A decision tree is a flowchart that begins with a single central concept and branches out according to the outcomes of your choices. The model often resembles a tree with branches, therefore the name "decision tree."
These trees are employed in decision tree analysis, which entails graphically illustrating the probable results, expenses, and effects of a difficult decision. Based on the choices and results that lead to each outcome, you may use a decision tree to determine its expected value. The optimal course of action can then be swiftly determined by comparing the results to one another. A decision tree can also be used to find opportunities, control expenditures, and resolve issues.
Symbols for decision trees:
Symbols used in decision trees include the following:
- Alternative branches: On your decision tree, alternative branches are two lines that branch off of one conclusion. The two outcomes or choices that follow from the initial decision on your tree are represented by these branches.
- Decision nodes: Decision nodes on your tree are squares that signify a decision that has been made. A decision node is the root of any decision tree.
Chance nodes are circles that display a variety of potential outcomes.
- End Node: End nodes are triangles that represent the end result.
These symbols, notes outlining your choices and results, and any pertinent values to explain your gains or losses are all combined in a decision tree analysis. Your decision tree can be drawn manually or digitally using a flowchart programme.
