Decision Tree: Risk & Opportunities: Difference between revisions
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== Abstract == | == Abstract == | ||
The decision tree is a tool to ensure the best outcome of a problem. It is highly used within project management to ensure the lowest risk of | The decision tree is a tool to ensure the best outcome of a problem. It is highly used within project management to ensure the lowest risk of expenses. | ||
It is based on a tree-like model where each branch is a path of decisions and possible events. Each step include the cost and possibility of that event to occur. | It is based on a tree-like model where each branch is a path of decisions and possible events. Each step include the cost and possibility of that event to occur. | ||
When having all the possibilities and cost of each path the estimated risk and cost/benefit can be calculated. | |||
With this information the best possible outcome can be chosen. | |||
Revision as of 13:15, 17 September 2017
Abstract
The decision tree is a tool to ensure the best outcome of a problem. It is highly used within project management to ensure the lowest risk of expenses. It is based on a tree-like model where each branch is a path of decisions and possible events. Each step include the cost and possibility of that event to occur. When having all the possibilities and cost of each path the estimated risk and cost/benefit can be calculated. With this information the best possible outcome can be chosen.