In one time or another, everyone goes through with a hard situation which calls for a stable decision for someone to overcome. A business that has been making loss may decide to search for the main reason behind the poor performance and the possible choices they are to make to prevent the reoccurrence of the same. In this case, they will need a decision tree template.
A decision tree template is a type of map outline that shows the possible outcomes of various choices using a chart diagram or various chart diagrams. Each outcome may display the costs and utility needed to make it happen. It enables an individual or a business organization to come up with the best outcome depending on their cost and benefits.
This tool has been used in decision analysis in operation research and has enabled many decision makers to deliver the best strategy that can allow them to reach their personal or corporate goal. This flowchart-like structure may come in the form of an influence diagram where every internal node is a representation of a specific attribute.
Decision tree templates and the influence diagram display a visual and analytical representation of various competing alternatives and their values. Decision trees can be used in calculating probabilities besides its use in operations management.
Types of Decision Tree Templates
There are three types of decision tree nodes or templates:
- Decision nodes – These are nodes that are represented using squares. They usually show the decision which is to be made.
- Chance nodes – These nodes are represented using circles. They usually show various uncertain outcomes in the templates.
- End nodes – These nodes are typically represented using triangles. It usually indicates the outcome.
Examples of Decision Tree Templates
Decision trees templates have elements and rules which you need to adhere to so that you can come up with the right results. Nevertheless, if this chart is so hard for you to draw by yourself, you can always get decision tree templates over the internet or use software to design it. Some of these templates include:
Elements of a Decision Tree Chart
Traditionally, these decision trees were being drawn manually. However, in our generation, there is specialized software to do the job. Every decision tree has the following features:
- It is drawn from left to right.
- It has splitting paths (burst nodes) but no converging paths.
- It usually starts with a single node.
- You always start with the primary decision.
- Each node branches into multiple nodes.
By the time a decision tree is reaching its final results, it has a tree-like shape.
Why Use a Free Decision Tree?
Decision trees remain very popular in operations research and management, business because:
- These diagrams are very simple to design, comprehend and are free.
- These diagrams require minimal data preparation for it to be made.
- It is easy to add some other new options to the tree.
- They easily combine with other tools used in the decision making of the project.
- It can easily determine expected values of various scenarios.
Nevertheless, they have their drawbacks:
- It is based on some attributes that have more levels.
- They are not stable.
- They are sometimes not accurate.
- If many outcomes are interlinked, it can be complex.