Decision trees are a method that allows you to visually understand the processes that streamline decisions in various fields. Learn more about this topic by reading the following article.
Decisions Tree
When talking about this topic, the person directly links it to a very large and wide tree with a lot of foliage. It literally is really that way and it is presented as a tool where you can see a series of processes that allow you to carry out actions to make decisions. It is formed through flowcharts where the processes are easily visualized.
Action plans and solutions are also established. Decision trees have various forms and styles for their implementation. They are used in different areas of society, especially by psychology professionals and some manufacturing companies. Complement this information by reading the following post: Criteria for Decision Making
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Specialists have reached the conclusion where they consider that there are three types of decision trees. They can be used in various areas. Other specialists consider that the methods allow solving problems related to: Resolution of business, political and organizational problems.
Identifying risks that might compromise the security of certain areas and developing a diagnosis to determine the best course of action makes it an excellent corporate tool. Let's look at some examples of a decision tree.
Root
It is a form and model where the upper level represents the final goal and objective, in the middle and lower areas the procedures to follow in order to reach that higher stage are detailed. This decision tree is used in productive companies and financial corporations that carry out processes vertically.
branches
It is represented by different branches that simulate the actions to be taken. This type of tree allows us to observe through arrows some administrative actions where financial flows are reflected, as well as the possibilities of facts. It is used in joint ventures and where production processes and a lot of money flow are handled.
Sheet
It is a decision tree where each leaf represents a process and the culmination of a small goal, each one is linked to the branches that in turn form a very large foliage. Each one also represents in the flowchart the results of an action. They are made in various ways, sometimes showing the branches in a square shape.
How are they made?
In the first place, it must be taken into account that in most cases the decision is located at the top. It is the visual representation of the decision. Then there are the arrows that are directed towards each specific action. Each arrow comes out of the root and refers to each action of those involved, so that the chances of success are established in each one.
Nodes are included in the leaves that allow us to appreciate the existence of other actions. To do this, a node is drawn for each action other than the final decision. The possibilities of success are reflected in each existing point in the decisions. Previously, all possibilities that may exist with respect to decision-making are taken into account.
Finally, the decision tree is formed and begins to be analyzed, let us remember that variables may appear where each element is exposed to being modified, since it is part of a final decision process. The calculations of the possibilities come out as the analysis of the flowchart is carried out.
Importance
The Flowchart related to the decision tree allows you to assess the risks and rewards of possible decisions. This makes it possible to reduce the probable risks that may cause an inappropriate decision. It is important to know the aspect related to how to seek decisions that are more adjusted to reality so that profits are sought in those involved.
The decision tree also seeks to carry out an investigation that seeks to verify at what point in the situation more or less profit can be generated. However, among the advantages of this type of graph are:
- Solve problems from different points of view.
- Reflect on possible solutions.
- Make decisions more adjusted to reality based on the possibilities.
- Estimate costs for each decision.
- In the business field, determine the possibilities of success and productivity that a company can have at a given time.
- Presents the direct consequences according to the decision made
- Increases the choice of those involved in the way decisions are made.
- These decisions can be interpreted and given meaning.
- It is important to enter data of interest.
Composition:
A decision tree must be made up of basic elements that allow to give vision to the situations of the flowchart. Each one represents an important point that cannot be left aside, let's see:
- It contains variables related to the central problem.
- Rank each of those variables along with the actors that caused the problem or led to the risk.
- Establish an order of priorities, crossing out those that are considered irrelevant to make the final decision.
- Items are ranked from highest to lowest importance.
- It is important to establish the strengths and weaknesses of each element…
- Being a type of open diagram during the analysis, other branches can be placed that may represent important values for the final decision making.
- It establishes the possible problems that could cause an imminent risk.
- At the end, consider its importance, the effectiveness and the action of the decision.
When preparing this type of table, it should be considered to do it meticulously. Also consider the possibilities and establish the calculation in which it can be influential in making the final decision. It develops possibilities and establishes questions so that the ending is taken as a proposal that presents doubts.