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The Decision Tree
The square represents point at which management decisions have to be made. The black dot at the end of a branch represents finishing point of a sequence decisions. Circle represents point at which one of a number of outcomes may occur. One way shows that you are doing nothing. For example, not buying a fridge. You will save up 600 Ls. Other way shows that you are doing something. For example, you are buying a high quality fridge, medium or low quality fridge. You make some calculations, see that with this way you will save up 700 Ls and you find out that buying a fridge is more suitable and profitable to you than not buying a fridge, so making decisions you are speculating with your future.…
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