MANAGEMENT SCIENCE

Assignment No. 1 
Decision Tree Analysis

1. What is a decision tree?

 It is a chart or a technique that uses a form of branching to demonstrate
the possible outcomes of several decisions. It lay outs choices and
analyzes the results that may help you choose the best decision.

2. Highlight the importance of a decision in your daily life.

 Life is about choices. Deciding what to wear, to eat, or what movie to
watch are simply decisions we make every day. Our lives depend on our
daily decisions, either big or small. There are instances that simple and
small decisions can have a big impact in our lives. Every decision has its
consequence. It is important to have good decision-making skills because
it will lead us to success and it will increase the value our lives.

3. Explain the advantages and disadvantages of a decision tree.  

 It is comprehensive and easy to use because the data is segregated into
different classifications and it doesn’t require complicated tools and
graphs. It also assists (easy to combine) multiple decision-making tools. It
is also a widely used technique for choosing the best option.
 Despite the advantages, decision tree also has its limitation when it comes
to analysis. In some cases, this tool is not applicable to use. It is not the
best tool to use if the problem requires a lot of information because the
more information can be difficult to handle and chances of errors may be
high. The information and data required in the decision analysis tree may
demand higher costs. 

4. What is the importance of a decision tree?

 It is helpful for taking crucial decisions and strategic issues in an
organization because it facilitates the evaluation and comparison of the
choices and their results. It directs and assists to choose the best
alternative.