decision tree's Flashcards
1
Q
what are decision tree’s?
A
a mathematical model that is used to help business decided on the most worthwhile business investment/decision.
2
Q
how does it make this decision?
A
it uses probabilities and estimations to calculate the likely outcomes.
3
Q
what is the “square” on a decision tree?
A
the decision that is to be made
4
Q
what is the first step?
A
putting all the possible outcomes to achieve the achieve the objective. for example if you wanted to increase sales, your’re outcome or options may be “cutting costs” or “introducing a loyalty card”.
5
Q
what is a circle?
A
it represents the uncertain outcomes of the decision.
