Question

Will the use of decision tree analysis guarantee the best decision for a firm? Why or why not? If not, why bother using it?

Answer 1

Answer: A decision tree analysis showcases the various decisions at the various stages of the production that a firm needs to inculcate such that the production process can be enhanced, and the firm can attain the maximum benefits from the production. The decision tree can guide a firm in bringing about the necessary changes at the various levels of its administrative process. However, a decision tree cannot guarantee the best decision for a firm, as it is only a theorative explanation of the whole process. The practical implementation of the process however depends on how well the administrative units implement these decisions and how well the whole production process adjusts to these decisions.

                                     The decision tree analysis therefore can only be a guiding light for an organization or firm in taking measures that could bring in to effect the positive changes that the administration would like to inculcate in the organization. However, it cannot guarantee the success or best decision for the firm.