Base120 · Decomposition
Decision Tree Expansion
Map choices and their consequences as branching paths
When to use
"Use when a decision involves multiple sequential choices with uncertain outcomes. Map the choices and consequences as a tree, with probabilities and values at each branch. Enables calculation of expected value for each path."
Example
"Build vs buy decision tree — build (success 70%, cost $500K; failure 30%, cost $800K) vs buy (success 90%, cost $300K; failure 10%, cost $400K). Expected value — build = $590K, buy = $310K. The tree makes the trade-off explicit."
Common misuse
"Drawing the tree without probabilities or values. A decision tree without numbers is a flowchart, not a decision analysis. The value comes from quantifying the branches."