Definition of Decision Tree

A decision tree is a tree-like diagram in a flowchart structure where every node of the tree shows the test on any attribute or value, every branch that is originating from the node shows the results taken from the test and every leaf on the node shows the decision taken by the management against each test based on the results achieve, Through decision tree visuals, it’s easy for company management to make better decisions.


When a company is planning to launch a new product in the market, managers want to know what would happen to the product if they receive unsatisfactory feedback from the customers in 1st year of a product launch or how to maintain the demand of the product if satisfactory feedback is received in 1st year of product launch.


A decision tree has 3 nodes in it which give a clear picture to higher management.

  1. Decision nodes are represented as square
  2. Chance nodes are represented as a circle
  3. Endnotes are represented as a triangle

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