We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Science

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Decision Tree?

Dan Harkins
By
Updated: May 17, 2024
Views: 6,077
Share

Decision trees are used in many disciplines, from science and mathematics to the legal and business professions, to help determine the best course of action, both at the start and all along the path of discovery. Available in computer programs, employing complex statistical algorithms, or just scribbled on a sheet of paper, these models have formed the early planning of many discoveries and decisions. Starting with a basic choice that must be made, then branching off into all potential "chance" outcomes and methods for obtaining success, the decision tree can help decide how and when to do something as well as what not to do.

Three symbols are used to represent three "nodes," or pivot points, in the model: squares, circles and triangles. Each is used to represent a different type of consideration that must be made along the path to a final decision. Using them correctly will aid in determining the "expected value" of each alternative.

The square symbol is used at the very beginning or apex of the decision tree, branching off in two or more directions to illustrate a point at which a decision must be made. It may also be used in other places throughout the tree when other supplementary decisions will need to be made. Circles are used at other junctions when chance is a factor, spreading off into branches representing the expected reactions or outcomes, such as fair, average and bad. When a triangle node caps a line segment in the tree, that path of chance has been exhausted, resulting in one of several final outcomes. This outcome may be financial, statistical or even involve the potential for litigation.

Operations or manufacturing analysts frequently use the decision tree to lock in on the probability of each potential course of action. Others use it for more pragmatic and simple reasons. A writer may utilize a decision tree to lay out the best outcome for each character in a book or movie. That same person may lay out a decision tree to decide how best to allocate the monthly revenue.

A business, as a general example, may have limited excess revenue. To decide between offering raises to loyal employees or launching a new product, the company would start with a square, from which a line extends to represent those two courses. From there, more squares are employed with branching lines to show more decisions that must be made, such as cost-of-living raises versus 10 percent raises, etc.. Other junctions will contain circles and more branching lines, representing the possible levels of customer or employee satisfaction. Final lines are capped with triangles, often alongside the potential financial reward of each course.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Dan Harkins
By Dan Harkins
Dan Harkins, a former military professional, brings his diverse life experiences to his writing. After earning his journalism degree, he spent more than two decades honing his craft as a writer and editor for various publications. Dan’s debut novel showcases his storytelling skills and unique perspective by drawing readers into the story’s captivating narrative.

Editors' Picks

Discussion Comments
Dan Harkins
Dan Harkins
Dan Harkins, a former military professional, brings his diverse life experiences to his writing. After earning his...
Learn more
Share
https://www.wisegeek.net/what-is-a-decision-tree.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.