Decision tree analysis Sample Clauses

Decision tree analysis. Another approach to deal with uncertainty and complexity is decision tree analysis (DTA) This method could help managers to make decisions easily. Based on calculated series possible values, companies could use decision tree analysis to make outcomes easy to be understood and interpreted. Moreover, it is particularly useful for analyzing complex sequential investment decisions. DTA forces management not only to focus on the initial decisions like conventional NPV, but also make strategies for subsequent decisions. These decisions problems are not independent and could not be posed in terms of isolated decisions. The reason is that today’s decision we made depends on the future decisions. That means under uncertainty, decisions taken in the future may be influenced by present decisions (Xxxx X. Xxxxx, 1964).
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Related to Decision tree analysis

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