What does a decision tree represent?

A decision tree represents a graph of decisions and possible consequences used to plan. It visually outlines different decision paths and their potential outcomes, enabling decision-makers to evaluate various scenarios. This tool assists in weighing options based on probabilities and impacts, making it easier to foresee the consequences of each choice. In a decision tree, each branch represents a possible decision and its subsequent consequences, providing a clear framework for understanding complex choices and outcomes. Such visual representation is particularly useful in business settings, where it can illustrate risks and rewards associated with different strategies, ultimately aiding in more informed decision-making.