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Method of decision tree applied in adopting the decision for promoting a company

Journal: Annals of Spiru Haret University. Economic Series (Vol.15, No. 3)

Publication Date:

Authors : ;

Page : 47-56

Keywords : decision; decision-making methods; decision trees; information system;

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Abstract

The decision can be defined as the way chosen from several possible to achieve an objective. An important role in the functioning of the decisional-informational system is held by the decision-making methods. Decision trees are proving to be very useful tools for taking financial decisions or regarding the numbers, where a large amount of complex information must be considered. They provide an effective structure in which alternative decisions and the implications of their choice can be assessed, and help to form a correct and balanced vision of the risks and rewards that may result from a certain choice. For these reasons, the content of this communication will review a series of decision-making criteria. Also, it will analyse the benefits of using the decision tree method in the decision-making process by providing a numerical example. On this basis, it can be concluded that the procedure may prove useful in making decisions for companies operating on markets where competition intensity is differentiated.

Last modified: 2016-12-20 18:25:19