take a problem with multiple possible solutions and to display those solutions in a simple, easy-to-understand format that also shows the relationship between different events or decisions. The farthest branches on the tree represent the end results.

In the decision tree, each end result has an assigned risk and reward weight or number. If a person uses a decision tree to make a decision, they look at each final outcome and assess the benefits and drawbacks. In the personal decision tree, each line moves from left to right, and the tree itself can span as long or as short as needed in order to come to a proper conclusion.

To make a decision tree, you must start with a specific decision that needs to be made. You can draw a small square at the far left of the eventual tree to represent the initial decision. Then you draw lines outward from the box each of which represents a potential option. At the end of each line, or option, you analyze the results. If the result of an option is a new decision, draw a box at the end of that line, and then draw new lines out of that decision which represent the new options. If the result of an option is unclear, draw a circle at the end of the line, which denotes potential risk. If an option results in an ultimate decision, leave that line blank.