Decision tree in System Design
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The document covers decision trees, which are diagrams representing alternative actions and conditions to aid in decision-making. It distinguishes between strategic and administrative decisions and highlights the applications of decision trees in operations research and probability calculations. Advantages include their simplicity, utility with limited data, and compatibility with other decision-making techniques.
Decision tree in System Design
- 2. Decision Trees It is the process of choosing a course of action from among alternatives to achieve a desired goal. A decision tree is a diagram that shows alternative actions and conditions within horizontal tree framework. 3/12/2020 2
- 3. Types of decision Strategic Decision: Concerned with external environment of the organization. Administrative Decision: Concerned with structuring and acquisition of the organization’s resources so as to optimize the performance of the organization. 3/12/2020 3
- 4. Uses of decision tree Decision trees are commonly used in operations research, specifically in decision analysis. Another use of decision trees is as a descriptive means for calculating conditional probabilities. 3/12/2020 4
- 6. Advantages of decision tree Are simple to understand and interpret. Have value even with little hard data. Can be combined with other decision techniques. 3/12/2020 6