Business Decision-Making Techniques

From the study guide

Course Outline

  1. Decision Tree Structure and Purpose
  2. Decision Tree Strengths and Limitations
  3. Decision Tree Evaluation
  4. Cost-Benefit Analysis Framework
  5. Cost-Benefit Analysis Appraisal
  6. Critical Path Planning
  7. Critical Path and Float
  8. Critical Path Calculation
  9. Critical Path Benefits and Limits

1. Decision Tree Structure and Purpose

Key Concepts & Definitions

  • Decision tree: A map of the possible outcomes of a series of related choices, allowing actions to be compared using costs, probabilities and benefits.

★ Must-know

  • A decision tree starts with one decision node, branches into possible outcomes, and continues through further nodes representing additional possibilities.

  • In a decision tree, the square marks the point where a decision is made and the circles mark the points where outcomes are realised.

Further detail

  • Decision trees can support informal discussion or map an algorithm that predicts the best choice mathematically.

2. Decision Tree Strengths and Limitations

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Practice quiz preview

1. What does a decision tree primarily represent?

2. How does a decision tree develop from its starting point?

3. Which combination best describes important strengths of decision trees?

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Flashcard preview

What does a decision tree map?

The possible outcomes of a series of related choices.

What shape marks a decision point in a decision tree?

A square marks the decision point.

What is one advantage of decision trees regarding data preparation?

They require minimal data preparation.

What is a limitation of decision trees related to complexity?

They may become too complex.

Decision tree: Purpose

Map outcomes of choices, compare costs, benefits.

Decision tree symbols

Squares = decisions, Circles = outcomes.

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Frequently asked questions

What does the Business Decision-Making Techniques study guide cover?

It covers the core concepts of Business Decision-Making Techniques, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.

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How many questions are in the Business Decision-Making Techniques quiz?

The practice quiz has 11 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.

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How do I study Business Decision-Making Techniques with flashcards?

There are 11 flashcards on Business Decision-Making Techniques, with a question on the front and the answer on the back. Try to recall each answer before you flip, and let spaced repetition bring back the ones you miss.

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