DECISION TREE Decision Tree Approach and Hierarchy Process

Nikhil Pratap

Sanjay Kumar

CONTENT

What is the decision tree? The example of decision tree The advantage of decision tree

WHAT IS THE DECISION TREE?

Decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

A schematic tree-shaped diagram used to determine a course of action or show a statistical probability. Each branch of the decision tree represents a possible decision or occurrence.

DECISION TREE

Decision trees are a comprehensive tool for modeling all possible decision options.

The structure allows users to take a problem with multiple possible solutions and display it in a simple, easy-to-understand format that shows the relationship between different events or decisions.

Decision trees describe events in chronological order but can be much larger than influence diagrams.

DECISION TREES

Three types of tree “nodes” Decision nodes - represented by squares (□) Chance nodes - represented by circles (Ο) Terminal nodes - represented by triangles (optional)

Solving the tree involves pruning all but the best decisions at decision nodes, and finding expected values of all possible states of nature at chance nodes

Create the tree from left to right Solve the tree from right to left

EXAMPLE DECISION TREE

Decision node

Chance node

Decision 1

Decision 2

Event 1

Event 2

Event 3

The Example Of Decision Tree HIERARCHY PROCESS

THE ADVANTAGE OF DECISION TREE Are simple to understand and interpret.  Have value even with little hard data.  Use a white box model.  Can be combined with other decision techniques.