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Decision Trees for Decision Making
The "decision tree" is an analytical tool which helps business managers resolve uncertainties in making investment decisions. It clarifies the choices, risks, objectives, monetary gains, and information needs involved. Whether simple or complex in layout, the decision tree always combines action choices with different possible events or the results of action affected by uncontrollable circumstances. The decision-tree helps management to determine which alternative, at any particular point, yields the greatest monetary gain.