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Decision Tree

Advantages

Disadvantages

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They set out problems cleary and encourage a logical approach to decision making.

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They encourage careful consideration of all alternatives.

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They encourage a quanitative approach that may improve the results and also means that the process can be computerized.

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They are useful when making tactical or routine decisions rather than strategic decisions.

_______________________________________They may lead to managers taking less account of important qualitative issues.

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They are less useful in relation to completely new decisions or problems.

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It is difficult to get accurate and realistic data in order to estimate probabilities.

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They ignore the constantly changing nature of the business enviroment.

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