Decision Tree Online Activity

1) Construct a decision tree and calculate the predicted outcome for each option.

2) Discuss 3 advantages and 3 disadvantages of using Decision Trees as a planning

tool for business decision making.

Decision trees are incredibly efficient for decision making, it displays all the possible
outcomes and break it down into simple options, as well it is a tool that allows to relatively
easily interpret and analyse the decision in hand. The decision tree tool cana slo work
alongside other decision making tools to complement it on qualitative aspects it can’t go into
detail. Nevertheless it does come with some disadvantages, it is unable to handle qualitative
data to proyect a prediction, as well it being a merely theoretical approach to a future
decision can only work in probabilities, thus it is prone to errors. Also bias when selecting the
inputs that will be analysed through the decision tree can lead to changes in the predictions
and lead to uninsightfull decision making, for example if in the decision forselecting the
possible decision for the tool, bias has influence over it, from that point, the final decision
tree will portray a vastly different prediction than it would’ve in the first place.

3) What is the difference between qualitative and quantitative analysis.

A quantitative analysis focuses strictly on numerical data, using tool for retrieving the
information such as structured surveys, experiments, and observations, while qualitative
analysis focuses on non-numerical data or visual data, retrieving that information through
interviews, open ended surviews, field notes and images.
As well the primary objective of a quantitative study is to quantify and measure variables that
can ultimately test hypothesis and make predictions, on the other hand the primary objective
of qualitative analysis looks to explore and understand situations and relations between their
variables. Precision is a key element in quantitative analysis, whilst qualitative analysis
interpret their data around the subjectivity of the researcher.