# Tree Diagram – Definition

### Tree Diagram Definition

A tree diagram is a tool (especially a graphical representation) which is utilized in strategic decision making, market valuation, and for calculating probability. This diagram starts at a single point, with branches moving to create extra points. Most tree diagrams starts from one point, with their branches moving to create two or three points at most, and each new point also has branches which creates other points. Tree diagrams are mostly used to represent two events that cannot occur at the same time (e.g. night and day, death and life).

### A Little More on What is a Tree Diagram

Using tree diagrams, users will have the right to represent two events that cannot occur together starting from a single point. An example would be the sentence: night and day cannot occur at the same time on earth. Here, the earth will be the single point, and the two branches which creates two new points will be night and day. Points are assigned value for simplicity. Users also have the ability to assign values to points that might occur (known as chance nodes). Decision node are two-options question, i.e. yes or no. Tree diagrams use decisions, probability and cost (sometimes associated with a point) to provide strategic answers. Traders and investors can easily make use of the tree diagram model for determining the price of a decision, say buy or sell, at any given price of the portfolio at a particular time.

### References for “Tree Diagram”

https://www.investopedia.com/terms/t/tree_diagram.asp

https://www.investopedia.com › … › Financial Analysis

https://en.wikipedia.org/wiki/Tree_diagram_(probability_theory)

### Academic research for “Tree Diagram”

Applying structured methods to Eco-innovation. An evaluation of the Product Ideas Tree diagram, Jones, E., Stanton, N. A., & Harrison, D. (2001). Applying structured methods to Eco-innovation. An evaluation of the Product Ideas Tree diagram. Design Studies, 22(6), 519-542.

Effects of a tree diagram on students’ comprehension of main ideas in an expository text with multiple themes, Guri-Rozenblit, S. (1989). Effects of a tree diagram on students’ comprehension of main ideas in an expository text with multiple themes. Reading Research Quarterly, 236-247.

Schleicher, Celakovsky, and the family-tree diagram, Priestly, T. M. (1975). Schleicher, Celakovsky, and the family-tree diagram. Historiographia linguistica, 2(3), 299-333.

Baryon-pion scattering in the  expansion: Tree diagram cancellations, Flores-Mendieta, R., Hofmann, C. P., & Jenkins, E. (2000). Baryon-pion scattering in the 1/N c expansion: Tree diagram cancellations. Physical Review D, 61(11), 116014.

Using a tree diagram to interpret a mixed dna profile, Evett, I. W., Foreman, L. A., Lambert, J. A., & Emes, A. (1998). Using a tree diagram to interpret a mixed dna profile. Journal of Forensic Science, 43(3), 472-476.

Analysis of Japanese banks’ historical tree diagram, Ueno, H., Mizuno, T., & Takayasu, M. (2007). Analysis of Japanese banks’ historical tree diagram. Physica A: Statistical Mechanics and its Applications, 383(1), 164-168.

Tree diagram Lie algebras of differential operators and evolution partial differential equations, Xu, X. (2007). Tree diagram Lie algebras of differential operators and evolution partial differential equations. arXiv preprint arXiv:0706.4201.

Oriented tree diagram Lie algebras and their abelian ideals, Luo, L. (2010). Oriented tree diagram Lie algebras and their abelian ideals. Acta Mathematica Sinica, English Series, 26(11), 2041-2058.

Dynamic tree diagram method for calculating aircraft multiple-hit vulnerability [J], Hu, Y. F., Song, B. F., & Pei, Y. (2007). Dynamic tree diagram method for calculating aircraft multiple-hit vulnerability [J]. Acta Armamentarii, 28(12), 1540-1544.

Cohomology of oriented tree diagram Lie algebras, Luo, L. (2009). Cohomology of oriented tree diagram Lie algebras. Communications in Algebra, 37(3), 965-984.