Decision Tree Analysis
A Guide for Better Decision Making
Making decisions can be tough, especially when there are many options to choose from. That’s why decision tree analysis can be a helpful tool for making informed choices. In simple terms, decision tree analysis is a way to visualize the possible outcomes of different decisions and choose the best one.
Think of decision tree analysis as a tree with branches. The branches represent the different options you have, and each branch leads to another branch with more options. This process continues until you reach the end of the tree and have a clear picture of all your options and the outcomes of each one.
Example:
Let’s say you are trying to decide where to go on vacation. Your first decision might be whether to go to the beach or the mountains. If you choose the beach, the next branch might be whether to stay in a hotel or rent a beach house. If you choose the mountains, the next branch might be whether to stay in a cabin or a camping tent. By visualizing the different options and their outcomes, you can make a more informed decision about where to go on vacation.
Key Benefit:
Help in making best decision possible, based on the information you have. It does this by considering all of the possible outcomes of each decision and helping you choose the one that has the most desirable outcome.
Use Case Scenarios:
It can be used for a variety of decision-making scenarios, from personal decisions like where to go on vacation to more complex business decisions like which product to develop next.
Conclusion:
Decision tree analysis is a useful tool for making informed decisions. By visualizing the possible outcomes of different options, you can make better choices and achieve your goals. So, next time you are faced with a difficult decision, consider using decision tree analysis to help guide your decision making.
References:
Hulett, D. T. (2006). Decision tree analysis for the risk averse organization. Paper presented at PMI® Global Congress 2006—EMEA, Madrid, Spain. Newtown Square, PA: Project Management Institute.
Schuyler, J. R. (1993). Decision analysis in projects: decision trees. PM Network, 7(7), 31–34.
Cohen, M.-D. (1990). Decision analysis in project management. PM Network, 4(3), 37–40.
Regenerative Today. (n.d.). Simple Explanation on How Decision Tree Algorithm Makes Decisions. https://regenerativetoday.com/simple-explanation-on-how-decision-tree-algorithm-makes-decisions/
Khakwani, A. (2021). Decision tree in decision analysis. https://www.slideshare.net/amikhakwani/decision-tree-in-decision-analysis
Toolshero. (n.d.). Decision tree analysis. [Web page]. Retrieved from https://www.toolshero.com/decision-making/decision-tree-analysis/
Lucidchart. (n.d.). Decision tree [Website]. Retrieved February 11, 2023, from https://www.lucidchart.com/pages/decision-tree#:~:text=There%20are%20three%20different%20types,outcome%20of%20a%20decision%20path