Decision Trees Flashcards
1
Q
Decision Trees
A
A method of tracing the alternative outcomes of any decision
2
Q
Advantages of Decision Trees
A
-Clearly lays out the problem
-Allows management to identify risk and reward
-Easy to understand and visual
3
Q
Disadvantages of Decision Trees
A
-Oversimplifies Decisions to purely financial
-Doesn’t include qualitative factors
-Probabilities can be innacurate
4
Q
A
