Decision tree analysis

Project management is full of decision making. Decision tree is a very simple tool to arrive at the right decisions. Decision trees are decision support tools that uses a tree like model of decisions and their possible consequences.

Let us analyse a hypothetical case of the impact of project management certification on a project managers income, so that he can decide whether to go for the certification or not.

From this decision tree, it is evident that the net benefit with a certification is 160000, where as without a certification it is 100000. Now it is easy to make the decision.

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