Blog entry by Orji Anyianuka
A decision tree is a tool for analysing a decision in a methodical manner. It provides a picture showing all the connections among choices and uncertainties. It is like a blueprint for the architecture of a decision. And as decision-makers, we would be very helpful if we adopt the use of decision trees the way a builder relies on a blueprint while constructing a house.
Example of a decision tree:
Decision trees are particularly needed in resolving a tough choice under uncertain conditions, for example in choosing which company stocks to invest in with different probabilities of price gain and price losses. The decision tree will show all possible pathways with their probabilities and sequences.