Decision Tree Example: Business Decision Tree Example


This is a decision tree example created with the Decision Tree tool. It shows how various factors can influence the amount of annual cash flow of a company. The chance that different cases may occur is written on the connectors (e.g. Probability 0.7 vs 0.3).

You can edit this decision tree by clicking Use this Template. You'll then be able to customize the content to reflect your case.

What is Decision Tree?

A decision tree is a decision analysis tool. It uses a tree structure to visualize the decisions and their possible consequences, including chance event outcomes, resource costs, and utility of a particular problem. Decision tree is often created to display an algorithm that only contains conditional control statements. Decision trees are commonly used in operations research, specifically in decision analysis, etc.

How to create a Decision Tree?

Have you ever wondered how to perform decision analysis with a Decision Tree tool that has many great diagramming features? Visual Paradigm Online is the answer.

  1. Create a blank Decision Tree.
  2. From the diagram palette, select the shapes involved in your diagram and drop them onto the canvas. Arrange and connect them with connector lines.
  3. When you are done, save it (File > Save as) to our cloud repository for future access. You can also export your diagram into an image (PNG, SVG, JPG, PDF and more) and share it with your co-workers.

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