Decision tree model is a tool to make decisions using the decision tree i.e. a graphic tree like diagram that is a depiction of all the possible outcomes from an action. These outcomes include everything the resource costs, outcomes, utility etc. that will be the basis of the future strategy of an organization. This is one of the four contingency models. This model is useful for decision making when a group of people are involved in the process.
The decision tree constitutes of the decision nodes, chance nodes and end nodes. These can be added and removed depending on the requirement, which makes this very flexible.
Although its good for making the decisions that do not have many options, but when it comes to the situations where many possible outcomes are there, this can become very complex and difficult to interpret.
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