Decision Tree – Definition

Cite this article as:"Decision Tree – Definition," in The Business Professor, updated July 30, 2019, last accessed October 26, 2020,


Decision Tree Definition

In a decision-making process, a decision tree is a graphical and statistical representation of the likely outcome of a decision. It is called a decision tree because is uses a tree-shaped diagram or a branching method to depict an action or a decision and also its likely outcomes.

A decision tree serves a decision support tool that organizations employ when making certain sensitive or strategic decisions. The probable reaction of the systems in the organizations to decisions made are also graphically presented using the decision tree. Using the decision tree, an organization can easily see the connectedness of certain decisions and their possible consequences.

A Little More on What is a Decision Tree

Individuals and corporate organizations can enjoy the benefits of a decision tree. Typically, a decision tree is a graphical presentation of all possible outcomes that are attributable to a decision. A decision, whether simple or complex has implications. Also, decisions can be connected and will also have a range of related potential outcomes, these are depicted by the decision tree.

As a decision-making support system, the risks of actions and decisions can be depicted on a decision tree. Assuming an organization is in a complex situation and certain decisions are to be made, a decision tree provides support and clarifications on the complex situation. Potential outcomes are displayed using a branching method that can be easily understood and interpreted by the reader.

How to Make a Personal Decision Tree

Kindly follow through this segment, it will guide you on how you can make a personal decision tree.

To make a decision tree, the basic thing that is required is that there must be a specific decision that needs to be made. Plot a circle or a box at the far left of the tree-like diagram symbolising the decision to be made. Afterwards, trace a line outward the box, this will represent the variable options that can be made, the results of each option can be analysed and graphically represented on the tree-like diagram.

However it is important to know that the result of an option can be another line of decision that must be made. You then plot a box representing this decision and follow the same process used for the initial ones.

Reference for “Decision Tree”

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