Explain the parts of a decision tree.
What are some benefits of using decision trees?
In what ways can decision trees be used for business decisions? Name some real-world examples.
The main parts of a decision tree are:
Decision: These are represented by squares. This is the starting point of the decision tree. The decision to be analyzed forms this part. It has two arcs and options.
Sequence of events: These are represented by circle node and arcs and events. It provides different probabilities for different events which have originated from the decision node.
Consequences: These are represented by triangles and give the result of the decision that has been analyzed. The consequence sum of probabilities adds up to one.
Benefits of Decision trees
Decision trees are used for identifying a strategy that is most likely to reach the goal by modeling decisions and probable outcomes. Decision trees can ...
The expert explains the parts of a decision tree and benefits for using it. Whether the decision tree can be used for business decisions are determined.