Business Decision-Making Techniques

Estratto della scheda di revisione

Course Outline

  1. Decision Tree Structure and Purpose
  2. Decision Tree Strengths and Limitations
  3. Decision Tree Evaluation
  4. Cost-Benefit Analysis Framework
  5. Cost-Benefit Analysis Appraisal
  6. Critical Path Planning
  7. Critical Path and Float
  8. Critical Path Calculation
  9. Critical Path Benefits and Limits

1. Decision Tree Structure and Purpose

Key Concepts & Definitions

  • Decision tree : A map of the possible outcomes of a series of related choices, allowing actions to be compared using costs, probabilities and benefits.

★ Must-know

  • A decision tree starts with one decision node, branches into possible outcomes, and continues through further nodes representing additional possibilities.

  • In a decision tree, the square marks the point where a decision is made and the circles mark the points where outcomes are realised.

Further detail

  • Decision trees can support informal discussion or map an algorithm that predicts the best choice mathematically.

2. Decision Tree Strengths and Limitations

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Anteprima del quiz

1. What does a decision tree primarily represent?

2. What is a decision tree primarily used for in decision-making processes?

3. How does a decision tree develop from its starting point?

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Anteprima delle flashcard

What does a decision tree map?

The possible outcomes of a series of related choices.

Decision tree: Purpose

Map outcomes of choices, compare costs, benefits.

What shape marks a decision point in a decision tree?

A square marks the decision point.

Decision tree symbols

Squares = decisions, Circles = outcomes.

What is one advantage of decision trees regarding data preparation?

They require minimal data preparation.

Decision tree benefits

Easy to interpret, considers multiple outcomes.

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