Introduction:
The whole world has a lot of data and it is to be analyzed. There are various tools and techniques for performing data analysis and estimating the values, costs and quantities. Currently we are focusing on decision tree analysis which is quit feasible, easy to prepare or interpret and for turning complex decisions into a best decision. These trees are highly used in operations management for decisions, furthermore it can be used in business management, healthcare industry etc. They have been used in Data Science, computer science and Machine learning.
Necessity :
Decision trees classify the data and perform regression analysis with numbers. Organizations can obtain visual illustrations of their decisions impacts and they will give pictorial representation of cost and profits of results. This tool also allows forwards and backward calculations. This tool is not complex to recognize and interpret. It will determine worst, best, and anticipated numbers for various cases. This tool is feasible to combine with other decision tools and software. Multiple decision makers can perform, and they are acknowledged in this tool. Crucial insights can be obtained when we receive conditions from experts as well as alternatives, probabilities, costs. They use white box model. Decision trees require few data for analysis.
As it performs on its aspects such as
Decision Nodes = Square in a shape and decision starts from this node. Certainty starts with a single decision.
Chance Nodes= Circles have multiple outcomes or decisions. Provides Uncertainty a lot of decisions.
End Nodes= End node have to be evaluated for best decision and show in the triangle shape
Alternative lines are the outcomes or the decision originated from its prior decision
I have used this analysis when I used to work in decathlon Sports India for many decisions with our store manager and operations executive. At that that time we used to have many project such as new store opening, working on the closed stores. Selecting store location was one of the complex decisions for us and and we simplified that using Decision Tree Analysis with our Project Analyst.
References:
1.Introduction
https://www.chessprogramming.org/Ross_Quinlan
Advanced Management Science – Decision Tree Analysis – Home (weebly.com)
2.Necessity:
(379) Decision Trees for A Level Business – YouTube
Why Use Decision Tree Analysis? – PALISADE INSIGHT
Decision Tree Analysis Examples and How to Use Them – Venngage
