The Decision Tree Procedure

Abstract

In an interconnected world, decision-making has become increasingly complex and critical. This complexity is driven by a multitude of interconnected decisions and the rapid evolution of technologies and markets. Managers must navigate this landscape by quickly evaluating numerous options and selecting the optimal course of action, particularly in areas such as investment, financing, and production processes. Decision theory, a subfield of operations research, offers valuable insights and tools to address these challenges. By providing the theoretical foundations and practical case studies, this work gives a deeper understanding of the decision tree procedure to support decision-making.

The following presentation of the decision tree procedure has been developed at the Bonn-Rhein-Sieg University in Sankt Augustin, Germany, in 2020 under the leadership of Prof. Peren. It is based on scientific essays from Nihat Bucakli, Ute Faßbender, Nathanael Wilder, and Benjamin Hafemeister, which have been developed in the same course as years before.