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

Adina Tofan ()

Annals of Spiru Haret University, Economic Series, 2015, vol. 6, issue 3, 47-54

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.

Keywords: decision; decision-making methods; decision trees; information system (search for similar items in EconPapers)
JEL-codes: C31 L61 M21 (search for similar items in EconPapers)
Date: 2015
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