Decision Tree

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Definition: Decision Tree

Decision tree is a graphical method that helps the user to make choice when he intends to make decisions. It is used to compare mutually exclusive alternatives. It is a mathematical approach which assigns values to the uncertainties using probabilities. It calculates pay off of each alternative such that the user can efficiently take the decision.  

It basically complements the user’s current findings and reveals the Expected Value (EV) of an outcome/project.

The SQUARES denote “Decision Nodes”

The CIRCLES denote “Chance Nodes”

The TRIANGLES denote “End Nodes”

It can be drawn vertically as well as horizontally. It is one of the means to graphically explain an algorithm.

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