A quantitative technique for decision making that shows a complete pic...
Decision tree, 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. The tree structure shows how one choice leads to the next and the use of branches indicates that each option is mutually exclusive. This technique is used as quantitative technique decision making.
A quantitative technique for decision making that shows a complete pic...
The correct answer is option 'B', a decision tree.
A decision tree is a quantitative technique used for decision making that provides a complete picture of potential alternative decision paths. It is a visual representation of the decision-making process that allows decision-makers to assess the various options and potential outcomes before making a final decision.
Here is a detailed explanation of a decision tree and how it helps in decision making:
1. What is a decision tree?
A decision tree is a graphical representation of decisions and their possible consequences. It consists of nodes, branches, and leaves. The nodes represent decisions or events, the branches represent different options or paths, and the leaves represent the outcomes or consequences.
2. How does a decision tree work?
A decision tree starts with a decision point or root node, which is followed by branches representing different options or choices. Each branch leads to subsequent nodes or decision points, which further branch out until reaching the final outcomes or leaves. The decision tree is constructed by considering the probabilities and expected values associated with each option and outcome.
3. How does a decision tree show a complete picture of potential alternative decision paths?
A decision tree shows a complete picture of potential alternative decision paths by considering all possible options and outcomes. It provides a visual representation that allows decision-makers to analyze and compare the potential consequences of different decisions. By following the branches and nodes of the decision tree, decision-makers can assess the potential outcomes and make an informed choice.
4. Advantages of using a decision tree in decision making:
- Provides a systematic and structured approach to decision making.
- Allows decision-makers to consider all possible options and outcomes.
- Helps in evaluating the probabilities and expected values associated with each choice.
- Enables decision-makers to identify the most favorable decision path based on the desired outcome.
- Provides a clear and visual representation of the decision-making process, making it easier to explain and communicate to others.
In conclusion, a decision tree is a quantitative technique for decision making that shows a complete picture of potential alternative decision paths. It helps decision-makers assess the various options and potential outcomes, enabling them to make informed choices based on their desired outcomes and associated probabilities.