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Decision Trees


Identifies options available and key choices.

Analysis of complex decisions with significant uncertainty can be confusing because:

  • the consequence that will result from selecting any specified decision alternative cannot be predicted with certainty.
  • there are often large number of different factors that must be taken into account
  • may be useful to consider possibility of reducing uncertainty in the decision by gathering additional information
  • decision makers attitude toward risk taking can impact relative desirability of alternatives

Provide effective structure – lay out options and investigate possible outcomes of choosing those options.

Help form balanced picture of risks and rewards associated with each possible course of action.


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