In order for a decision tree to be a valuable decision tool, the decision-maker should be in a condition of:
A) certainty.
B) risk.
C) uncertainty.
D) equilibrium.

Question

Quizplus · Accepted Answer

Decision trees are useful for decisions made under risk, where the probabilities of different outcomes are known. They are not useful for decisions made under certainty where the outcome is known for sure, nor under uncertainty where the probabilities are unknown or cannot be estimated. Equilibrium is not relevant to decision making in this context.

In Order for a Decision Tree to Be a Valuable