Decision Trees — Structured Decision-Making

Decision tree analysis: a visual tool for making decisions with probabilities and expected value.

When to Use

✅ Good for:

• Business decisions (investments, hiring, product launches)
• Personal choices (career, relocation, purchases)
• Trading & investing (position sizing, entry/exit)
• Operational decisions (expansion, outsourcing)
• Any situation with measurable consequences

❌ Not suitable for:

• Decisions with true uncertainty (black swans)
• Fast tactical choices
• Purely emotional/ethical questions

Method