Link: https://theknowledgeeconomy.wordpress.com/2023/02/08/decision-trees/
A decision tree is a graphical representation of a decision-making process. It is used to visualise the possible outcomes of a series of decisions and to determine the most optimal course of action.
A decision tree consists of a series of nodes that represent decisions, and branches that represent the potential outcomes of those decisions. The decision tree starts with a root node, which represents the initial decision that needs to be made. From there, the tree branches out into different sub-decisions, and so on, until the end of the tree is reached, which represents the final outcome or decision.
Decision trees are commonly used in business, economics, and computer science to help organisations make informed and optimal decisions. They are particularly useful when there are multiple options and outcomes to consider, and when the decision-making process involves complex or uncertain factors.
To build a decision tree, you can follow these steps:
- Identify the decision that needs to be made.
- Identify the potential options or outcomes for each decision.
- Determine the likelihood or probability of each outcome.
- Assign values or costs to each outcome.
- Determine the optimal decision for each node based on the values or costs associated with each outcome.
- Repeat the process for each subsequent decision until the end of the tree is reached.
